In today’s dynamic business world, many companies face the challenge of having to represent business units as carve-outs or spin-offs in their IT systems for various reasons. A restructuring or consolidation of business units also poses the same challenges for a corresponding IT project.
All such transformation projects require careful planning and implementation, as they have a significant impact on the IT systems used – especially when comprehensively integrated systems like SAP ERP or SAP S/4HANA are deployed.
What does proper preparation and planning look like?
A successful carve-out begins with thorough preparation. In addition to the affected organizational units, associated business processes must be analyzed and redefined if necessary. The assignment of employees and their respective responsibilities also plays an important role. Without good change management from the very beginning, restructurings will not only fail due to IT.
Furthermore, the affected data and systems must be analyzed at the outset and appropriate measures prepared. Whether, in the context of a reorganization, a
- Cleansing,
- Standardization,
- Harmonization or
- Optimizations of data,
- systems or processes are carried out,
should be carefully considered.
Common cost drivers during implementation are compliance and reporting requirements if they are not clarified in advance.
Implement carve-out in SAP
What challenges can arise during implementation?
A decisive success factor for the technical implementation of a carve-out or a restructuring of organizational units in the SAP system is – as is often the case – good project management. Coordinated and realistic project planning, which must also consider organizational topics such as change management, is essential. This also includes good project communication – an often underestimated task.
On a technical level, data migration with all its facets is one of the main components of a carve-out project: Which data, when, how, and where – all of this must be clearly defined and technically implemented.
Few SAP systems operate in isolation. Therefore, interfaces to connected systems, such as warehouse, CRM, BI, or other systems, must be considered separately. Custom code, system enhancements, and modifications, if any, must also be examined to determine whether they are affected by the carve-out and need to be adapted.
Last but not least: Testing and Cut-over. These two final steps also require maximum attention to avoid problems during the technical transition and go-live.
A successful carve-out requires close collaboration between IT teams, specialist departments, and external partners or consultants. With proper preparation and a clear plan, companies can overcome the challenges and fully leverage the benefits of a new corporate structure.
XEPTUM possesses extensive project experience and expertise in all aspects of carve-out and restructuring projects. We would be pleased to support you with your carve-out project.
Contact us for a personalized consultation and learn how we can help you achieve your goals.
