Evonik breaks new ground with carve-out from S/4 to S/4
EvonikThe Challenge
Evonik planned to set up an independent superabsorbents business (plastics capable of absorbing many times their own weight in liquids) to pave the way for a sale. This involved separating the business from the existing SAP S/4HANA system and transferring it to a separate client. The goal was therefore a carve-out from and to SAP S/4HANA: Evonik broke new ground with this project, as it was one of the first SAP S/4HANA carve-outs in the market. Another challenge was that internal IT projects such as release changes and upgrades had to be carried out at the same time.
Project Type
Carve-out of a business unit from and to SAP S/4HANA.
Highlights
Evonik completed one of the industry’s first ever SAP S/4HANA carve-outs by spinning off its superabsorbents business from its existing system. During the project, SNP’s flexible transformation approach and expertise ensured continuous security and maximum project success. Even specific challenges in the area of user management were met smoothly.
Despite the high number of data records, SNP’s automated approach and software minimized the system downtime during the migration and accelerated the project implementation. This enabled the internal IT team to further optimize the system landscape at the same time. Other business units were only minimally affected by the carve-out.
The project was implemented remotely and yet in close cooperation based on mutual trust, since SNP was already familiar with Evonik’s existing system from previous projects.
Scope
During the client carve-out from and to SAP S/4HANA, the following tasks were performed:
- Separating the superabsorbents business of the Performance Materials division from the company code of the existing SAP ERP system and transferring it to a new company code.
- Performing a client carve-out via SAP organizational units as well as partly by time slice.
- Incorporating dependent personnel data and business partners from other companies not defined in the original scope.
SNP Products
- CrystalBridge® – The Data Transformation Platform
- Transformation Cockpit (TC)
The Solution and Benefits
As SNP had already implemented other transformation projects for Evonik prior to the SAP S/4HANA conversion, the specialty chemicals company decided to renew the collaboration for the carve-out project. In this respect, it proved advantageous that SNP already knew the Evonik system: The pioneering IT project could be implemented straightaway through close, cross-module teamwork – without any groundwork. The plan was to perform the IT separation on the basis of defined organizational units in SAP. Furthermore, for accounting (FI/CO), the US business was additionally separated based on a time slice starting in 2010. The kickoff phase brought with it increased complexity: It turned out that dependent personnel data and business partners from other companies not defined in the original scope also had to be taken into account. This involved, for example, recording the time and travel expenses of employees from the carve-out scope in other companies.
The use of the CrystalBridge® software platform with Transformation Cockpit (TC) and SNP’s flexible software-based approach made it possible to meet the requirements with regard to the increased number of data records as well as in the area of user management . Even complex company-wide business partner roles could be transformed and user data corrected in the target system. The project was successfully completed after three mass tests, a go-live simulation and the cutover with minimal downtime. It went live on schedule after a project duration of only ten months.
- System knowledge and SNP expertise in the areas of SAP S/4HANA and carve-outs made it possible to start the project immediately.
- Despite additional requirements, the carve-out was carried out quickly, securely and successfully with the flexible SNP solution.
- The software-based approach – unparalleled in the SAP S/4HANA environment – relieved the burden on Evonik’s internal IT team, allowing it to move forward with other projects at the same time.
Key Facts
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Company Codes
3 -
Countries involved
UK, Estonia, Lithuania, Latvia -
Data size
1 TB -
Duration
6 months (+2 for Latvia)
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Systems in scope
SAP ERP 6.0
After initially expecting a carve-out from and to SAP S/4HANA – which was ambitious in itself – additional data to be considered in the area of business partners, HR and user management made the project even more complex. SNP solved the challenging task quickly and confidently.
Matthias Frerick
Director M&A IT, Evonik Industries AG
About Evonik
Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of EUR 15 billion and an operating profit (adjusted EBITDA) of EUR 2.38 billion in 2021. The group structure is strongly focused on the operating business: Five divisions and various business lines are the driving force behind the company. Employees worldwide work together on innovative solutions for a sustainable future: Evonik’s specialty chemicals are used to optimize end products ranging from car tires and mattresses to tablets and pet food.
