SAP Customer Success Story | Life Sciences | Sidus

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Sidus: Realizing a Complex Divestiture Scenario with Expertise from the System Landscape Optimization Group

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

Company Grupo de Empresas Farmacéuticas Sidus Industry Life Sciences – Pharmaceuticals Products and Services Over-the-counter health products as well as biotechnological and plant-based bioproducts Web Site www.sidus.com.ar SAP® Solutions System Landscape Optimization group of SAP® Consulting

How does a company with multiple business units ensure operational continuity while divesting a subsidiary as quickly and reliably as possible? Argentinian pharma enterprise Grupo de Empresas Farmacéuticas Sidus decided to engage the expertise of the System Landscape Optimization group from SAP® Consulting to guide the subsequent IT project through its key phases. The SAP experts helped Sidus cleanly split its SAP software system by developing a road map and helping to execute the technical realization.
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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

Expanding from traditional pharmaceuticals into biotech
For almost seven decades, Sidus has worked in the field of human health, in close relationship with physicians, biologists, scientists, and pharmacists. The company has endeavored to reach its goal of helping to optimize the quality of life of its country’s population – a journey of innovative research and development in Argentina. With its group of companies all operating in the healthcare industry, Sidus – which employs over 900 staff – is one of the most important Argentinian pharmaceutical enterprises. Although the group’s companies are all based in Argentina, their business extends also to international markets. Originally, Sidus only manufactured prescriptionbased pharmaceutical products. However, the company has since expanded its product range to include

Developing a customer-oriented, family-owned pharma business

70 years

over-the-counter health products, raw materials, and biotechnological products. The diversification at Sidus began in the early 1980s with the creation of a specialized biotechnology company, Bio Sidus. The goal was to encourage development of innovative products and support the work of Argentinian scientists in the emerging new field. In 1992 Bio Sidus, in turn, created the Tecnoplant division, which has become a pioneer in the development of bioproducts based on plants.

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

Growing success leads to critical IT reorganization
The goal of Bio Sidus and Tecnoplant is to follow their distinct business path within the Sidus Group. This focus is intended to create leadership in the field of biotechnology and bioproducts. In fact, one of the first achievements of Bio Sidus was to be the first enterprise in Argentina to clone a cow. As a result of this and other scientific innovations, the company has already become a leading exporter of animalrelated biotechnology. As a result of a new enterprise-wide business strategy, in 2010 the four family-owned branches decided to divest Bio Sidus. The result of this decision was a large-scale internal reorganization of the whole corporate structure, which also had to be reflected at the IT level. Prior to this point, all companies in the group shared a single system environment. Once the decision was made to move forward with the previewed business divestment, Sidus turned to SAP for expertise to realize this complex IT transformation initiative.

Biotech company in Argentina to clone a cow

1st

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

A close-knit team leads to a successful project
Horacio Colombo, head of IT at Sidus Group, describes the origin of the project: “The database and hardware were physically located in the sold company, Bio Sidus. Within the context of the divestiture, Bio Sidus had to give us both its IT hardware and database but, due to legal requirements, without any of the divested company’s proprietary data. We had the option to perform this deletion activity exclusively with IBM or with SAP , and we chose SAP .” Sidus was confident that the System Landscape Optimization group of SAP Consulting offered highquality services – thanks to the group’s specialized experts with the necessary knowledge to perform complex transformation projects. Sidus valued the fast and profitable solution offered by the System Landscape Optimization group, a solution based on proven methodologies and SAP Landscape Transformation software. “The role of the System Landscape Optimization group was fundamental to completing this project in time. The SAP experts gave us support every time we had doubts or issues. In some cases, they went beyond the project’s scope and helped us understand some processes that had caused us trouble for the past three years. One example related to our costing processes,” says Colombo. Another key factor was the ability of the teams of SAP consultants and Sidus staff to communicate in a common language – Spanish. The physical proximity of the offices of both teams resulted in a closeness that enabled the kind of close-knit, family-style relationships that reflected Sidus’s corporate culture. This helped promote a relaxed atmosphere during the project.

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

Realizing the production conversion in only three hours
After an in-depth evaluation of how to reliably separate data of the divested company from Sidus – while ensuring business continuity – the decision was made to apply the proven company code deletion approach. Because hardware and the group’s database were shared by both companies, the project team had to guarantee that both organizational structures could exist in the different SAP software system instances and retain consistent and undisrupted data after the split. This transformation project was one of the group’s largest IT projects. Due to its strategic importance, it was essential for all involved parties to commit to the communicated tight project timeline. The whole project was completed in only three months, from the first scoping meetings to going live. The road map elaborated by the SAP experts consisted of two test-cycle conversions for both the productive and development systems. The team comprised five part-time Sidus staff, four SAP consultants, and about 15 of Sidus’s IT users responsible for testing. The final cutover was performed over a weekend, minimizing the impact on Sidus’s daily business operations. Colombo explains, “We started preparing for going live on a Friday so we could execute the deletion activities at night and verify the results by Saturday afternoon – the time at which we could decide if restoring a backup was necessary. The deletion activities finished at 3:00 a.m. on Saturday, the users began testing at 7:00 a.m., and we gave our ‘go’ decision at midday.” The speed of executing the split in the productive system surprised the Sidus team: “Based on the first two test conversions, we were estimating that the whole process would take around eight hours. In fact, the conversion for the productive system took less than three hours.”

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

A smooth cutover and positive user reaction
After successfully going live over the weekend, Sidus was able to continue with its normal business activities on the following Monday without facing any obstacles. What were the users’ reactions? “The users were very active and reacted very well to the system’s momentby-moment needs,” Colombo says. What were the main challenges for the project? “There was nothing very critical that could not be solved within the first 24 hours after the deletion activities,” says Colombo. “Basically, there were issues with jobs that were running after hours, and we had to turn them off for the deletion activities. We turned them back on after

To complete the conversion in the productive system

<3 hours

the conversion without any issues. The few technical issues we had were solved very fast with support from the System Landscape Optimization group.”

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

SAP Customer Success Story | Life Sciences | Sidus

Executive overview Company Vision Why SAP Implementation Solution Benefits

Successful split of data and added value for end users
“We achieved the benefits we expected – the cleansing of the database of our productive and test systems. We accomplished this on time and according to the initial project plan and road map that the System Landscape Optimization group provided,” says Colombo. Sidus also took advantage of the required deletion of the divested company’s data to cleanse the company’s system of no-longer-required data. The reduced size of the database added still more value for Sidus’s end users. Colombo summarizes, “We did not even have any ‘lessons learned,’ and I can confirm that the project approach and methodologies applied by the System Landscape Optimization group were impeccable.”

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