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Rapid ERP Projects: Ideal for More than Spin-Outs

According to a recent news release from Ernst & Young on merger and acquisition activity, a bright spot for deal making in 2012 in the U.S. was private equity (PE) acquisitions. They remained relatively constant from the previous year. Activity in 2013 is expected to be similar to 2012. A reason why: 

Continued divestiture activity as a consequence of corporates focusing on core operations may yield large carve-outs that are prime targets for PE.

A news release from PwC US on 2012 deal activity also cited divestitures as an important driver. In addition, middle market deals valued at $1 billion or less, including divestitures, accounted for 98 percent of deal activity through November. Both trends are expected to continue into 2013.

Many of the deals in 2013, both in the U.S. and globally, will include a medium-sized business or will result in the creation of a medium-sized business. The rapid deployment of information technology can influence the success of these transactions.

For example, if the divestiture is a spin-out (also known as a spin-off), the new business may be required to transition from the parent company’s IT infrastructure within a short time frame. As part of the transition, the selection and implementation of an ERP solution will need to happen quickly and predictably. A subsidiary or business unit sold to another party, as opposed to being spun off, can face similar challenges. 

A spin-out isn’t the only reason a midsize company can require a new ERP solution – or require one quickly. Other reasons include:

  • Running on spreadsheets is no longer working.
  • Your current software is splitting at the seams due to business growth or doesn’t enable you to react quickly to new opportunities.
  • The software doesn’t support planned international expansion or a new business model.
  • Your current ERP software is no longer supported.

For companies needing a foundational ERP solution quickly with low risk and maximum predictability during the implementation project, the SAP Business All-in-One rapid-deployment solution can be a great fit. An SAP partner will have you up and running for a fixed price and on a predictable project time frame. And as with all SAP Business All-in-One solutions, it’s built on the proven SAP ERP application enabling the solution to grow with you, no matter what size you reach.

To get started, use the SAP Business All-in-One solution configurator to choose the business processes to be supported by the software. You can select processes for finance, purchasing, manufacturing, product development, and more.

The solution configurator has predefined templates for the most used functionality for manufacturing, services, and trading (wholesale distribution) companies. The templates provide a streamlined starting point for adding or removing preconfigured processes from your selected solution scope.

After you have selected your scope, you can request an immediate cost estimate based on your selections and the expected number of employees who will use the solution. You will get a link to your configuration enabling you to share the configuration and cost estimate with other stakeholders in your company, or to revise your selections in the future.

During the scoping and estimation process within the solution configurator, you can request for an SAP partner to contact you. The partner will provide a customized demo and work with you to finalize the selected scope for your solution and how you want it deployed – on-premise or hosted. At that point, the project scope, implementation services, and cost are fixed.

Your partner will guide you through the purchase and implementation processes, giving you a predictable outcome that minimizes risk and unexpected costs. Full implementation can be completed in as little as 12 weeks, and in some cases, even more rapidly. SAP and its partners understand the quicker you are using the software to run your business, the quicker the software can deliver value for your company.

Now what if your business grows or changes over time? Your SAP Business All-in-One solution can change with it. You can configure your solution to support additional industry-specific processes. You can use the solution to manage operations in other countries. It supports multiple languages, tax requirements, and currencies as well as country-specific regulations. Plus, you can extend the solution beyond ERP with additional rapid-deployment solutions offering functionality to address specific line-of-business or industry requirements.

Selecting and implementing a new ERP system doesn’t have to be a drawn-out process with changing costs and project time lines. With the SAP Business All-in-One rapid-deployment solution, midsize companies can implement SAP Business All-in-One quickly with maximum predictability and lower risk. Your company doesn’t have to be a corporate spin-out to benefit from a rapid ERP project.

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