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26 February 2024

Exploring the SAP S/4HANA Migration Strategies. Benefits of SAP Clean Core

The complexity of ERP transformations is well known among those who are managing the IT departments of large enterprises. Many enterprises have been customizing and configuring their SAP environments for years, supporting their business operations. In the long run those customizations accumulate in SAP landscapes, creating unnecessary technical heaviness to the system that complicates maintenance, upgrades, conversions and SAP S/4HANA migration overall.

But, there is a Clean Core strategy which simplifies future SAP upgrade processes, reduces upgrade timelines, enables easier extensibility, and simplifies landscape maintenance and deployment processes.

The Clean Core approach: Why it is fundamental for successful SAP S/4HANA Migration.

Importance of keeping the core system as clean as possible. Here's why keeping this strategy is critical for the success of S/4HANA migration:

  • Reducing customizations

By reducing reliance on custom code and leveraging the out of the box capabilities of SAP S/4HANA, companies can optimize the migration process and mitigate the complexities associated with custom developments. This enhances system stability and performance

  • Improving System stability

Standardizing the core the system brings greater stability, as customizations often brings complexities that compromise system reliability. A clean core minimizes the risk of disruption and ensures smoother operation of critical business processes

  • Supporting the upgrades

Maintaining a clean core simplifies the process of upgrading to newer versions of SAP S/4HANA. Without the burden of extensive customization, organizations can seamlessly implement upgrades, ensuring compatibility with the latest features and functionalities offered by SAP

  • Reducing Maintenance complexities

A standardized core system translates to lower maintenance costs and reduced complexities. By following SAP’s best practices and minimizing customizations, organizations can optimize support and maintenance activities, ultimatelt lower the total cost of ownership (TCO)

  • Ensure future readiness

By keeping the core clean and standard, companies can enhance and grow for future challenges and ensure readiness for upcoming technologies and integrations. This proactive approach enables businesses to stay ahead of the competitions and leverage emerging opportunities fast.

Implementing clean core strategy. Leverage new technologies such as SAP BTP

  • Reviewing existing business processes

Before starting a Clean Core implementation, it is important to conduct a thorough review of existing business processes. This will help identifying inefficiencies, errors and gaps areas where processes conflict with SAP’s standard practices. By understanding of current workflow, companies can better align their systems with Clean Core principles and optimize thei SAP landscape accordingly.

  • Identify customizations and dependencies

Companies must prepare a list of all customizations within their SAP system. This may include developments on top of the core system, custom code and third party integrations that is lays separate from the standard SAP environment. By identifying these elements, enterprises can assess their impact on system stability and determine which customizations are essential versus those that can be eliminated or standardized.

  • Assessing business needs vs standard functionality

A critical aspect of Clean Core implementation involves evaluating business needs against SAP’s standard functionality. This entails determining whether existing customizations address genuine business requirements or if they can be replaced or simplified using out-of-the-box SAP features. By prioritizing standard functionality wherever possible, organizations can streamline processes, reduce complexity, and minimize future maintenance efforts

  • Engaging stakeholders and end users

Clean Core implementation is not solely a technical endeavor; it also requires active engagement with stakeholders and end users across the organization. Collaborating with business leaders, process owners, and end users ensures that proposed changes align with business objectives and user requirements. Additionally, involving end users in the transition process promotes user adoption and mitigates resistance to change

  • Establishing Governance and change management processes

Implementing Clean Core necessitates robust governance and change management processes to guide decision-making and ensure compliance with organizational standards. This includes establishing clear policies for evaluating and approving customizations, as well as mechanisms for documenting and communicating changes to stakeholders. By instituting effective governance structures, organizations can maintain control over system modifications and prevent the proliferation of technical debt.

  • Prioritizing continues improvement

Clean Core implementation should be viewed as an iterative process rather than a one-time initiative. Organizations should continually monitor and refine their SAP landscapes to align with evolving business needs and industry best practices. This includes regularly reviewing and optimizing business processes, reassessing the necessity of customizations, and incorporating feedback from end users. By prioritizing continuous improvement, organizations can ensure the long-term sustainability and effectiveness of their Clean Core strategy.

Implementing a SEIDOR's Clean Core strategy requires careful consideration of existing business processes, thorough assessment of customizations, collaboration with stakeholders, establishment of governance structures, and a commitment to continuous improvement. By adhering to these principles, organizations can streamline their SAP landscapes, reduce technical debt, and position themselves for future success in the digital

By leveraging SAP BTP, organizations can establish a Clean Core backend architecture that effectively separates custom code from standard SAP functionalities, minimizing technical debt and simplifying maintenance.

SAP BTP offers a range of extensibility options that facilitate the integration of custom functionalities with SAP systems while maintaining the core SAP environment close to standard configurations. This is achieved through the implementation of interfaces and connectors that enable communication between SAP BTP and the SAP landscape, allowing organizations to preserve the integrity of their core systems while accommodating unique business requirements through custom developments.

Contact us and learn more about SEIDOR Clean Core approach

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