Despite the economic downturn, last year there were $2.3 trillion dollars' worth of mergers and acquisitions (M&A) involving 5,800 separate transactions. The result of this M&A activity is a spate of enterprise application consolidations and migrations. When M&A occur, the resulting enterprise is left with duplicate or overlapping business processes, applications that are supporting these duplicate business processes, and support frameworks for each of these duplicate applications.
It is imperative that overlapping business processes are rationalized and supporting applications are consolidated for cost savings, productivity improvement and establishing a single source of truth for enterprise facts.
A migration transfers business processes from a non-SAP application to SAP. An example of this would be migrating manufacturing business processes from a J.D. Edwards application to an SAP application. Consolidation implies merging multiple instances of SAP applications together to form fewer SAP instances. Consolidation may also involve upgrade as a step to reach the final planned state. These two events may occur when an enterprise goes through M&A or decides to consolidate multiple instances into fewer instances for efficiency and standardization.
SAP migrations and consolidations need to be carefully planned and executed using appropriate process frameworks. Migrations to SAP from other source applications and SAP instance consolidations may impact large numbers of business users and their daily activities. These events are critical and have an impact on the overall enterprise business process and productivity.