USE CASE

Carve-Out

  1. Problem description

Today’s companies, especially larger ones and corporate groups, often restructure. There are sales, so-called carve-outs, time and time again either for economic, strategic or antitrust reasons. The buyer is dependent on all relevant business information, data and documents, being handed over to them in full in order to continue the business or to be able to use it for other purposes such as restructuring and resale or to meet legal requirements from tax law or the data protection regulations.

Since the original systems are usually a multitude of enterprise solutions, the effort of carrying out data cleansing and selection in the original systems or on internal test systems is very time-consuming and expensive.

  1. Repercussions

In the case of a carve-out, the seller’s interest is not to hand over more than the necessary information to the buyer under any circumstances. It is crucial that no business-relevant secrets are revealed especially when the sold company or business unit is being sold to a competitor.

If, on the other hand, the buyer is a partner who, for example, is taking over their own service business and in which there may even be a minority holding, or even a spin-off that is to grow rapidly, the seller has an interest in making the transfer as easy as possible for the buyer or the spin-off company.

  1. Impact

Companies are becoming increasingly digital. If the digitized information falls into the wrong hands, in the worst case scenario this can even threaten the former owner’s existence no matter how large and dominant they are. Sellers therefore need a simple and cost-effective way to make the most precise and at the same time legally compliant cut with the data and documents.

If the sold business unit is to be able to work as easily and quickly as possible with the transferred business information, it is not helpful to hand over a CD with the original ERP data. It would not only take weeks or months for the buyer to install and configure the appropriate solution to import and read the data. It is also doubtful whether the seller’s solution always serves the buyer’s purposes. A spin-off, even if it grows very quickly, might prefer to use an ERP solution in the cloud rather than implement and operate a large system in its own data center.

  1. Solution

The solution, which can take all these different interests into account, is a neutral, cost-effective and central platform for the cleansing, legally compliant storage and transfer of business information relevant to a sale. JiVS IMP is such a modern information management platform. The business information is available to the buyers in a neutral and legally compliant format for further use.

JiVS IMP stores the data and documents together with their business context. This means, for example, that the buyer can search for and view all invoices for a specific customer, just as they would in the original system. It is therefore more appropriate to speak of the historization of business information rather than its archiving.

However, since the buyer usually only wants to feed part of the historical information into their live environment, they can use JiVS IMP to select, transform and transfer the data and documents into the target systems as required.

JiVS IMP acts as a central collection point and provisioning area or “data staging area” for company information as part of carve-out projects. Data and its quality can be analyzed and optimized, for example by means of enrichment and harmonization, analyzes of the information pool’s reduction potential can be created, the filter rules for reduction before data transfer can be defined and made available in a neutral format for the subsequent transformation and migration of the information. Once the migration is complete, JiVS IMP provides legally compliant access to information independent of the device, time and location and subjects the legacy information pool to end-to-end retention management for the seamless management of the historical data and documents’ life cycle. In addition, JiVS IMP’s business object-focused approach provides the option of integrating the platform into target environments such as SAP S/4HANA or SAP C/4HANA.

The JiVS IMP data staging area reveals its full benefit when migrating to the target systems in four steps:

  1. Housekeeping

JiVS IMP is the solution to the problem of getting rid of legacy issues. As the information management platform allows the management of data and documents that are no longer operationally required, including their business logic throughout their entire life cycle: from their transfer from the production systems to legally compliant storage and final erasure.

The most important aspect of housekeeping, however, is that historical information remains accessible at all times. This allows companies to migrate only that part of the data that they actually need in their day-to-day business, such as open orders.

  1. Identify

Once the information pool has been transferred from the legacy systems to JiVS IMP, the analysis can begin of whether and which data the customers need and which they don’t. This is the so-called identity phase. JiVS IMP offers an analysis tool with various parameterization options for this. For example, the information stored in the legacy system can be selected sorted by orders that are older than six months and have therefore already been completed, or by company codes and plants that no longer exist. Other selection criteria for data reduction potential analysis (DRPA) would include organizational units, various master data and transaction data types, or certain business objects. This DRPA results in reports for management in the form of whitelists or blacklists that specify which tables and fields in tables are transferred or are no longer required.

  1. Design

Once it has been clarified what’s operational and what’s historical information, the detailed planning of data selection and migration follows in the design phase. This also takes place on JiVS IMP. The selection criteria from the identify phase are then further refined and tested, so that the cut in the data pool can be automatically done by software.

  1. Transform

At the end of the design phase, JiVS IMP provides accurate and tested filter rules as whitelists and blacklists. This gives customers the choice of which tools they want to use to transform and migrate the data to the target systems.

Customers can implement JiVS IMP both in their own data center or use offers from the public cloud for implementation. Supported environments include the Google Cloud Platform, Amazon Web Services and Microsoft Azure. At the same time, customers can choose from a variety of popular database management systems (DBMS), from IBM Db2 to Oracle Database and Microsoft SQL Server to SAP IQ.

  1. Customer benefits

The historization approach for the transfer of business data and documents in the event of sale or spin-off ensures legal certainty on the part of both the buyer and seller and reduces the personnel, time and financial expenditure for such projects. Spin-offs of parts of companies are part of agile corporate strategies today. The historization approach towards business information makes a significant contribution to business agility as a simple, fast and cost-effective solution.

At the same time it ensures the protection of intellectual property in the event of company restructures involving competitors in particular. JiVS IMP is therefore a useful component of general risk management.

Finally, this approach can also be used for a number of other strategic corporate initiatives, for example to decommission legacy systems (application retirement) or for migration to new software generations such as SAP S/4HANA. In all cases, JiVS IMP acts as the central corporate platform for legacy data and documents, managing them in a legally compliant manner throughout their entire life cycle, including controlled and final erasure.

  1. Price and availability

JiVS IMP is available now. The range of functions and price are determined specifically for the project.

Get More Insights

Drop us a line at anytime, and one of our employees will respond to you as soon as possible!