The international IT system rollout in Russia – Yes, we do

Are you working for an international company and planning to open a subdivision in Russia? Alternatively, are you going to include Russian subsidiary in your IT landscape, ensuring accordance with the Russian and international accounting standards? We can conduct professional rollout of corporate IT solutions, which work in the head office of your company on Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics CRM and IBM Cognos.

You need

  • Transparency and controllability of business processes in all countries and regions
  • Automation in the Russian subsidiary using corporate solutions, which are successfully working in the head office
  • Interconnection of the head office’s and subsidiary’s IT systems
  • To unify Russian subsidiary’s IT systems with corporate standard
  • To adapt the solution to Russian accounting reporting and tax records

How to make a successful rollout project?

It is very important to meet the requirements of the head office to make a successful project. Only under such circumstances 100% unification of business processes can be achieved. This way the subsidiary will work effectively according to corporate standards. In addition, the head office will be able to control and correct subsidiaries’ activity.

At the same time, we cannot just transfer international company’s system to the Russian subsidiary. We must adapt the system to the Russian standards and business processes, which are influenced by accounting, tax and other regulations.

We understand that this is important to reach a compromise between the desire of an international company to maintain the original solution and the necessity to adapt the system to the Russian standards and particularity. The ability to define what is necessary and explain it to the customer is one of the main success factors in the rollout projects.

The ability to harmonize and give reasons in the big international team is one more challenge. It is important that all project participants have the experience working with the solution, understand and accept work features both in the international and Russian companies, and easily overcome socio-cultural and corporate differences in communication.

The basis of a successful project is the correct implementation methodology, which evolves during similar project implementation. If you do not want to learn from your bitter experience, you should look for an experienced team!

Navicon – your trusted partner in IT system rollouts in Russia

What is included in the cost of a rollout project?

The cost of implementation in the head office and the cost of a rollout project in the other country will be different. It is important to accept that the cost can be higher and the project can be longer because of complex project team organizational structure and additional stages in solution adaptation.

Even if you own a solution, which was once localized for another foreign subsidiary, it needs a lot of work for localization in Russia, as it is significantly different from localization in Europe because of frequent changes in the legislation.

Operation logic of Microsoft Dynamics AX and Microsoft Dynamics NAV is a bit different because of local legislation requirements. For example, international accounting standards are different from Russian accounting standards. To choose an optimal way to receive both types of reporting is the key task for a Finance Department.

In Navicon we developed a rollout project methodology, which helps to optimize project terms and be sure of its results. We give much attention to transfer knowledge process, doing which we examine thoroughly the features of your solutions. Moreover, at the first stages of the project we always conduct the GAP-FIT sessions, which we use to determine how we can cover all the specific processes with the current solution and localization. GAP-FIT analysis is a laborious process that we use to define, which changes we should make to localize the solution successfully. In addition, we assess the importance and value of changes for the Russian subsidiary. Thanks to this process, we can precisely define project terms and costs, as well as mitigate risks of enormous budget increase and long implementation process.

Main project stages

  • 1
    Diagnostics.
    We research business processes in the Russian subsidiary
  • 2
    Gathering.
    We collect functional requirements
  • 3
    Transfer knowledge + methodology.
    Meeting with the core team to be aware of the solution
  • 4
    Gap list.
    We gather gaps between two systems
  • 5
    Gap fit.
    We calculate ROI
  • 6
    Gap arbitration.
    Harmonization and approval. Precise calculation of project terms and costs
  • 7
    Designing of the local solution
  • 8
    The local solution implementation
  • 9
    System launch

The checklist for the right IT partner

  • 1
    Knowledge of accounting reporting, management and tax records
  • 2
    Good knowledge of the systems and experience in its implementation (more than 5 implementations on the platform)
  • 3
    Understanding of the working processes in Russian companies (more than 5 IT projects in Russian companies)
  • 4
    Core solution implementation experience in the international projects (more than 2 projects in the international companies)
  • 5
    Upper-intermediate level of English in the local IT team
  • 6
    Experience of working on the projects with consulting companies

Vocabulary

  • Rollout - Implementation project of automation solution, in which the local partner makes the localization of the global solution developed by the main partner. The local partner takes into consideration legislation and local subsidiaries’ requirements.
  • Core solution - Base solution, implemented in the automation system. This solution is adapted for local subsidiaries in the rollout project.
  • Local solution - The solution, which is an adapted version of the global solution (core solution) after the rollout project in the local subsidiary. Sometimes the local solution of one subsidiary can become the base solution for the other subsidiary.
  • Core team - The implementation team, which consists of the main partner’s professionals and/or its contractors, which develops, changes and supports the global solution (core solution).
  • Core partner - The main partner, which is responsible for development, change and support of the global solution (core solution).
  • Local team - The implementation team, which consists of the local partner’s employees and/or its contractors, which develops, changes and supports the local solution based on the core solution during the rollout project.
  • Core partner - The main partner, which is responsible for development, change and support of the global solution (core solution).
  • Local partner - The local partner, which is responsible for development, change and support of the local solution based on the core solution during the rollout project.
  • FRD - The document, which includes formalized Customer’s requirements to the system.
  • GAP\FIT - The process of comparing Customer’s functional requirements to the current system functionality to find the gaps. The GAP list is created according to the results of the project.
    It is used in both implementation and rollout projects. It is considered that standard functionality in the rollout project is the functionality of the core solution.
  • GAP-list - The detailed list of requirements to the automation system, which are not covered by the present core solution functionality. It can be further implemented in the local solution and transferred to the core solution.
  • Security configuration - A set of rules, which are used to determine user functions in the system, including visibility settings and data change.
  • ROI (Return On Investment ) - The figure, which shows the revenue of investment (if it is more than 100%) or the loss (if it is less than 100%) taking into consideration the definite amount of money invested in the definite project. During the gap arbitration, it can be considered an objective criterion whether to implement or not to implement the functionality. The calculation is based on the assessment of labor costs and potential cost reduction, which will be achieved by implementation and reduce of user and IT support workload, etc.
  • GAP arbitration - The process of harmonization and realization of requirements, which are not covered by current functionality among the local, global partners and the customers, including delegation of responsibility between the local and global partners.
  • Transfer knowledge - The process of concept, knowledge and documentation transfer about the core solution from the core team to the local team for further investigation and rollout. It is conducted as one or two week workshops.
  • Merge - Technical process of transfer and adaptation of changes from the core solution to the global solution. It can be made by both local and core team.

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