In our previous blog post, we explored the challenges of carving out SAP ERP systems. Now, let's focus on the strategies and best practices that can help ensure a successful IT system separation. By following these guidelines, companies can minimize risks, reduce disruptions, and achieve their separation goals effectively.

Planning and preparation

Before diving into execution, let’s start with the foundation: careful planning. Companies should begin by defining clear objectives and outlining a scope for the separation. This involves identifying the systems and data that need to be separated, understanding the dependencies, and developing a detailed roadmap. Key steps include:

• Conducting a thorough assessment of the current IT landscape.
• Identifying critical systems and data to be separated.
• Developing a detailed migration plan with timelines, milestones, and resource requirements.
• Establishing a governance structure to oversee the separation process.

Leveraging expertise

You don’t have to manage this complex process on your own. Engaging specialized consultants with expertise in IT system separation and SAP ERP systems can provide valuable insights and support. These experts can help navigate the technical challenges, share proven practices, and help ensure that the project stays on track. Key considerations include:

• Selecting consultants with relevant experience and technical expertise.
• Collaborating closely with consultants to leverage their knowledge and skills.
• Ensuring clear communication and alignment between internal teams and external experts.

Data strategy

A carve-out is only as successful as its data strategy – after all, data is at the heart of any IT system. An effective data strategy is critical to maintaining data integrity during the separation process. A well-rounded data strategy should focus on:

• Assessing and understanding system and data dependencies, considering upstream and downstream impacts.
• Establishing a structured data cleansing approach to improve data quality, reduce the migration scope and simplify the transformation logic.
• Implementing data validation processes to ensure completeness and consistency.
• Ensuring compliance with data protection and privacy regulations.

Customization and configuration management

Every SAP system is unique, shaped by years of customizations and configurations tailored to business needs. When separating IT systems, these custom elements can quickly become a source of complexity – some may be essential for continued operations, while others might no longer be relevant. To manage this effectively, companies should:

• Assess existing customizations to determine their relevance, usage frequency, and business impact.
• Retain or redesign customizations based on alignment with the target operating model and technical fit within the new target system.
• Maintain thorough documentation of the changes to support traceability and future audits.
• Test customizations thoroughly to ensure they function correctly in the new environment.

Ensuring business continuity

Disruption to business operations and prolonged downtime can lead to lost revenue, frustrated customers, and operational chaos. Minimizing downtime and ensuring business continuity during the separation process is essential. Companies should develop strategies to:

• Minimize disruptions to critical business functions.
• Employ the near-zero downtime approach on both source and target systems (here’s how to do it).
• Implement interim solutions if needed to maintain operations.
• Develop contingency plans to handle unexpected issues.
• Communicate regularly with stakeholders to keep them informed of progress and any potential impacts.

Regulatory compliance

Regulatory compliance isn’t just about following rules – it’s about protecting your business from risks, fines, and operational roadblocks. Ensuring compliance with regulatory requirements is a key consideration during the separation process. Companies should:

• Identify relevant regulations and compliance requirements.
• Implement necessary security measures to protect sensitive data.
• Conduct audits to verify compliance with regulatory standards.
• Document compliance efforts to provide evidence of adherence to regulations.

Testing and validation

Separating IT systems is one thing, but making sure they actually work is another. Extensive testing and validation are critical to ensuring that the separated systems function correctly and meet business requirements. Companies should:

• Develop comprehensive testing plans that cover all business processes, data flows, and integrations.
• Conduct rigorous testing to evaluate system behavior and performance.
• Validate data accuracy and integrity in the new systems.
• Engage end users in testing to ensure the systems meet their needs.
• Employ automated data validation to increase the speed and accuracy of the testing cycles

Follow best practices to successfully separate IT systems

Successfully separating IT systems, particularly SAP ERP systems, requires careful planning, meticulous execution, and extensive testing. By following these strategies and best practices, companies can minimize risks, reduce disruptions, and achieve their separation goals effectively.

At SNP, we bring decades of experience, a network of trusted partners, and a proven track record with hundreds of satisfied customers to every SAP system carve-out project. Our expertise, specialized tools, and dedicated teams ensure seamless execution, while our near-zero downtime approach and automated testing help mitigate risks and minimize disruptions.