You saw the announcement on Bloomberg! Wall Street is applauding the news as the stock ticks upwards! Everyone is excited, but now the head-scratching work begins – how do I break out my SAP system and separate the divested data?
Divestitures are commonplace. What is not so common and often complex is how to manage the data according to the terms of the divestiture. The TSA (The Severance Agreement) typically defines what stays and what goes. A primary driver around the right approach and effort is the sensitivity of the data – what data do you want the acquiring company to see.
Helping some of SAP’s largest customers with divestitures we provide knowledge, expertise, and assurance that your divestiture happens in your timeframe.
The various approaches to divesting your SAP include:
• Clone and Go
• Data Masking
A carve-out is the most common approach for a divestiture. When you leave on Friday the divested company and related data is there. On Monday when you return, it’s gone; there is no trace of the divested company except an audit trail.
One example of a carve-out project we successfully completed on time while guaranteeing the results. A high-tech company had to delete all traces of the divested business. The carve-out included configuration, master data, and transactional data.
SAP Landscape Transformation (LT) is the perfect tool for this type of project. In this situation the data was organized at the Company Code level – the most straightforward approach ensuring a successful outcome on a tight timeline.
Not all divestitures are this straightforward, requiring more planning and effort. If the divested business was organized either above or below the company code, expect additional complexity, effort, and duration. For example, the business is organized across Profit Centers, Business Areas, Plants, or by global Business Segments, these models are inherently more complex.
Another business case, a global chemical company sold off a division to a competitor. The TSA required that ALL related data must be removed from the existing system. The selling company did not want their competitor accessing any trade or operational secrets.
However, after reviewing their landscape, data schema, and business processes it was determined the data was commingled at lower levels. For example, sales orders, deliveries, and invoices contained line items from the divested and retained business units guaranteeing a 100% deletion of all the data was not realistic or reasonable, e.g., deleting line items causes the header data to go out of balance with historical values such as amount, pricing, freight cost, weight, and more.
The line item details were needed to support the header information for compliance, audit, tax, and financial reporting purposes. After the TSA was revised several times, they engaged us to help finalize the agreement.
We met with the stakeholders including CIOs, CFOs, and attorneys for both companies and advised them on the realistic options, timeline, effort, and assurances based on our system analysis and comparable results we provided for other clients.
Our solution combined the best of LT’s capabilities plus some creative expertise of our own to deliver the system. The solution included plant reallocations i.e. change of ownership of plant from one company to another, deletions, and data masking to ensure all data was removed and confidentiality was not compromised.
The other options; Clone and Go, Transfer, and Data Masking, are dependent upon the nature of the divestiture. We have advised and guided some of SAP’s largest customers on the options and the right Roadmap on divesting, harmonizing, reorganizing, and consolidating their SAP environments – and we guarantee your transformation results!
Our clients have used our experience and capabilities to drive transformation projects, assessments, SAP Landscape Optimization (SLO) and Landscape Transformation (LT) workshops and training sessions.
If you want clarity, confidence, and assurance on how you can successfully transform your SAP Landscape, contact, Warren Norris at 972.679.5183 or firstname.lastname@example.org to arrange a call to help you with your SAP Landscape Transformation.