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OSRAM Licht AG: The Ambitious Carve Out Project

Feature Article | September 22, 2017 by Sabine Wachter

OSRAM Licht AG is a leading manufacturer of lighting components and systems, with a portfolio that ranges from high-tech applications based on semiconductor technology to smart and connected lighting solutions in buildings and cities.

In 2015 the supervisory board of OSRAM Licht AG approved the carve-out of the general lighting lamps business. The goal was to become an innovative high-tech company to provide world-class lighting solutions. The carve out of the general lighting lamps business, including the traditional and LED lamps business was being tackled to spin off the general lighting lamps sector as an independent entity to heighten overall flexibility and market presence.

Separating a Complex IT Infrastructure and Other Requirements

OSRAM conducted not only one of the most complex transformation projects including the carve out of 320 systems but it also managed the physical separation of the IT infrastructure and the logical separation of all master data, transactional data, and trading partners. All relevant business processes had to operate on two autonomous system landscapes. The project comprised the change of legal entities, the overall system setup, the redefinition of the entire organizational structure, and adaptations to the approaches of selling and cross-selling. Another major requirement was to move from an on-premise landscape to the IBM cloud.

Why Data Management and Landscape Transformation?

OSRAM AG chose the Data Management and Landscape Transformation (DM&LT) group, part of the Digital Business Services organization, as this team offers proven technology, structured methodology, and expert knowledge to tackle different transformation scenarios and accompany the customer from the design phase to the final go-live.

As Kian Mossanen, CIO of OSRAM Licht AG, explains: “It was an extremely demanding project, and there were not many players on the market we could even consider. DM&LT was the only team out there that offered their support to stem such an enormous project within the required 12-month timeline.”

The Highlight of the Project Set-Up

Biggest project highlight for OSRAM was to deliver the transformation project in less than 12 months. It included the change of legal entities, the overall set up, the organizational structure and adaptations to the approaches of selling and cross-selling and, in addition, moving from on-premise landscape to the IBM cloud. Another key success factor was the 3 test cycles, including 56.000 test steps plus retesting.

The real highlight reflecting the uniqueness of the approach was that during the cutover OSRAM stopped production in many factories to ensure a smooth go-live.

One of the Most Ambitious IT Projects in German Corporate History

Once the transformation had been successfully realized, the businesses of OSRAM AG and LEDVANCE GmbH were separated worldwide and OSRAM IT was set up in a structured mode to be ready for the future requirements. In the overall, 45 new legal entities have been registered and enabled by the carve out, more than 267 terabytes have been transferred.

As IT landscapes of OSRAM and LEDVANCE were completely separated, the expected benefits were achieved. In total, more than 320 systems were separated in the Go-Live.

“The OSRAM project was one of the most ambitious ever in Germany’s IT space,” Mr. Mossanen concludes. “This historical achievement will become an industry benchmark and will contribute toward future OSRAM excellence by setting new expectations about distinction in project management.”

Industry Leader that Fosters Innovation

OSRAM AG strives to become an industry leader that fosters innovation. The company is now bolstering its high-tech industry credentials while the carved out new legal entity, LEDVANCE, can fully develop the traditional general lighting lamps business with pioneering state-of-the-art lighting technologies.

Image via OSRAM

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