Implementation of OntargIT HR & Payroll Based on Microsoft Dynamics 365 Finance & Operations in the IDS Ukraine

ids ukraine

The modern market requires businesses to be flexible and technologically skilled. In an effort to strengthen its position and enhance efficiency, IDS Ukraine — a leading producer of mineral and drinking water in Ukraine — has continued its digital transformation journey by implementing the HR & Payroll module.

Solution

OntargIT HR & Payroll

Mineral Water and Social Responsibility: The Story of IDS Ukraine

The structure of IDS Ukraine includes a number of companies, the largest of which are the Morshynska Mineral Water Plant “Oscar”, the Myrhorod Mineral Water Plant, the distribution company “IDS”, etc. These companies ensure extensive product representation in retail chains and organize water delivery to homes and offices.

IDS Ukraine is not just a company; it is primarily a story about people. Behind the leading market position lies the enormous work of over 3,000 professionals who make efforts every day to achieve the company’s mission statement.

Since the beginning of the full-scale invasion, IDS Ukraine’s charitable contributions have reached 550 million UAH. The company also systematically delivers millions of liters of water to defenders and hospitals as well as finances support for military rehabilitation programs and assistance for Armed Forces personnel.

To handle the challenges of the times and continue to remain a reliable partner to society in the most difficult periods, IDS Ukraine made a complex decision to implement an ERP system. The complexity of this decision lies in the fact that IDS Ukraine began the transition to a new ERP at several enterprises of the group at once, and after a full-scale invasion.

IDS Ukraine Chooses Microsoft Dynamics 365

 

Despite already holding a leading position with a 40% market share, the company realized that further growth required a new level of systematicity. New tools would provide sufficient flexibility, the ability to quickly adapt to changes in the surrounding business environment and bring internal processes even closer to international standards.

The scale of the company’s activities involves dozens of internal stages that require accuracy, stability, and transparency. That is why IDS Ukraine made a strategic decision to start a project to implement a new ERP system by creating a digital model of HR process management, which would improve:

  • unification of HR processes and payroll calculation;

  • automation of personnel administration and calculations;

  • integration of HR with corporate IT infrastructure.

So, IDS Ukraine chooses the HR & Payroll ISV solution, based on Microsoft Dynamics 365 Finance & Operations from OntargIT.

When selecting a partner company for the implementation of the Microsoft solution, IDS Ukraine applied the following criteria:

  • availability of Ukrainian localization;

  • presence of certified Microsoft partners in Ukraine;

  • compliance with the company’s high standards of information security, including the protection of corporate and personal data

OntargIT is a consulting group specializing in the implementation and support of Microsoft Dynamics 365 (ERP & CRM) and Power Platform solutions. The company has been operating since 2009, has extensive project experience, and holds the status of Microsoft Gold Partner.

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Thus, to implement the project, IDS Ukraine engaged OntargIT — a certified Microsoft partner and one of the leaders in delivering Microsoft Dynamics 365 Finance & Operations in Ukraine.

Implementation process of the HR & Payroll module for IDS Ukraine

The implementation of the OntargIT HR & Payroll solution at at three enterprises of the IDS Ukraine group (two production plants and one distribution company) lasted 9 months — from April 2024 to January 1, 2025.

OntargIT conducted a detailed analysis of IDS Ukraine’s IT to determine the optimal path for implementing Microsoft Dynamics 365 Finance & Operations. During the work, all key aspects were taken into account — from the specifics of production processes to internal communications and project management.

The implementation process included the following stages:

  • Business Process Analysis. At this stage, the project team, together with company representatives, thoroughly examined current processes of personnel recordkeeping, time tracking, and payroll calculation. Particular attention was paid to differences between enterprises and opportunities for unifying processes within the new ERP system.
  • Business Solution Design and Prototype Development. Based on the analysis, a target model of business processes was created, and the architecture of the future solution was developed. At this stage, the team prepared a prototype of the future system, which made it possible to align expectations, test hypotheses, and adjust approaches to customizing the standard configuration.

  • Development of Modifications and Configuration Setup. The necessary system configurations were implemented, and specialized functional components were developed to meet the specific requirements of IDS Ukraine.

  • User Training. The implementation of a modern ERP system required not only a technical replacement of the tool but also a transformation of user mindset and habits. The project team faced the need to:

    • enhance the understanding of business owners and key users regarding the operation of the new ERP system;

    • engage company specialists in active testing and in making methodological decisions;

    • restructure organizational approaches and internal departmental regulations to operate based on Dynamics 365 standards.

  • Final Testing (User Acceptance Testing). The project team thoroughly tested the system’s functionality for compliance with requirements and design. During testing, all key scenarios were executed, functional deviations were identified and corrected, and integration with other systems, including Active Directory, was verified.

Active Directory (AD)

is a Microsoft directory service used to store data about users, computers, and other corporate network objects, as well as to centrally manage them. AD provides authorization and authentication, helps administrators assign access rights, apply unified rules and settings (group policies), and maintain a high level of network security.

Integration of the HR module with the corporate Active Directory enabled:

  • automatic synchronization of employee personnel records;
  • ensuring data relevance in real time;
  • enhancing information security and access control to the system;
  • reducing the workload on HR departments and IT specialists through the automation of routine tasks.

  • Go-Live. As of January 1, 2025, the new system was put into production operation simultaneously at three enterprises of the IDS Ukraine group. Thanks to the team’s preparedness, conducted training, and quality support, the launch was successful and without critical failures.

“We met the set deadlines, which in itself is already a good evaluation. Now we are observing the alignment process. Microsoft Dynamics 365 Finance & Operations is not just another software. It is a new business logic. And often it requires effort not only in the technical component but also in the team’s adaptation to the new software. Therefore, it is important that our specialists have the opportunity to turn to the OntargIT team for prompt responses to colleagues’ requests,” noted IDS Ukraine’s IT Director, Viktor Borovkov.

IDS Ukraine’s IT Director, Viktor Borovkov

Thus, the team managed to meet the planned deadlines, confirming the high quality of planning, coordinated interaction between the parties, and the effectiveness of the chosen implementation methodology.

The HR & Payroll integration project at IDS Ukraine became an example of how modern technologies can transform even complex and large-scale business processes. Thanks to competent planning, coordinated teamwork, and strict adherence to deadlines, OntargIT succeeded in delivering a solution that combines Microsoft’s global standards with the local specifics of the Ukrainian market.

This case confirmed that OntargIT has the expertise and resources to successfully implement complex ERP projects. The company demonstrated itself not only as a technical integrator but also as a partner capable of supporting business in digital transformation at a high level.

Adaptation of Microsoft Dynamics 365 Finance & Operations to IDS Ukraine’s Business Processes

For the successful implementation of Microsoft Dynamics 365 Finance & Operations with the HR & Payroll module from OntargIT in the IDS Ukraine group of companies, the system’s standard configuration was adapted to the specific requirements of the business.

A number of modifications were implemented within the project:

  • Centralized Management of Structure and Staffing Positions for Three Legal Entities. 

    A distinctive feature of this project was the parallel implementation of the new system across three legal entities, which had certain differences in calculation methodologies and accounting regulations.

    For convenient and centralized management, the following configurations were implemented:

    • organizational structure of all enterprises within a single system;
    • staffing positions based on a unified directory and interconnections within the group of companies, which ensured end-to-end transparency and unification of HR processes.

  • Customization of the Bonus and Incentive Subsystem.

    In accordance with the current employee motivation calculation scheme, a dedicated functionality was developed, which enabled the automation of this process in the new system. The main areas of enhancement included:

    • development of new tools for managing “Bonus Indicators” and “Motivation Schemes”;
    • linking “Bonus Schemes” with the staffing plan;
    • the ability to upload source data from other systems monthly, followed by automatic calculation of bonus and incentive amounts.

  • Customization of Working Time Tracking.

    To increase flexibility in managing employee work schedules, the following improvements were implemented:

    • the ability to promptly adjust individual schedules directly within the “working time sheet” form;
    • automatic generation of a printed form “order to change the schedule” aligned with the company’s internal document workflow.
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HR & Payroll in Action: First Results of IDS Ukraine’s Digital Transformation

As part of the digitalization program of the IDS Ukraine group of companies, the implementation of the ISV HR & Payroll solution was carried out as a pilot project at three key assets of the group:

  • Myrhorod Mineral Water Plant

  • Morshyn Mineral Water Plant

  • IDS Ukraine Distribution Company

These enterprises were selected as the initial phase of implementation due to their large-scale accounting operations and the critical importance of timely calculations.

The project made it possible to test the new ERP platform and its localized version based on the HR & Payroll solution, as well as to confirm the effectiveness of the chosen implementation methodology.

Within this pilot project, the group of companies was able to establish a unified approach to personnel recordkeeping and payroll across several enterprises using the new ERP system.

The successful implementation of this pilot project enabled companies to fully decommission the previous accounting system that had been used for personnel recordkeeping and payroll. Thus, both technical and organizational consolidation of processes was achieved within the new ERP platform.

According to the digital transformation roadmap of the IDS Ukraine group, the next stage is the launch of this configuration into production operation at another major enterprise of the group — the retail company IDS Aqua Service. This will be a logical continuation of scaling the ERP solution across the entire group, ensuring a unified approach to managing HR & Payroll processes based on a modern, internationally recognized ERP platform.

In addition, the further digital transformation strategy of the IDS Ukraine group envisions expanding the implementation of the Microsoft Dynamics 365 Finance & Operations ERP system across the entire group, with the goal of covering production and accounting processes of all enterprises, including all critical business functions (production, logistics, procurement, finance, reporting) on a unified platform.

“In the second quarter of 2025, a standard production ERP configuration was also created at the Myrhorod Mineral Water Plant. It covers processes of planning, production, logistics, sales, accounting, and tax reporting, and is integrated with an external planning system. This configuration became the baseline model for further replication across the entire IDS Ukraine group. The next step is the implementation of ERP at the Morshyn Mineral Water Plant ‘Oscar’. This is planned for 2026. The full transition of all enterprises will be completed in 2027,” — adds Viktor Borovkov.

Expert Opinion from OntargIT: Successful Adaptation of HR & Payroll for IDS Ukraine to the Ukrainian Market

Based on our experience in implementing ERP projects in different countries, we can confidently state that the system introduced in the IDS Ukraine group of companies is a strong example of adapting the global Microsoft Dynamics 365 Finance & Operations platform to the conditions and specifics of the Ukrainian market.

The HR & Payroll implementation project was carried out with consideration of regional legal requirements, HR practices, and the organizational specifics of IDS Ukraine.

The key advantage of this project was that all adaptations and functional extensions were implemented:

  • within the standard architecture of Dynamics 365 F&O;

  • using best practices for ERP functionality development and adaptation.

“The success of this project once again confirmed: when a company has a clear vision and readiness for change, Microsoft Dynamics 365 can create a new level of operational efficiency and transparency of business processes. Together with IDS Ukraine, we built a flexible, scalable platform that takes local specifics into account and meets international standards. For our team, this is not just a project — it is a partnership aimed at long-term development”, – adds Volodymyr Svyrydenko, CEO of OntargIT..

 Volodymyr Svyrydenko, CEO of OntargIT..

As a result, the solution remains scalable, maintainable, and compatible with future platform updates, opening opportunities for further development — both at the IDS Ukraine group level and regionally.

Thus, the HR & Payroll solution from OntargIT successfully combines local specifics with an international approach, demonstrating how to effectively leverage a modern ERP platform in the context of a national market.

IDS Ukraine — A Driver of Digital Change in the Mineral Water Market

IDS Ukraine demonstrated a high level of maturity, strategic thinking, and readiness for digital transformation by implementing a complex and technically advanced HR & Payroll module.

The project implementation was facilitated by the following factors:

  • The proactive stance of management and internal teams enabled not only the efficient integration of the new system within tight deadlines but also the transformation of approaches to personnel management.

  • The bold decision to implement the system simultaneously at three enterprises is an example of a modern approach to scaling business processes.

  • Successful user adaptation and active involvement of HR specialists in requirements definition and testing are further evidence of an internal culture of effective transformation.

  • Flexibility in change and adherence to deadlines reflect strong internal discipline and accountability for results.

The IDS Ukraine project is more than internal optimization — it is an example for the entire industry. It demonstrates that even traditional sectors such as mineral water production can be effectively transformed through modern digital solutions, creating new standards for efficiency, quality, and customer-centricity.

It also shows how a company with Ukrainian roots can implement ERP projects at the level of international standards, turning digital tools into a real competitive advantage.

Upgrade your business strength with Dynamics 365

OntargIT is an official Microsoft partner for the implementation of Dynamics 365 technologies. With our experience in various industries, we will provide an individualized approach and effective solutions that will perfectly meet the needs of your company. Leave a request now, and our team of experts will help you take advantage of all the benefits of Dynamics 365.

Upgrade your business strength with Dynamics 365

OntargIT is an official Microsoft partner for the implementation of Dynamics 365 technologies. With our experience in various industries, we will provide an individualized approach and effective solutions that will perfectly meet the needs of your company. Leave a request now, and our team of experts will help you take advantage of all the benefits of Dynamics 365.