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Corporate Divestiture

Corporate divestiture is an important business strategy to reduce operating losses and achieve higher efficiency, by shedding some of the enterprise’s assets in its business portfolio. The need for the divestiture can be varied, including overlapping functions resulting from mergers or acquisitions, business units identified as under-performing, or regulatory requirements or market pressures forcing the enterprise to change. When the need for the divestiture has been identified, the selected business units can be removed and revenues from the sale, spin off or carve out can be channeled to develop other business functions.

Enterprise Architect has a number of tools that can assist with the planning and management of the divestiture. The removal of a business function will result in the concomitant need to identify the technical assets that need to be removed or decommissioned or untangled from other parts of the system. Enterprise Architect has powerful traceability and visualization facilities that can be used to understand the impact on the Business, Information, Application and Technology architectures.