When health product giants Ciba-Geigy and Sandoz merged to form Novartis Consumer Health, GL Associates played a vital and critical role in making the transition a smooth one.

 

A merger of this size impacts every system at both companies. Adding to this already complicated task were announcements of wholesale changes in reporting relationships plus personnel downsizing and reassignment - all of which would occur concurrently with merger-related systems work.

 

They needed a top-level consulting firm that had the background, experience, personnel, and record of success required to implement a variety of critical functions vital to a successful merger.

 

They called GL Associates.

 

GL Associates already was known and respected by Ciba. For years we had handled the maintenance of their mainframe corporate financial systems. Also, we had successfully completed a project for Ciba's Self Medication division and were involved in on-going discussions with this division concerning a new chart of accounts (COA).

 

The merger now accelerated the need for prompt development of a new COA to support the new entity. Adding another level of complexity was the fact we had to assume complete project responsibility for implementing new software.
The client chose JD Edwards Purchasing and Financial Systems. However, with the lone exception of one Ciba plant already using several JDE modules, no IS staff at either company knew this software! Our expertise and outstanding track record with JDE, our broad range of applicable conversion aids, and a staff totally conversant with the company's legacy system made GL Associates the logical choice to handle such a complex assignment.

 

Our immediate goal was to implement the software, train internal IS management and end-user personnel in its use, and work effectively with management from two separate organizations with different cultures and viewpoints on system requirements.

 

Our job was made even more difficult because merger approval by the FTC was repeatedly delayed and did not occur until December 13. That was four months after the merger was announced and, more critically for us just prior to Christmas and year-end reporting.

 

This delay was significant because until approval was granted, heavy legal restrictions were placed on system teams' access to Sandoz data and systems. The GL Associates team was unable to view the "live" data until December 14th. The company created by the merger, Novartis Consumer Health, began operations on January 1st. Yet, despite this time crunch, GL Associates helped them go live with their JDE Purchasing System on January 2nd and had them paying January invoices using their new JDE Accounts Payable System.

 

What we accomplished for Novartis involved taking four different general ledgers operating with three charts of accounts and merging them into one new ledger using a new, uniform COA. . This new general ledger system was closed at the end of the third workday in February.

 

Additionally, the GL Associates team modified extensive conversion programs, wrote other conversion programs, developed system interfaces, defined requirements, trained end-users at three locations, modified the system when necessary, and provided hands-on support during the transition. Legacy systems to which GLA built interfaces to and/or converted data included SAP, AMAPS, BPCS, and MSA.