For more than four decades, SAP has been building software that supports enterprises worldwide in managing their business processes. Starting from classic ERP systems, the company has continually developed its solutions to meet new market and technological challenges. Today, SAP S/4HANA Cloud, the company’s flagship product, represents the latest generation of ERP systems, enabling companies not only to optimise operations but also to adapt easily to changing requirements. A key element that distinguishes S/4HANA Cloud from earlier versions is its approach to the so-called “clean core” and its extensibility capabilities.
In this article from the “Tech Thursday with SNOK” series, we will explain what the clean core strategy means in SAP S/4HANA Cloud, how the system’s extensibility model works, and how enterprises can benefit from it to preserve flexibility, stability and lower maintenance costs. We will also discuss how SNOK helps companies choose the right deployment model - RISE with SAP or GROW with SAP - and how these models support digital transformation.
The evolution of SAP - from traditional ERP systems to the cloud
SAP, a leader in the ERP market, has for years delivered solutions that enable companies to manage their key business processes - from finance, through logistics, to human resources. Over the decades, ERP software has evolved to meet increasingly complex customer requirements. With the arrival of the digital era and the growing importance of the cloud, SAP transformed its approach, focusing on offering cloud solutions that allow companies to adapt quickly to changing market needs.
SAP S/4HANA Cloud is the culmination of these efforts - an ERP system fully optimised for cloud operation, offering modern tools for data management, process automation, and integration with modern technologies such as artificial intelligence or business process automation. Yet with this flexibility comes a challenge: how to tailor the system to specific business needs without compromising the stability and security of the core infrastructure?
What is the “clean core” and why does it matter so much?
Clean core is the foundation of SAP’s strategy, designed to allow customers to extend SAP S/4HANA Cloud without modifying its core functions. This means that all customisations and extensions are built in a way that does not affect the system’s underlying code, enabling smooth, trouble-free updates. Why does this matter so much?
In the past, modifications to ERP systems often caused problems with subsequent updates. Any change to a system’s underlying code could affect the stability and performance of the software, thereby increasing the risk of operational problems for companies. Learning from this experience, SAP introduced the concept of the clean core, which eliminates these risks by allowing the system to be extended without interfering with its key functions.
The benefits of maintaining a clean core are significant:
System stability: Because the system core remains untouched, every update to SAP S/4HANA Cloud proceeds smoothly, without the risk of destabilising the system. Lower maintenance costs: No need to adapt the system’s core to new software versions translates into lower costs related to its maintenance and upkeep. Better predictability: Regular, scheduled updates can be rolled out without concerns that customised functions will stop working.
Extensibility - extending the functions of SAP S/4HANA Cloud
Clean core is not the only element of SAP’s strategy. A key aspect for enterprises that need to tailor the system to their specific needs is extensibility. SAP offers several models that allow new functions and integrations to be added while maintaining system stability. There are two main approaches to extensibility in SAP S/4HANA Cloud:
On-stack extensibility: This model involves building extensions directly on the SAP S/4HANA Cloud infrastructure. These extensions run on the same layer as the system core, meaning they have direct access to ERP data and processes. This approach is ideal for companies that require close integration with data and operations within the system. Side-by-side extensibility: Extensions in this model run alongside the ERP system on the SAP Business Technology Platform (SAP BTP). This means they are separated from the base system and can operate independently. Side-by-side extensibility is ideal for applications that do not require constant access to core system data, while also giving companies greater flexibility in building new functions and applications.
Public vs. Private Edition - choosing the right model
SAP S/4HANA Cloud is available in two versions - Public Edition and Private Edition - each offering a different approach to managing the system and its extensibility.
SAP S/4HANA Cloud Public Edition is a SaaS solution in which SAP manages all updates and system maintenance. For companies seeking rapid implementation and simplicity of management, Public Edition is the ideal solution. Extensions must be built according to clean core principles, ensuring stability and the ability to carry out updates smoothly. SAP S/4HANA Cloud Private Edition gives companies greater control over the system, allowing them to manage updates at their own pace. This solution is more flexible when it comes to customisation, but it also requires greater responsibility on the client’s part in maintaining system stability and security. In this edition, applying clean core principles is essential to avoid problems related to more difficult updates.
How does SNOK support companies in choosing the right SAP model?
SNOK does not deploy SAP S/4HANA Cloud systems directly, but we advise companies in the process of choosing the right deployment model, such as RISE with SAP or GROW with SAP. These two approaches offer different paths to digital transformation, and our role is to help companies understand which solution best fits their specific business needs.
RISE with SAP is a comprehensive offering that includes everything a company needs to begin its transformation to SAP S/4HANA Cloud - from infrastructure to migration support and management tools. It is an ideal solution for companies wanting to modernise their ERP systems and move them to the cloud in a secure and cost-effective way. GROW with SAP is a more flexible option, aimed at mid-sized companies that want to gradually develop their ERP systems in the cloud, gaining flexibility and scalability.
How SNOK supports digital transformation in the rail sector
As a member of the Polish Chamber of Railways, SNOK supports companies in the rail sector in the process of choosing the best SAP model for their business needs, focusing on operational optimisation, security and technological flexibility. Our goal is to ensure that rail companies’ IT systems can grow alongside the industry’s increasing requirements, while preserving the security and stability of key business processes.
Application example: automating processes in the rail sector
Working with clients in the rail sector, SNOK advises on the selection of appropriate SAP tools, such as SAP S/4HANA Cloud and SAP BTP, to meet challenges such as logistics management, asset tracking, or route optimisation. For example, thanks to side-by-side extensibility, rail companies can build applications for managing rail infrastructure that integrate easily with their ERP while operating independently of the core system, allowing for easy modification without risking destabilisation of the entire system.
In practice, companies can automate processes related to scheduling rolling-stock maintenance by integrating data from sensors monitoring the technical condition of vehicles. This data can be processed in applications running on SAP BTP, and the results of the analysis can easily be integrated with the ERP system, enabling automatic service planning and minimising downtime.
The role of SAP Business Technology Platform (BTP) in transforming the rail sector
SAP BTP plays a key role in the side-by-side extensibility model, enabling companies to build applications that support specific business needs while operating independently of the core ERP system. The platform offers tools for building custom applications, integrating with external systems, and automating processes. Moreover, thanks to integration with artificial intelligence and data analysis tools, SAP BTP allows rail companies to build modern solutions that support decision-making based on real-time data analysis.
The benefits of maintaining a clean core for the rail sector
For companies in the rail sector, the stability and security of IT systems is of key importance, particularly in the context of infrastructure and operations management. Thanks to the clean core strategy in SAP S/4HANA Cloud, these companies can enjoy a stable ERP system that is regularly updated by SAP without the risk of operational disruption.
These benefits include:
Trouble-free updates: Regular, predictable updates provided by SAP mean that the ERP system is always up to date with the latest technologies and features, without the risk of operational disruption. Increased flexibility: Thanks to the ability to add custom functions without interfering with the system core, companies can adapt their IT systems to changing operational needs. Data security: The clean core and its strategy support secure deployments, eliminating risks associated with outdated or unpatched modifications.
How to get started with SAP S/4HANA Cloud and SNOK?
For companies considering modernising their ERP systems, SNOK offers full advisory support in choosing the right deployment model, whether RISE with SAP or GROW with SAP. It is essential to thoroughly analyse the company’s needs, identify key business processes, and determine which areas of the business can benefit from automation and integration with modern SAP tools.
This process can be broken down into several steps:
Analysis of business needs: Identifying the key areas requiring modernisation and setting priorities for process optimisation. Choosing the right SAP model: RISE with SAP or GROW with SAP - selecting the model that best matches the company’s needs and its readiness for digital transformation. Extensibility planning: Determining which functions can be delivered via on-stack extensibility and which via side-by-side extensibility. Managing and maintaining the clean core: Applying clean core principles to ensure system stability, security and flexibility.
Summary
SAP S/4HANA Cloud, supported by the clean core strategy and the extensibility model, offers companies unlimited possibilities for tailoring their ERP system to their needs while maintaining stability and security. Through our advisory services at SNOK, we help companies choose the right SAP deployment model, such as RISE with SAP or GROW with SAP, and support them throughout the digital transformation process.
Clean core is not merely a technical concept - it is the foundation on which modern, flexible solutions can be built, driving innovation and helping companies remain competitive in a rapidly changing business environment.
We invite you to get in touch with SNOK to learn more about the possibilities offered by SAP S/4HANA Cloud and how we can help transform your company digitally.