Our client is a leading global Swedish manufacturer of trucks, buses, construction equipment and marine and industrial engines. They sold their Japanese business to another Japanese multinational automobile manufacturer and the acquisition was valued at approximately USD 2.3 billion.
HCLTech was selected as the system integrator by both buyer and seller to lead the complex IT separation and integration process. The project involved migrating software and hardware, cloning critical applications, developing new business solutions and providing ongoing IT support and maintenance. The engagement spanned over 3 years, covering the separation from the seller, integration with the buyer and establishment of new IT capabilities for the new standalone entity.
The Challenge
Adapting to needs without changes in key business processing
Both clients were facing various challenges related to migration, implementation, maintaining the integrity of business functioning, adoption of modern solutions and other such issues.
- Maintaining uninterrupted business operations throughout the separation process
- Separating tightly integrated IT systems and data with minimal business disruption
- Migrating and cloning complex, custom-built legacy applications such as KOLA and TSP
- Establishing a new IT infrastructure and core services from scratch for the carved-out entity
- Integrating with the buyer's existing IT landscape while modernizing outdated systems
- Ensuring data integrity and compliance during the separation
- Meeting strict timelines dictated by Transitional Service Agreements (TSAs)
The Objective
Seamless IT separation and integration without business disruption
The primary objective of this extensive IT separation and integration program was to create a standalone, fully functional IT environment for the carved-out business while ensuring minimal disruption to ongoing operations. The client wanted the conversion of SAP BW 7.5 to SAP BW4HANA, which is a next gen-datawarehouse. This entailed migrating all critical applications, data and infrastructure from the seller to the buyer, cloning and adapting key strategic applications, implementing new business solutions and establishing a secure hybrid cloud infrastructure. The program aimed to complete the entire IT separation within strict TSA timelines, enabling the buyer to operate as an independent entity with modernized IT capabilities. Simultaneously, the objective included setting up ongoing application and infrastructure support to ensure smooth operations post-separation.
The Solution
Implementation of a comprehensive, multi-faceted solution
HCLTech implemented an extensive solution covering multiple aspects like software & hardware migration, SAP application cloning and separation, new business solutions, strategy consulting and ongoing support. We built hybrid cloud data centers in Sweden and Japan and set up Azure cloud environments in EMEA and APAC to implement core infrastructure and security services. Post-separation, we transitioned to providing application and infrastructure support and established governance and continuous improvement processes.
- Migrated 460+ business applications and 7500+ end users
- Migrated several data models to make systems compatible for SAP BW4HANA
- Integrated customer relationship management (CRM) software with BW4HANA for obsolete function modules
- Cloned critical applications like KOLA (product data management) and TSP (truck sales process)
- Adapted functionality to suit the buyer's business needs
- Rebuilt integrations with other systems in the new environment
- Implemented SAP Ariba for procurement transformation
- Developed a new BI and reporting solution on Azure
- Defined MDM strategy and selected MDM tools
- Provided architectural guidance for the new IT landscape
HCLTech utilized a factory approach for migrations, agile methodology for new developments and a phased transition for support services. The team leveraged automation, cloud technologies and best practices to accelerate delivery.
The Impact
Efficiency elevated with up to 30% improvements in performance
HCLTech successfully executed this complex IT carve-out ensuring independent operations within aggressive TSA timelines and enabling the new business to operate as an independent entity with modernized IT capabilities while minimizing business disruption.
- Aligned the indirect procurement process to the SAP's best practices for 2000+ users in 7 countries and 5000+ suppliers
- Modernized IT landscape with eliminated technical debt and 100% security compliance with CIS standards
- 30% improvement in application access and performance, with 90+ catalogs enabled during the project
- Cost savings through SAP Ariba cloud adoption and process standardization
- Adapted functionality to suit the buyer's business needs
- Enhanced user experience with new solutions like SAP Ariba, S4HANA, PALMs and new BI
- 30% cost savings for the customer through effective planning, execution and collaborative teamwork
- Improved data management and reporting capabilities
- Faster time-to-market through end-to-end automation and DevOps practices
HCLTech also implemented a robust IT support model for ongoing operations and laid the foundation for future digital transformation initiatives to ensure that the independent entity can efficiently adapt to the dynamic business landscape and keep up with modern technological advancements.
