Carving out of a business unit in SAP system with SAP Landscape Optimization (SLO)

Key challenges

Our client operated its business using the SAP landscape and sought to seamlessly integrate their acquisition of one business unit (Company Code) by a global leader in specialty chemicals. To ensure a smooth acquisition, it needed to conserve the integrity of SAP data and enable immediate access to transactional data for the acquiring company.

With three separate company codes representing unique organizational entities or divisions, the client encountered complexity in streamlining processes and struggled to eliminate redundant initiatives. The migration of extensive data posed a challenge, requiring careful handling to prevent downtime and business disruptions.

Faced with an acquiring company from a different geography, the client grappled with right-sizing operations and harmonizing their IT systems. This effort aimed to ensure precision in legal and financial reporting.

Client in spotlight

Our client is a prominent manufacturer based in the USA, specializing in petrochemicals, glass, and gasses. Established in 2013, the company excels in high-margin specialty applications and caters to a global clientele across diverse market segments. These include electronics, energy, environmental solutions, oil and gas, pulp and paper, polymers, chemical synthesis, food and beverage, cleaning and sanitization, pharmaceuticals, and cosmetics.

Unlocking Digital success

Ideation

We leveraged our M&A domain expertise and SAP SLO knowledge to analyze the client’s disparate business systems and align them with the existing SAP landscape. We also helped the acquiring company to have exclusive access to historical and transactional data, including production orders, sales orders, and purchase orders.

Our approach

We initiated a comprehensive overhaul of the existing order management system to ensure it met the stringent data retention requirements. We helped define the TSA approach, ensure data consistency, and facilitate carve-out.

Outcomes

We reduced conversions and cutovers while ensuring business continuity and operational support & minimizing the impact of transition on the ongoing business activities. Our SAP SLO experts retained the required company code, deleting the other existing company codes and delivering the planned acquisition.

Project outcomes

Enhanced visibility and consolidation of the SAP landscape, optimizing operational efficiency by streamlining the data unification and harmonization processes, fostering synergy between merging entities

Expedited establishment of business infrastructure with minimal disruption, ensuring continuity during the transition

Strengthened data architecture with well-aligned dependencies, ensuring robustness in post-merger operations

Efficient data unification and harmonization were achieved, facilitating improved reorganization of assets, workforce, and technologies to align with strategic goals

Enhanced accountability and accuracy in financial reporting, coupled with a robust data architecture and a quick business infrastructure setup, minimizing disruption and ensuring operational agility

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