Clean Core in SAP in 2024 : Transforming ERP for the Future

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SAP S/4HANA ERP is an ERP platform that focuses on standardization and not customization and results in an upgrade-friendly system that requires only a few modifications and expensive upgrade costs. This method makes upgrades easier and makes the most of SAP’s cloud-based offerings. In the past, SAP systems were extensively modified to meet specific business requirements, which led to expensive and complicated procedures. However, Clean Core’s implementation methodology provides an efficient, streamlined, and easily upgraded core ERP system, which ensures that SAP software is more effective and efficient in terms of costs. This is essential to allow SAP to simplify its processes and make the most of its cloud-based services.

The Historical Context of Clean Core in SAP


SAP ERP systems, such as R/3 and ECC had a wide range of modifications during their initial days. Businesses were able to adapt SAP to suit their particular needs, increasing customized ABAP applications and entries in the data dictionary, referred to by the name of WRICEF objects. These customizations met urgent business needs, but resulted in highly customized systems that presented significant difficulties when it came to upgrades. The difficulty of resolving and testing these modifications often discouraged companies from undergoing upgrades and causing a cycle of delays and increasing complexity. The more time an upgrade was put off it became more complex and costly it was. The requirement for SAP to be able to adjust to the changes in the market was essential to ensure the ongoing performance in SAP ERP systems.

clean core in sap
sap clean core approach


SAP S/4HANA Cloud introduces a standard method of customization, which separates extensions for customization from the core system. This method, unlike the on-premise system, provides the stability and ease of upgrading and addresses requirements for having a uniform approach to cloud-based solutions.

The Importance of Clean Core Today

SAP has assumed the responsibility of performing S/4HANA updates since the launch of RISE alongside SAP. This change has enabled companies to concentrate on coordination and planning instead of executing technical tasks. The effectiveness of this method is largely dependent on limiting changes, using the Clean Core approach ensuring fewer problems with compatibility during upgrades. The streamlined core system enables SAP to complete upgrade processes more efficiently, thus reducing the amount of downtime and complexity for both their customers and the SAP system. Customers experience less disruption due to updates, and SAP is able to deliver these upgrades with greater efficiency. This is beneficial for both SAP and its customers because customers experience less disruption, and SAP is able to deliver updates more efficiently.

Common Realization Challenges

While the concept of a Clean Core offers many advantages, however, its implementation poses a number of issues.

  • Gaps in Awareness and Skills Rapid technological advancements have resulted in many companies not having the necessary skills and knowledge of the current offerings and how they can be applied in accelerating digital transformation.
  • Old Custom Codes: Decade-old client implementations can contain custom codes written by different customers to serve different purposes in the past, resulting in an uncontrolled growth of custom objects.
  • Multifunctional and complex applications Traditional SAP implementations usually have complex multi-functional applications that are difficult to decode or reverse-engineer. They often have basic ABAP codes that are difficult to change and can lead to the accumulation of technical debt.
  • API Limitations: A technical issue is the absence of “functional” released APIs compared to older ERP APIs. This makes it more difficult to modernize apps or make them cloud-friendly.

Achieving a Clean Core

SAP’s S/4HANA implementation has been created to achieve the aim of getting to a Clean Core, but a Lean Core can be a beneficial first step along the way. Before embarking on customized code remediation initiatives, businesses must consider whether the built-in functions can be used to replace a custom business process. Simplification cataloging of items The Simplification Inventory Catalogue is a helpful resource that lists the benefits of switching from ECC and S/4HANA aswell in the pros and cons of each approach.

If a custom-designed development project is being created on-premise or a quick conversion to S/4HANA is not possible, transferring the code via SAP Business Technology Platform (BTP) services may be an option. SAP BTP offers tools like Build, Integration Suite, ABAP in the Cloud and the side-by side extension which allows custom development to be designed without having to be part of the SAP system while minimizing any impact to the system, and making it easier to upgrade the system in the future. clean core

SAP provides an extension option in the app to allow minor modifications within its base. It permits improvements that do not require significant changes. A few examples are Fiori components fields field improvements and workflow optimizations. For more complicated modifications, side-by-side expansion permits the creation of distinct apps that integrate alongside the principal SAP system, yet are independently using SAP BTP. SAP BTP platform. This method lets developers create complex custom applications on distinct systems, while also reducing impacts on ERP systems that comprise the foundation for the entire system. Prior to moving to cloud computing, SAP provided various exits and adjustments that let customers to customize their system, such as tables that were added to the screen menu, data layer, and exit to the visual layer, and code exits on the layer of the application. This approach provided a lot of flexibility, however it also caused issues with upgrades, as customizations needed thorough testing to verify compatibility to the most recent versions..

Key Principles for Implementing a Clean Core

  • Opting for zero Core Modifications Implementing an all-no-modification strategy is essential to ensure the continuity of systems when they are upgraded and upgrades are in progress that increases testing effort. Implement extensions with less dependence on SAP solutions’ lifecycles as alternative options.
  • Adoption of the standard business processes is an effective step that lets you benefit from industry-leading practices. With the standard scope of items as well as APIs that are released to integrate, you will guarantee a quicker implementation timeframe and lower total cost of ownership and give you the confidence to make your choice.
  • Condensing several common applications under a common data model or API set This will result in a more efficient core and a better design. This approach is efficient and gives you control over the design of your system and allows users to make the most effective choices for your system.
  • Unleash the power of Key-User ExtensibilityTake advantage of the Key-User Extensibility Tools of S/4HANA Cloud Make use of the Key-User (In-App) Tools for Extensibility to make non-disruptive enhancements for traditional applications and artifacts, without interfering with daily processes. These indispensable user tools provide many possibilities for extensions like user interface extensions, including custom fields and constructing business objects that have custom properties.
  • Replatform Decoupled Custom Developments Create side-by side scenarios by writing or developing customized applications outside of the core of SAP BTP while accessing the core database through authorized interfaces. This technique ensures that the application is not tethered to conventional solutions and ensures stability throughout upgrade cycles.
  • Developer (On-Stack) Extensibility: For custom code that must run close to the expanded app, you should consider Embedded Steampunk as an advanced extension mode that can upgrade, be cloud-ready, and support for restful ABAP program model.

To communicate between systems, it is essential to make use of SAP-published APIs that are secure communications contracts. This method ensures that you have the correct release processes for cloud use and consumption, providing you with an assurance of security and confidence in the system’s communication.

Benefits of a Clean Core Approach

  • Simplifies upgrade process by minimizing custom code conflicts.
  • Facilitates rapid adoption of new technologies.
  • Enhances system security and stability.
  • Reduces Total Cost of Ownership (TCO).
  • Ensures transparency and accountability.

Guidelines for Maintaining a Clean Core

  • Implement a zero-modification policy.
  • Leverage approved extensibility options.
  • Ensure upgrade stability using only upgrade-stable standard objects.
  • Regularly assess and optimize custom code.

The core aspects of SAP S/4HANA Cloud include:

  • Processes: Standardized end-to-end processes.
  • Data: High-quality master, transactional, and configuration data.
  • Integration: Seamless connectivity with other solutions.
  • Operations: Efficient maintenance activities like release management and monitoring.
  • Extensibility: Controlled and upgrade-stable customization options

Conclusion

A clean core approach is crucial for maintaining a modern, flexible, and upgrade-friendly SAP S/4HANA system. This approach involves an integrated and hybrid strategy, combining modern extensibility concepts like Key-user, Side-by-side, or Developer Extensibility. By minimizing customization in the core ERP stack and utilizing modern cloud development platforms, businesses can ensure smoother upgrades, lower costs, and faster innovation. By adhering to SAP’s guidelines for a clean core, organizations can fully leverage the capabilities of S/4HANA and remain competitive in the digital age. By assessing upgrade stability and similarity to SAP standards, organizations can determine the ideal extensibility option and create modernized, efficient codebases for future technologies and integration platforms.

Thank you for reading!

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