Client: Hellanor AS (later NDS Group AS)

In November 2018, AURELIUS Equity Opportunities SE Co KGaA acquired Hellanor AS, the second-largest automotive spare parts supplier in Norway. This spin-off from the Hella Group resulted in the new company NDS Group AS. With around 250 employees, Hellanor supplies its customers, including workshops, regional wholesalers, and car dealers, with spare parts from its central warehouse in Skytta and 19 branches across Norway. Additionally, Hellanor offers workshop concepts under its own brand Automester, as well as concepts for third-party customers such as Bosch Car Service. In the “Automateriell” business area, Hellanor distributes workshop equipment from leading manufacturers like JohnBean and MAHA.

Initial Situation and Challenge

As part of the separation from Hella’s IT infrastructure, approximately 250 users at 19 locations in Norway had to be migrated to a new IT landscape, and the ERP system and all applications needed to be separated. To implement this successfully and relieve the local IT at the headquarters, a detailed and comprehensive project plan had to be created and implemented with full-scale project management. At the beginning of the project, a reliable local IT service provider was sought through a tendering process. The new partner’s task was to build a completely new IT infrastructure, migrate the old SAP system, which had not been supported by SAP for some time, and assist in separating all applications.

Regarding SAP, for various reasons, it was not possible to apply a so-called “greenfield approach” (introduction of a new, current SAP system including process redesign). Instead, it was decided to copy the old system and rebuild it in the new environment. In a second step, after completion of the carve-out phase, the SAP system will then be brought up to date.
Due to the complexity of the IT landscape with its close integration into the online shop and logistics centers, the project team decided against a big-bang migration approach and opted for a phased separation from Hella. In the first step, the IT infrastructure was separated from Hella. This meant: all locations were newly connected, the back-office infrastructure was set up, new printers were rolled out, and the network at the locations was rebuilt parallel to the existing infrastructure. Finally, new PCs were sent to all users and put into operation by themselves. Since the Microsoft cloud client was used, this was easily possible for every user. Even installations in home offices could be carried out without errors.

In a second step, all applications were then newly set up and the associated data migrated. In some cases, the old applications were replaced by alternative solutions, e.g., cloud services.

As a final step, the SAP system and its interfaces were converted. The biggest challenge here was the close integration of almost all applications with the ERP system. Furthermore, all interfaces had to be redeveloped and tested. Since these were mostly interfaces to external partners, particular emphasis was placed on professional test management in the form of an additional test manager who took over the coordination with all internal and external parties involved.

A great help in this project was the supportive parent company, which actively assisted in making the migration as smooth as possible. Through the close and efficient collaboration of all involved parties, it was then possible to migrate the SAP system and all applications to the new IT landscape within the set timeframe of one year.

“The carve-out of Hellanor from the Hella Group was a challenging task on various levels. Especially in automotive spare parts distribution, delivery performance is crucial, and there is no room for error when it comes to process reliability and efficiency. Therefore, a well-functioning, uninterrupted IT infrastructure was a priority for us. digatus as our partner was a great asset for the carve-out project, and we greatly appreciated the transparent project management and good cooperation with our own team as well as local partners. Delivering the project on time and within budget was a great achievement by the digatus team, for which we are very grateful.”

Janno Gröne – Associate Operating Partner Aurelius CEO NDS Group AS

Solution

As part of the carve-out project, digatus coordinated the separation of the IT infrastructure from the divesting unit to full independence for NDS. This included the migration of the entire IT infrastructure, including the SAP system. The transition of applications was also part of these tasks, such as reporting, ordering, and communication systems, as well as interfaces between systems.
Furthermore, the selection of future service providers was supported in a Request for Proposal process, and the subsequent contract design with the selected parties was managed. In the course of the carve-out, the IT department was also restructured, IT infrastructure services were outsourced to a service provider, and the future focus was placed on internal application and SAP support and development.

Customer Benefits

During the implemented separation of the IT infrastructure, NDS benefited from consistently clear project management with full cost transparency. With the successful completion of the IT carve-out project, the newly created entity experiences relief for personnel through the uniform and lean design of processes and systems.
By selecting a Norwegian IT service provider, efficiency and employee satisfaction could be increased through the newly established local service desk. Furthermore, cost savings of nearly 8% compared to previous operating costs were achieved. Now NDS can continue to focus on successful realignment, with increased stability and productivity of the systems.