NTT DATA Business Solutions
Jan Ammann | March 6, 2017

Keep Pace with the Market by Way of M&As or Divestments


M&A and divestments are common business practices in our today’s fast moving business world. Sure, there are a lot of arguments that speak for these transactions, with regard to M&As’ cost-efficient growth, through more market power as well as new resources and competencies. Divestment decisions enable the company to better focus on its primary business or to reinvest the regained capital in new, more promising business opportunities that better match with its strategic direction. However, M&As as well as carve-outs are no transactions, which can be rushed into without thought…

Don’t’ Worry, It’s All Not Rocket Science – Cloud Makes It Simple

Large sums of money and extreme time pressure play important roles, when it comes to M&As or divestments. The bigger and more international a company is, the more complex transformation processes are and the higher is the risk to make losses, instead of profits.

All key points have to be explored from all sides and major challenges should be faced, especially when it comes to an integration or divestment of the existing IT systems or solutions. Based on our practical experiences, we recommend a hybrid model for corporate networks with headquarters running its already existing on-premise solutions, whereas smaller subsidiaries, divested or acquired companies implement the highly standardized and cloud-based SAP solution Business ByDesign. Want to have some convincing arguments? Read on…

Facing Corporate Networks’ Challenges with Cloud-Based SAP Business ByDesign

Challenge 1: Information have to be synchronized between headquarters and subsidiaries.
Next to an easy consolidation of financial figures and ad-hoc reports, SAP Business ByDesign ensures that all group-wide standards are automatically met by the subsidiaries.

Challenge 2: Heterogeneous application landscapes impede exchange of information.
SAP Business ByDesign can seamlessly be integrated with both – SAP and non-SAP systems and applications – and feels instantly at home in any IT environment.

Challenge 3: Integration of foreign IT systems is time-consuming and expensive.
SAP Business ByDesign can be implemented easily due to best practices at minimal initial investments, thus providing a quick time to value.

Challenge 4: Limited IT resources in the subsidiaries have to cover dynamic local requirements.
SAP Business ByDesign is specially customized to the needs of SME subsidiaries and can be simply adapted to dynamic market changes.

Challenge 5:
Potential employee resistance against new software and process changes can disrupt core tasks.
SAP Business ByDesign is characterized by a user-friendly interface, making special training superfluous and allowing your employees to be immediately familiar with the new IT solution.

Being of Special Interest for Investors

In addition to that, companies running on scalable, future-proof SAP Business ByDesign solutions, are really attractive for investors, as they can get sure, that mergers and divestments will be fast and seamless. And, since SAP Business ByDesign solutions don’t involve additional costs, investors can use their capital for further strategic investments.

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