Supporting Business

Transformation with a
Cloud ERP
Clean
Core
Strategy
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ERP challenges today
Why do we need a clean core?

Business New Landscape

change technologies complexity
In today's fast-paced and ever- To succeed in the digital age, Companies must have a flexible
changing business environment, organizations need to embrace new infrastructure that allows them to
disruptions across global supply capabilities. This includes quickly adapt their business
chains, customer preferences, and accelerating innovation, models as needed. This means
the workforce have become a optimizing and automating being able to rapidly adjust key
common occurrence. Businesses processes, and fostering agility in applications to meet changing
must quickly adapt to these order to gain a competitive edge. market demands and customer
changing requirements to remain needs.
relevant and thrive.

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A business’s key challenge is staying competitive and relevant

Our customers need to embark on a digital transformation Modular innovation is the way to achieve this
to be successful in the future. in a future-proof approach.

Digital transformation

Business agility
Stay competitive and relevant

(Stable core)
IT flexibility Industry Industry
▪ Fast consumption of
SAP Classic extensions SAP
innovation BTP BTP
▪ Faster upgrades
▪ End-to-end security 1 1 1 1 2

Clean core extensions

Modular innovation
3 3
Decoupled from the core and 3 3 3 3 1 Developer extensions
3
cloud-ready
2 Key-user extensions
3 Side-by-side extensions

Customers need a “stable core” for business-critical processes – with a flexible, agile, and innovative way to deliver new functionality in a clean core approach.

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 The clean core concept is a mindset and philosophy
supported with governance and guidelines that lay the
foundation for a flexible and future-ready ERP.

It describes modern approaches to design business

processes, extensions, integration scenarios, and data

What is architectures in a stable, upgrade-safe, and transparent

manner, along with a separate platform to innovate for
additional differentiation.
clean
A clean core enables faster software deployment as
core? well as easier adoption of both SAP software innovations
and the regulatory changes to software.

It provides new ways to address business needs while

avoiding excess technical debt, thus preparing
organizations to maximize strategic benefits and limit
the cost of transformation.

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 A clean core allows you to adapt the system to
changing business requirements and adopt new
capabilities while ensuring permanent traceability in
all areas of the core. It provides:
Agility and flexibility
Clean environments decrease time to value. Additional process requirements can be
implemented faster, and business models can adapt to short-term challenges more

Benefits easily.
The ability to leverage the latest innovations (stay
current)
of clean Adaptation effort in the context of updates and upgrades is reduced. Cloud services can be
integrated faster.

core Efficient and more secure operations

There is no costly maintenance for unused artifacts.

Data to value
Consistent data allows reliable forecasts and precise predictions.

Overall, a clean core reduces historically grown

complexity through targeted technical
modernization aligned with a business
transformation.
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Precisely defining clean core in one slide

CLEAN CORE
The core describes the main aspects of an ERP system landscape,
Clean means up-to-date, transparent, unmodified,
namely extensibility, processes, data, integration, and operation.
consistent, efficient, and cloud compliant.
Capabilities of the core depend on the implemented software stack.

1. For a clean core, the best-case scenario describes an up-to-date system on the latest release, with cloud-compliant extensions as
well as integration, optimal data quality, and process design. A new public cloud system is clean per the definition.

2. Greenfield: The clean core strategy summarizes all necessary activities to keep a system updated and to stay clean to achieve
efficient standard processes, including modern extensibility and integration options as well as data governance.*

3. Brownfield: The clean core strategy summarizes all needed activities to “get clean” and “stay clean” to achieve and maintain a clean
core. That includes the modernization of process designs, the transformation from traditional custom code to modern extensibility,
integration capabilities, and data cleansing.*

4. A concrete clean core road map depends on the implementation type (greenfield or brownfield*) and the target architecture (private
cloud, public cloud, or hybrid solutions).

PUBLIC *This also applies to selective data transition as a third migration option, which combines greenfield and brownfield approaches. 6
 For clean core, the best-case scenario describes an up-
to-date system on the latest release, with cloud-
compliant extensions and integration as well as optimal
master data quality and process design. Following a
clean core strategy means:

Reducing data and process inconsistencies

How to
Establishing suitable housekeeping processes and
clean governance structures
core Maximizing the use of standard functionality and its
ROI

Building cloud-compliant extensions that are

integrated using stable interfaces

Minimizing customization complexity

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 Clean core – Top-level guiding principles
Avoid extensions where not
necessary
Avoid
Stay as close as possible to
SAP standard

Leverage SAP Business Technology Know your technical debts and

Platform (SAP BTP) as a platform to
Decouple
Clean Be aware
evaluate them on a regular basis
innovate for additional differentiation
core Establish a binding governance
Automate with standard APIs and events framework

Extend and integrate in a stable and

transparent manner Cloud
ready
Apply a zero-modification policy

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Addressing clean core and the individual dimensions

Keep competitiveness
while reducing 1 Business processes
A clean core describes a system or a landscape of complexity.
systems that is as close to standard as possible
while running cloud-compliant extensions and Decouple extensions
integrations. from standard. 2 Extensibility

It allows you to adapt your system and system Control data according to
landscape to changing business requirements in latest standards. 3 Data

order to adopt new capabilities.

Keep the landscape
Strong governance is required for each technical reliable and flexible. 4 Integration
dimension of clean core.
Keep the operations
effective and efficient. 5 Operations

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Keep competitiveness while reducing complexity

Keep competitiveness
while reducing 1 Business processes
complexity.
Main aspects
Decouple extensions
State-of-the-art process governance, such as
including transparent organizational structures and from standard. 2 Extensibility
requirement management
Application architecture that leverages SAP’s Control data according to
standard solutions (SAP S/4HANA and beyond)
latest standards. 3 Data
Respective SAP Best Practices packages
implemented where available and applicable
Keep the landscape
Business process design following defined
principles such as focusing on differentiating reliable and flexible. 4 Integration
processes
Established process management, documented
Keep the operations
processes and variants, and measurement of as-is-
process execution and process performance effective and efficient. 5 Operations

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What makes business How to achieve

processes clean • Governance model and organizational structures:

– Proper requirement management includes a solution standardization board or a similar deciding structure, a
suitable methodology (for example, SAP Application Extension Methodology – see slide “Clean extensions”),
core compliant? and proper documentation and tooling support such as the SAP Cloud ALM solution or the Focus Build
solution for SAP Solution Manager.

What is a “clean” process? – A business process management structure is established and transparent across relevant organizations,
including process owners and related contact persons.

• The solution architecture can be based on the SAP Enterprise Architecture Framework methodology. Supporting
resources can be leveraged using the SAP Transformation Navigator tool, SAP Signavio Process Explorer
Main aspects solution, SAP Signavio Process Manager solution, SAP Signavio Process Collaboration Hub, and the partner
solution LeanIX.
• Establish state-of-the-art business
process governance, including proper • SAP Best Practices can, in general, be compared to SAP Signavio Process Explorer, the SAP Signavio Process
requirement management and transparent Navigator solution, SAP Signavio Process Manager, or SAP Signavio Process Collaboration Hub. Find more
organizational structures general guidance in the Administration Guide to Implementation of SAP S/4HANA with SAP Best Practices.

• Use recommended SAP Reference • For individual implementation projects, the SAP Activate innovation adoption process and the related road map
Solution Architecture to leverage SAP viewer can be leveraged. Further preconfiguration is provided through the enterprise management layer for SAP
solutions such as SAP S/4HANA and others S/4HANA. Industry-specific best practices can be requested through SAP standard content activation service.

• Implement respective SAP Best Practices • The solution design is focused on the following principles:
where available and applicable – For nondifferentiating processes, SAP standard is strictly applied; for differentiating processes, SAP standard
solutions are tailored to business needs and enhanced where needed.
• Tailor or enhance standard solutions – A focus on mandatory and key process variants helps avoid unnecessary customizing and process complexity.
from SAP only where competitive
– For required extensions the recommendations for “clean extensions” are followed.
advantages can be created
• Achieve business process management • Business process management excellence covers the following three aspects:
excellence by documenting processes and – Customer-specific process design is documented (SAP Signavio Process Manager and SAP Signavio Process
Collaboration Hub).
continuously monitoring process flow as
– As-is process execution can be measured (SAP Signavio Process Insights, SAP Signavio Process Intelligence,
well as process performance and efficiency
and using the plug and gain approach).
– Business processes are efficiently executed based on measurable process performance indicators (SAP
Signavio Process Insights and SAP Signavio Process Intelligence).
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Decouple extensions from standard

Keep competitiveness
while reducing 1 Business processes
complexity.
Main aspects
Decouple extensions
Avoid extensions when possible
from standard. 2 Extensibility
Set up a strong governance to create decoupled
extensions in a way that they would work in the cloud
(three-tier model) Control data according to
Separate extensions by leveraging released APIs – latest standards. 3 Data
custom extensions do not break an upgrade and
upgrades do not break an extension
Keep the landscape
Leverage the full capabilities of extensibility on the
stack as well as side by side with SAP BTP reliable and flexible. 4 Integration

Create technical debts only as informed decision

Keep the operations

effective and efficient. 5 Operations

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What makes
extensions clean core How to achieve
• Establish a governance model – a clearly defined process with high demands to approve any
compliant? extension.
– Prefer standard over custom development by leveraging fit-to-standard best practices.

What is a “good” extension? – Avoid custom code where possible. Don’t extend for rarely needed use cases.
– Prefer “clean” extension options over “unclean” ones.
Main aspects – Use SAP Application Extension Methodology and extensibility guidance to identify the best
path in your landscape.
• Avoid extensions when possible
• Set up a strong governance to create • If you need to extend, a clear separation is key.
decoupled extensions in a way that they – Only access standard objects through released and stable APIs (either remote or locally;
access for reading and changing access possible).
would work in the cloud (three-tier
model) – Choose only “clean” tools or environments and extensibility options (in SAP S/4HANA: key
user, developer, or side-by-side extensions).
• Separate extensions by leveraging
released APIs – custom extensions do • Choose extension domain based on requirements only.
not break an upgrade and upgrades do – SAP BTP automatically decouples extension but is not the only “clean” approach.
not break an extension* – Do not extend in the core simply because “we always do so.”
• Leverage the full capabilities of • Enable awareness.
extensibility on the stack as well as side – In on-premise installations, you can actively decide to develop some extensions not clean
by side with core, as long as they are documented and informed decisions (use cases: copy routines; API
SAP BTP not available, and more).
• Create technical debts only as informed – Mitigate missing APIs in private cloud or on premise by using wrappers as described in
decision ABAP Cloud API Enablement Guidelines for SAP S/4HANA Cloud, private edition, and
SAP S/4HANA.
*Ensuring upgrade stability can be a short-term workaround for
transforming a whole application from traditionally developed code into
– Create requests for APIs using a customer influence tool (for public or private cloud
cloud-compliant (Tier 1) extensions. editions).

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Control data quality and data volume

Keep competitiveness
while reducing 1 Business processes
complexity.
Main aspects
Decouple extensions
Modern (configuration, master, and transactional)
data quality requirements are accuracy, from standard. 2 Extensibility
completeness, consistency, timeliness, validity, and
uniqueness.
Control data according to
Data volume needs to be controlled in order to
latest standards. 3 Data
optimize memory and disk consumption. Data should
not contain outdated, unused, or redundant
information.
Keep the landscape
Personal master data must only be stored with reliable and flexible. 4 Integration
justifiable purposes.

Keep the operations

effective and efficient. 5 Operations

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 What makes data How to achieve
clean core compliant? For data quality:
• Analyze and define data quality measures for critical data objects. SAP
What is “clean” data? provides data quality measures for several standard data objects.
– If necessary, involve SAP or third-party vendors (such as CDQ) for getting Benefits
further help and advice.
• Establish a “get clean” process. Reliable results when
– Define a tool-based, reusable data cleansing process (such as through using data in processes
Main aspects the and analytical
SAP Master Data Governance application [consolidation], SAP applications (data to
Data quality
Information Steward software, SAP Data Intelligence solution, quality value)
(Configuration, master, and transactional data)*
services for SAP BTP, or other third-party tools) for deduplication,
• Accuracy • Timeliness generation of best records, and more. Business process
• Completeness • Validity efficiency to improve
• Establish a continuous “keep clean” process. stability and quality of
• Consistency • Uniqueness – Define a validation rule framework, approval process, and automated business process steps
Data volume efficiency distribution framework to connected receiver systems for newly created,
(Master and transactional data) changed, or deleted data records (such as using SAP Master Data Reduced TCO due to
Governance or SAP Master Data Integration service). efficient data volume
• Optimized memory and disk consumption – Define continuous data monitoring. management
• No outdated, unused, or redundant information
• Adhere to SAP One Domain Model (universal language across SAP
• Data lifecycle management (creation, updates, systems) and SAP Data and Analytics Advisory Methodology. Improved data
end of life) exchangeability
For data volume efficiency (from creation until end of life): between different
Data privacy compliance solutions
• Enable efficient continuous analysis and monitoring of the database by
• Storing and processing personal master data
reducing outdated, unused, or redundant data.
only with justifiable purposes Lower risk of breaching
• Define archiving or deletion of data-tiering processes to improve efficiency data privacy
of the database (for example, using the SAP Information Lifecycle protection regulations
Management component).
*Configuration data: General data that defines the organization‘s structure
and is of static nature (such as company code, plants, purchase organisations,
controlling area, or sales area); Master data: Consistent and uniform set of For data privacy compliance:
identifiers and extended attributes that describe the core entities of the • Analyze data usage to clarify business purposes of collecting and
enterprise, such as customers, vendors, products and general ledger processing personal master data.
accounts; Transactional data: Information directly derived as a result of
• Establish policies to govern personal master data lifecycle (using SAP
transactions, this data always has a time dimension, a numerical value, and
refers to one or more (master data) objects Information Lifecycle Management).
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Keep the landscape reliable and flexible

Keep competitiveness
while reducing 1 Business processes
complexity.
Main aspects
Decouple extensions
Integrations based on standard APIs (OData and
SOAP) from standard. 2 Extensibility

Side-by-side extensions that leverage API integration

or Control data according to
SAP Cloud SDK by utilizing the tight coupling with
latest standards. 3 Data
SAP Integration Suite
Loosely coupled integrations could be realized in an
event-driven design based on standard events Keep the landscape
Avoidance of traditional APIs (RFC and IDoc) and reliable and flexible. 4 Integration
their related classical extension options
Proper monitoring and error resolution capabilities
Keep the operations
realized utilizing the SAP Application Interface
Framework tool effective and efficient. 5 Operations

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What makes
integrations clean
How to achieve
core compliant? • Establish a clearly defined integration strategy with SAP Integration Solution Advisory
Methodology:
What is “clean” integration? – The central access point to discover integration artifacts like standard APIs, events, and
integration flows is SAP Business Accelerator Hub.
Main aspects – If mediation is required, use SAP Integration Suite to benefit from the tight integration
• Base integrations on standard APIs with other SAP BTP capabilities.
(OData and SOAP)
• Define a one-time “get-clean” process:
• Aim for side-by-side extensibility with – Create an integration repository (included in SAP Solution Manager) to identify existing
API integration or even SAP Cloud SDK integrations and the technology or protocol on which they are based.
by utilizing the tight coupling with – Establish “get clean” service inside the company to evaluate how utilized traditional APIs
SAP Integration Suite (RFC and IDoc) as well as their classical extensions could be converted into standard
• Realize loosely coupled integrations in an interfaces (fit to standard).
event-driven design based on standard • Establish a continuous “keep clean” process (governance model):
events* – Define central governance functionality for evaluation of new interface requirements or
• Avoid traditional APIs (RFC and IDoc) and any interface adjustment based on defined SAP Integration Solution Advisory
their related classical extension options Methodology characteristics. The Integration Assessment capability could be used as an
accelerator.
• Ensure proper monitoring and error – Apply a “keep clean” process for the most important and critical integrations.
resolution capabilities using SAP
Application Interface Framework

*Event: A data record expressing a significant change in state (for example, change of a business partner) and consisting of data representing the occurrence and context metadata. It is sent to an event provider
such as the SAP Event Mesh capability, where consumers can subscribe to it. The business object data needs to be pulled by each consumer individually by using standard APIs.

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Keep operations effective and efficient

Keep competitiveness
while reducing 1 Business processes
complexity.
Main aspects
Decouple extensions
The paradigm of keeping the core clean is integrated
into the end-to-end concept for operations. from standard. 2 Extensibility

Release management should make up the

foundation for a clean core. Control data according to
Housekeeping activities that are in line with SAP Best latest standards. 3 Data
Practices should be pursued, and the distribution of
roles and responsibilities that are agreed with SAP
should be followed. Keep the landscape
SAP should be able to perform maintenance for reliable and flexible. 4 Integration
technology within the preapproved contractual
maintenance period (CMP).
Keep the operations
effective and efficient. 5 Operations

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What makes
operations clean How to achieve
• Establish keeping the core clean as an integral part of the end-to-end operations concept:
core compliant? – Consider “keep clean” as an IT service to add business value and establish IT as a service
provider to own the end-to-end view and end-to-end processes.
What are “clean” operations? – Integrate monitoring and alerting of a “keep clean” process into the overall concept for
operations to have an integrated view on KPIs for affected areas that define a clean core
Main aspects (integration, extensibility, processes, data).
– Establish procedures for event management and escalations that are in line with the
• The paradigm of keeping the core clean is established governance models for integration, extensibility, processes, and data. Consider
integrated into the end-to-end concept using SAP’s operations platforms to achieve this – SAP Cloud ALM or SAP Solution Manager.
for operations.
• Release management is based on two core principles:
• Release management is an established
foundation for a clean core; the latest – CMPs create preapproved monthly maintenance windows that are agreed by all involved
parties and adequately documented.
release should always be targeted.
– Only in exceptional rare cases, it is requested to skip maintenance windows ("opt out").
• Housekeeping activities that are in line
with SAP Best Practices are pursued, and • Regular housekeeping is established and supports keeping the core clean, for example:
the distribution of roles and – Background job management (including approval, documentation, monitoring, and
responsibilities that are agreed with SAP improvement) is implemented to contribute to an efficient utilization of infrastructure.
are followed. – The usage of file interfaces for importing or exporting data from or into the system is avoided to
strengthen security, maintainability, and consistency.
• It is agreed that SAP performs
– End-user authorizations are reviewed and adapted on a regular basis. Unneeded authorizations
maintenance for technology within the
are unassigned from users and discontinued.
preapproved CMPs.

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Business transformation and the relation to clean core
Clean core is the outcome of a transformation, not the starting point.

Strategic overlap with greenfield

Option 1 ▪ Transformation: ▪ Combined focus implementations of SAP S/4HANA
RISE with SAP
Valid option when seeking
Technical transformation and business transformation to combine both topics
with a project-based
approach.

Strategic overlap with brownfield

implementations of SAP S/4HANA
Option 2 ▪ Transformation: ▪ Dedicated focus on each phase
RISE with SAP
Business transformation
Technical transformation journey as continuous
follow-up to the project

Step 1: Lift and shift project Step 2: Continuous innovation through a clean-core focused approach
▪ Focus on key activities; ▪ Leverage SAP BTP ▪ Clearly define an end ▪ Leverage SAP’s tools and ▪ Follow a continuous step-
only mandatory changes (cleansing, testing, and date for project-based services to move forward by-step approach to
▪ Understand how clean
included in the project archiving) to support the activities on the digital journey slowly approach a
core is the sum of the
project “cleaner core”
outcomes of each
transformational step

SAP has two viable and valid routes for embarking on a holistic transformation journey, depending on an organization’s strategy.

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Clean core is a journey

Establish a mindset and governance model that fosters clean core principles.

Greenfield Brownfield
• Take advantage of a unique opportunity. • Establish clean core principles for every new deployment.
• Follow clean core principles right from the beginning. • Plan your journey toward a clean core and follow an iterative
step-by-step approach.
• Establish strong governance.
• Understand that clean core doesn’t happen overnight.

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Clean core value proposition | Prioritizing agility
Responding at speed to adapt key business and financial processes

Responding quickly to changing factors in the economy requires organizations to be agile and responsive.

This includes building new business models, adapting existing internal processes (hiring, supply chain, logistics,
and more), and restructuring financial operations.

These changes require agility within SAP S/4HANA that can only be easily achieved with clean core principles.

Decrease time to market for new Remain competitive by Unlock business users as
business opportunities increasing speed of innovation developers
✓ Allows customers to quickly develop new ✓ Enables customers to leverage the latest ✓ Provides access to “business” developers using
functionality without disrupting the core business advancements in industry and technology low-code solutions, allowing business users to
processes, ensuring they stay competitive innovation without concern of being “locked” quickly adapt functionality without the technical
into legacy IT decisions challenges around coding and up-skilling
✓ Reduces potential business risk by ensuring
processes can be adapted without complexity or ✓ Provides the key building blocks and foundation ✓ Empowers the business to be agile around
delay to quickly adopt groundbreaking technologies business processes, allowing users to implement
such as generative AI – helping customers get a the changes needed without fear of impacting the
✓ Removes historic development decisions, allowing IT competitive head start core
to implement agile development practices

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Clean core value proposition | IT cost reduction and savings
Technical debt can account for a significant part of customers’ technology estates

Historically, IT upgrades have been costly exercises due to the complexity associated with the number of
customizations (custom business processes or custom IT extensions) – referred to as “technical debt.”
Technical debt becomes a blocker for realizing future cost savings and innovations by requiring specialist
resources to maintain, develop, and increase overall IT upgrade durations.
Adopting clean core principles allows customers to “revisit” technical debt and find cost reductions.

Reduce TCO associated with Benefit from operating expense Realize potential partner cost
SAP S/4HANA upgrades savings related to maintenance savings
of SAP S/4HANA ✓ Service partners can leverage commodity skill
✓ Systems that leverage “clean core” principles
sets in the market (associated with cloud
can be upgraded quicker compared to systems
✓ Clean core principles provide a more stable technologies) compared to highly specialised
with high levels of classic extensions and complex
extensibility experience, which helps reduce day-to- resources – allowing opportunities for potential
processes – allowing upgrades to become “non-
day IT maintenance associated with classic cost savings to be passed onto customers.
events.”
extensions and unused objects (“technical debt”). ✓ A cloud technology skill set is more widely available
✓ Upgrades require fewer specialist IT resources
✓ Extensions are performed on “released” objects – in the ecosystem, which provides customers with
(such as technical developers) to support testing and
providing a higher level of stability compared to more choice on IT service partners and offers
remediation due to lower complexity, reducing overall
bespoke development, helping decrease the opportunities for greater cost savings.
cost of upgrade.
overall IT or vendor support needed.
✓ Minimal business or line-of-business
involvement is required during upgrades to
revalidate business processes.

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Clean core value proposition | Building IT resiliency (1/2)
Building resiliency with technology and solutions allows customers to navigate dynamic environments

Building IT resiliency in IT solutions and technologies allows IT to support the wider organization in navigating
the changing economic landscape.
Embarking on a digital transformation entails a certain level of risk due to the complexity of systems, required
skill set, cost of development, and more.
Following clean core principles allows customers to reduce the IT risk, broaden their talent pool, and future-
proof development decisions. This not only allows customers to become “resilient,” but it also helps them
become more competitive.

Lower IT risk associated with Enable greater levels of digital Future-proof IT expenditure
SAP S/4HANA upgrades security and compliance into developments
✓ Systems that leverage aspects of clean core provide ✓ Adhering to clean core principles allows customers ✓ Developing new functionality or applications using
customers with a stable IT upgrade experience, to benefit from increased IT security using the clean core approaches directly aligns with
as there is an overall reduction in the required testing most recent and up-to-date security patches that are industry and market trends – for example,
and remediation typically associated with classic obtained through upgrades. microservice architectures or decoupled
extensions. extensions.
✓ Improved data privacy, auditability, and traceability
✓ Stable upgrades provide customers with greater are also achieved through clean core approaches with ✓ Industry and market trends are recognized as
level of confidence and predictability that the use of released objects and APIs – allowing a driving factor in digital transformations. This
upgrades will be completed on time and faster – customers to streamline any regulatory reporting ensures investments into these technologies are
minimizing any unnecessary time where core requirements. aligned to the industry direction rather than legacy
processes are not running. approaches that would require future rework.

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Clean core value proposition | Building IT resiliency (2/2)
Building resiliency with technology and solutions allows customers to navigate dynamic environments

Building IT resiliency in IT solutions and technologies allows IT to support the wider organization in navigating
the changing economic landscape.
A key factor in the industry is the dynamic marketplace for IT expertise in automation, AI, cloud development,
and others. Retaining talent and sourcing the “best” IT talent is critical for staying competitive.
Adopting a clean core approach allows organizations to maximize the potential talent pipeline both internally
and externally by ensuring they have access to the right skill sets and empowering existing resources to cross-
train.

Increase external IT talent pool and the caliber of Maximize internal skill sets and capabilities
resources ✓ Clean core development leverages cloud and open-source technologies. These
solutions provide a lower barrier to upskilling due to the amount of external
✓ Clean core approaches leverage cloud and open-source technologies. These skill sets information available– allowing customers to leverage a wider range of
are more readily available in the marketplace – allowing companies to benefit from existing resources.
increased IT and business competitiveness.
✓ Existing developers (for example, ABAP) also have a clear transition path
✓ There is broader appeal to early talent hires as cloud or open-source technologies for clean core development in the cloud – ensuring knowledge is retained in
are more frequently taught, allowing customers greater flexibility on building their talent house.
pipeline.

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Clean core value proposition | Embracing a composable ERP approach
Accelerating digital transformation requires adopting a modular ERP approach to SAP S/4HANA

Moving from historical, monolithic applications to cloud-based ERP solutions (such as SAP S/4HANA) allows
businesses to become more agile and flexible to change.
Businesses that embrace a modular approach gain greater efficiencies and benefits from modularizing their
cloud ERP solution through extensions, integrations, and automation.
To realize these efficiencies, customers need to adopt clean core principles and approaches that allow them to
modularize their cloud ERP with minimal disruption to the business. Achieving this also opens up new ways of
generating revenue through IT.

Open up new revenue streams Create new areas of IT Streamline onboarding of “last
and business models in the collaboration and outsourcing mile” ecosystem extensions
future ✓ Utilizing clean core practices creates a more ✓ Systems that benefit from clean core practices allow
modularized IT system, enabling easier customers to onboard new partner solutions that
✓ Customers that embark on transitioning to clean core collaboration across heterogenous and compliment SAP S/4HANA functionality without
developments open the door to future revenue distributed teams. introducing new levels of complexity.
streams, such as “packaged” developments (for
example, IP) into micro-applications that can be ✓ With modularized IT systems, it becomes easier
resold. to outsource development and support aspects of
projects to a wider range of partners within the
✓ Future scenarios of micro-applications may allow ecosystem.
customers to recognise their developments (IP) as
assets on their P&L.

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Thank you.