Deakin University

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Managing the it carve-out in a SBU divestment

conference contribution
posted on 2010-12-01, 00:00 authored by J Fähling, M Böhm, J M Leimeister, Philip YettonPhilip Yetton, H Krcmar
This paper presents an alignment model to analyze the specific IT-based challenges of divesting a strategic business unit (SBU). The model identifies the interdependences among SBU application portfolios, undocumented local system customization, and other intra-organization links that a carveout must identify and resolve. For large organizations that frequently buy and sell SBUs, four guidelines are proposed: 1) a SBU that will be sold - the so called carve-out object - should be autonomous, 2) the SBU IT application portfolios should be independent, 3) IT standards should be implemented in both the corporate IT platform and IT application portfolios, and 4) the intellectual property embedded in human resources needs to be replicated, and both retained in the vendor organization and divested to the buyer with the IT carve-out object. Complying with these guidelines is complex and difficult because they are frequently in conflict with vendor IT and line management goals. Carve-out management teams should consider and address these differences when structuring, designing and resourcing the IT work stream.



Association for Information Systems


Pretoria, South Africa

Place of publication

Atlanta, Ga.

Start date


End date




Publication classification

EN.1 Other conference paper

Title of proceedings

18th European Conference on Information Systems, ECIS 2010

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