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The challenge of a carve-out: what you should definitely consider

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Carve-out: What you should definitely consider

A carve-out is much more than simply "copying" an application. While many service providers only offer a 1:1 copy, it is actually about overcoming a complex initial situation. Existing applications must not only be transferred, but also set up in a future-proof and optimized manner. Adjustments are often required in the target landscape, such as RfC calls to other systems, alternative data sources or different organizational concepts. Necessary corrections are therefore essential.

Complexity in a dynamic environment

A carve-out project is inherently complex and fraught with numerous unknowns. Several service providers often work in parallel - frequently for a target system that does not even exist at the start. There is also usually a lack of clearly defined project management at the start of the project. At the same time, non-disclosure agreements (NDAs) make the flow of information more difficultas many employees are not allowed to be actively involved.

In this dynamic environment, pragmatic and reliable solutions are required that also work with limited support. The highest level of confidentiality is essential.

Challenges and success factors in the carve-out: data migration, budget planning and hypercare phase

Selective data transfer in the carve-out: optimization of security and system integration

Selective data transfer is a key step in the carve-out process, as it ensures that only relevant data is migrated to the new system, which is separate from the parent company. The following aspects are particularly important here:

Data security and compliance:
A carve-out often requires the separation of sensitive data that must not be transferred to the new system

Future viability and system integration:
The selective transfer ensures that only the data and modules that are useful and important for future business development are migrated.

Selective data transfer enables carve-outs to be made more efficient, cost-effective and secure. SAP add-ons, such as the CLC-PADD® Process Engine+, provide ideal support to further optimize these processes. They make data migration more efficient and error-free by enabling automated, precise and fast transfers. These tools can ensure that only relevant data is migrated, thereby meeting compliance requirements and improving data quality and consistency. They also contribute to the long-term stability of the system and can support future support through a structured and documented migration.

Budget planning challenges in the carve-out process

Budget planning for a carve-out is one of the most challenging tasks, as numerous uncertainties, risks and dependencies have to be taken into account. The framework conditions are often not fully defined at the start of the project and future requirements are difficult to predict. This makes solid and flexible budget planning all the more importantwhich takes into account both current and potential challenges.

A A central aspect is the inclusion of opportunity costsThe scope of the project should be clearly defined at an early stage to avoid misunderstandings and discrepancies during implementation. At the same time, the scope of the project should be clearly defined at an early stage to avoid misunderstandings and disagreements during implementation. This is the only way to efficiently clarify budget issues and prevent escalations.

The commissioning situation is particularly complex: both the old and the new company are involved in the project, but neither party wants to overburden their own budget. It is often expected that the costs incurred will be allocated to the other party. These mutual expectations can lead to conflicts if budget planning is not transparent and binding from the outset.

Conclusion: A clear definition of the scope, early consideration of all costs and open communication between the parties are crucial to successfully mastering budget planning in the carve-out process.

Risks and expenses in the final phases of a carve-out project

In the final phases of a carve-out project, unexpected challenges often arise that delay the process and require additional resources. Shortly before the go-live, the target system may still be unstable or there may be a lack of sufficient system support. In such cases, work has to be carried out on an alternative system, which leads to increased system changeover costs leads. In addition, a high level of employee turnover at key user level can lead to important tests are not completed on timeThis increases the risk of errors in the live system.

In the subsequent hypercare phase, in which the new system is stabilized, often require additional attention at short notice. This includes, for example, adjustments to templates, such as email templates, which are necessary for smooth operation. These tasks can prolong the transition process and require quick and efficient implementation.

Conclusion

Coordination efforts in carve-out projects are often underestimated, but with careful planning and the right level of experience, these hurdles can be successfully overcome.

Iterative processes offer the necessary flexibility to react dynamically to changes and can be implemented efficiently with a dedicated team. Creating a schedule requires special attention - but with experienced project managers and, if necessary, external support, a realistic and well-structured plan can be developed. Especially with global projects, it is crucial to take time differences into account in order to coordinate deadlines smoothly.

In order to ensure stable and long-term support even after the go-live, a support budget should be planned at an early stage.

With a competent team, some helpful SAP add-ons, such as the CLC-PADD® Process Engine+, and comprehensive preparation, a carve-out project can not only be realized successfully, but also in a calculable and sustainable manner.