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    Carve-Outs Enabling Smoother Transition to SAP S/4HANA Cloud Environment

    Current™, a leading energy management systems seller, has gone live on RISE with SAP S/4HANA Cloud, conducting a successful data migration program from its legacy systems, reports Yahoo! Finance. The transformation became necessary when Current—which used to be GE Current—acquired a business that ran on SAP S/4HANA cloud. The parent company, on the other hand, ran on SAP ECC. This transformation project means that the company’s technology is now unified.

    Led by Fission Consulting, the project was completed using the consultancy’s proprietary data migration solution, ATOM. It included migrating about 1,000 internal users and conducting 32 business-required integrations with the new S/4 infrastructure in 13 months.

    With the completion of the project, the loop on the acquisition and merger process starting back in 2021 ends, enabling Current to accelerate its digital transformation journey.

    With SAP’s mainstream support for the ECC system ending in 2027, more SAP-centric businesses are pushed to migrate to the S/4HANA cloud infrastructure. A major rewrite of SAP ERP Central Component (ECC) — S/4HANA is more than an upgrade. It implies that consolidating a complex ERP landscape for SAP S/4HANA migration is not easy.

    Within this transformative framework, carve-out plays a critical role in shaping the migration strategy and ensuring a smooth transition to the cloud environment. During a carve-out, the migration process involves selectively transferring and merging specific company codes, regions, or business units from existing on-premises or legacy ECC systems into the SAP S/4HANA Cloud infrastructure. With this approach, businesses can split up the entire migration and merging process into manageable phases. The process of isolating and focusing on specific entities helps companies deploy the new system in a phased and controlled manner. That, in turn, helps in mitigating potential risks and eliminating unnecessary complexities associated with legacy systems.

    Again, the ability to selectively migrate relevant data and functionality enables quicker implementation and faster time-to-value for critical business operations.

    In addition, SAP S/4HANA Cloud migration has been considered a way for businesses to simplify their ERP landscape and business processes. By consolidating disparate systems into a unified cloud-based environment, carve-out helps slash maintenance outlays while limiting operational overheads.

    Additionally, leveraging carve-out services facilitates the synchronisation of an intricate matrix of workstreams and associated project programs into a cohesive timeline. A coordinated and collaborated effort between an M&A advisory service and the parent company ensures the overall separation timeline is accelerated.

    Moreover, carve-outs have been underscored as an effective approach to data cleansing and optimisation. Isolating specific business units helps specify and rectify data inconsistencies, eliminate redundancies, and improve data quality, leading to enhanced reliability, accuracy, and transparency. As a result, companies can make better-informed and data-driven decisions.

    Additionally, carve-outs facilitate the use of advanced technologies, such as ML, AI, data analytics, and migration solutions, to efficiently pull, transform, and load all in-scope data from legacy systems to the S/4 environment according to company-defined specifications. This targeted deployment of technologies empowers businesses to gain a competitive edge in the industry.

    Thus, businesses can get maximum business value from their digital transformation journey, ensuring zero multi-day cutover.

    SAP is driving the transition to SAP S/4HANA cloud so that all ECC customers migrate to the 4th generation of its ERP before legacy support ends. As a result, realising the plethora of benefits offered by S/4HANA cloud implementation, large companies required to choose between a system conversion, new infrastructure implementation, or a hybrid approach are opting for corporate carve-outs.

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