Analyzing Clean Core Components

Objective
After completing this lesson, you will be able to describe the specific components that
comprise clean core

Clean Core Components

Introduction

In the previous unit, we looked at a few of the challenges facing enterprises in today's
world. We saw how SAP S/4HANA Cloud provides a solution for these challenges. It
provides vital functions for managing various business processes, including finance,
procurement, supply chain, customer relationship management, and more. However,
we also noted that as a cloud-based solution, enterprises adopting SAP S/4HANA
Cloud must take a modified approach to areas such as extensions, integrations, and
operations relative to what they have historically had to do with on premised based SAP
ERP systems.. We now turn our attention to this approach. It can be summed up in one
easy to remember phrase: "clean core". In this lesson, we explore what we mean when
we say that customers must think about and embrace the concept of a clean core
with regards to SAP S/4HANA Cloud.

What Is "Core"?

By "Core" we are referring to several "dimensions" (or "pillars" if you prefer), each one
of which represents a different way that a customer can think about and analyze their
ERP system. Those dimensions (in no particular order) are as follows:

 Processes
 Extensions
 Data
 Integrations
 Operations

What Is "Clean"?

By "Clean" we mean that for each dimension listed above, a set of best practices,
methodologies, and tools exist. If these are used, they allow the customer to consider
that dimension to be "clean". These best practices, methodologies, and tools are
specific for each dimension (and they will be discussed later).

Note: Each individual dimension, and the approach applicable to it is explored in detail
in the Unit Diving Deep Into the Different Dimensions of Clean Core.
What Is "Clean Core"?

Now that we have an understanding of the individual terms we can put them together:

For clean core, the best case scenario describes an up-to-date system on the latest
release, with cloud-compliant extensions and integration, excellent master data quality,
and perfect process design. A newly provisioned SAP S/4HANA Cloud system is clean
per definition. The goal for the customer in that case is to keep the core clean. For
customers who decide on a system conversion or system landscape transformation
approach the goal is to get (and then keep) the core clean. New implementations versus
system conversions and landscape transformations will be explored in detail in the next
lesson.

SAP S/4HANA Cloud And Clean Core

We have mentioned how SAP S/4HANA Cloud provides a complete solution to the
problems modern enterprises face. We can now take this one step further and say that
SAP S/4HANA Cloud implemented and operating with a clean core is the goal for
customers. This is so fundamental and foundational that when we say SAP S/4HANA
Cloud, the phrase "with a clean core" is implied, whether we explicitly say so or not.

SAP S/4HANA Cloud with a clean core allows customers to adapt their
systems to changing business requirements and adopt new capabilities.

Diving into more detail some of the identifying features of a clean core are:

 A streamlined and optimized version of SAP S/4HANA Cloud software that

focuses solely on essential functionalities and delivers maximum efficiency.
 The removal of unnecessary features, customizations, and complexities to
simplify the ERP system's core codebase.
 Enhanced maintainability, reduced technical debt, and improved overall system
performance.

Components of a Clean Core

Taking these identifying features we can conceptualize them in five easy to remember
bullet points:

 Minimalism: The clean core promotes simplicity by identifying and eliminating

redundant or obsolete functionalities, ensuring only essential components
remain.
 Modularity: It facilitates dividing a complex ERP system into modular components
that are loosely coupled, enabling easier maintenance and adaptability.
  Scalability: A clean core architecture allows the ERP system to accommodate
growth and change without sacrificing performance or stability.
 Maintainability: By removing unnecessary complexities, it streamlines the
codebase, making it easier for developers to understand, modify, or enhance the
ERP system.
 Stability and Reliability: A clean core fosters stability by reducing dependencies
and making it less prone to bugs and inconsistencies, and improving the
system's reliability.

The goal for companies is to "get" the core clean and then to "keep" the
core clean.

Real-Life Scenario: The Business Need for a Clean Core

Imagine a midsized manufacturing company, ABC Manufacturing, seeking to implement

an ERP system to streamline its operations. The company has grown rapidly, and its
existing fragmented systems have become inefficient and error-prone. The
management realizes the need for a robust ERP system to support its evolving needs,
and the IT department is asked to handle the implementation. Let's see how ABC
Manufacturing can benefit from Clean Core.

Existing ERP Implementation Challenges

As mentioned, some of the challenges ABC Manufacturing is experiencing are:

 Bloated System: The current ERP software that ABC Manufacturing uses is a
heavily customized version, with numerous features and functions that are no
longer useful or relevant.
 Performance Issues: The system experiences frequent slowdowns, impacting
productivity, and causing dissatisfaction among users.
 High Maintenance Cost: The complex codebase requires a considerable amount
of effort and resources for regular maintenance and support.

Clean Core to the Rescue

To address the challenges faced by ABC Manufacturing, the IT department decides to

evaluate and apply the clean core principles to their ERP system. They determine that
by streamlining the software's core components, they can achieve the following long-
term benefits:

 Minimalism and Efficiency: By removing redundant features and customizations

from the ERP system, ABC Manufacturing can enhance its performance,
improving user experience and productivity.
  Scalability and Adaptability: A clean core architecture allows the ERP system to
accommodate future growth and changing business needs, minimizing the need
for expensive reimplementations.
 Ease of Maintenance: The simplified codebase of a clean core enables quicker
bug fixes, reduced downtimes, and effortless customization, thus reducing the
overall cost of maintenance.

Implementing a Clean Core ERP Solution

ABC Manufacturing chooses a system conversion to SAP S/4HANA Cloud private

edition. This first step is followed by a transition to SAP S/4HANA Cloud public edition,
as a new implementation planned for the midterm (approximately five years).

Note
New implementations versus system conversions will be discussed in the next lesson.

 For the system conversion, the IT team collaborates closely with various
departments, identifying essential functions required to streamline ABC
Manufacturing's operations effectively.
 Customizations, add-ons, and third-party integrations that no longer align with the
company's long-term goals are removed, resulting in a leaner, more efficient
clean core ERP system.
 The clean core implementation strategy follows a modular approach, allowing for
better scalability and ease of future enhancements.

Results After Getting the Core Clean

Once the system conversion is complete and rolled out to the users, ABC
Manufacturing immediately starts reaping the benefits:

 Improved Performance: Through optimization and minimalism, the (now clean)

ERP delivers enhanced system response times and user satisfaction.
 Simplified Development: Developers now both understand and work on a
streamlined codebase, with improved productivity and reduced development
time.
 Enhanced Stability and Reliability: The removal of unnecessary complexities has
minimized the risk of bugs and errors, resulting in a more reliable and stable ERP
system.
 Cost Reduction: With reduced maintenance efforts, the clean core has resulted in
decreased downtime and lower overall maintenance costs.

Lessons Learned

Based on their experiences in successfully implementing a system conversion ABC

Manufacturing has learned the following:
  Conduct a thorough business analysis to identify critical functionalities before
embarking on clean core development.
 Employ modular development frameworks and practices to ensure loose
coupling and scalability.
 Regularly review and assess the ERP system's performance, identifying
opportunities for further optimization and code cleanup.
 Involve stakeholders from different departments to ensure alignment with
business goals and requirements.

Some Misconceptions About Clean Core

As with most things, misconceptions sometimes happen especially with concepts that
are relatively new. Let's look at a few here, as related to clean core.

 SAP BTP is the only means of making and keeping the core clean. While SAP
BTP is necessary for creating side-by-side extensions (the extension dimension
of clean core), both key user and developer extensibility (both of which allow
extensions to be implemented on stack) are possible with SAP S/4HANA Cloud.
 Clean core is only about custom code and extensibility. Clean core not only
affects custom code and extensibility but also business processes, data,
integration, and operations.
 Clean Core is only about total cost of ownership (TCO). True, clean core does
contribute to a TCO reduction, but it also enables consumption of the latest
innovations, as well as contributes to a mindset shift away from on premise and
towards cloud.
 Fit-to-standard is the only means of making and keeping the core clean. Although
a fit-to-standard system is probably clean, the usage of Tier 1 extensibility
options (to be discussed in a later lesson) also make and keep the core clean

Conclusion

In the realm SAP S/4HANA Cloud, clean core plays a pivotal role in achieving
efficiency, scalability, and reduced technical debt. By eliminating unnecessary
complexities and focusing on essential functions, developers can streamline ERP
systems, leading to improved performance, stability, and maintainability. Understanding
the business needs for a clean core, illustrated through the scenario of ABC
Manufacturing, underscores its significance in ERP implementation. By embracing
minimalism, modularity, scalability, and maintainability, developers can build ERP
systems that align with business objectives, enhance productivity, and position
organizations for growth in a dynamic market.

Having a clean core enables companies to be future ready and

competitive at any time.