The SAP Clean Core approach

The SAP Clean Core – a clean SAP core system – was already considered desirable in the past. With S/4HANA, however, the approach is now becoming even more important. All important information on the topic!

What is the SAP Clean Core approach?

SAP’s Clean Core approach is a methodical strategy for standardizing SAP systems – especially SAP S/4HANA Cloud. As the name suggests, the aim of the approach is to keep the core of the ERP system “clean”. In technical terms, this means that modifications (individual adaptations) to the core system are deliberately avoided in order to create a maintenance-friendly, stable and updatable architecture.

The aim of the SAP Clean Core approach is to increase the agility, security and innovative capacity of companies by consistently adhering to the SAP standard. Enhancements are made exclusively via external platforms such as the SAP Business Technology Platform (BTP). This means that the ERP system remains upgradeable, while individual requirements can be mapped using modern enhancement concepts.

Why did SAP decide on Clean Core?

SAP has decided to pursue the Clean Core approach for several reasons. Firstly, this strategy is based on the software manufacturer’s realization that 80 percent of business processes in all companies are almost identical. These standard processes also offer little potential for differentiation from the competition. In this respect, there is little benefit for SAP customers to individualize them.

Another reason is the clearly recognizable development of SAP into a cloud ERP provider: Cloud-based systems fundamentally require greater standardization, as otherwise updates cannot be rolled out to all customers without difficulty. There is also a certain amount of competitive pressure behind this. This is because competitors such as Microsoft also rely on standardized cloud ERP software with short innovation cycles.

SAP is also campaigning for a “clean core” for the following reasons:

  • Increasing regulatory and compliance requirements
  • Increasing security requirements (cyber security)
  • Cost and efficiency reasons (standardized processes are easier to automate, database size is smaller)

Why does SAP S/4HANA need a clean core?

The introduction of SAP S/4HANA has fundamentally changed SAP’s product strategy. While previous SAP ERP versions were highly customizable, the software provider now relies on standardized processes and harmonized data structures – preferably in the cloud. Thanks to the consistent implementation of the Clean Core approach, companies can now benefit from SAP’s innovations without restriction. They therefore have access to modern tools and future developments from SAP at all times.

Is the Clean Core mandatory in every SAP S/4HANA deployment variant?

SAP S/4HANA is available in three different deployment variants:

  • SAP S/4HANA On-Premise
  • SAP S/4HANA Cloud, Public Edition
  • SAP S/4HANA Cloud, Private Edition

SAP recommends the Clean Core for all three options. However, it has so far only been strictly enforced for the SAP S/4HANA Cloud, Public Edition. Modifications are therefore generally not possible here. Instead, companies work with SAP Best Practices (predefined standard processes) and must adapt their organization accordingly. In the on-premise version and in the private cloud, however, it is still possible to make individual adjustments to the ERP software. However, this is always associated with the risk of higher maintenance costs later on. The upgrade capability is also limited in this case and updates lead to higher costs.

What are the advantages of the clean core approach?

A clean core in SAP systems has several advantages for companies. First and foremost is the problem-free integration of updates. Innovations and new functions can be continuously integrated without existing customizations making this difficult or even impossible. In addition, standardized systems run much more reliably and can be scaled better if necessary.

Standardized business processes also offer better automation options. SAP even states on its website that 70 percent of all core processes in SAP S/4HANA can be automated. At the same time, the software manufacturer states that the required database size is 50 percent smaller thanks to Clean Core – a factor that naturally has an impact on IT costs.

The following advantages of the Clean Core approach should also be mentioned:

  • Better decisions thanks to higher data quality and availability
  • Minimization of data silos in different departments
  • Reduced complexity and streamlined processes within the company
  • Less effort for system maintenance
  • Fast implementation of regulatory changes
  • Easier monitoring of compliance issues
  • Improved security through on-demand security updates

What does “Keep the core clean” mean in practice?

Those who opt for the “keep the core clean” principle are opting for the consistent use of standardized best practice processes. For companies that have previously mapped individual adaptations in the form of in-house developments (Z developments) and modifications, this is a far-reaching change. They not only have to align their business processes with industry standards, but also fundamentally change their approach to implementing specific business requirements: All individual processes and functions must now be developed outside the core system. This can be done via side-by-side extensibility in SAP BTP, for example, whereby individual applications and workflows are operated outside the SAP S/4HANA system and integrated via interfaces. As a result, both the SAP standard and the ERP system’s update capability are retained, while companies can still implement specific requirements.

In practice, the Clean Core principle also changes the tasks in IT teams: In the previous change process, business requirements were usually implemented using Z programming in ABAP. Now such requirements have to be mapped using the possibilities of SAP BTP. Although there are still ABAP options, new technologies such as Java, JavaScript (Node.js), the SAP Business Application Studio, Python (especially for AI and analytics applications) and low-code tools (e.g. SAP Build Apps) are also being used. In this respect, demand is shifting away from pure ABAP developers towards more broadly based BTP experts.

What are the challenges of implementing a clean core in SAP S/4HANA?

The introduction of an SAP Clean Core approach requires a fundamental transformation of business processes. Companies must scrutinize their existing processes and adapt them to the standard processes provided by SAP. This can be particularly challenging in industry- or company-specific scenarios, as there is not a fully comprehensive standard solution for every industry.

Another challenge is the change process within the company. Employees who previously worked with highly individualized solutions have to get used to the new, standardized processes. This requires a comprehensive training and communication strategy to minimize resistance and ensure a smooth changeover.

What possibilities does side-by-side extensibility with SAP BTP offer?

The SAP Business Technology Platform (BTP) is a central component for implementing a clean core approach, as it offers extensive options for individual extensions outside the S/4HANA core system. The so-called side-by-side extensibility allows companies to operate applications and processes developed in-house outside the SAP S/4HANA core without changing it.

SAP BTP enables the following, among other things

  • Cloud-native development of own applications via the SAP Extension Suite
  • Integration of systems via the SAP Integration Suite and the SAP API Business Hub
  • Use of low-code tools to create extensions without in-depth programming knowledge
  • Use of RPA (Robotic Process Automation) to automate processes
  • Integration of artificial intelligence and machine learning

How can the SAP Clean Core approach increase the security of SAP systems?

A clean core approach contributes significantly to the security of SAP systems as it reduces the attack surface for potential cyber threats. Individual modifications within the core system often pose a risk, as they can contain security vulnerabilities or make the use of standardized security updates more difficult.

By strictly adhering to the SAP standard, the SAP landscape always remains up to date and benefits from regular security updates and improvements from SAP. As enhancements are made via the SAP BTP, modern security mechanisms such as Zero Trust Security, encryption technologies and access controls can also be integrated without any adjustments to the core system.

Another security aspect relates to compliance and regulatory requirements. Companies that operate their SAP systems in regulated industries benefit from compliance with legal regulations and audit requirements, as a standardized system is easier to monitor and certify.

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