SAP AG (NYSE: SAP) and Aeroflot, the leading airline in Russia, today announced that they have started the second stage of an implementation of innovative technologies from SAP across Aeroflot subsidiaries, affiliates and subdivisions. The announcement was made today at a press event hosted by Vitaly Saveliev, Aeroflot JSC CEO, and Bill McDermott, co-CEO of SAP AG.
As part of the second stage, Aeroflot plans to complete the unification of the information systems and business processes and to centralize its IT processes. The new IT solutions are expected to help reduce costs significantly and improve operational efficiency. In addition, Aeroflot will adopt SAP solutions that are new to the Russian market, including:
A common implementation methodology for implementing SAP solutions in subsidiary companies, using the "one implementation, several replications" model, will help reduce the consulting services costs and provide common standards of support and development of IT solutions.
"The company envisions its development via the creation of a common information system ensuring well-coordinated and more effective operation of all units," said Saveliev. "The implementation of additional innovative SAP solutions in addition to the existing ERP system will give the airline a number of competitive advantages – operational, middle-term and strategic. Our purpose is to transform ourselves from the largest local player into a global network company. The purchase of new assets is always a painful process due to losses during the subsequent integration. A common IT platform speeds up this process and makes it maximally efficient."
"With this ambitious project, Aeroflot is setting a standard for technology innovation and operational excellence," said McDermott. "Under the leadership of Vitaly Saveliev, Aeroflot is already seeing the business value from its investment in increased reliability and safety and better experience for its customers. The customer-focused innovations we are introducing will be useful not only to Aeroflot JSC – Russian Airlines and SAP, but also to the broader air transport industry."
The first phase of implementation of the SAP ERP application began at Aeroflot JSC in 2009. As part of this effort, 11 projects were implemented in 18 months, including automation of such areas as bookkeeping and tax accounting, treasury, management accounting, international standards of financial statements, aircraft maintenance and repair and personnel management. The general contractor for the implementation was the consulting unit of SAP CIS. At present, more than 2,400 company specialists are working in the system.