Why ‘Clean Core’ in preparing the next S/4HANA Public Edition wave
We are actively involved in providing comprehensive assistance for SAP Transformations at different phases, from engaging in close collaboration with our clients to offering support and guidance at all stages of their progress. This includes the assessment of the Business Case, formulation of roadmaps, execution of changes, and collaboration with clients who have already implemented the initial phase of S/4HANA. In the aforementioned scenario, our primary objective remains centered on the ongoing enhancement of the hybrid architecture to align with the ever-changing demands of the business. We are actively engaged in various stages of the market as part of our approach that is in line with the Capgemini LTP technique, which can be accessed through this link.
The need for ongoing business transformation is a shared imperative. We are continually adapting to sustainability trajectories, innovations, and changing market demands. In today’s landscape, both software vendors and cloud companies are evolving their solutions towards the Cloud. In this context, the Case for Cloud emerges as a crucial element within the SAP RISE offering. It positions Cloud as the primary driver for SAP Transformation, with key objectives centered around enhancing flexibility, agility, innovation, and sustainability.
Embracing the Cloud signifies adopting a Cloud mindset, encompassing a blend of Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) opportunities. We play a vital role in helping our clients understand the intricacies of these cloud offerings and navigate any gray areas that may arise. Our commitment lies in ensuring that our clients can fully leverage the potential of the Cloud to achieve their transformation objectives:
Infrastructure as a Service (IaaS) is the initial stage of infrastructure transformation in the context of cloud adoption. It is commonly employed to facilitate the lift-and-shift technique. This phase has undergone substantial development, acquiring maturity, experiences, and useful insights. Currently, it is indeed appropriate to characterize Infrastructure as a Service (IaaS) as a commoditized service.
Platform as a Service (PaaS), conversely, signifies the dominant and very appropriate methodology in contemporary cloud utilization. This strategy utilizes resources such as SAP Business Technology Platform (BTP), Hyperscalers, and other prominent entities to deliver inventive solutions that are designed for cloud-native environments. This technology facilitates the collaborative implementation of Low Code/No Code solutions with our clients, as well as the automation of processes and the utilization of artificial intelligence, including Artificial intelligence with Gen-AI. The wide range of services available in the PaaS field offers significant potential for revolutionary projects within businesses.
Software as a Service (SaaS) has been established in the industry for a considerable period and has attained a state of maturity. Prominent solutions falling inside this category encompass Salesforce, Microsoft Dynamics 365, Oracle Fusion, as well as SAP’s own offerings like Ariba, Concur, and SuccessFactors, among others. A considerable number of clients have already adopted the practice of operating business-critical applications in SaaS mode. This operational approach has demonstrated its reliability and security while presenting minimum risks. SaaS is poised to bring up a significant advancement in the realm of SAP ERP. It is anticipated to emerge as a prominent topic of discussion subsequent to the SAP RISE predicament.
- Today: Why SAP RISE?
- Tomorrow: Why SAP S/4HANA Public Edition?
There is no doubt that the prevailing SAP ERP deployment model of the future will predominantly be the SaaS model. This aligns closely with the commercial model currently associated with SAP RISE. SAP is bound to this trajectory for several compelling reasons, foremost among them being the imperative to embrace SAP RISE to fully leverage its associated benefits and remain within the SAP portfolio.
Likewise, our proposed trajectory entails adopting the comprehensive SAP S/4HANA Public Edition, but with a projected timeline spanning around 5 to 10 years for its standalone implementation. The instructions provided are unambiguous, demonstrating a desire to finally embrace and reap the benefits of utilizing this particular edition. However, it is important to acknowledge that the current implementation of the SAP Grow project is focused on Small-Medium enterprises. Furthermore, a noticeable inclination may be observed in the adoption of the S/4HANA Public Edition by major clients. Although the level of maturity of the SaaS ERP solution may not yet correspond to the complexity that we handle with the S/4HANA Private Edition: SAP is actively striving to close this disparity. The company is proactively introducing novel features and addressing unique needs related to various industries, business lines, and localizations in order to improve the applicability of the SaaS ERP solution.
Why Clean Core is relevant in this context?
Large Enterprises are actively considering the adoption of the S/4HANA Public Edition for their subsidiaries, agencies, dealers, and similar entities where the complexity of business operations aligns with the capabilities offered today by the S/4HANA Public Edition. To ascertain the feasibility of this approach, we employ the SAP DDA Digital Discovery Assessment process (accessible through this link). This assessment helps us determine if the standard functionalities currently available in the S/4HANA Public Edition can effectively address approximately 80-100% of the business requirements. If we find that we are within this range, it provides a green light for selecting the public edition. Any additional requirements or features not covered in the standard offering or on the product roadmap are then addressed through the implementation of services and solutions on the SAP Business Technology Platform (SAP BTP). It’s important to note that customizations cannot be integrated into the package since it is a pure Software-as-a-Service solution. This approach embodies the concept of a “Clean Core,” where we work with the S/4HANA Public Edition and SAP BTP to deliver tailored solutions without compromising the integrity of the core software.
If your subsidiaries are working with the SaaS edition, and the Headquarter is working with the SAP RISE S/4HANA Private Cloud edition, they are consuming the Two-Tier Hybrid SAP ERP deployment option:
Let’s anticipate when the S/4HANA Public Edition will attain the necessary maturity to manage the complexity that is normally associated with headquarters operations, or to the complexities experienced in complicated production sites and comparable scenarios. The issue at hand is the modernization of our SAP ERP solution. We will most likely enter a new phase of transformation, one that will involve moving from the S/4HANA Private Edition to the S/4HANA Public Edition.
This forthcoming transformation is expected to encompass the migration of Two-Tier systems towards the adoption of a full-fledged S/4HANA Public Edition. This transition may entail the establishment of a unified global instance or multiple instances tailored to specific regions, organizations, and other relevant considerations.
The journey will be like this:
How can we effectively manage the complexity associated with the forthcoming transformation from Private to Public ERP systems? One of the primary technical factors that will significantly impact this transition is the adoption of a “Cloud mindset” and addressing the “existing technical debt”. These considerations are already central to our current discussions and hold relevance today.
The shift from Private to Public ERP systems will necessitate a comprehensive re-architecting effort. This will encompass reevaluation and restructuring of customizations, integration solutions, data management, and various other components – challenges that are pertinent in our current landscape today as well.
The question arises: How can we mitigate this emerging complexity and streamline future transformations? The answer, in my view, lies in the proactive implementation of a “Clean Core” strategy today, coupled with the adoption of an appropriate composable architecture. By proactively addressing technical debt and simplifying our existing systems, we not only unlock immediate benefits for our business but also preemptively reduce the complexity that may arise in future endeavors.
This strategic approach positions us to seamlessly transition to the S/4HANA Public Edition when the time comes, ensuring a smoother and more cost-effective process.
Here’s an example to show how it can work:
We are available to show case how it is working in our demo environment, and now you have one more “Why Clean Core” today to simplify the future, avoiding big-gangs, double-effort, reducing risks!