Illustration

Anna Bondarenko

SAP CX and SAP BTP Consultant

"Clean Core" and SAP BTP: a secure path to upgrading your ERP

SAP ERP systems have always been famous for their high flexibility: businesses could tailor even the most complex processes to their specific needs. Naturally, all successful companies have their own unique requirements and adapt their ERP systems to suit their processes. Historically, companies have actively taken advantage of this opportunity, deeply adapting the system core to their specific needs. But over time, the system becomes so overloaded with unique custom developments that any change or update turns into a large-scale and risky project. Customization results in hundreds of Z-programs, standard table modifications and complex dependencies. As a result, the system becomes similar to a building with modified load-bearing walls. This reconstruction solves business problems. For a time... However, even the smallest update triggers unpredictable errors throughout the system.
This phenomenon is known as “technical debt”. Today, the ability to upgrade an ERP system quickly has become critically important, and not just for the sake of a new release. With every upgrade, SAP adds features that directly impact efficiency: new functions for production and financial management, industry standard support, enhanced localization (including Ukrainian) and new APIs for integrations. At the same time, the system is enriched with modern tools – for example, the built-in AI copilot SAP Joule and advanced analytics. If your system is “locked in” with legacy custom code, you simply won’t be able to adopt these enhancements. You will be left behind in terms of innovation, falling behind your competitors in your ability to adapt to new market conditions.
To understand the scale of the innovations, one needs only look at the current SAP S/4HANA development roadmap. The system is constantly expanding in key modules: tools for manufacturing engineering and logistics are being enhanced, centralized procurement and sales are being improved, and product compliance controls are being strengthened. In addition, industry-specific solutions are being added – ranging from commercial real estate management to specific secondary distribution chains. All these business innovations, together with modern automation tools, are becoming available only to those companies whose core systems are ready for regular updates.
SAP promotes the solution to this problem as standard – the Clean Core concept. It offers an evolutionary approach in which your standard ERP system remains unchanged. The system operates strictly according to SAP best practices, basic processes and simple configurations are safely executed within the system using standardized in-app extensibility, and complex, unique business logic is integrated externally via the SAP Business Technology Platform (BTP) cloud platform.
Because the core of the system remains unmodified, every SAP update goes smoothly and without the risk of disrupting company operations. Furthermore, you gain access to the latest tools, including artificial intelligence. In addition, SAP BTP operates as a complete all-in-one ecosystem offering a wide range of services. Businesses no longer need to allocate extra budgets for additional infrastructure: from database creation and backend configuration to hosting and application deployment – everything is implemented within a single platform.

Reuse or reengineering?

When a company plans a transition to modern architecture, critical choice of implementation strategy arises. A Clean Core can be achieved through the following strategies (approaches differ significantly depending on readiness for change):

    Greenfield – you start from scratch and get a perfectly clean core by default. This approach is optimal if the business is ready to abandon outdated practices, review its approaches and fully adopt SAP standards. To understand the benefits before migration, the process must include a mandatory analytics phase, namely:
     Analysis and comparison: comparing your historical custom code with the new ERP functionality. It often turns out that what previously had to be custom-coded is now available as a standard feature.
    ● Development distribution: unique processes not covered by the standard are immediately designed for development on SAP BTP. After this, you leave all historical code and accumulated technical debt in the past, achieving maximum operational speed.

    Brownfield – you migrate the current system with all its “baggage”. This is the choice for companies that have critically important and highly complex processes which are too expensive or risky to rewrite from scratch. Of course, the core won’t be perfectly clean from the start, but you’ll begin the process of systematically cleaning it up. The phased implementation plan looks like this:  
    ● Cleaning and adaptation: removing obsolete code (“dead code”) that has not been used for a long time and adapting the remaining code for compatibility with the new ERP version. Gradual transformation: reviewing the remaining custom developments and designing only critical ones for migration to SAP BTP.

Clean Core: Benefits for Business, IT, and Users

The transition to Clean Core is not just an IT project; it is a business transformation that changes operations on three levels:

    For the Business – it is a way out of a trap. Companies with classic on-premise systems often stay on the same old version of SAP for years. Management hesitates for a long time, conducts reference visits to other companies that “made it” to determine whether the new features are worth the cost and, ultimately, chooses to “do nothing”. But the price of inaction is huge. Over time, some customized processes become redundant, expertise is lost, and documentation goes missing or becomes outdated. The business becomes hostage to its own legacy system. However, if a company adheres to a Clean Core strategy and migrates custom developments to SAP BTP, updating the system requires minimal effort. The company can adapt quickly to changes and seamlessly gain access to system updates.

    For IT – the absence of technical debt. The IT team no longer spends time testing and adapting custom code after every release or security patch. Extensions built on SAP BTP do not “break” when the core ERP system is updated. Outsourcing development reduces the total cost of ownership (TCO) and frees up resources for actual growth. This radically changes the team’s motivation: specialists focus on creating new value for the company rather than troubleshooting old legacy code. Ultimately, BTP services significantly expand the possibilities for creating and customizing new business processes, utilizing AI and analytics, without impacting the performance of the core system.

    For Users – stability, innovation and rapid onboarding. Users get improved performance, faster system response times and access to innovations. As the core operates under a single global standard, available official SAP training videos and materials can be used to onboard new employees. Internal documentation will only need to cover those specific processes that have been moved to the BTP platform, which significantly saves time and money.

Paths to Safe Extensibility: In-app and Side-by-side 

Keeping a Clean Core does not mean a complete ban on changes inside the ERP. The official cloud extensibility model offers a clear distinction: 
● In-app key user extensibility. Business experts can independently adapt UIs, add new fields or create reports directly in the system using low-code/no-code tools. Such changes do not affect the core.
● On-stack developer extensibility. Developers write code directly on the SAP S/4HANA stack. This is used for more complex tasks requiring close integration with SAP data (e.g., intensive SQL queries). The main rule is the use of only authorized public SAP APIs.
● Side-by-side extensibility. When it comes to loosely coupled applications, unique customer portals, or solutions that integrate with several systems at once, development is moved entirely to the SAP BTP cloud environment.

The other side of the coin 

Moving development to SAP BTP is a powerful and strategically correct step, but we must openly discuss the challenges the businesses need to be prepared for:

  • Illustration

    Licensing costs

    There is a perception that development on BTP is completely free. This is not entirely true. For example, the SAP CAP framework for writing code is a free tool, but for your finished mobile app to run in the cloud, it requires a runtime environment and a database, which are billed separately. 

  • Illustration

    New expertise for the IT team

    The transition from classic ABAP to modern cloud-based microservices requires new skills. Your team will have to master new technologies, API integration principles, and cloud security.

  • Illustration

    IT architecture changes

    Instead of one large closed “box”, you get a distributed ecosystem, and your IT architects will have to take these changes into account. But let’s be realistic: in practice, any large company already has a sprawling IT landscape of dozens of different systems and a complex web of integrations. However, there is a huge advantage – the SAP BTP platform will bring all your unique customizations together in one controlled place. Ultimately, such changes are about streamlining the system, which is undoubtedly beneficial for the business.

How does this work in practice? 

If safe in-app tools (Key User Extensibility) are enough to add a new dictionary field or tweak the interface, the approach for large-scale processes is entirely different. For example, a client needs a new, highly specific process for managing changes to customer records. This process required gathering data from various departments, multi-level management approvals, the automatic generation of complex PDF forms for electronic archive, and user-friendly dynamic UI screens for data entry. Previously, developers would inevitably have “hard-coded” this logic directly into the ERP. Today, it can be done differently by building a transparent side-by-side extension architecture.

Architecture diagram for extending SAP S/4HANA using SAP BTP (ABAP Environment)

● Interface: Using SAP BTP development tools, a modern transactional SAP Fiori app is created, providing a personalized user interface.
● Logic: All custom business logic (approvals, validations, document generation) is implemented directly in the cloud – within the SAP BTP ABAP Environment.
● Integration: This external application communicates with the core system (S/4HANA or CX) exclusively via standard business APIs (OData), using SAP BTP integration services (e.g., Destination Service).● System Core: The ERP provides source data via APIs and receives the processed result.
After implementation, everyone wins: the business gets a custom-tailored tool covering its unique needs, there is standard integration monitoring, and most importantly – the system core remains completely clean and ready for any system updates.

Where to begin your transformation journey?

The transition to Clean Core doesn’t happen overnight. It’s not about “deleting everything old”; it’s about changing your approach:

    Conduct a process audit. You need to take an honest look at your custom developments: which ones genuinely generate value and can be moved to SAP BTP, and which are just a habit long covered by standard SAP functionality. After that, you need to identify areas for improvement and potential risks.

    Align your IT strategy with the overall business goals of your organization.

    Analyze data quality. Assess quality and conduct cleansing activities to reduce duplicates and redundant data.

    Build IT solutions by the new rules. Implement new business requirements not inside the system but side-by-side on BTP.

    Gradually clean up the system. Step by step, migrate historical custom processes to an external platform, relieving the ERP core.

    Use SAP Activate and SAP Signavio. Don't reinvent the wheel. The SAP Activate methodology provides ready-made templates for transformation project phases, while SAP Signavio tools will help deeply analyze and streamline your business process architecture.

    Engage users and management right from the start. If people do not understand the business value of the new standardized processes, they will resist and demand a return to the old, familiar workarounds. Users need to know what improvements they will gain once all the changes have been implemented. To actively engage users, introduce innovative technologies such as artificial intelligence and robotic process automation. It is critical that all participants in the process understand the changes.

In a highly competitive environment, your SAP system must be a strong foundation, not a burden. The Clean Core strategy is the best way to restore the system’s flexibility and prepare it for new technologies. If upgrades are ignored, the system will become entirely obsolete, and its complete replacement will cost the business exponentially more. 

— Sapiens Tech Blog