Comparison: SAP S/4HANA vs.

SAP RISE with SAP Cloud

Both SAP S/4HANA and SAP RISE with SAP Cloud are part of SAP's ERP solutions,
but they differ in terms of deployment, management, and additional services. Here's
a detailed comparison:

1. Deployment Model

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Deployment Can be deployed on- Fully cloud-based deployment
Options premise, private cloud, managed by SAP.
or public cloud.
Infrastructure Customer or partner manages the SAP manages the entire
infrastructure (if on-premise or infrastructure, including servers,
private cloud). storage, and networking.
Flexibility High flexibility in customization Less flexibility in customization, as
and control over the system. SAP manages the environment.

2. Management and Maintenance

Aspect SAP S/4HANA SAP RISE with SAP Cloud

System Customer or partner is SAP handles all system updates,
Management responsible for system updates, patches, and upgrades automatically.
patches, and upgrades.
Maintenance Customer must manage SAP provides end-to-end
backups, disaster recovery, and maintenance, including backups,
system performance. disaster recovery, and monitoring.
Technical Requires in-house IT expertise Reduces the need for in-house IT
Expertise or a partner for system expertise, as SAP manages the
management. technical aspects.

3. Cost Structure

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Upfront Costs High upfront costs for hardware, Lower upfront costs, as it operates
software licenses, and on a subscription-based model.
implementation.
Ongoing Costs Ongoing costs for maintenance, Predictable subscription fees,
upgrades, and IT staff. including infrastructure,
maintenance, and support.
Total Cost of Higher TCO due to infrastructure Lower TCO, as SAP manages the
Ownership and maintenance costs. infrastructure and maintenance.
(TCO)
4. Scalability and Performance

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Scalability Scalability depends on the Highly scalable, as SAP Cloud can
customer's infrastructure and dynamically allocate resources based
capacity planning. on demand.
Performanc Performance depends on the Optimized performance with SAP's
e customer's infrastructure and cloud infrastructure and built-in
optimization efforts. tools.

5. Innovation and Updates

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Innovation Customers must manually adopt new Automatic access to the latest
features and innovations. SAP innovations, updates, and
features.
Update Updates and new features are released SAP delivers continuous updates
Frequency periodically, but customers must and new features without
apply them manually. customer intervention.

6. Integration and Ecosystem

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Integratio Requires custom integration Seamless integration with SAP's
n with third-party systems and ecosystem (e.g., SAP Business
tools. Technology Platform, SAP AI).
Ecosystem Limited to the customer's IT Access to SAP's broader cloud ecosystem,
environment and partner including AI, analytics, and IoT services.
ecosystem.

7. Security and Compliance

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Security Customer is responsible for SAP provides enterprise-grade security,
implementing and managing including encryption, access controls,
security measures. and monitoring.
Complianc Customer must ensure SAP ensures compliance with global
e compliance with industry standards (e.g., GDPR, ISO) and
standards and regulations. industry-specific regulations.

8. User Experience

Aspect SAP S/4HANA SAP RISE with SAP Cloud

User Uses SAP Fiori for a modern user Enhanced user experience with SAP
Interface experience, but customization is Fiori and pre-configured best
 required. practices.
Mobile Mobile access requires additional Built-in mobile access and support
Access configuration and setup. for SAP Mobile Start.

9. Support and Services

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Support Customer relies on SAP support SAP provides end-to-end support,
or third-party partners for issue including technical and functional
resolution. assistance.
Additional Limited to what the customer or Includes embedded services like
Services partner can provide. analytics, AI (Joule), and process
optimization.

10. Use Cases

Aspect SAP S/4HANA SAP RISE with SAP Cloud

Ideal For Companies with complex Companies looking for a fully
customization needs, existing IT managed, cloud-based ERP solution
infrastructure, and in-house expertise. with minimal IT overhead.
Industrie Manufacturing, utilities, and industries Industries seeking agility,
s with specific regulatory requirements. scalability, and rapid innovation
(e.g., retail, services).

Key Takeaways
 SAP S/4HANA is ideal for organizations that want full control over their ERP
system, have complex customization needs, and are willing to manage the
infrastructure and maintenance.
 SAP RISE with SAP Cloud is a fully managed, cloud-based solution that
reduces IT overhead, provides continuous innovation, and is ideal for
organizations looking for agility, scalability, and a lower TCO.

Which One to Choose?

 Choose SAP S/4HANA if:
o You need full control over your ERP system.
o You have the IT expertise to manage the system.
o You require deep customization.
 Choose SAP RISE with SAP Cloud if:
o You want a fully managed, cloud-based solution.
o You want to reduce IT overhead and focus on business outcomes.
o You need rapid innovation and scalability.
considering various aspects of RISE with SAP and SAP S/4HANA, and how you can evaluate
the decision to migrate, especially when you're already running SAP S/4HANA.
1. Cloud Strategy & Infrastructure Management

SAP S/4HANA (On-Premise or Hybrid)

 Current Situation: If you’re running SAP S/4HANA on-premise or in a hybrid setup

(combining on-premise and cloud), you’re responsible for managing the infrastructure,
ensuring that your servers, databases, and storage systems are up and running. This requires
investments in hardware, IT teams, data centers, and security.
 Challenges:
o Requires regular updates and patch management on the hardware and
infrastructure.
o Scaling becomes more complicated—if your business grows rapidly, you might need
to purchase additional hardware or expand your infrastructure.
o Cost management: High upfront costs for purchasing hardware and software
licenses.

RISE with SAP

 Cloud-Native Solution: With RISE, everything is hosted in the cloud. You don’t have to worry
about managing servers, storage, security, or infrastructure maintenance. SAP handles the
entire infrastructure, scaling, and upgrades.
 Benefits:
o Scalability: As your business grows, scaling is handled automatically by SAP without
worrying about hardware or infrastructure.
o Flexibility: Cloud services offer more flexibility in terms of geographic location and
remote access.
o Predictable Costs: Subscription-based pricing helps control costs, and you pay for
what you use, without needing large upfront investments.

Decision Factor:

 If you want to reduce the burden of managing infrastructure, avoid high upfront costs, and
have a more scalable, future-proof system, migrating to RISE can be a very appealing choice.
The cloud-first model offers improved agility and scalability without investing heavily in
infrastructure.

2. Business Process Optimization

SAP S/4HANA (Current Use)

 Process Optimization: While SAP S/4HANA provides robust tools for automating and
improving business processes (e.g., in finance, procurement, and supply chain), it doesn't
inherently focus on continual business process optimization.
o You can customize workflows, but the onus is on your team or third-party
consultants to continuously improve processes.
o It may lack real-time insights into inefficiencies or process bottlenecks, unless you
invest in additional process optimization tools or consulting services.
RISE with SAP

 Business Process Intelligence (BPI): RISE with SAP includes Business Process Intelligence
tools that help you constantly monitor, assess, and improve your business processes.
o Continuous Improvement: BPI helps identify inefficiencies in processes in real time,
providing data-driven insights on where improvements can be made.
o Benchmarking and Best Practices: It helps you compare your processes against
industry best practices, so you can understand where your operations stand and
where to make improvements.
o End-to-End Process Optimization: With pre-configured templates for specific
industries, RISE helps you implement best-in-class workflows that are ready to
optimize right out of the box.

Decision Factor:

 If you feel your business could benefit from continuous process improvement and you need
tools to optimize and streamline operations in real-time, RISE with SAP offers more
powerful tools and frameworks than just SAP S/4HANA on its own.

3. Industry-Specific Solutions

SAP S/4HANA (Customizable but Industry-Specific Needs May Require More

Work)

 Flexibility: SAP S/4HANA offers a lot of flexibility, but that can mean you need to do more
customization and configuration based on your industry.
 Example: A manufacturing company using SAP S/4HANA might need to manually configure
the software to handle industry-specific needs like complex supply chain logistics or just-in-
time manufacturing. This can involve extra work and require specialized consultants or
internal teams.

RISE with SAP

 Industry Solutions: RISE with SAP comes with pre-configured solutions and best practices
tailored to specific industries (like retail, manufacturing, healthcare, etc.).
o These industry solutions reduce the time it takes to implement and align with best
practices for your sector.
o You get templates and tools that have been specifically developed for industries, so
you don’t have to reinvent the wheel.
o This helps avoid lengthy customization processes that you would otherwise face in
S/4HANA.

Decision Factor:

 If you’re in an industry with complex, specialized needs (e.g., retail, manufacturing, or

healthcare) and want a faster, more streamlined implementation based on industry best
practices, RISE with SAP provides ready-made solutions that will speed up the process and
reduce customization costs.
4. Cost Model (Upfront vs. Subscription)

SAP S/4HANA (Traditional Licensing Model)

 Costs: SAP S/4HANA typically comes with large upfront costs, including:
o Software licensing.
o Hardware and infrastructure setup (if on-premise).
o Consultancy fees for configuration, deployment, and customization.
 Ongoing Costs: Additional costs for upgrades, maintenance, and IT staff to manage
infrastructure.

RISE with SAP (Subscription Model)

 Subscription-Based: RISE is based on a predictable subscription model, which includes

everything:
o Software licensing.
o Cloud infrastructure (server, storage, scaling).
o Expert support, including continuous updates.
o Business process intelligence and optimization tools.
 Cost Efficiency: The subscription model allows you to pay only for what you use and avoid
large upfront investments.

Decision Factor:

 If your business is looking for more predictable and lower upfront costs, especially when it
comes to IT infrastructure and support, the subscription model of RISE is highly attractive. If
your current S/4HANA setup is already quite expensive to maintain, migrating to RISE with
SAP can help reduce those ongoing operational costs.

5. Innovation and Continuous Updates

SAP S/4HANA (Manual Updates and Upgrades)

 Updates: With SAP S/4HANA, your company needs to manage system upgrades manually.
This means you need to allocate internal or external resources to upgrade the system, apply
patches, and adopt new features as they are released.
o It can be a time-consuming process to ensure the system stays up to date, and
there’s potential for disruption during upgrades.

RISE with SAP (Automatic Updates and Innovations)

 Continuous Innovation: Because RISE is fully cloud-based, SAP takes care of all system
updates, new features, and security patches. You always have access to the latest
innovations in the system without having to do anything manually.
 Improved Agility: With access to new features like AI, machine learning, IoT, and more, RISE
allows your company to take advantage of new technologies as they become available.
Decision Factor:

 If your company doesn’t want the hassle of manually handling upgrades, patching, and
ensuring your systems are up-to-date, RISE with SAP provides a much more hands-off
approach, allowing your business to focus on operations rather than technical management.

6. Expert Support and Services

SAP S/4HANA (Consultants and Internal Teams)

 Support: You’ll likely rely on internal IT teams or external consultants for ongoing support,
upgrades, troubleshooting, and advice on best practices.
o This might be costly and can require significant time to maintain the system.
o You may need to rely on multiple vendors or consultants for various components
(e.g., infrastructure, analytics, or optimization).

RISE with SAP (SAP-Managed Services)

 Managed Services: RISE with SAP comes with full-service support from SAP experts. SAP
handles:
o Infrastructure management (cloud, security, backups).
o Ongoing software support, including updates and optimizations.
o Guidance from SAP’s business process experts on best practices.
 Integrated Support: You don’t need to rely on multiple third parties; everything is handled
within the RISE package.

Decision Factor:

 If you want hands-off support and access to SAP experts who can continuously guide your
business through its transformation journey, RISE with SAP provides integrated services,
offering peace of mind and expert guidance.

Conclusion: Should You Migrate to RISE with SAP?

You should consider migrating to RISE with SAP if:

 You want a fully cloud-based solution to reduce the burden of infrastructure management.
 You’re looking for continuous process optimization and need tools to improve efficiency
over time.
 Your company is growing, and you want a scalable solution with a predictable, subscription-
based pricing model.
 You need industry-specific best practices to streamline implementation and operations.
 You’re ready to take advantage of continuous innovation, with automatic updates and
access to new features.
 You want full-service support from SAP experts rather than managing everything with
internal teams or third-party vendors.
However, if your current SAP S/4HANA system is already running smoothly, you don’t
need much more customization, and you’re not ready for a full transformation, staying on
SAP S/4HANA for now might be the right choice, especially if you're satisfied with the
current setup and costs.

Ultimately, the decision depends on your company

’s long-term strategy, growth plans, and how much support and innovation you want to drive
your business forward.

What is Business Process Intelligence (BPI)?

Business Process Intelligence (BPI) is a powerful set of tools that enables businesses to
analyze, optimize, and continuously improve their business processes based on real-time data
and insights. BPI helps organizations understand how their processes are functioning, identify
inefficiencies or bottlenecks, and provide data-driven recommendations to enhance
performance.
BPI goes beyond traditional process automation by providing visibility, transparency, and the
tools needed to analyze and optimize processes in real-time. It also enables businesses to
align their operations with best practices, measure outcomes, and track improvements over
time.

BPI is a part of RISE with SAP, whereas SAP S/4HANA does not inherently include BPI
tools.

Key Features of BPI in RISE with SAP

1. Process Mining:
o Definition: Process mining allows businesses to visualize, map, and analyze
actual process flows using data from transactional systems (like SAP
S/4HANA). It compares the “as-is” state (how processes are actually being
executed) to the desired state (how they should be executed).
o Example: A retail company might use process mining to identify bottlenecks
in its order-to-cash process, such as delays in order fulfillment or
inefficiencies in inventory management.
2. Process Optimization:
o Definition: After identifying inefficiencies, BPI tools provide
recommendations on how to optimize processes. These optimizations might
involve automating steps, changing workflows, or adjusting policies.
o Example: A manufacturing company may discover that their procurement
process is delayed due to manual approval steps. Using BPI, they can identify
an opportunity to automate approvals and speed up the process.
3. Benchmarking and Best Practices:
o Definition: BPI tools allow companies to compare their processes to industry
best practices and benchmarks. This helps to identify where the company
stands in relation to competitors or peers and provides guidance for process
improvement.
o Example: A logistics company might benchmark its supply chain
performance against industry standards. If their order fulfillment time is
slower than average, BPI can suggest ways to improve efficiency by adopting
better practices.
4. Continuous Monitoring:
o Definition: BPI is not a one-time analysis. It enables continuous monitoring of
processes, ensuring that improvements are maintained over time and new
inefficiencies are detected quickly.
o Example: A financial services company could continuously monitor its
compliance reporting process to ensure it meets regulatory standards without
delays. If any non-compliance or inefficiency is detected, the system will alert
managers for action.
5. Data-Driven Insights:
o Definition: BPI provides real-time insights based on data, not just historical
reports. This allows organizations to respond faster to changes in business
operations and external factors.
o Example: A customer service department might use BPI to track response
times and identify if customer inquiries are being handled too slowly. If an
 issue arises, the system can instantly recommend improvements, like
automating part of the inquiry handling.

How BPI is Different from SAP S/4HANA

SAP S/4HANA is an ERP system that integrates various business functions like finance,
sales, procurement, and manufacturing. It provides tools to automate and streamline core
business processes. While S/4HANA focuses on operational efficiency and transactional
processing, BPI focuses on process optimization and continuous improvement. Here's
how they differ:

Aspect SAP S/4HANA (Traditional ERP) Business Process Intelligence (BPI)

Operational transaction
Process optimization and continuous
Focus management (e.g., finance,
improvement through data analysis.
procurement, HR).
Manages core business functions
Core Focuses on analyzing and optimizing
like finance, supply chain, and
Functionality business processes to drive efficiency.
sales.
Limited real-time monitoring of
Real-time monitoring of business
Process operational activities. Requires
processes with visualizations,
Monitoring external tools to analyze workflows
dashboards, and analytics.
and identify inefficiencies.
Provides visual process flows,
Process Provides basic views of
highlighting inefficiencies and
Visualization transactional data and operations.
bottlenecks.
Data analysis in SAP S/4HANA is Data-driven insights in real-time,
Data Analysis usually done after transactions have identifying areas for optimization and
occurred, using reports. continuous monitoring.
Can automate processes, but AI-driven process optimization
Process
optimization often requires manual recommendations based on real-time
Optimization
intervention or external tools. process data.
Industry standard workflows can
Provides industry benchmarks and
be configured, but there is no
Best Practices best practice insights to guide process
inherent guidance on continuous
changes.
improvement.
Helps streamline processes, but
Data-driven recommendations for
Decision- manual decision-making may still
decisions and automated actions based
Making be required based on reports and
on real-time process data.
data analysis.
A company using BPI to continuously
A company using S/4HANA to
improve the procurement process by
Example automate financial transactions or
analyzing delays and inefficiencies in
manage supply chains.
real time.

Example 1: Manufacturing Industry

  Scenario: A manufacturing company using SAP S/4HANA might be experiencing
delays in its procurement process, but it doesn't have a full understanding of the root
cause.
 Without BPI (Only S/4HANA):
o The company might notice procurement delays from reports generated in
S/4HANA, but those reports only show the outcome—not the underlying
inefficiencies.
o It may require consultants to analyze the data manually and recommend
improvements.
 With BPI (RISE with SAP):
o BPI tools would analyze the procurement process in real-time using process
mining and show exactly where the delays are happening (e.g., manual
approvals, supplier lead times).
o BPI can recommend automated solutions, such as automating approval
workflows or negotiating better supplier contracts to improve delivery
times.
o The company can continuously monitor the process to ensure improvements
are sustained.

Example 2: Retail Industry

 Scenario: A retail company is using SAP S/4HANA to manage inventory, but there
are frequent stock-outs of popular products, leading to lost sales.
 Without BPI (Only S/4HANA):
o The company can track inventory levels in S/4HANA and receive alerts when
stock is low, but reactive solutions are based on manual intervention (e.g.,
creating purchase orders or adjusting stock levels).
o The company might not have visibility into why stock-outs are happening or
which areas of the supply chain are causing them.
 With BPI (RISE with SAP):
o BPI would monitor the entire order-to-cash process, identifying which stages
of the supply chain (e.g., order placement, supplier lead time) are causing the
stock-outs.
o It might recommend re-order point automation based on predictive demand
or alternative suppliers for faster product restocking.
o The company can adjust processes to ensure better demand forecasting and
inventory management going forward.

How BPI and SAP S/4HANA Complement Each Other

 SAP S/4HANA handles the core business operations (like finance, manufacturing,
and procurement), providing real-time transactional processing. It ensures that
everything works smoothly and is automated to a large extent, but it doesn’t
specifically focus on optimizing how well those processes are functioning in terms of
efficiency and effectiveness.
  Business Process Intelligence (BPI) complements S/4HANA by focusing on
continuous improvement. While S/4HANA automates processes and ensures smooth
operations, BPI analyzes those processes, measures their performance, and provides
actionable insights to improve them.

In short, SAP S/4HANA is the engine that keeps your business running, while BPI acts as
the intelligent guide, continuously driving improvements based on real-time data and
industry benchmarks.

When to Use BPI in RISE with SAP?

 When you need real-time insights into how business processes are actually
functioning.
 When process bottlenecks or inefficiencies are impacting your operational
performance.
 When you want to adopt industry best practices and benchmarks to stay
competitive.
 When you're looking for continuous process improvement without manual
intervention or external consultancy.

Conclusion:

BPI in RISE with SAP brings intelligent process management that allows businesses to go
beyond simply executing processes to truly optimizing and refining them. By using data-
driven insights, process mining, continuous monitoring, and benchmarking, BPI empowers
companies to make smarter decisions, reduce inefficiencies, and stay aligned with best
practices—something SAP S/4HANA by itself doesn’t inherently offer.

What is the Clean Core Concept in SAP?

The Clean Core Concept in SAP refers to the practice of keeping the core system (SAP
S/4HANA) as standard as possible with minimal customizations. The goal is to reduce the
complexity of the system by avoiding extensive changes to the underlying core
functionalities of SAP S/4HANA.

By adhering to the Clean Core concept, organizations can:

 Lower maintenance costs by avoiding complex custom code.

 Benefit from faster upgrades and updates, as the core system remains untouched.
  Ensure better support from SAP because the standard functionalities are supported out-of-
the-box.
 Leverage cloud technologies more effectively (in RISE with SAP) as cloud-based systems
thrive on standardization and agility.

Why is the Clean Core Concept Important?

1. Easier Upgrades:
o With customizations, each SAP upgrade or patch can become more complex because
custom code might not be compatible with the new release.
o By keeping the system clean and standard, upgrades become smoother and faster,
as SAP provides out-of-the-box support.

2. Lower Costs:
o Custom code often requires significant resources to maintain and test.
o By avoiding heavy customization, the organization can save on development and
maintenance costs.

3. Improved Flexibility:
o A clean core system allows companies to adapt more easily to changing business
needs, new features, and evolving industry standards.
o It encourages the use of SAP standard functionality, which can often fulfill business
needs without custom solutions.

4. Support from SAP:

o SAP provides full support for standard features but might limit support for heavily
customized implementations, especially if custom code interferes with the system’s
core.
o Having a clean core means that SAP will always have resources to help with issues.

How the Clean Core Concept Applies in SAP S/4HANA

In SAP S/4HANA, the Clean Core concept focuses on leveraging the standard
functionalities of the platform without introducing extensive custom development. The idea
is to rely on SAP's best practices and industry solutions, which are already embedded in the
system, to handle most business requirements.

Example:

 Scenario: A manufacturing company uses SAP S/4HANA to handle their order-to-cash

process.
 Clean Core Approach: Instead of customizing the order-to-cash process by building complex
workflows, the company uses SAP’s out-of-the-box functionality and industry-specific
templates for managing orders, inventory, and billing.
 This helps the company:
o Avoid custom development that would require maintenance and testing.
 o Benefit from future SAP updates to the order-to-cash process, without worrying
about compatibility issues with custom code.

In S/4HANA, companies can achieve the Clean Core concept by:

 Using standard Fiori apps for user interfaces.

 Adopting industry best practices that SAP has pre-configured.
 Avoiding heavy customizations of the underlying code.

How Clean Core Works in RISE with SAP

RISE with SAP is SAP's cloud-based offering that includes SAP S/4HANA along with
additional tools and services to enable digital transformation. RISE with SAP also promotes
the Clean Core concept, but with additional emphasis on cloud technologies, scalability, and
agility.

Clean Core in the Context of RISE with SAP:

1. Cloud-Native Benefits:
o RISE with SAP encourages businesses to keep the core system standardized while
taking advantage of cloud services like SAP Business Technology Platform (BTP) for
innovation.
o Customizations are moved to the edge of the system, where specialized solutions or
extensions are created using tools like SAP Fiori, SAP BTP, and SAP Integration
Suite. These solutions run alongside the core system, leaving the core of SAP
S/4HANA untouched.

2. Use of SAP's Pre-Configured Industry Solutions:

o In RISE with SAP, industries can leverage pre-configured templates for processes,
best practices, and workflows. These templates are designed to allow companies to
quickly implement the solution with minimal customization, aligning with the Clean
Core approach.

3. Automated Updates:
o One of the key advantages of RISE with SAP is that it is cloud-based, which means
SAP handles all system updates and upgrades. By maintaining a clean core,
organizations avoid costly, complex custom code issues during updates, enabling
more seamless and faster transitions to the latest versions.

4. Adoption of Innovation:
o With RISE, businesses are encouraged to use SAP's extensibility options (e.g., SAP
Fiori extensions, SAP Intelligent Robotic Process Automation, SAP AI/ML
capabilities) to extend the functionality of their system without changing the core.
o By relying on cloud-native extensions, companies can maintain a clean core while
still addressing specific business requirements.
Example in RISE with SAP:

 Scenario: A retail company using RISE with SAP for inventory management.
 Clean Core in Action: The company uses SAP’s standard inventory management process
without customization. However, they extend the system using SAP BTP for advanced
analytics and integration with other cloud applications (e.g., customer relationship
management tools).
 This allows them to:
o Take advantage of cloud scalability.
o Benefit from automatic updates and new features added by SAP in the future.
o Avoid the risks and costs of maintaining custom code within the core SAP S/4HANA
system.

Key Benefits of Clean Core in RISE with SAP

1. Seamless Integration with Cloud Technologies:

Since RISE with SAP is cloud-based, it allows businesses to integrate external
applications and data sources with SAP S/4HANA via SAP Business Technology
Platform (BTP) while maintaining the core standard functionality.
2. Agility and Flexibility:
RISE with SAP provides organizations with the flexibility to innovate and extend the
system without changing the core. Businesses can take advantage of AI, machine
learning, and data-driven insights without worrying about system compatibility.
3. Lower Total Cost of Ownership (TCO):
By keeping the core system standardized, organizations avoid the significant costs
associated with custom code maintenance and upgrade complexities, resulting in
lower long-term costs.
4. Simplified Upgrades and Maintenance:
RISE with SAP automatically takes care of upgrades and patches, ensuring that
businesses can keep their systems up to date without worrying about their
customizations disrupting the process.
5. Reduced Complexity and Faster Time to Value:
RISE with SAP allows businesses to quickly implement and deploy industry-specific
solutions with minimal customizations. This means they can start realizing value
from their SAP S/4HANA implementation much faster.

Summary

 The Clean Core Concept is about keeping your SAP S/4HANA system standardized and as
close to SAP’s out-of-the-box functionality as possible.
 By focusing on standard processes, companies can avoid the complexities and risks of
custom code and configurations, which results in smoother upgrades, lower maintenance
costs, and better system performance.
 RISE with SAP extends the Clean Core philosophy by providing a cloud-native approach that
enables businesses to maintain a standardized core while also allowing for innovation and
extensibility at the edge of the system using SAP BTP and cloud integrations.
By leveraging RISE with SAP, businesses can modernize their operations, remain agile, and
easily scale while ensuring their core SAP system remains simple, secure, and ready for the
future.

What is the Clean Core Concept in SAP?

The Clean Core Concept in SAP refers to the practice of keeping the core system (SAP
S/4HANA) as standard as possible with minimal customizations. The goal is to reduce the
complexity of the system by avoiding extensive changes to the underlying core
functionalities of SAP S/4HANA.

By adhering to the Clean Core concept, organizations can:

 Lower maintenance costs by avoiding complex custom code.

 Benefit from faster upgrades and updates, as the core system remains untouched.
 Ensure better support from SAP because the standard functionalities are supported out-of-
the-box.
 Leverage cloud technologies more effectively (in RISE with SAP) as cloud-based systems
thrive on standardization and agility.

Why is the Clean Core Concept Important?

1. Easier Upgrades:
o With customizations, each SAP upgrade or patch can become more complex because
custom code might not be compatible with the new release.
o By keeping the system clean and standard, upgrades become smoother and faster,
as SAP provides out-of-the-box support.

2. Lower Costs:
o Custom code often requires significant resources to maintain and test.
o By avoiding heavy customization, the organization can save on development and
maintenance costs.

3. Improved Flexibility:
o A clean core system allows companies to adapt more easily to changing business
needs, new features, and evolving industry standards.
o It encourages the use of SAP standard functionality, which can often fulfill business
needs without custom solutions.

4. Support from SAP:

o SAP provides full support for standard features but might limit support for heavily
customized implementations, especially if custom code interferes with the system’s
core.
o Having a clean core means that SAP will always have resources to help with issues.

How the Clean Core Concept Applies in SAP S/4HANA

In SAP S/4HANA, the Clean Core concept focuses on leveraging the standard
functionalities of the platform without introducing extensive custom development. The idea
is to rely on SAP's best practices and industry solutions, which are already embedded in the
system, to handle most business requirements.

Example:

 Scenario: A manufacturing company uses SAP S/4HANA to handle their order-to-cash

process.
 Clean Core Approach: Instead of customizing the order-to-cash process by building complex
workflows, the company uses SAP’s out-of-the-box functionality and industry-specific
templates for managing orders, inventory, and billing.
 This helps the company:
o Avoid custom development that would require maintenance and testing.
o Benefit from future SAP updates to the order-to-cash process, without worrying
about compatibility issues with custom code.

In S/4HANA, companies can achieve the Clean Core concept by:

 Using standard Fiori apps for user interfaces.

 Adopting industry best practices that SAP has pre-configured.
 Avoiding heavy customizations of the underlying code.

How Clean Core Works in RISE with SAP

RISE with SAP is SAP's cloud-based offering that includes SAP S/4HANA along with
additional tools and services to enable digital transformation. RISE with SAP also promotes
the Clean Core concept, but with additional emphasis on cloud technologies, scalability, and
agility.

Clean Core in the Context of RISE with SAP:

1. Cloud-Native Benefits:
o RISE with SAP encourages businesses to keep the core system standardized while
taking advantage of cloud services like SAP Business Technology Platform (BTP) for
innovation.
o Customizations are moved to the edge of the system, where specialized solutions or
extensions are created using tools like SAP Fiori, SAP BTP, and SAP Integration
Suite. These solutions run alongside the core system, leaving the core of SAP
S/4HANA untouched.

2. Use of SAP's Pre-Configured Industry Solutions:

o In RISE with SAP, industries can leverage pre-configured templates for processes,
best practices, and workflows. These templates are designed to allow companies to
quickly implement the solution with minimal customization, aligning with the Clean
Core approach.

3. Automated Updates:
 o One of the key advantages of RISE with SAP is that it is cloud-based, which means
SAP handles all system updates and upgrades. By maintaining a clean core,
organizations avoid costly, complex custom code issues during updates, enabling
more seamless and faster transitions to the latest versions.

4. Adoption of Innovation:
o With RISE, businesses are encouraged to use SAP's extensibility options (e.g., SAP
Fiori extensions, SAP Intelligent Robotic Process Automation, SAP AI/ML
capabilities) to extend the functionality of their system without changing the core.
o By relying on cloud-native extensions, companies can maintain a clean core while
still addressing specific business requirements.

Example in RISE with SAP:

 Scenario: A retail company using RISE with SAP for inventory management.
 Clean Core in Action: The company uses SAP’s standard inventory management process
without customization. However, they extend the system using SAP BTP for advanced
analytics and integration with other cloud applications (e.g., customer relationship
management tools).
 This allows them to:
o Take advantage of cloud scalability.
o Benefit from automatic updates and new features added by SAP in the future.
o Avoid the risks and costs of maintaining custom code within the core SAP S/4HANA
system.

Key Benefits of Clean Core in RISE with SAP

1. Seamless Integration with Cloud Technologies:

Since RISE with SAP is cloud-based, it allows businesses to integrate external
applications and data sources with SAP S/4HANA via SAP Business Technology
Platform (BTP) while maintaining the core standard functionality.
2. Agility and Flexibility:
RISE with SAP provides organizations with the flexibility to innovate and extend the
system without changing the core. Businesses can take advantage of AI, machine
learning, and data-driven insights without worrying about system compatibility.
3. Lower Total Cost of Ownership (TCO):
By keeping the core system standardized, organizations avoid the significant costs
associated with custom code maintenance and upgrade complexities, resulting in
lower long-term costs.
4. Simplified Upgrades and Maintenance:
RISE with SAP automatically takes care of upgrades and patches, ensuring that
businesses can keep their systems up to date without worrying about their
customizations disrupting the process.
5. Reduced Complexity and Faster Time to Value:
RISE with SAP allows businesses to quickly implement and deploy industry-specific
solutions with minimal customizations. This means they can start realizing value
from their SAP S/4HANA implementation much faster.
Summary

 The Clean Core Concept is about keeping your SAP S/4HANA system standardized and as
close to SAP’s out-of-the-box functionality as possible.
 By focusing on standard processes, companies can avoid the complexities and risks of
custom code and configurations, which results in smoother upgrades, lower maintenance
costs, and better system performance.
 RISE with SAP extends the Clean Core philosophy by providing a cloud-native approach that
enables businesses to maintain a standardized core while also allowing for innovation and
extensibility at the edge of the system using SAP BTP and cloud integrations.

By leveraging RISE with SAP, businesses can modernize their operations, remain agile, and
easily scale while ensuring their core SAP system remains simple, secure, and ready for the
future.