Application Services: CSC Implements 19000 tasks and a new SAP Finance module to establish a Fortune 500 Company's subsidary
Client:A Fortune 500 multinational chemicals and health care company
- In February 2002, as part of its global restructuring strategy, the client sought to separate its $6.5 billion Textiles & Interiors business into an independent, wholly owned subsidiary. Its immediate goal was to prepare subsidiary for a possible Initial Public Offering (IPO) or sale.
- CSC-led teams analyzed the company’s applications and infrastructure, defined the remediation required to accomplish separation, and created a comprehensive plan that translated into 19,000 tasks that needed to be executed and tracked concurrently. To successfully separate the legacy applications, infrastructure and Telecom at 59 locations around the globe, CSC employed proven project management best practices.
- CSC-led teams successfully executed thousands of separation tasks within an aggressive eighteen month framework. CSC also implemented a new SAP finance system to deliver a supply-chain solution to the newly created organization.
Over the years, the company business had introduced a wide range of integrated fibers and intermediates products, including Polyester, Spandex, Nylon and others that have become household names.
By 2002, the company business had grown to more than 20,000 employees, with operations in 59 locations around the world.
The Separation Challenge
To segregate this large entity from the companies other businesses would require the physical separation of computer applications, infrastructure, facilities and networks to allow the newly formed subsidiary to operate with complete independence. To wit:
- A separate identity in the financial marketplace (stock, credit ratings, bank line of credit, loans, etc)
- Separate accounts for recording and maintaining company’s financial and operating data
- Separate data stores and security prohibiting cross-company accessibility to operating data, except where approved for business purposes
- And separate telecommunications, voicemail and data communications infrastructure that would be accessible only by the company employees.
CSC-Led Teams Define Project Strategy
As a key partner in the overall separation effort, CSC participated in a Program Management Office (PMO) to organize a sizable separation workload into logical streams and work teams. The CSC-led teams were comprised of individuals from the client’s organization and other IT vendors that provided support to the client. CSC also tapped its Centers of Excellence (COE) and other CSC organizations to bring in individuals with specific skills and competencies.
The CSC-led teams analyzed the business unit’s applications and infrastructure, defined the remediation required to accomplish separation, and created a comprehensive plan that translated into 19,000 tasks that needed to be executed and tracked concurrently. To successfully separate the legacy applications, infrastructure and Telecom at 59 locations around the globe, CSC employed proven project management best practices.
Specifically, the effort required the physical separation of 1,400 applications, six mainframes, 817 midrange systems, 580 servers, 14,000 desktops, 20 PBX and 15,000 telephones, as well as the IT support staff for more than 12,000 employees around the globe. All business critical tasks, about 90% of the total task list, were completed within an 18-month window to meet the client’s deadlines for this work.
SAP Supply Chain Solution
A key part of the separation effort included the implementation of a new SAP finance system to deliver a supply-chain solution to the newly created organization. To successfully execute this effort, the CSC-led team identified nine CSC Subject Matter Experts (SMEs) to share their extensive knowledge of the client’s business operations and processes. Their knowledge served as a basis for establishing and modifying systems to support SAP implementation.
The implementation focused on SAP’s Finance Modules, which included A/R, A/P, Asset Management, General Ledger, Month End Closing and Consolidation, Site Accounting, Tax, Treasury and Internal Auditing. CSC also ensured that all legacy systems were successfully integrated to run with the new SAP applications.
In February 2003, the CSC-led team began successfully implementing the new organization’s SAP finance system within the United States, Europe, Asia Pacific and Mexico.
Collaboration Yields Project Success
By October 31, 2003, the CSC-led separation teams successfully executed a majority of the business-critical project tasks at or under budget, poising the new organization for official separation.
A key note is that the CSC-led teams successfully executed thousands of separation tasks within an aggressive 18-month framework. Networks and servers were installed in Delaware, Switzerland and China without causing any disruptions to business. These successes were a direct result of the successful collaboration and management of vendor and client teams across the globe.
The client and CSC successfully concluded contract negotiations for a global four-year contract for infrastructure outsourcing services on Nov.12, 2003. Post purchase of the subsidiary by another organization, CSC has been contracted to support its integration with its new owner and provide ongoing support services.