Staying ahead of the curve is essential for any organization. With emerging ERP systems like SAP S/4HANA, businesses have the opportunity to enhance their operations, improve customer connections, and drive innovation. However, to fully capitalize on the potential of this system, organizations must ensure a clean core.
In the past, on-premises ERP systems allowed for a Classic Extensibility approach, which involved modifying the SAP Core to cater to specific business requirements. However, with the shift to cloud-based operations, this approach became unsuitable due to increased complexity and higher costs. With that, comes the need for businesses to clean their core for the transition.
The clean core strategy introduced by SAP revolves around optimizing and streamlining the current ERP system to ensure it remains as close to the standard as possible. This involves minimizing customizations, adopting inner extension methods, and comprehending the customization footprint. By following these principles, organizations can take a major step towards a seamless transition to S/4HANA and capitalize on its benefits.
Key steps to a clean core strategy
- Removing Unused Code: Identify and retire any unused or obsolete code in your ERP system. This declutters the system and reduces overall complexity.
- Leveraging SAP Standard Processes: Embrace the “Fit-to-Standard” approach to leverage SAP’s pre-built, best-in-class processes.
- Utilizing APIs for Application Development and Integration: Application Programming Interfaces (APIs) play a pivotal role in facilitating the integration of applications and services.
- Documenting Technical Debt: In cases where a clean core extension is not feasible, it’s essential to document the technical debt. This will help your organization understand the complexities and limitations of existing customizations, aiding in better decision-making during the migration process.
A clean core is not just a technical exercise; it is a strategic imperative for businesses aiming to stay ahead in the competitive landscape. Future-proofing your business requires a robust, agile IT foundation. A streamlined ERP system with minimized customizations ensures greater stability and reliability. In addition, as your business grows, staying up-to-date with the latest software versions is critical. A clean core simplifies the process of upgrading to newer versions of S/4HANA, saving time, effort, and costs.
But how would those customizations translate when I move to SAP S/4HANA?
As part of an S/4HANA deployment, customers still have the flexibility to add customizations according to their specific business needs. In this new environment, customization extensions can be implemented using the fully integrated SAP S/4HANA Cloud stack or SAP BTP. It allows the SAP system to operate independently while still offering tailored tools for the organization. To navigate this transition and manage cloud-based customizations, many organizations opt to collaborate with experienced implementation partners.
A clean core provides a clear path for organizations to embrace the future with S/4HANA. By understanding and minimizing customizations, businesses can establish a stable, reliable, and innovative foundation for their operations. A clean core not only streamlines the migration process, provides more efficient maintenance upgrades, but also ensures the agility needed to thrive in a dynamic business landscape.
So, don’t wait — Learn how Auritas can help you achieve a clean core and future-proof your business for your upcoming SAP S/4HANA implementation.