SAP Clean Core: Why It’s Your Blueprint for Enterprise Transformation

Digital business has moved from aspiration to imperative. IDC’s June 2024 Future Enterprise Resiliency and Spending Survey reveals that 53% of organizations now define themselves as digital businesses — enterprises that leverage technology for market advantage, embrace automation, and make innovation routine.

The ERP reality in numbers (IDC, 2024):

• 41% of organizations will adopt new ERP systems within 24 months
• 80% plan to replace their existing cloud ERP when their subscription ends
• 23% need easier integrations
• 22% require intelligent processes using AI

Behind these numbers lies a stark truth — ERP systems weighted down by customizations and technical complexity can’t deliver the agility modern business demands.

The Solution: A Modern SAP Clean Core Approach

SAP’s clean core strategy provides the blueprint for a fundamental shift in how organizations implement and maintain their ERP systems. This approach combines two elements: SAP S/4HANA as the standardized, efficient core system, and the SAP Business Technology Platform (BTP) as the foundation for customizations and extensions. 

By keeping the core S/4HANA system “clean” — free from complex modifications — while using BTP for necessary customizations, organizations can maintain agility without sacrificing flexibility.

According to SAP’s 2024 data, organizations have seen transformative results:

• 80% reduction in software customization
• 70% automation of core business processes
• 50% reduction in database size
• 80% of core processes standardized across 24 countries

These metrics demonstrate why leading organizations are embracing the clean core strategy. But what drives these results? The benefits emerge from three key areas: rapid innovation, better execution, and operational efficiency.

The Business Imperative for SAP Clean Core

Organizations at every stage of digital transformation face mounting ERP challenges. A global manufacturer’s CIO told IDC: “All of the customizations we have spent years doing to make our lives easier isn’t as easy to understand and unravel, especially as we move to more modern, standardized cloud-based technology.”

This sentiment echoes across industries, where legacy systems create multiple business constraints:

Cost and Complexity:

• Resources trapped in maintenance rather than innovation
• Mounting technical debt from years of customization
• Integration challenges with modern cloud services
• Security vulnerabilities from outdated systems

Business Impact:

• Slower response to market changes
• Limited ability to leverage AI and automation
• Data silos preventing unified business insights
• Competitive disadvantage against digital-native companies

“We no longer have time, nor do we want to customize our workflows,” another CIO told IDC. “We would rather put our resources into running the business in the easiest way possible.” This push for simplification comes as IDC reports 47% of organizations are still navigating their digital transformation journey.

The message is clear: organizations need ERP systems that enable rather than inhibit change. Modern cloud-based systems with automated workflows, microservices architecture, and AI capabilities offer this promise — but only with the right implementation approach.

The SAP BTP & S/4HANA Clean Core Strategy in Action

A clean core strategy fundamentally changes how organizations approach customization and innovation in their SAP landscape. While S/4HANA serves as the standardized digital core, BTP provides the platform where organizations can safely innovate without compromising core stability. This separation delivers both stability and flexibility — a combination previously difficult to achieve with traditional ERP implementations.

Cloud-Native Architecture 

The foundation of this approach rests on cloud-native architecture principles. S/4HANA provides the standardized core business processes, while BTP offers a cloud platform for building extensions and integrations. This architectural split means organizations can scale resources dynamically and adapt quickly to changing business needs, all while maintaining a stable core system. As one CIO told IDC, “Our current pace of business requires that we access information quickly and make the right decisions based on the insights we receive.“

Modern Development Practices 

Modern development tools and methodologies on BTP accelerate innovation while preserving the clean core of S/4HANA. Development teams can rapidly create custom applications, extensions, and integrations on BTP without touching the core system. This approach significantly reduces technical debt while enabling faster deployment of new capabilities.

Organizational & Data Governance 

Success with a clean core strategy demands robust governance frameworks that span both S/4HANA and BTP environments. Organizations must establish clear protocols for:

• Data movement between core and custom applications
• Security and compliance across platforms
• Standard processes for development and deployment
• Clear ownership and responsibility boundaries

Intelligent Automation

With a clean S/4HANA core, organizations can more effectively implement automation and AI-enabled workflows. BTP provides additional capabilities for extending these automations beyond standard processes, enabling organizations to build custom intelligent solutions while maintaining core simplicity.

Monitoring and Observability 

Real-time insights across both S/4HANA and BTP environments enable proactive system management and optimization. Modern observability tools provide deep visibility into operations, allowing teams to maintain peak performance across the entire landscape. As another technology CFO told IDC, “Our very survival depends upon modern technology that is easy to operate, in the cloud, and automates as much of our business processes as possible.”

Implementing a Clean Core Strategy with BTP and S/4HANA

Following the clean core blueprint requires a methodical approach that balances standardization with business needs. The key lies in understanding where to leverage S/4HANA’s standard capabilities and where to utilize BTP for necessary customizations.

Strategic Planning 

Begin with a clear assessment of your current SAP landscape. Evaluate existing customizations and determine which should be:

• Replaced by standard S/4HANA functionality
• Rebuilt as extensions on BTP
• Retired if no longer business-critical

This evaluation helps establish a roadmap that minimizes disruption while maximizing value from both platforms.

Technical Dimensions 

Success requires attention to several critical areas:

• Combined perspective of IT and business needs
• Clear decoupling of core and custom functionalities
• Standardization of processes where possible
• Strong governance frameworks and guidelines

A phased implementation allows organizations to:

1. Establish the clean S/4HANA core
2. Build necessary extensions on BTP
3. Migrate users and processes systematically
4. Monitor and optimize performance

“Making our business processes simpler and standardized has become crucial for our digital transformation,” a technology CIO told IDC. This simplification becomes achievable when organizations understand which processes belong in the core system and which should be extended through BTP.

The oXya Advantage: Your Partner in Clean Core Transformation

Successfully implementing a clean core strategy demands both technical expertise and practical experience. As a specialized SAP consulting firm, oXya combines managed cloud services with technical consulting to ensure your S/4HANA and BTP implementation delivers maximum business value.

Our comprehensive approach includes:

• Deep expertise in S/4HANA migrations and implementations
• Support for your RISE with SAP journey
• Global reach with local, hands-on support
• Technical mastery with business understanding

Take the First Step Toward a Clean Core

The clean core strategy, combining S/4HANA’s standardized core with BTP’s flexibility, offers organizations a proven blueprint for digital transformation.

Ready to explore how a clean core strategy can modernize your SAP landscape? Contact oXya to discuss your organization’s specific needs. With a consistent 99% customer satisfaction rating, our team brings the expertise and commitment needed to support your journey to a more efficient, future-ready SAP environment.

Keep reading

Choosing the Right ERP Consultant: What to Look For

The SolMan Sunset: Are You Ready to Transition to Cloud ALM?

Modernizing Your Data Platform: The Benefits of Expert-Led Data Lake Integration