What technical and cultural shifts are required to achieve a clean core on SAP’s S/4HANA Cloud, Public Edition

⇨ SAP's 'clean core' enables easier system upgrades, improved performance and enhanced scalability for organisations

⇨ Strong governance, personnel training, and choosing the right SAP partner can help maintaining a clean core

⇨ Partners like DXC Technology help manage the technical and cultural shifts required to achieve a clean core

SAP’s shift to cloud-based solutions means standardised systems using best practices are favoured over more heavily customised solutions, as the reduced complexity allows for easier upgrades, improved performance and scalability. 

SAP calls maintaining an ERP system that is as close to standard as possible a “clean core”, which leverages SAP’s extensibility frameworks and minimising customisations. 

According to DXC Technology’s ANZ Head of SAP S/4HANA Public Cloud ERP Derek Excell, a clean core approach not only reduces technical debt but also supports agility, scalability, and future innovation. 

“Traditionally, businesses heavily customised their ERP systems to fit unique business processes. However, these customisations often create technical debt, making upgrades and integrations cumbersome and risky,” Excell told Mastering SAP. 

“A clean core encourages the use of SAP’s standard functionalities and the development of custom extensions side-by-side on platforms like SAP Business Technology Platform (BTP). This ensures that core updates do not break custom code, thereby simplifying system maintenance and upgrades.” 

Excell said achieving a clean core requires a cultural shift from “customising everything” to “adopting standards”, which may be challenging for some organisations as the shift involves redefining what differentiates them from other businesses. 

“Instead of relying on custom code for differentiation, companies must focus on process innovation, data-driven decision-making and leveraging SAP’s continuous innovations,” he said. 

Apart from the standardised processes, a clean core also rationalises data structures to ensure high data quality and consistency across the enterprise, which helps with effective decision-making and operational efficiency. 

Integration with other SAP and third-party solutions are more seamless with a clean core, thanks to standardised interfaces, ensuring a system that remains flexible and that can easily adapt to changing business needs without the need for extensive rework during upgrades. 

Excell said keeping a clean core also necessitates strong governance to ensure the system remains clean over time. 

“Establish clear roles and responsibilities for maintaining the system, align IT and business strategies, and engage stakeholders across the organisation to ensure adherence to the clean core principles,” he said. 

Personnel also plays a key role in maintaining a clean core, so organisations should invest in training and change management initiatives, according to Excell. 

“This includes educating teams about the benefits of a clean core and how to leverage SAP’s tools and methodologies effectively,” he said. “A shift to a clean core may also involve re-evaluating and redesigning business processes, which requires buy-in from all levels of the organisation.” 

On the other hand, not achieving a clean core can lead to significant technical debt, with customisations that become outdated leading to more complexity, while also becoming more costly to maintain and more difficult to upgrade. 

“[Not achieving a clean core] not only increases the risk of disruptions during updates but also limits the organisation’s ability to quickly adopt new innovations. Furthermore, reliance on heavily customised systems can pose a security risk and a dependency on specific individuals, where critical knowledge about the customisations can leave the company if those individuals depart,” Excell said. 

“Adopting a clean core mitigates these risks by ensuring the ERP system remains adaptable, secure, and in line with SAP’s ongoing innovations, all while reducing the total cost of ownership and enhancing operational efficiency.” 

Choosing the right SAP partner can make the technical and cultural shifts more manageable, leveraging its deep expertise in SAP technologies and methodologies, ensuring that the implementation is aligned with best practices. 

“A partner can assist in conducting a comprehensive assessment of current processes, identifying areas for improvement, and developing a tailored implementation plan that aligns with the clean core strategy,” Excell said. 

“Partners often provide change management services that help in driving cultural shifts within the organisation, ensuring that teams are prepared and aligned with the new way of working. 

“Post-implementation, an SAP partner can provide ongoing support to ensure the system remains clean and up-to-date, helping to manage the lifecycle of the ERP system, including upgrades and new feature deployments.”