As businesses expand and evolve, their Enterprise Resource Planning (ERP) systems often become more complex. This can increase maintenance costs and complicate upgrades. To address these challenges, SAP introduced the Clean Core strategy alongside SAP S/4HANA. This approach focuses on keeping the core ERP system as clean and standard as possible. By preventing excessive customizations and non-standard configurations, businesses can maintain a more agile, innovative, and cost-effective ERP landscape.
In this article, we explore SAP’s Clean Core strategy, its benefits, and how companies can effectively implement it. We’ll also look into the best practices RTC has adopted for building clean core-aligned solutions, enabling organizations to create flexible and future-proof ERP environments using SAP Business Technology Platform (BTP).
What is SAP Clean Core Strategy?
The SAP Clean Core Strategy is a framework designed to minimize customizations in the core ERP system to enhance system stability and ease of upgrades. It promotes the use of standard SAP functionalities and extensions via the SAP Business Technology Platform (BTP) for custom developments. By following this strategy, organizations can maintain a leaner, more agile system architecture. It helps reduce technical debt, making future migrations to SAP S/4HANA or cloud-based solutions smoother. The strategy ultimately ensures better long-term performance, scalability, and lower total cost of ownership for SAP systems.
Understanding SAP’s Clean Core Strategy
SAP’s Clean Core strategy aims to minimize direct modifications to the core ERP system, such as SAP S/4HANA. Instead of embedding customizations within the core, organizations are encouraged to use external platforms like SAP BTP to develop extensions, applications, and integrations. This approach simplifies future upgrades, reduces maintenance costs, and helps companies adopt innovations without disrupting core system stability and performance.
Benefits of an SAP Clean Core Strategy
- Simplified Upgrades and Updates: By avoiding complex customizations in the ERP core, businesses can implement updates more seamlessly, ensuring they are always on the latest version without prolonged downtime or unexpected issues.
- Lower Maintenance Costs: A clean core results in a streamlined system architecture, reducing the resources required for managing and maintaining it.
- Improved System Performance: With fewer modifications, system performance remains optimal, ensuring reliable and efficient operations.
- Agility and Innovation: A clean core provides companies the flexibility to embrace new technologies like artificial intelligence, machine learning, and advanced analytics without risking disruption to critical processes.
Key Recommendations for Implementing the Clean Core Strategy
1. Separation of Core and Customizations
The fundamental principle of Clean Core is to keep customizations outside the core ERP system. Instead of embedding custom code directly into SAP S/4HANA, organizations can externalize these customizations onto platforms like SAP BTP. This keeps the core stable during updates, enabling companies to continuously innovate without impacting system performance.
RTC’s Approach: RTC has built its solutions with SAP’s Clean Core principles in mind. For example, RTC’s cloud-based e-invoicing solution, developed on SAP BTP, integrates seamlessly with customer ERP systems without altering the core. This allows companies to maintain compliance and customize functionalities for regional requirements while preserving the upgrade integrity of their ERP.
2. Use of Extensibility Models with SAP BTP
One of the main benefits of using SAP BTP is its ability to extend ERP capabilities without touching the core. SAP BTP provide tools like SAP AppGyver and SAP Mobile Services, which can be used to build custom applications that complement the ERP, while keeping it manageable and easy to maintain.
RTC’s Extensibility in Action: RTC Suite SAF-T Reporting Tool, designed on SAP BTP, allows clients to generate required tax compliance reports without impacting their core SAP systems. This approach enables businesses to comply with local regulations while ensuring the stability and upgradeability of their main ERP environment.
3. Focus on Integration via SAP BTP
Integration often poses a challenge in complex ERP environments. SAP BTP simplifies this by providing integration services that facilitate connectivity between SAP and non-SAP systems. Whether connecting to third-party applications or other SAP modules, SAP BTP ensures that integrations are managed efficiently without compromising the ERP core.
RTC’s Integration Experience: RTC Suite leverages SAP BTP’s integration capabilities to support complex e-invoicing processes. For example, its cloud-based e-Invoicing solution uses BTP integration services to connect with various tax authorities, supplier and till systems, and other client platforms — all without requiring custom integrations in the core ERP. This allows businesses to meet real-time compliance needs and manage diverse systems without risking the integrity of their SAP environment.
4. Innovation and Adoption of New Technologies
The Clean Core approach not only minimizes modifications but also enables businesses to leverage new technologies that drive business innovation. Using SAP BTP, advanced technologies like AI, ML, and advanced analytics can be implemented to enhance business processes without disrupting the stability of their core ERP systems.
RTC’s Innovative Approach: RTC Suite solutions are designed to be innovation-ready. RTC helps businesses gain predictive insights into key business areas, such as payment risks or compliance challenges. This is achieved by utilizing SAP BTP’s advanced analytics and machine learning capabilities. Without modifying the core, allowing businesses to take proactive measures while maintaining a stable ERP landscape.
5. Maintaining Flexibility and Agility
With a Clean Core approach, companies can respond more quickly to changing business needs by developing and deploying new functionalities in the cloud. This flexibility allows businesses to adapt to evolving market conditions, ensuring their core ERP system remains stable and reliable.
RTC’s Agile Solutions: RTC’s cloud-based solutions provide flexibility in adapting to different compliance regulations across regions. For example, its BTP-based tax reporting tools can be updated rapidly to address changes in local tax regulations. This ensures that businesses can respond quickly to new legal requirements without the need for extensive ERP modifications.
6. Reducing Long-Term Maintenance Costs
A Clean Core strategy directly translates to lower long-term maintenance costs. With fewer customizations and a more stable core, companies can expect reduced resource allocation for system maintenance and upgrades.
Cost Management with RTC: RTC’s approach of developing all custom functionalities and integrations on SAP BTP helps clients lower the costs associated with maintaining and updating their core ERP systems. Since customizations are externalized, clients experience smoother upgrades and minimal downtime, resulting in lower operational expenses.
How RTC Aligns with SAP’s Clean Core Strategy
RTC has embraced SAP’s Clean Core philosophy from the outset. By building e-invoicing, tax reporting, and compliance solutions directly on SAP BTP, RTC ensures that its clients benefit from a clean, agile, and future-proof ERP environment. This approach not only aligns with the Clean Core strategy but also provides clients with the flexibility to innovate and scale without jeopardizing system stability.
Final Thoughts
Implementing the SAP Clean Core strategy is becoming increasingly essential for businesses seeking to maintain competitiveness in today’s complex digital landscape. By adopting best practices and leveraging platforms like SAP BTP, companies can achieve the right balance between flexibility and stability. RTC’s solutions are designed to support this journey, offering companies a structured way to integrate, innovate, and adapt without compromising their core ERP systems.
