With an ERP Clean Core strategy, you can ensure that your company benefits from the latest release state as well as cloud-compliant extensions and customizations with minimal changes.
By standardizing processes and data underlying ERP operations, your company can leverage more best practices and make adjustments where they are essential for differentiation from other providers. Your benefits in a nutshell:
- Increase your IT efficiency and reduce risks for your company.
- Optimize decision-making and implementation of measures with improved data quality.
- Accelerate innovation through regular upgrades and powerful development tools.
Rapid Innovations
- Enhance your agility by developing differentiating business models and scaling features as needed.
- Simplify processes by leveraging innovations directly from SAP standard software releases.
- Gain clear insights into business process performance and innovation priorities.
Optimized Execution
- Make faster decisions through higher quality and availability of data.
- Eliminate departmental silos and enhance collaboration by utilizing a central data pool.
- Streamline your processes by connecting the right employees with the right projects across the enterprise.
Operational Efficiency
- Allocate more resources to innovation rather than maintaining existing systems and processes.
- Rapidly implement regulatory changes and simplify monitoring of compliance, audits, and reporting.
- Enhance security through current upgrades and innovations.
Organizations rely on IT to provide the right capabilities to drive strategy. IT must deliver necessary capabilities while also maintaining organizational agility. The key objective of IT is to grow an organization’s competitive differentiation by providing the business with the necessary capabilities from the right technology. Historically, this led to variation directly in ERP systems – of data, processes, integrations, extensions and ultimately the code. In some cases this was necessary; providing business-critical capability not present in standard or integrating disparate systems. In other cases, changes that were introduced did not deliver valuable outcomes. Whether necessary or unnecessary, the way in which standard functionality was extended sometimes introduced technical debt requiring significant effort to maintain. Now, changes in both the business and technology landscape are forcing organizations to address legacy complexity. Disruption across global supply chains, customer preferences, and employees means businesses must adapt quickly to changing requirements. Advancements in technology mean that new capabilities are available at an accelerated pace. Significant technical debt limits the ability to adopt new technologies – 10 to 20 percent of the technology budget dedicated to new products is diverted to resolving issues related to tech debt – thereby limiting the ability to respond to new business requirements.
A "Core" Forms the Foundation of IT’s Capability to Enable the Strategy: It refers to the Dimensions Used to Provide Capability Through an ERP System
SAP considers six dimensions when discussing the core of an organization. These technical and procedural considerations interact to provide the capability to your business so you can deliver outcomes.
Through the course of running the business and adapting to new requirements, variations are often introduced on each of these. However, to maximize cloud readiness, organizations must strive to keep each of these components as clean as possible.