Using SNP Applications for IT Due Diligence

Heidelberg ,19. – 20. Oktober 2017

BE SMARTER – TAKE IT TO A NEW LEVEL
Dominik Gärtner, Executive Assistant to the CEO, SNP
Ralf Mehnert-Meland, President of SNP Applications Inc, SNP

Using SNP Applications for IT Due Diligence
Automated ERP Scans to Mitigate IT Integration Risks

This Workshop Will Showcase How:
A clear view of the effort, time and cost required to
transform ... See more

n entity‘s ERP data provides a sound basis for
successful risk, synergy and integration planning.

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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AGENDA
1. SNP in a Nutshell

6. Full ERP Overview in M&As

2. Due Diligence in M&A Transactions

7. SNP System Scan

3. Complex ERP Landscapes

8. SNP Interface Scanner

4. Typical Customer Problem

9. SNP CrystalBridge

5. M&A Success Factor „IT“

10. Workshop Discussion

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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SNP in a Nutshell

Headquarters

Founded

Employees

Heidelberg (GER)

1994

> 1,350

Revenue
in € mn, *estimated

110*

80

“We are working on enhanced software
solutions and investigating AI algorithms to
provide more time for our customers to
concentrate on their core business and
minimize business downtimes.”

56
30
23
Dr. Andreas Schneider-Neureither
2013

2014

2015

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2016

2017

Henry Göttler

CEO

COO
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Customers

Siemens
Evonik
ThyssenKrupp
HP Enterprise
ABB

Bosch
Bose
Kellogg‘s
Russian Railways
L‘Oreal
Sony
Sime Darby

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Due Diligence in M&A Transactions
Due Diligence
An approach to resolve the informational
gap between the potentially betterinformed seller and the less informed
buyer of a target company.
The purpose of the due diligence
process is not only to find potential risks.
More importantly, the process identifies
the necessary information for the most
advantageous structure of the
transaction and the most successful
post-event integration.
21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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Main Areas of Due Diligence Review

Due Diligence

Business
Compatibility

Financial and
Tax

Management
and Human
Resources

IT and
Infrastructure

Market
Environment

Marketing

Production

Legal

Operations

ERP Systems

CRM
Systems

IT Processes

Post-Event
Integration

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The Problem: ERP Systems Rank Among the Most Complex IT Systems

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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The Result: IT Due Diligence is Difficult

ERP migrations rank among the most
complex projects in PMI
 Business units with special needs and
highly customized systems
 Locations all over the world
 Historically-grown heterogeneous ERP
landscapes
 Business need for Near-ZeroDowntime Go-Live
 Manual approaches are timeconsuming, incomplete and incorrect
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Typical Customer Problem: „We don‘t know, what we don‘t know!“

Documentation non-existent,
incomplete or out-of-date

ERP system landscape information
available, but:

Knowledge about essential
components, such as interfaces, not
centrally accessible
Monitoring tools do not provide all
needed information
No adequate graphical representation
of topology available
Risk assessment difficult

Information is scattered – no central
evaluation possible
 Long-term evaluation difficult –
Information is deleted periodically
Many non-relevant data sets – missing
filters
Manual analysis and evaluation
cumbersome, costly and frustrating

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Statistics on Failed M&As (Post-Merger)

Surveys: Wharton / Harvard / Deloitte

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Would a Detailed IT Due Diligence Have Saved Company Value?
Survey (EY, 2011): „IT as driver for M&A“

▪ In 47% of transactions, a
stronger focus on IT
would have prevented a
loss of company value
post merger
▪ The greatest challenges
are data migration and
Day 1 business
continuity

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Nearly Half the Synergies Possible in a Merger are Strongly Related to IT
Survey (McKinsey, 2011): „Understanding the stategic value of IT in M&A“

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Preparation −
Careful Planning to Reduce Risks
SCOPE

Challenges

▪
▪
▪
▪
▪
▪

PREPARATION

Prioritize areas of focus
Decide what not to transform
Analyze impact of simplification
Design business process optimizations
Identify key benefits
Do housekeeping first

APPROACH
▪
▪
▪
▪

Choose target system
Choose scenario (brownfield vs greenfield)
Choose target release (ERP vs S/4)
Decide your transformation strategy
(big bang vs iterative)
▪ Decide your platform strategy (cloud vs on premise)

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

RISKS
▪
▪
▪
▪

Identify conflicts
Plan efforts and timeline
Ensure internal and external resources
Evaluate possible side effects

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Full (ERP) Overview is a Must Requirement in All M&A Stages

PRE MERGER

MERGER

POST MERGER

Target Benchmarking

IT Due Diligence

ERP Integration Setup

ERP Integration Effort / Complexity

IT Integration Risks

ERP Optimization / Synergies

Project Estimation Phase / TSA
Integration Roadmap

INTERNAL: Benchmarking
Benchmarking of buy side and vendor
scans

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

EXTERNAL: Due Diligence & TSA
High-quality estimates for
project time, effort and cost

INTERNAL: Integration
High-quality ERP system overview for ERP
integration setup

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SNP System Scan (for SAP ERP)

Display of business units and legal entitys in SAP

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SNP System Scan for SAP ERP

Functional system usage / Benchmarking of several ERP scans / Estimation of integration complexity

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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SNP Interface Scanner for SAP ERP

Topological View: In-/outbound interfaces of an SAP ERP System

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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SNP CrystalBridge Supports Project Control

CrystalBridge

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

▪ Customer view to control all phases
of transformation projects
▪ Enables to do the blueprint based on
system data in an interactive
environment
▪ Provide a more holistic view of an
entire SAP landscape
▪ Brings additional analysis, monitoring
and optimization functionalities
▪ Merge the vast data stores created by
our other SNP software tools
▪ Enables our clients to better plan,
implement, and optimize their IT
transformations

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Group Discussion

What are your experiences with optimal timing of IT-integration
planning?

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Group Discussion

Have you had recent pitfalls related to IT / ERP integration
planning?

21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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Thank You!
SNP Schneider-Neureither & Partner AG
Dossenheimer Landstrasse 100
69121 Heidelberg
+49 6221 64 25 – 0
+49 6221 64 25 – 20
info@snp-ag.com
www.snpgroup.com

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Disclaimer
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21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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Hidden Risk: Data Security Compliance
Worst case scenario of …
 New rules for obtaining consent and allowing
people to withdraw consent for data collection
 Data breach notification within 72 hours of
awareness
 The right for consumers to have their data
erased
 The right for consumers to see any data
companies have about them
 The right for consumers to move their data
from one provider to another
 The requirement for companies to appoint a
Data Protection Officer
 The requirement for companies to build privacy
into their systems and limit employee access to
personal data
21.11.2017 Using SNP Applications for IT Due Diligence © SNP

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AGENDA
FRIDAY, OCTOBER 20, 2017

13:00 – 13:45

Lunch, networking and exhibition

14:00 – 14:30

Level 2 – Smart Business

Level 3 – Smart Migration

Level 4 – Smart IT

Everything you need to know
about the General Data
Protection Regulation (GDPR)
Gerhard Krauss, SNP

Data center relocation &
system transformation –
Experience report
Martin Schenke, T-Systems

How Focused Build support
S/4HANA implementation
projects
Marc Oliver Schäfer, SAP SE

Level 3 – Roll 1

Level 3 – Roll 2

BCC eTime – A revolution in
time planning in SAP solutions
Przemyslaw Brudlo & Wojciech
Mackowiak, BCC | An SNP
Company

Getting to know SNP
CrystalBridge
Steele Arbeeny, SNP

13:45 – 14:45

... See less