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      Carve-out:
      How to disconnect your IT-systems successfully

      Home > Challenges > Carve-out

      What is a Carve-out?

      Definition

      A carve-out is the separation, spin-off or sale of parts of a company to form a legally independent entity. In a very literal sense, for example, a specific business unit is "separated" from a company as part of an M&A transaction - along with everything that goes with it: data, finances, employees. A prominent example is the carve-out of the semiconductor division from the Siemens Group, which is now known as the independent company Infineon.

      There are many reasons for a carve-out. Some divest business units in order to focus more on their core business again. Others want to use the capital gained to make other investments or need liquid funds themselves. And still others use such transactions to set the course for their changeover to SAP S/4HANA by spinning off the data not required for the transformation in advance.

       

      What is important in a carve-out?

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      What is important in a carve-out?

      Procedure

      Regardless of the motivation, a carve-out from an SAP or other system is complex and comes with numerous challenges. In addition to many organizational and contractual measures, a carve-out is primarily about the clean separation of data, processes and IT systems. After all, these are the backbone of almost all business activities. All data and information that can be assigned to the business unit to be carved out must be identified in the previous systems and transferred to a new, independent system. At the same time, this data must be deleted from the source systems - taking into account applicable documentation and retention obligations. There is no standard solution for these requirements. This makes careful project planning tailored to the respective IT architecture, data volumes and structures all the more important.

      At a glance: phases of a carve-out

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      Carve-out success factors

      Which points should be considered in your carve-out procedure - whether from an SAP or another system.

      1. Meticulous planning

      True to the motto "any project is only as good as its preparation," establishing a clear project plan at the beginning of any carve-out is critical. It must be clarified: What data specifically needs to be moved out of my systems? To which target system should the data be migrated? What are the timelines? Are there regulatory issues that need to be addressed and can certain data possibly even be deleted? The answers to these questions are crucial for the entire transformation concept. Without this clear overview, you risk errors, unnecessary costs and delays in your carve-out.

      2. Close cooperation with IT

      A carve-out has a major impact on IT areas, which is why the people in charge play a key role in this regard. As soon as it is clear that a carve-out project is on your doorstep, you should get your IT department on board. The IT experts know the data and system landscapes of the individual business units best and can provide essential input on the right migration procedure. If IT also works in close coordination with the business departments, you can react more flexibly to necessary migration requirements. Frictional losses can thus be prevented as far as possible.

      3. Professional carve-out project management

      To keep an eye on tasks, timeframes and costs, you should leave carve-out management in the hands of professional IT project managers. Ideally, they already have experience from other carve-out projects. In addition, they know how to pull together the threads between all the business units involved and coordinate tasks and fixed deadlines.

      4. External expertise

      The effort involved in a carve-out is often underestimated. Suddenly, it becomes clear that the necessary expertise is lacking internally, that there are not enough resources available, or that technical requirements need to be approached differently. At the latest, this is the point where you should think about the support of external experts. With a specialized partner like Natuvion, you benefit not only from in-depth carve-out know-how, but also from proven implementation methods and IT solutions.

      5. Choice of transformation/ETL software

      Carve-out projects are often subject to a tight schedule and usually have to be implemented during ongoing business operations - without affecting them. In order to keep business interruptions as low as possible (near zero downtime) or, ideally, to avoid them altogether, the right processes and tools are essential. The use of transformation software or an ETL (Extract, Transform, Load) tool can be a real game changer. Not only can it reduce project duration and risk, but it can also cut resource requirements, error-proneness and costs. With our Natuvion Data Conversion Server (DCS), for example, we offer such software. As an ETL platform, the Natuvion DCS enables customized de-migration and migration services - from any source system to any target system with maximum automation and maximum flexibility. In addition, it can analyze data in detail before the transformation and validate it after the transformation.

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