As the adoption of SAP S/4HANA Cloud ERP (Public and Private Editions) continues to accelerate, one of the key issues that frequently comes up is how to deal with the need for customization. This Insights post provides a deeper look at the extensibility tools available for managing custom processes and debunks the myths that cloud doesn't support company-specific requirements.

The Bramasol team sees this issue arise in nearly every SAP Cloud ERP implementation project we handle for clients, with their primary question being how best to balance any needed modifications against the goal of maintaining stability of the core for ease of maintenance and installing future updates.

In some cases, company leaders are hesitant to even undertake the move to cloud, despite its many benefits, because they are worried that their unique requirements can't be supported. It's unfortunate when decision makers tend to view standardized cloud environments as a straightjacket that limits their options; when, at least in the case of SAP Cloud, it is much more like a tailored suit that gives you the benefits of a solid underlying structure along with various ways to tailor a perfect fit.

The digital transformation journey, especially within the software and SaaS sectors, has seen a significant shift toward cloud-based ERP systems. This trend is driven by various factors, including the need for greater agility, scalability, and efficiency in operations. More large and mid-sized SaaS companies are moving away from traditional on-premise ERP systems or low-end cloud ERPs to comprehensive cloud-based ERP solutions. This shift allows for easier access to data, enhanced collaboration, and real-time analytics.

Previously in this Insights Series, we have touched on a wide range of topics that are important for enabling companies to cost-effectively move to cloud-based ERP implementations. These have included migration tools such as SAP RISE and GROW, reducing Digital Debt, and fast-tracking Subscription Billing with Public Cloud Packaged Solutions. In this new Insights post we focus on SAP Clean Core to explore how it can lay a solid foundation for streamlining the transition to SAP Cloud Public or Private Edition, while also providing an extensible future-forward framework to support both fit-to-standard and company-specific extensions.

With each quarterly earnings announcement showing dramatic increases in cloud ERP revenue, SAP’s strategic shift to S/4HANA cloud services is clearly now in full swing. In Q1 2024, revenue from the Cloud ERP Suite was up 32% and reached $3.48 billion US, marking nine straight quarters of 30%-plus growth. 

Recent posts in this series have provided updates on SAP RISE and GROW, with a focus on how they can help streamline the path for companies migrating to SAP public and private cloud editions.  This new episode drills down into the concept of maintaining a "clean core" in your ERP system to assure a solid foundation that minimizes unnecessary customization, which could impede organizational agility going forward.