SAP Post Merger Integration – Carve-in.
SAP system integration quickly and efficiently.
Post-merger scenarios for the IT systems are often defined by the contractual agreements between seller and buyer long before the actual operational implementation. As a rule, company transactions are therefore not completed when the purchaser takes control of running SAP/ERP system landscapes. After the transition, IT that functions quickly and securely is responsible for ensuring that the synergies planned as a result of the acquisition can be realized in a timely manner.
The challenge is that the initial IT system architectures of buyers and sellers usually differ significantly. In addition, there are the differences in the content design of core processes in SAP, connected environment systems and the organizational responsibility for the operation of the systems.
GAMBIT has summarized the questions relevant to post-merger integration for the identification and evaluation of possible integration scenarios in a guideline. We use our experience from many projects to make the existing differences in organization, processes and technology between the units involved transparent and to show the most efficient way of integration.
The number of takeovers and mergers planned for 2018 will only be exceeded by the year 2000. Systems must be integrated and data migrated in the ERP landscape. Only after applications and data of both companies have been merged can the hoped-for synergies be leveraged out of the merger.
GAMBIT uses suitable tools, has developed proven processes and, with 60 SAP LT certified consultants and 600+ projects in 70+ countries, has the necessary experience to implement changes in business applications efficiently and elegantly. Our primary goal is to contribute to the success of the transaction. By working with a partner like GAMBIT, who guarantees high quality, you reduce the time required and save costs during the transformation. GAMBIT thinks strategically and provides process-oriented consulting.
Different national languages?
Different corporate cultures?
The synergies that can be gained through a merger are partly the result of a reduction in the number of jobs that have been filled twice so far. Especially with a 50/50-merger of previous competitors as suddenly equal partners, such a constellation offers social and emotional dynamite if positions from structural positions in management to the workplace at the base can be filled by only one person at a time. Stressors, which are connected with a change in the personnel structure of the company, distract the employees from coping with their daily work and achieving the company goals. In this phase of the merger, it is all the more valuable if the IT necessary for daily business processes works.
You can ensure the identification of such challenges in IT by means of DUE Diligence or Red Flag Due Diligence.
Use cross-selling after the merger.
With harmonized IT.
IT with professionally consolidated master data makes it possible to offer customers the total quantity of services and products. IT is a key success factor in this scenario.
For example: two companies, a bank and an insurance company merge under one holding company. Current bank customers also need insurance products and vice versa. A vehicle is financed and insured. The property is also financed and insured. Interlinked marketing can be carried out for the customers of this company over the entire life cycle: from training/study through the consolidation phase with real estate acquisition and building up a portfolio as a retirement provision to the phase of disinvestment in old age.
However, such cross-selling can only be implemented efficiently after the successful integration of IT processes.
1 + 1 = 1
SAP harmonization and integration. From one source.
The integration of differently configured process and IT system landscapes is often the biggest challenge in PMI projects. Purely technical integration is rarely given as a target scenario. Efficient integrations usually require the alignment of commercial management and control systems, the use of system-supported, paperless intercompany processes or the use of common master data.
To support the necessary harmonization, GAMBIT uses tools that recognize data identities and deviations and optimally support the necessary mappings. A dedicated team of harmonization and migration specialists ensures that, in the end, two different worlds do not have to be operated in a common system.
IT after the post-merger integration:
It just works
Different procedures for the same business processes are harmonized and the master data integrated so that human resources can achieve a higher result with the same effort.
Local markets or related products no longer require separate IT runs for market development once the integration process has been implemented. Different handling of the year delimitation can be coordinated with one another and do not lead to unproductive digressions from different perspectives for budgets and provisions.
National companies access the same database structure, so that legal and ethnic peculiarities can be at the forefront of localization.
Standardization also opens up the opportunity a) to select the best of two processes and b) to streamline an existing process so that it can act more quickly and react more flexibly to market changes. In this way, competitive advantages that have been achieved can also be exploited.
Post Merger Integration:
Borders? Which borders?
In short, there are virtually no technical limits to the technical implementation of post-merger integrations. Data is transferred from source and target systems using SAP-certified tools that enable almost all forms of integration with upstream harmonizations and mappings in a single step.
GAMBIT is the first SAP-certified company worldwide to successfully use the “Company Code Transfer” scenario, i.e. the tool-based relocation of complete company codes between differently configured SAP systems.
Post Merger Integration:
We accept the challenge
Despite the same market and very similar sales targets, the master data of the respective company can be completely different.
An example from the automotive sector: when financing a vehicle, a bank will focus on the borrower’s creditworthiness and assess whether the borrower can repay the loan received without any problems. When leasing the same object, a leasing company will pay more attention to the loss in value of the vehicle due to ageing and wear and tear.
The difference is that the leasing company receives the car back and the bank does not. Static data on the borrower’s past behaviour is evaluated. In the case of leased assets, the viewpoint is a forecast that sometimes requires dynamic adjustment due to unforeseeable events such as political decisions and disruption (Dieselgate/E-mobility).
An insurance company for the same driver and the same car will in turn assess the driver’s risk tolerance.
As a manufacturer of new vehicles, the vehicle manufacturer will want to inform and train new car salespeople in the sales organization particularly well. Used car vendors are not so interesting for the factory, but equally important for the three financial service providers mentioned above.
Experience has shown that the existing data is based on different update intervals and periods, different definitions of the same terms and different source files. Often the displayed evaluation is also different, because the user saves time through a certain reduction and focusing. In the above example, the bank would probably enter the due date of the first installment of the vehicle and the insurance company would enter the start of insurance as the relevant date. However, all the data could be clearly assigned to a vehicle on the basis of the chassis number.
Especially in successful companies of the old economy, the existing systems have often grown for decades. Some files can be used better for the specific needs of a business area or only if they are still running through a separate manual filter. For example, inactive customers/brand changers may need to be filtered out to determine the activity and turnover of a population.
With this practical example we would like to signal to you that we at GAMBIT do not shy away from complex integration processes. Each task has its own particularities and we are happy to actively contribute within the framework of post-merger integration management to achieving pragmatic solutions with proven processes.
Post Merger Integration with GAMBIT:
Processes with high quality results. A conclusion
Despite careful IT due diligence and conscientious planning, a challenge still awaits the management and the IT department after the legally completed mergers and acquisitions: post-merger integration.
Companies have different structures that have evolved and need to be harmonized in SAP system integration. If the goals of both companies are to be successfully harmonized, IT represents a central basis for the success of mergers.
The PMI process involves risks. It can be a cost driver, affect controlling in market analyses and restrict sales in market development. It is possible that two systems will continue to exist side by side, each claiming the same allowance as before. In addition, capacities are tied up in such a scenario in order to merge the results of both systems manually as an alternative.
However, the expectations that lead to an M&A decision in management presuppose that the hoped-for synergies are exploited as quickly as possible. With a uniformly functioning system, purchasing can use its pricing power in procurement, for example.
GAMBIT provides the necessary professional instruments and trained, experienced harmonization and migration specialists for successful post-merger integration. We use SAP-certified planning and execution tools to identify variances and matches and support the upcoming mapping.
The goal is a uniform, functioning SAP system for an integrated company. This is our daily business.