The quality of financial data in SAP systems is an important factor impacting both process excellence and project delivery. Full control of financial data quality reduces exposure to costly surprises. The cleanup of financial business data inconsistencies especially becomes relevant when it comes to the transition of SAP ERP systems to SAP S/4HANA and S/4HANA Public Cloud. If neglected, inconsistent data will have a severe negative impact on various business processes and operations, such as clearing, archiving, as well as financial reporting on-line items versus totals.
ERP challenges today: Why do we need a clean core?
Process Complexity
Companies must have a flexible infrastructure that allows them to quickly adapt their business models as needed. This means being able to rapidly adjust key applications to meet changing market demands and customer needs.
New Technologies
To succeed in the digital age, organizations need to embrace new capabilities. This includes accelerating innovation, optimizing and automating processes, and fostering agility in order to gain a competitive edge.
Business Change
In today's fast-paced and ever-changing business environment, disruption across global supply chains, customer preferences, and the workforce has become a common occurrence. Businesses must quickly adapt to these changing requirements to remain relevant and thrive.
A clean core allows organizations to adapt the system to changing business requirements and adopt new capabilities while ensuring continuous traceability across all areas of the core.
A clean core provides:
- Agility and flexibility
Clean environments decrease time to value. Additional process requirements can be implemented faster and business models can adapt to short term challenges more easily.
- Latest innovations to stay current
Adaptation effort in the context of updates and upgrades is reduced. Cloud services can be integrated faster.
- Efficient and secure operations
E.g. no costly maintenance for unused artifacts.
- Data to Value
Consistent data allows reliable forecasts and precise predictions.
A clean core reduces historically grown process complexity through targeted technical modernization, aligned with a business transformation. Responding quickly to changing factors in the economy requires organizations to be agile and responsive. Building new business models, adapting existing internal processes (hiring, supply chain, logistics, etc.), re-structing financial operations. These changes require agility within SAP S/4HANA that can only be easily achieved with Clean Core principles.