MegaFon and SAP CIS sign memorandum on first implementation at Russian company of next generation it system

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leading Russian telecommunications company MegaFon and SAP CIS, the leader on the enterprise applications market have signed a memorandum on strategic partnership envisaging the first implementation in Russia of the cutting edge SAP S4/HANA IT system.

The cost of system implementation, including acquisition and installation, which will also involve replacing server equipment, will be approximately 1.5 billion rubles over three years.

Over the coming three years the companies will work together on MegaFon’s digital transformation. This business transformation includes implementation of the cutting edge S4/HANA suite. The project will involve re-engineering MegaFon’s ERP system and reorganizing and simplifying existing business processes. For example, the company will implement a highly automated management system for technical maintenance and servicing of network equipment, which is expected to ensure cost savings thanks to more rational planning and resource assignment. One of the notable results of system implementation will be the switch to using the more modern and convenient Fiori-based user interface.

MegaFon and SAP will also develop new products and train staff in areas such as customer experience management, business profitability analysis using Big Data, staff management, modernization of interfaces and mobile solutions, technical maintenance and repair and also the Internet of Things. Project support will be on a contract basis using premium SAP Active Global Support services and custom solutions from SAP Consulting.

“MegaFon offers its clients innovative telecommunications solutions for business and life and uses cutting edge technologies and IT systems. We have been working on the previous generation SAP system for about 15 years and have 7,000 employees registered across the whole of Russia in the system. About 200,000 documents are created daily. For us it’s important to increase the number of processes that are automated so we can reassign staff to more complex tasks. S4/HANA system implementation is one of the steps that will allow us to be faster, more effective and transparent,” said Sergey Soldatenkov, acting CEO, MegaFon.

“In an environment of growing competition and continuing pressure on the Russian economy, it’s very important to optimize business processes, particularly by making IT infrastructure more effective and flexible,” said Pavel Gontarev, CEO, SAP CIS. “We are pleased to continue collaboration with MegaFon and hope that our partnership will help the company find new growth reserves for further business development.”

About SAP S/4 HANA
SAP S/4 HANA is the new version ERP system for enterprise resource management, based on the cutting edge SAP HANA in-memory platform. The S in the name SAP S/4 HANA stands for Simple. The suite makes it possible to execute business tasks that were previously much more difficult due to the technology not being sufficiently developed or the sheer amount of staff hours required. SAP’s experience of implementing the system around the world has found that, on average, system implementation makes financial closing procedures 30% less labor intensive and transaction processing twice as fast, reduces staff hours spent on money management by 10% and means 20% less time is spent on creating new reports.

About MegaFon
MegaFon PJSC is a leading Russian integrated telecommunication service provider, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Stock Exchange and the London Stock Exchange under the ticker MFON. Additional information about MegaFon and its products and services can be found at www.megafon.ru.

About SAP CIS
As the market leader in enterprise application software, SAP CIS helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 310,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com or www.sap.ru.