An SAP divestiture is not as simple as removing the software from your enterprise systems.

It would not be an overstatement to say that most modern businesses, regardless of their size, are benefitting from SAP's wide range of solutions. It is estimated that, in 2018, over 200,000 enterprises across 150 countries were using SAP solutions in some shape or form. 

Why do so many businesses choose SAP? It eventually boils down to how effective SAP is when it comes to enabling enterprises to manage and process their data. Its centralized data management allows for the creation of a single source of truth that can be accessed by business users across different teams and functions. It is little wonder that SAP systems touch 77% of the transaction revenue generated around the world. 

But what happens when a business needs to update its analytics architecture, whether due to reorganization/shutdown of underperforming divisions, asset sale, or compliance with government regulations? This is where divestitures come in. 

Diving into Divestiture: Understanding What the Process Entails

An SAP divestiture is not as simple as removing the software from your enterprise systems. It requires careful planning and execution. To begin with, it is essential to evaluate the current state of the system by conducting a detailed analysis. Doing so provides a deeper understanding of how deeply embedded SAP is in your business operations. This helps in identifying the applications, processes, and functions that are dependent on SAP systems, as well as the type of data stored in them.

The next step is to assess the business impact. Making a technological migration of this scale is never easy and can have a significant impact on your operations, from service outage to the unavailability of critical insights. This is why, before initiating a divestiture, it is important to assess this impact.

The third and, arguably, most important aspect of this preparatory phase is the identification and cleansing of data during migration to a new system. The quality of the data being migrated must be assessed beforehand, as murky and inaccurate data can cause major operational challenges post-divestiture, from missed deadlines to incorrect reporting.

It is also vital to document everything related to the current system, from processes and configurations to dependencies and user manuals. Extensive documentation of the divestiture process will not only streamline the migration from SAP to non-SAP systems but also ensure better accountability and traceability in the post-divestiture support phase.

Smooth as Silk: Tips for Making the Process as Seamless as Possible

Now that we have a general understanding of what goes into planning for an SAP divestiture, let's take a look at some tips on how enterprises can make the process as smooth and seamless as possible:

1. Have a clear plan and timeline in place: It's important to have all your ducks in a row before starting out on such a complex project. Establishing clear objectives from the get-go will help ensure that all stakeholders involved are on the same page and their efforts are aligned in the same direction. Creating a detailed project timeline is also extremely helpful, as it can help you track project progress and identify potential challenges early on.

2. Create dedicated teams: Handling an SAP divestiture is no small feat, which is why it's important to set up dedicated teams with distinct roles and responsibilities. This helps avoid operational overlap and ensures that each team member knows exactly what needs to be done. Furthermore, having separate teams for different aspects of the process (e.g., data migration, system configuration, etc.) will allow users to focus on one task at a time, making things much simpler overall.

3. Use data migration tools & services: Migrating large amounts of data from one system to another can be time-consuming and tedious – not to mention error-prone if done manually. To save yourself from the headache (and potential heartache), consider using data migration tools or services which can automate repetitive tasks and reduce the risk of human error.

4. Prevent business process disruption: One of the biggest concerns during SAP divestiture is business process disruption. To minimize this, ensure that there is no overlap between the move and any critical business processes. This can be achieved by strategically scheduling the cutover so that it takes place during a lull in activity or by implementing parallel processing techniques.

5. Have post-divestiture support in place: Don't forget to establish frameworks for post-divestiture support. These frameworks will help you to deal with any issues that might crop up after the migration, such as data quality problems, user adoption issues, system performance issues, etc.

6. Test, test, and test some more: Last but not least, it's important to thoroughly test the new system before and after going live. This will help you identify potential challenges so that they can be fixed before users start working on the new system.

Divesting SAP can be a daunting task, but careful planning and execution can help make the process smoother and less painful. By keeping the factors mentioned above in mind, you can ensure a successful divestiture that minimizes disruption and puts your business on the fast track for growth – with or without SAP!

Author:

Varun Babbar, Managing Director, Qlik India