IT Carve-outs - Challenges & Success Factors

AvenDATA - IT Applications Decommissioning | Application Retirement

When carving out corporate units, the focus lies not only on restructuring existing system landscapes, but also on data – as IT forms the backbone of almost all business activities. Decision-makers ask themselves which data must, can and may be migrated – and which historical data should be archived. During project planning and implementation, there are quite a few guidelines to follow. It is essential to take the guidelines into account when selecting data and migrating the same, to keep regular business operations hassle-free while remaining compliant with regulations. Obviously, there is a huge risk of penalties.Here are some challenges and success factors that play an important role in IT carve-outs:

1) Involving IT at early stages for better IT business alignmentAlthough the decision to carve out is for the decision-makers, the IT department should be in the know to develop a reorganization plan right at the early stages. After all, they assume a key function in the overall carve-out of a business unit and hence should be integral to any transformation strategy to actively shape the procedure.In practice, they need to ensure the transfer of IT infrastructure, the systems and data to existing corporate IT within a stipulated timeframe. Carve-out projects have generally been successfully completed when the IT team is working collaboratively with other business departments, especially in the process of a data carve-out. The business-IT alignment needs to be pronounced and flexible so that friction losses can be avoided.

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