Sergiy Detyuk: Metinvest Digital manages a portfolio of 100 digital transformation projects

 — Metinvest is the largest company in the MMC of Ukraine. How large is the digital transformation program implemented by Metinvest Digital as a business partner?

— The scale of Metinvest Group's business requires an appropriate approach to the digital transformation strategy. It covers more than 30 enterprises in Ukraine, Europe and the USA with a total number of 80 thousand employees. The transformation covers key business areas: manufacturing, finance, procurement, logistics, personnel management, sales, business intelligence, etc. Metinvest Digital manages a portfolio of about 100 digital transformation projects annually. In addition, every year we ensure the implementation and execution of more than 400 business applications to improve the functionality of previously implemented IT systems.

How is the management process for such a massive digital transformation program structured? 

— We have built an end-to-end process from the formation of needs to their design into projects with subsequent implementation and support. With each asset and functional area, we interact at the Business Engagement level, within which account managers are responsible for shaping digital initiatives for clients. Next comes the Solution Delivery level. It includes PMO and R&D responsible for all projects and innovations. At this level, the development and implementation of projects is carried out in the context of the approved scope, implementation perimeter, KPIs and resources, as well as change management according to the ADKAR methodology. Then - operational functions, the Operations direction, aimed at supporting and developing the implemented solution.

Which of the recently implemented projects could you cite as examples of successful transformation?

— The implementation of an electronic procurement platform based on the SAP Ariba solution at eight enterprises of the Group has increased the transparency of the process, reduced routine operations and optimized the procurement budget by up to 10%. This is tens of millions of dollars in economic benefits. Recently, we completed the largest project in Ukraine for the migration of IT infrastructure to the Microsoft Azure cloud platform. In a ten-year perspective, the transition to the cloud will save Metinvest about $ 3 million. The HR function is being actively transformed. The implementation of the SAP SuccessFactors goal setting and performance management system will allow the company to reduce costs in this area by $ 2 million in a five-year period. We also recently completed the first stage of the digital transformation of the sales function in the Swiss trading company MISA based on SAP Sales Cloud and SAP CPQ solutions. In addition, we built the largest corporate unified communications system and automated the process of managing employee offers at 14 enterprises.

What projects are on the priority list for this and the coming years? 

— Preparations for the launch of the Digital Quarry pilot project at the Ingulets GOK are nearing completion. It assumes full automation of the mining and transportation complex redistribution from the drilling stage to the crushing process. In fact, we are working on creating the first digital twin in Metinvest Group. Currently, strategically important projects for the company are being implemented on planning and optimizing the movement of metal products and iron ore raw materials in the ports of Ukraine, Data Governance data management, forecasting prices for commodities and materials, pilot projects for the implementation of planning and production management systems MES.

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