Divestiture (M&A for a global manufacturer)

In third quarter of 2017, a major packaging manufacturer has spun off a subsidiary to a private investor. Axcellent solutions was engaged in early 2018 to carve out divested data for the spun off company’s ERP system. The initiative covered five major systems including CRM (Customer Relationship Management), BW (Business warehouse), ERP (Enterprise Relationship Planning), and APO (Advanced Planning and Optimization – MRP/procurement) across IT landscape. The plan included successful identification & deletion of proprietary transactional, and master data from major business areas such as, sales, logistics, finance/special ledger, controlling, assets, manufacturing, purchasing/MRP, quality assurance, etc.

What we did

  • Total Size of Database (Before): 7.9 TB
  • Total candidate data “Spectrum” for archiving: 70.7% of total database
  • Average success ratio of Divestiture: 96%
  • Total Size of Database (after): 2.54 TB
  • Total Savings: 5.36 TB


The project lasted for 15 months including hardware issues that delayed us for a month during the project. A total of 66 archive objects were implemented during the project with 56 custom enhancements. Our approach was to limit the nos. of custom enhancements and use standard SAP out-of-box tools where feasible. The team size was maxed to six consultants at peak time. The team has complied with internal audit standards and developed over 410 documents to conform to development and testing standards. The overall project includes successful deletion of over 10 billon proprietary records from divested company with zero data integrity data complaints – which is phenomenal accomplishment. The monumental task included planning and execution of 24,168 archive jobs. The project team also identified over 55 million attachments stored external on third party storage systems and successfully deleted them.

Identified reasons:

It was identified as a high-risk project due to following two reasons:

  • Risk of deleting master data. The project has successfully deleted 75% of customers and 73% of material master records (over three million) without any issues. The removal also included sensitive pricing records, routes, source lists, and bill of materials.
  • Risk of executing heterogenous mass deletions on an active and operational system. It is likely that one can run into overall system performance issues if such a volumous activities are not planned diligently.

In summary, the project results highlights Axcellent solutions deep understanding about data types, formats, risk of divestiture (Mergers/acquisitions), and execution of mass divestiture activities with diligent planning and communications.