Improving Business Agility in SAP S/4HANA with Clean Core

IBA Group collaborated with SAP representatives to host a webinar on how the Clean Core concept in SAP S/4HANA assists companies in adapting more quickly to market changes. Guest speakers from SAP, Jürgen Stehle and Nataša Rojec Spindler, along with Pavel Veremenyuk from IBA Group, discussed the benefits of this concept and shared practical experiences from IBA Group’s projects.

This topic is particularly relevant for business leaders, IT directors, and professionals in SAP development, architecture, and consulting.

What is the Clean Core Approach?

Previously, companies enhanced the functionality of their ERP systems by modifying the standard code. This approach often led to technical debt, decreased code quality, and difficulties in updates and system modifications. These challenges drove the development of the Clean Core concept.

Clean Core in SAP is a strategy for implementing and maintaining SAP S/4HANA, keeping the core system code as close as possible to the standard solution. Custom enhancements are implemented in external applications and integrated via standard APIs.

Nataša Rojec SpindlerSAP Partner Solution Success Manager, CEE at SAP

When we established a Clean Core strategy in SAP, we were very aware that it required a strong shift in mindset and development practices compared to current methods. However, we are confident that there are long-term rewards in flexibility, cost savings, and future innovations for our customers. SAP systems are the backbone of many large organizations worldwide, providing crucial business functionalities across finance, supply chain, HR, and more. However, customization, third-party integrations, and complex configuration can clutter the core SAP environment, making it harder to manage, upgrade, and innovate. All of this means that customers face higher expenses with the system. This is where the SAP Clean Core comes in.

Watch Ms. Spindler’s presentation on preparing ERP systems for the future using the Clean Core concept here.

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Benefits of the Clean Core Approach

Keeping the core system close to standard code offers numerous benefits, the most significant being better control over the ERP system. Clean Core also improves data quality and limits unauthorized changes to tables or code. These advantages are critical as businesses increasingly digitize their processes.

Let’s take a closer look at the benefits of the Clean Core concept.

Reliable foundation for business

A stable core guarantees the reliable operation of key business processes. Companies can focus on growth, knowing that foundational functions are secure, while custom requirements are handled through external, secure modules.

Flexible development

All system modifications and enhancements are carried out on a separate innovation platform. This approach makes it possible to introduce new functionality securely without affecting the core system and respond quickly to changing business requirements.

Simplified updates

Maintaining a standard core simplifies system upgrades and the integration of new features, giving companies faster access to innovations and ensuring compliance with evolving regulations.

Cost savings

A clean architecture avoids technical debt from poorly optimized system customizations. This reduces long-term support and maintenance costs for SAP systems.

Strategic Advantages for Businesses

What do the above-mentioned advantages mean for businesses strategically? Employing the Clean Core approach, companies can evolve their processes and systems, adapt quickly to market changes, and remain competitive.

Faster operations

The Clean Core approach allows businesses to utilize SAP’s innovative tools. For instance, collaboration solutions and AI streamline daily tasks and accelerate decision-making.

Steady development

Regular updates support consistent project launches and reliable system performance. Ongoing access to innovations and security enhancements prepares the system to face future challenges.

Business growth

Simplified updates transform an ERP system into a comprehensive solution designed to address business challenges effectively. Industry best practices help companies scale operations rapidly, while compliance with international legal and tax regulations makes it easy to enter new markets. In addition, the system provides transparency of ESG metrics for sustainable development.

Jürgen StehlePrincipal Business Development Manager & S/4HANA Cloud Advisor, SAP

The Clean Core is the underlying technology that enables our customers to transform into competitive and future-proof companies, prepared for all kinds of challenges. To ensure your success, we aim to simplify and speed up your everyday work, supporting you in making the right decisions through embedded collaboration and AI. We help you grow faster by providing ready-to-run industry best practices and securing your success with continuous updates that incorporate the latest innovations.

Watch Mr. Stehle’s presentation on digital business transformation with SAP BTP here.

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Case Study. Updating an SAP System in Less than Three Weeks with Clean Core

SAP development approaches are evolving. More companies are recognizing the need to move from traditional methods to the Clean Core concept. Just a year ago, developers worked with local versions of SAP S/4HANA for different clients, relying on classic ABAP development methods. System updates demanded significant effort and cloud migration was rarely considered. The situation changed with the arrival of new clients who required regular updates and a transition to the public cloud. As a result, the Clean Core approach began to take hold.
Pavel VeremenyukSAP Team Lead, IBA Group

In my experience, the beginning was challenging. Our development team had to completely rethink its usual methods. However, after a year of working according to the new principles, the results exceeded expectations. 78% of the new code now meets modern standards, system updates take less than three weeks instead of several months, and maintaining solutions has become much easier. The key to IBA Group’s project success was not only mastering new technologies but also fundamentally transforming the team’s mindset toward development.

Watch Mr. Veremenyuk’s presentation on the real-world adoption of the Clean Core approach here.  

Conclusion

The Clean Core approach provides a foundation for a flexible and future-ready ERP system. This concept catalyzes digital transformation, allowing organizations to experiment with new business models and methods of engaging with customers.

IBA Group has been helping companies automate and improve business processes with SAP solutions for nearly 30 years. In the past decade, the company has completed more than 120 SAP-based projects across a variety of industries, from manufacturing to banking and IT. Its experts assist in implementing and configuring SAP solutions, as well as in migrating systems to the cloud. The company works with SAP solutions in areas such as finance management, human resources, supply chain, customer experience, and more.

Book a free consultation with IBA Group to explore SAP solutions that align with your business goals.

About IBA Group

IBA Group is an international holding company and one of the largest system integrators, developers, and IT solution providers in Central and Eastern Europe. Founded in 1993, the company is headquartered in the Czech Republic. IBA Group develops and integrates custom software, implements vendor solutions and proprietary products, and offers technical support and consulting services. Over 30+ years of operation, the company has completed more than 2,000 projects for clients in over 50 countries.