Gaining Business Value from Sell, Buy, and ... - sap.com fileData Management & Landscape Transformation (DM&LT) group from the SAP Digital Business Services organization helps you

Gaining Business Value from Sell, Buy, and Restructure Scenarios

BenefitsSolutionObjectives Quick Facts

SAP Solution Brief SAP Digital Business Services | Data Management & Landscape Transformation

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Objectives

Benefiting from a smooth adaptation of your system landscapeCompanies seek to cut costs and optimize business operations in view of changing markets, complex business situations, and diverse legal and tax requirements. The Data Management & Landscape Transformation (DM&LT) group from the SAP Digital Business Services organization helps you improve business value in the context of mergers, acquisitions, divestitures, and corporate restructurings.

When facing increased globalization and the need for market agility, companies must continually adapt their portfolios to enable sustainability and growth. Whether your company is pursuing market leadership, synergies across an installed base, or economies of scale, it may engage in mergers and acquisitions (M&A) and divestitures to foster growth and realize benefits for shareholders. Often, legal or tax requirements drive internal reorganizations and require further optimization of business strategy. As a result, your company needs to adapt its IT landscape quickly and cost-effectively.

When adopting a proactive, market-oriented strategy, you may decide to:

• Acquire a new business • Divest a business unit or a company • Introduce shared-service centers • Stay compliant within the effective legislation • Optimize business operations

Executing such demanding business scenarios requires a global enterprise strategy and the realization of transformation objectives at the IT level.

Benefiting from a smooth adaptation of your system landscape

SAP Solution Brief BenefitsSolution Quick Facts

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Realizing mergers, acquisitions, and divestituresIT plays a major role in realizing mergers, acquisi-tions, and divestitures. M&A projects offer numer-ous rewards but also involve financial risk. While a well-planned and suitable approach to IT integra-tion improves business value, poor IT integration can lead to operational malfunction. For example, disrupting daily business may cause production outages or delayed orders. Ultimately, success depends on your company’s ability to meet all predefined business needs and handle the IT implementation effectively.

The complexity of M&A projects requires a suit-able IT solution (see the figure on the next page). For example, postmerger integrations offer differ-ent options, comprising a client transfer (resulting in a multiclient system), a client system merge (resulting in one central system), and the transfer of selective business objects (such as sales or purchase orders). By combining different data migration technologies with standardized meth-odologies and best practices, DM&LT provides experts who can help you realize your integration objectives.

Realizing mergers, acquisitions, and divestitures

Realizing corporate restructuring

Applying IT scenarios for sell, buy, and restructure

Considering IT scenarios for migrating to SAP S/4HANA

Completing your sell, buy, and restructure project

Solution BenefitsObjectives Quick FactsSAP Solution Brief

Profit from smart integration of new business into your system landscape.

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BenefitsSolutionObjectives Quick FactsSAP Solution Brief

Client 100

Client 100 Client 200 Client 300

Corporation

Corporation before IT integration

Corporation after successful IT integration

Acquired business

Client 200 Client 300

Company code 0700 Company code 0800 Company code 1900

Company A

System 1

New system x

Company code split

Client and company code transfer

Harmonization of naming rules Plant reallocation

System 2 System 3

Company B Company C

Company code 0700 Company code 0800 Company code 0900Company

code 0710

Figure 1: IT landscape meeting integration objectives

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Realizing corporate restructuring Every business-driven reorganization project results in major effects on the underlying IT land-scape. To generate value, your company must carefully evaluate all organizational changes and be sure to reflect those changes at the IT level. How you fulfill your restructuring scenario varies depending on your business requirements – such as legal and tax issues, organizational changes, or a complete redesign of your existing business.

To qualify and decide on the most suitable IT approach, you need to understand your IT options. Involving all functional departments in the business evaluation helps to ensure seamless interaction with IT and to support a smooth inte-gration of all software applications in use, such as controlling, sales and distribution, and supply chain management.







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Applying IT scenarios for sell, buy, and restructure A broad portfolio of DM&LT solutions enables dif-ferent data transformation scenarios on various SAP® solutions. Solutions include SAP S/4HANA®, the SAP ERP application, the SAP Customer Relationship Management (SAP CRM) application, the SAP Supply Chain Management (SAP SCM) application, and more. Reorganization scenarios differ according to the type of adaptation and affected organizational structures. We differentiate between merge, carve-out, and split scenarios (see the figure on the next page):

• Merge – Different organizational units, such as company codes or controlling areas, may be merged within an existing system or migrated to a new system.

• Carve out – You may use different approaches to extract data from your system. Like plants, sales, and purchasing organizations, organi-zational units can be carved out or relocated, but often the transformation takes place at the company-code level. For example, in a clone-and-delete approach, you create copies of source and target systems and then delete irrelevant company codes, thus splitting the company codes between two systems. In a company code–transfer approach, you extract specific company codes into the target system.

• Split – The company-code split can serve any kind of split criteria such as material num-ber, cost center, and so on. Depending on the scenario, the split may be performed within an existing system or into another system.







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Client







Client

Company code

Before merge After merge

Plant Plant

Company code

Plant Plant Plant

Source a business unit

Carve-out of a business unit (clone and delete approach)

Divestment of a sales unit (company code split and plant reallocation)

Source system System copy Target situation

Divested a business unit

Company code

Company code

Company code

Plant

Company code Company code

Plant Plant

PlantPlant

Company code

Plant

Deletion of irrelevant company codes

copy1

2Sales

organiza-tion

New sales organiza-

tion

Company code 1

Plant 1Plant 1 Plant 2

Company code 1

Sales organiza-

tion

Source situation

Company code 2 (new)

Plant 2

Figure 2: Different IT scenarios based on mergers, divestments, and restructuring

Client

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Considering IT scenarios for migrating to SAP S/4HANAWhile carrying out your sell, buy, and restructure project, look to innovative technology like SAP S/4HANA. The DM&LT team can support you in the context of the following scenarios:

• Migrating to SAP S/4HANA while setting up a joint venture – When you set up a joint ven-ture and establish a new system landscape, SAP S/4HANA can become your target environ-ment. DM&LT brings the data from both sides of the joint venture to the new software with minimal disruption to your daily business.

• Migrating while acquiring a new line of business – After acquisitions, newly acquired businesses may already run on their own instance of SAP S/4HANA. To minimize total cost of ownership, you can move your existing business into the SAP S/4HANA suite. This

helps standardize operations and financials within your company, contributing to the overall performance of your business.

• Setting up a central finance foundation – As a result of different mergers and acquisitions, you may have a lot of systems with decentral-ized financial reporting. With the SAP S/4HANA solution for central finance foundation, it is possible to bring the financial data from all your systems into one place and gain a general overview of your company’s overall financial performance. Central finance fetches the data from all relevant sources into a single reporting framework.







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Completing your sell, buy, and restructure projectThe DM&LT group offers a comprehensive set of service offerings that cover all phases of sell, buy, and restructure projects – from planning and blueprinting to implementing and going live. During the planning phase, our team performs a premerger or divestiture assessment that helps you fully understand all IT requirements, including process limitations or issues related to your business data. The assessment estimates costs, realistically defines planned objectives, clearly assigns resources, and details a plan for all IT transformation activities.

During the planning phase, the team defines a migration scenario, followed by an implementation that includes several test cycles using an updated copy of the production system.

After the final test cycle, the migration scenario runs in your production environment, integrating or carving out entire businesses into and from the new corporate structure. This stage can require extensive efforts to harmonize data and business structures, including the local chart of accounts, customer numbers, product hierarchies, and fiscal year changes. Making changes at a data-base level means system downtime. And since the production environment must be locked against all other activities, the production conversion usually takes place on a weekend to affect daily business as little as possible.







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Obtaining expertise from SAP for IT transformation projectsThe DM&LT group provides a high degree of stan-dardization combined with flexible adaptation to meet your company’s specific needs. For all ser-vices, our experts use proven methodologies and software-based technologies. For the diverse de-mands of sell, buy, and restructure projects, no “one size fits all” approach exists. An up-front strategy assessment is key to meeting all your transformation requirements.

The DM&LT group uses a comprehensive service suite that addresses transformation requirements for your SAP solutions.

The group performs initial analysis, which consists of calls and workshops to discover and discuss options including effort, cost, and timeline re-quirements at an early project stage. Prior to the transformation in the production system(s), the group performs multiple test conversions for each project to help ensure data security, consistency, and integrity.

For recurring, less-complex transformation needs, the DM&LT group offers SAP Landscape Transformation software. This software provides a highly standardized set of solutions for the SAP ERP application, and it enables you to plan, analyze, sequence, and realize projects on your own.

Obtaining expertise Obtaining expertise from SAP for IT transformation projects


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Quick FactsBenefitsSolutionObjectivesSAP Solution Brief

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SummaryThe Data Management & Landscape Transformation (DM&LT) group from the SAP Digital Business Services organization provides services that help you integrate new acquisitions or divest parts of your company. The group helps your company adapt its IT landscape to reflect a new organiza-tional structure. Objectives

• Integrate a new acquisition and simplify the existing system landscape

• Execute different IT divestment scenarios quickly and cost-effectively

• Reflect changes from business reorganizations in the IT landscape

• Comply with legal and audit requirements

Solution • Initial assessment of IT requirements using a sell, buy, restructure approach

• Proven standardized methodologies and software-based technologies

• Scenario-based, comprehensive services for acquisitions, divestitures, and restructuring projects

Benefits • Sustained, undisrupted business operations using the know-how of SAP® solution experts during the realization phase

• Reduced maintenance and project costs thanks to the intelligent use of services and careful design of the target landscape

• Minimized risk and compliance with legal requirements through offerings from the DM&LT group

Learn moreTo find out more, visit us online at https://support.sap.com/dmlt or e-mail us at [email protected].

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https://support.sap.com/dmlt

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Gaining Business Value from Sell, Buy, and ... - sap.com fileData Management & Landscape Transformation (DM&LT) group from the SAP Digital Business Services organization helps you