BUSINESS CASE

Business Divestment

  1. Problem

Restructuring has become the norm for many companies. Market situations, corporate strategy and legal requirements make divestments of business necessary. It’s essential that buyers have all relevant business information, data and documents to ensure continued business operations or to use them further, for example for restructuring, reselling, or complying with tax and data protection regulations.

Sellers therefore have to tackle the challenge of identifying, extracting and transferring relevant data. This is usually a complex and laborious task tied to high costs. Especially global companies operate many different systems – not only ERP, but also various third-party solutions for maintenance, purchasing, distribution, and so on.

  1. Consequences

In divestments of business, sellers need to make sure that they only hand over relevant information to buyers. If the buyer is a competitor, it becomes especially crucial that sellers do not accidentally reveal or hand over corporate secrets.

Buyers need to receive relevant information in a neutral format that does not postpone or hinder their own IT projects and daily business operations. For example, if buyers operate different ERP systems from different manufacturers, they have to expect cumbersome conversion projects wasting time and money.

  1. Impact

Companies are becoming more digitalized. If the digitalized information ends up in the wrong hands, it can have catastrophic consequences for companies, regardless of their size or market presence. Sellers therefore need a simple and cost-efficient way to separate data and documents precisely and effectively.

Handing over business information and original ERP data on a CD is not very useful. It can take weeks or even months until buyers have installed and configured a suitable solution to import and read the data. In some cases, this could lead them to postpone all migration projects to new software generations like SAP S/4HANA until the acquired data and documents have been successfully transferred to their systems.

Buyers will consequently demand the relevant business information be handed over in a neutral and modern format.

  1. Solution

Considering all aspects of divestments, the only solution is a neutral, cost-efficient and central platform for storing and transferring relevant business information to buyers. JiVS IMP is such a modern Information Management Platform. Buyers can access business information in a neutral and legally compliant format.

JiVS IMP stores data and documents together with their business context. This means that buyers can access information like they would in the source systems. For example, they can search for all invoices pertaining to a specific customer and have them displayed on the platform. It is therefore more suitable to talk about historization of business information instead of archiving.

Because buyers only need part of the historicized information in their live systems, JiVS IMP can select relevant data and documents and transfer them to other systems.

In divestments of business projects, JiVS IMP takes on the role of central data point or Data Staging Area. It analyzes data and their quality and optimizes them by harmonizing or adding information. JiVS IMP can also provide analysis about the reduction potential of data volumes, define selection criteria for the reduction before the data migration, and provide subsequent transformation or migration data in a neutral format. After the migration is completed, JiVS IMP ensures legal compliance as well as access to information anywhere, anytime and on any device. The platform also takes care of managing the entire lifecycle of legacy information, data and documents. Furthermore, JiVS IMP is an integral part of any future IT environments, like SAP S/4HANA and SAP C/4HANA.

In four simple migration steps, customers can benefit from the Data Staging Area of JiVS IMP:

4 a) Housekeeping

JiVS IMP helps companies deal with legacy data in a simple yet efficient way. JiVS IMP allows for the management of data and documents including their business contexts which are not necessary in day-to-day operations throughout their entire lifecycle, ranging from their transfer from operational systems all the way to legal retention and their eventual deletion.

The most important thing about Housekeeping and these basic preparations leading up to the migration to S/4 is that the historicized information always remains accessible. This way, companies can migrate only the part of the data that they really need in daily operations, for example open orders.

4 b) Identify

After the data from legacy systems has been transferred to JiVS IMP, customers need to decide which information they want to keep and which are irrelevant for their purposes. This step is called Identify. For this purpose, JiVS offers an analytics tool with numerous different possibilities for parameterization. For example, the information stored in the legacy systems allows for the selection of orders which are older than six months and therefore usually already completed, or business units or subsidiaries which do not exist anymore. Further selection criteria for the Data Reduction Potential Analysis (DRPA) include business units, various data types and specific business objects. These DRPA initiatives result in whitelists (data, documents and tables to keep) and blacklists (data, documents and tables to toss).

4 c) Design

If the analysis is completed, the next step is to finetune data selection and migration criteria on JiVS IMP. This step is called Design. The selection criteria defined in the Identify phase are finetuned and tested so that a software can then take care of automatically migrating the data.

4 d) Transform

After the Design phase, JiVS IMP provides customers with specific and tested selection criteria in the form of whitelists and blacklists. This gives customers the freedom of choice concerning the tools necessary for data migration.

Customers can implement JiVS IMP in their own datacenters or in the public cloud. Supported environments include Google Cloud Platform, Amazon Web Services and Microsoft Azure. Customers can also choose from a wide array of common database management systems (DBMS), like IBM Db2, Oracle Database, Microsoft SQL Server, SAP IQ and many more.

  1. Benefits for Customers

When it comes to divestments of a business, historization of business data and documents ensures legal certainty for both buyer and seller and reduces the amount of time, money and effort that these projects normally entail. Divestments and acquisitions are part of an agile corporate strategy. As simple, fast and cost-efficient solution, historization of business information supports high agility.

At the same time, historization protects intellectual property, especially if divestments include competitors. JiVS IMP therefore plays an important role in risk management.

Historization can be used for many strategic corporate initiatives, for example for the decommissioning of legacy systems (application retirement) or the migration to the new software generation SAP S/4HANA. In every case, JiVS IMP functions as central business platform for legacy data and documents, managing them throughout their entire lifecycle until their eventual deletion.

  1. Price and Availability

JiVS IMP is generally available. Functional scope and price will be determined on a project-per-project basis.

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