Over the lifetime of an ERP system, business priorities and operations evolve in order to align with evolving client expectations and rapid technology advancements. These constant pressures to adapt are often followed by internal restructures, product expansions, mergers and acquisitions or moving into new markets. Any subsequent action then needs to be reflected in that ERP system to ensure decisions going forward, are being made off the back of reliable data.
For those companies that use an SAP solution, there is a wider set of tools to help with any adaptations. These are known as System Landscape Optimization (SLO) or Data Management tools.
These tools, provide a wide range of services that meet the technical challenges often created by operational changes or restructures. These changes could include the restructuring of cost or profit centers or the shortening of a company’s fiscal year.
One service that will become even more prevalent, given the pressures brought on by COVID-19, is Company Code Deletion. Predominately used in scenarios of company mergers, acquisitions or divestitures, demand will grow rapidly out of industries which have been devastated by the virus. We will start to see companies make the strategic, and in some cases desperate, decision to merge with one another to ensure their collective survival. Company Code Deletion will allow these businesses to increase efficiency, by automating the merge of one company into an existing company, making it a valuable investment for any business who wants to survive in a post-Covid world.
Company Code Deletion also brings benefit to those considering or preparing for an update to SAP S/4HANA, a decision which could also be influenced by the pandemic. Indeed, Company Code Deletion forms part of the master data cleansing process that would normally take place during an S/4 move. So, doing a cleanup beforehand is not only beneficial from an operational perspective, but it also puts your business in a strong and ready position for when you do decide you are ready for S/4. Another reason for it to be regarded as a protected and worthwhile investment. Besides being S/4 ready, Company Code Deletion can also consolidate all business transactions into one place, so you can see at a glance what is happening with each of your customers and suppliers. Without this clarity, you could run the risk of missing out on valuable negotiating advantage or worse, giving away large chunks of business to a competitor.
An example of this was a logistics company we worked with in South Africa. On the one hand, they were suppliers to an oil company, transporting and distributing their petrol across Africa, on the other, they were a customer, filling up their own trucks at the petrol stations. When the oil company released a tender looking for a new distribution partner, the logistics company didn’t have a consolidated view of all business purchases and sales showing just how valuable their relationship was. This lack of clarity impeded their negotiation advantage and almost lost the logistics company their tender. That’s why, regardless of whether your organization is “ready” for S/4 or not, cleaning up the master data and organizational structure of your ECC system is key for future proofing your business.
Company Code Deletion is a small yet important step to improving operational efficiency, enabling S/4 readiness and aligning to the requirements of any merger and acquisition. This is why bancon have created the SAP approved bCCDel service, a comprehensive Company Code Deletion Service that allows companies to reliably delete data from an SAP system that belong to a specific company. We use a low risk clone and delete approach, which is much more secure than data migration. Read our case study from Powertech when they sold their battery brand Willard to Chinese conglomerate Auto-X.
If you have any questions please contact me directly via wilfried.schulte@bancon-it.com or via LinkedIn.
