Clean Core ERP Systems: Holistic View

Introduction

• Speaker: Lucas, SAP consultant with 18+ years of experience
• Series: Move to Cloud ERP, Practical Guide
• Focus: Clean Core from a holistic point of view

Today's Agenda

1. Why being the fast one is crucial
2. What Clean Core actually means
3. Detailed look into 5 dimensions of Clean Core
4. Practical tips and examples
5. Resources and methodologies

Importance of Speed

• Complexity vs. Speed
  • Businesses are inherently complex
  • Need to adapt quickly; innovation is often hindered by complexity
  • Disruptive technologies (e.g., generative AI) and political/economic changes necessitate agility
• Quote Insight: “It’s the fast fish that eats the slow fish” – Klaus Schwab
• Case Study: Rapid adoption of new technologies (e.g., Netflix vs. ChatGPT)

What is Clean Core?

• Definition: Clean Core is a mindset and philosophy to keep ERP systems stable and upgrade safe
• Key Attributes: Up-to-date, documented, unmodified, consistent, efficient, and cloud-compliant systems
• Public Cloud vs. Private Cloud & On-premises:
  • Public Cloud updates automatically, always clean
  • Private Cloud/On-premises require more governance to stay clean

Five Dimensions of Clean Core

1. Extensibility
   • Decoupling extensions from the core
   • Using released APIs (local and remote)
   • Avoiding custom modifications
   • Importance of governance
2. Data
   • Data quality and volume
   • Data management (e.g., custom tables, master data)
   • Compliance with data protection laws
3. Integration
   • Reliable and flexible interfaces
   • Using standard APIs and event-driven design
4. Processes
   • Governance around standardization
   • Fit-to-standard approach
   • Complexity management
5. Operations
   • Governance in everyday operations
   • Automated code checks and tests
   • Housekeeping routines for unused code

Extensibility in Detail

• Avoid Extensions: Only extend when necessary
• Governance: Strong policies to monitor and control extensions
• New Technologies: Use of BTP (Business Technology Platform) and ABAP cloud
• Exception Process: Managed deviations allowed under strict control
• Tools & Resources: Extension methodologies, release management, API compatibility

Governance and Operations

• Solution Standardization Board: Central governance entity
• Release Management: Clear guidelines and maintenance schedules
• Automated Checks: Regular checks for code quality and compliance

Approaches to Adopting Clean Core

• Green Field: Full new implementation, clean from the start
• Brown Field: Incremental clean-up and improvement
• Blue Field: Hybrid approach combining elements of both

Practical Implementation

• Activate Methodology: Structured approach to maintain Clean Core
• Quality Gates: Milestones to ensure compliance and quality
• Real-life Examples: Various industry use cases and scenarios

Key Takeaways

• Clean Core as a prerequisite for agility: Allows for better response to market and technological changes
• Holistic Best Practices: Collection of shared insights and experiences
• Iterative Journey: Clean Core is not a one-time task, but an ongoing process

Further Resources

• Guidance Framework: Detailed instructions and guidelines
• Extension Methodology: Comprehensive guide for developers
• Learning Journeys: Continuous education opportunities

Q&A Highlights

• Customization vs. standard: Balance between unique value and system simplicity
• Operational Measures: Importance of closing the loop with automated checks

Conclusion

• Session Feedback: Participants urged to provide feedback for improvement

Thank you for your participation and stay tuned for further insights in the next session!