Nornickel won the gold award in the Business Transformation Category at SAP Quality Awards — 2019 in the CIS region for its efforts to roll out SAP ERP across its operations in the Norilsk Industrial District. This is Nornickel’s largest business automation project and one of SAP’s largest Russian projects in terms of organisational and functional scope. SAP’s prestigious award for the most successful projects implemented in Russia was presented at SAP Forum Moscow, the largest annual SAP business forum in the CIS, on 17 April.
“We are honoured to receive such a prestigious award. This is a real sign of recognition by the professional community,” said Sergey Malyshev, Nornickel’s Senior Vice President and CFO, at the award ceremony. “We attribute the success to the concerted efforts of the whole Nornickel team — strong and skilled professionals who currently shape the transformation agenda at Nornickel.”
“We congratulate Nornickel that has deserved this victory. The gold of SAP Quality Awards is the acknowledgement of the highest professionalism in rolling-out SAP solutions up to the world-class standards. Neither severe climate, nor geographic distribution of Nornickel’s assets prevented us from launching the system,” added Alexey Leontovich, Deputy CEO of SAP CIS.
He stressed that the most complicated thing about business transformation projects is the change of business processes, management quality and culture, as well as employees’ perception of tasks assigned. Nornickel does well in handling these challenges. “We will continue to develop new projects and join our efforts to create and implement multiple innovative practices in the metal and mining industry,” said Alexey Leontovich.
Since January 2019, SAP ERP has been in successful operation at all facilities of Nornickel’s Polar Division, at Norilsknickelremont and Medvezhy Ruchey. The unified management system covers some 50 assets and business units, including Copper Plant, Nadezhda Metallurgical Plant, Talnakh and Norilsk concentrators, seven mines, centralised storage facilities, etc. ERP roll-out involved over 2,000 people and was implemented in the Norilsk Industrial District in some 18 months. Previously, the unified management system was successfully launched at Nornickel’s Head Office, Kola region facilities, and Normetimpex. The Company also received gold at SAP Quality Awards — 2018 in the Fast Delivery category for rolling out SAP at Bystrinsky GOK in less than four months.
The launch of SAP ERP in the Norilsk Industrial District provided both a cutting-edge platform for business management in the area and integrated business processes of Taimyr assets with those of Nornickel’s production facilities and subsidiaries in the Murmansk Region and Trans-Baikal Territory as well as with the Head Office in Moscow. The Company’s operations in the Norilsk Industrial District are now part of production and integration chains of Nornickel Group as a whole. SAP solutions provide the management with both automation tools for day-to-day operations and analytical solutions to boost operational efficiency.
“With the launch of SAP at our facilities in Norilsk and Talnakh, we achieved an important strategic milestone, incorporating the whole production chain of Nornickel into a single operating model powered by a centralised ERP platform,” said Alexey Kovtunov, Director of Transformation Project Office at Nornickel. “People of Norilsk have demonstrated that they can deal with the most ambitious tasks by simultaneously launching new business processes for more than 6,500 users or even for more than 7,000 users if we include the SAP launch at our gas assets as well.”
Nornickel has been rolling out the target SAP ERP-based business processes at all its production facilities and subsidiaries since 2014. SAP combines data on production, asset management, capital construction, procurement, sales, logistics and budgeting, as well as all contractual, financial, and economic cash flows. SAP ERP is Nornickel’s true digital core exchanging data with over 20 other information systems. SAP ERP helps foster and establish a unified management model for standardised business processes and typical business roles, provides the management with operational and analytical data, and ensures business process migration to the cross-functional Shared Services Centre.
Nornickel plans to complete the deployment of the SAP ERP-based core automation pack by 2022. In parallel with the final roll-out phase, the Company continuously improves the business template functionality. In 2019, Nornickel commenced the elaboration of architecture powered by SAP’s latest products, including SAP S/4HANA and SAP Leonardo.