The dominant trend in transformations of IT systems, including SAP, is their centralization. However, the opposite projects – carve-out of ERP parts are constantly being launched. This is due to unpredictable changes in the law, the business environment (e.g. caused by war) or the ownership structure of group companies, which often need to be reflected in the system in a short period of time.

Regardless of the reasons, these types of projects have one thing in common – they usually require cutting out a piece of the SAP system quickly and moving it to a separate platform. Based on the experience of All for One Poland’s transformation team, we present four ways to carve out an enterprise/part of an enterprise from an SAP system so as to “cut out" the right piece quickly and precisely.

Greenfield

If we carve out a small and uncomplicated part of the SAP system, it is relatively easy to implement a cut SAP unit from scratch. We call this approach the greenfield approach, as all settings for a new carved out system are created anew manually. This is a labor-intensive approach that requires recreating the configuration, all programming extensions to the standard and data migration (usually balance sheets and open items/orders).

For this reason, at All for One, we use it exceptionally, for example, when carving out company codes that were run in SAP only in the financial modules, or if the carved-out unit is to operate differently in SAP (changing processes or changing the system version, e.g. to S/4HANA). For carve-outs of larger, more complex parts of enterprises, this is usually an approach that is too time-consuming and costly, and in such cases we propose a different way of carving out parts of SAP.

Greenfield to an empty copy of the system

To partially automate the carve-out process, the entire configuration and all development extensions can be copied from the source system. This is done either with dedicated tools provided by SAP partners (e.g. Empty Shell Creator used by the All for One group), or by copying the entire system and deleting master and transactional data. It is only necessary to migrate the data of the carved out units to an empty system prepared in this way (and to adapt the processes if necessary).

As in the first case, migration is performed with standard tools provided by SAP (e.g., Migration Cockpit or LSMW) and is limited to balance sheets, inventory levels and open document/order items. Thus, the entire history is not transferred from the source system, which is often a disadvantage due to e.g. auditing needs. These types of projects are characterized by a medium workload.

Cloning the system and deleting unnecessary data

The fastest way to carve out company codes from an SAP system is to carry out the project using a method called Clone & Delete. First, standard SAP tools are used to copy the entire system (usually with a change of a system ID). In the second step, using special transformation tools, the data of unnecessary company codes and unnecessary common data are deleted.

Carve-out methods – advantages and disadvantages

With this approach, it is very important that IT products supporting deletion are accurate and delete as much data as possible that will not be used. In addition, it is important that they know how to “intelligently" delete data from common areas (e.g., data of one company code from a common SAP controlling area or data of selected users).

At All for One, we have such proprietary tools to effectively delete selected company codes (and their dependent organizational units) from the SAP system. Projects of this type usually take about three months and are performed by a limited number of consultants (2-3), which significantly reduces costs.

Migration (optionally with data transformation) to an empty copy of the system

Full freedom in choosing the data to be cut out from the SAP system is ensured by complex transformation tools that enable the transfer and adjustment of precisely selected data. Similarly to the second method, the first stage of such a project is to copy the entire configuration and all programming extensions from the source system.

In the next stage, IT transformation tools are configured to transfer from the source system only the indicated data with the option of its transformation. In this way, you can, for example, transfer data from selected modules with full accuracy, and only levels/balance sheets/open items from other ones. You can also transfer e.g. data from the last few years from selected organizational units.

Such a project can also be combined with the migration of a carved-out part of SAP to S/4HANA. Depending on the complexity of the selection and transformation, such projects take approximately 4-12 months on average.

Tools for automation in carve-outs

In the All for One group, we use several transformation tools adapted to carry out projects of carving out a part of the system. These include both the All for One Group’s own products and those of our partners, particularly the SNP Group. The table presents the most frequently used: CrystalBridge, Empty Shell Creator, All for One Carve-out Kit Deletion Tool oraz All for One Carve-out Transfer Tool.

Transformation tools used in carve-out projects

 Tools for SAP transrormation: CrystalBridge i All for One Carve-out Kit

Not just an SAP carve-out

Projects of carving out a part of the system involve not only transferring a fragment of SAP from the source system to the target one. They also involve many additional activities. In any such project, the interfaces need to be adapted.

Often there is a need to add configuration and test new processes that are to run differently in the carved-out company. An important part of the project is the provision of support after carving out a part of the enterprise. Sometimes an additional phase of the project is the removal of already unused companies from the source system. All such tasks should be included in the project plan in order to prepare them well and to make the project run with as few surprises as possible.

At All for One Poland, we have a transformation team of over 50 consultants who carry out projects of carving out enterprises or parts of enterprises from the SAP system. We have many years of experience in this field with over 50 successful projects carried out in all of the presented approaches.

If something needs to be cut out of your SAP system, we will be happy to do it quickly, with surgical accuracy.