SAP’s S/4HANA Clean Core strategy is essential for organizations looking to keep their ERP systems future-proof, upgrade-friendly, and extensible. However, achieving and maintaining a Clean Core is not just about technology—it requires strong governance that cuts across multiple areas and workstreams. A well-structured Clean Core governance model ensures that customizations are minimized, extensions are built strategically, and business and IT teams work in sync to balance flexibility with standardization.
In this blog, I will break down governance for clean core implementations into five critical areas: Strategy, Team, Dimensions & Design, Decisions, and Compliance. For each area, we’ll discuss key considerations, questions to ask, and critical outcomes we can expect.
1. Strategy: Defining the Clean Core Vision
A successful Clean Core governance framework starts with a clear strategy. The goal is to define how the organization will leverage SAP S/4HANA and SAP BTP while keeping customizations to a minimum. The strategy should align with long-term business transformation goals and IT modernization efforts. Without a clear strategy, organizations may fall back into old habits of heavy customizations that complicate future upgrades and slow down innovation.
Key Considerations:
- How SAP S/4HANA fits into the organization’s digital transformation roadmap
- The role of SAP BTP for side-by-side extensions and innovation
- In-app extensibility vs. side-by-side decision framework
- Identifying business-critical processes that might require exceptions to the Clean Core approach
- Creating governance policies that prevent unnecessary customizations
- Building a framework for continuous compliance and optimization of the Clean Core strategy
Questions to Ask:
- What does Clean Core mean for our organization? How strictly do we define it?
- Which business areas rely most on custom development, and how can we reduce dependency on it?
- What role will SAP BTP play in our extensibility approach?
- What role will in-app extensibility play in our strategy?
- What would clean core apply to? Just customizations such as RICEFWs or even processes and other innovations?
- What would qualify for exceptions? What would be the process for requesting exceptions and deviations?
- How do we communicate Clean Core principles to stakeholders?
- What will be expected from exceptions in future?
- How will SAP be engaged in exceptions?
- How will cost vs clean core compliance be evaluated?
Expected Outcomes:
- A documented Clean Core strategy aligned with business and IT goals
- Clear guidelines for in-app versus side-by-side extensibility
- A roadmap for leveraging SAP BTP and other cloud-native services for innovation
- Governance policies to review, approve, and track deviations from Clean Core principles
2. Team: Establishing Governance Roles
A Clean Core strategy requires collaboration between multiple teams, including IT, business leaders, enterprise architects, and compliance officers. Without well-defined governance roles, there is a risk of ad-hoc decisions leading to unnecessary customizations and loss of control over system changes.
Key Considerations:
- Establishing a Clean Core governance board or steering committee
- Clearly defining roles for IT architects, business process owners, and compliance teams
- Creating a structured process for evaluating customization requests
- Ensuring continuous education and alignment between business and IT
- Setting up KPIs to measure adherence to Clean Core principles
Questions to Ask:
- Who is responsible for enforcing Clean Core governance?
- How do we ensure cross-functional alignment on extensibility decisions?
- What is the escalation process for exceptions to Clean Core policies?
- How do we train teams on Clean Core best practices?
- Who would be Clean Core Architect providing technical sign offs, estimations, design patterns, etc.?
- Who will be responsible for providing exceptions? Who will ensure future compliance for exceptions?
Expected Outcomes:
- A dedicated governance team with clearly defined responsibilities
- Training programs to educate stakeholders on Clean Core principles
- A decision-making structure that includes PMO, technical and business validation
- Regular review meetings to assess compliance and make continuous improvements
3. Dimensions & Design: Structuring the Framework
A well-designed Clean Core governance model must address multiple dimensions, including extensibility, integration, design patterns, security, data, and processes. Organizations need a structured design framework to evaluate and standardize how they approach custom development and system modifications.
Key Considerations:
- Standardizing business processes across units to minimize customizations
- Defining when to use in-app extensibility (Key User, Developer Extensibility) versus side-by-side extensibility (SAP BTP, CAP, RAP)
- Establishing integration guidelines for SAP and non-SAP applications
- Ensuring security, compliance, and performance are considered in extension designs
Questions to Ask:
- What are the guidelines for using SAP extensibility options?
- What are different tiers? e.g. green, yellow or red tiers
- How do we ensure performance optimization while maintaining extensibility?
- What security and compliance requirements should be built into the framework?
Expected Outcomes:
- A standardized extensibility framework with clear design patterns
- SAP BTP guidelines for building scalable and secure extensions
- A best-practices guidelines for designing future-proof customizations
4. Decisions: Governance Processes for Customizations
Organizations need a structured governance process for making decisions on customizations. Without a formal approval mechanism, it is easy to slip into excessive modifications that compromise Clean Core objectives.
Key Considerations:
- Approval workflows for custom development requests
- Metrics for evaluating the impact of new customizations on future upgrades
- Regular reviews for assessing existing custom developments
- Change management policies to ensure accountability in decision-making
Questions to Ask:
- What criteria must be met before approving a customization request?
- How do we evaluate the cost-benefit analysis of building an extension?
- What is the cost of designing a customization using Clean Core design vs. legacy or classic design?
- What is our policy for phasing out legacy customizations?
- How do we ensure traceability and transparency in decision-making?
- Who makes the decision and why was a certain decision made?
- What are most important factors for making decisions? e.g. budget, timeline, future proofing, cost, resource availability
Expected Outcomes:
- A structured approval framework for evaluating new developments
- Defined metrics for assessing the impact of custom code on system performance
- A periodic review process to eliminate redundant or outdated customizations
- A governance dashboard to track customization trends and patterns
5. Compliance: Ensuring Long-Term Governance
Sustaining Clean Core governance requires continuous compliance monitoring. Without ongoing audits and enforcement, organizations risk gradually deviating from their original Clean Core principles.
Key Considerations:
- Implementing monitoring tools to track unauthorized modifications
- Establishing compliance reviews for modifications
- Automating enforcement of Clean Core policies using SAP tools
- Defining corrective actions for deviations from Clean Core strategy
Questions to Ask:
- How do we continuously track compliance with Clean Core guidelines?
- What automated tools can we use to monitor system modifications?
- How often should we conduct audits of our custom developments?
- What corrective measures should be in place for non-compliant changes?
Expected Outcomes:
- A continuous monitoring framework for tracking system changes
- Automated compliance reporting tools integrated with SAP systems
- Regular governance audits to ensure adherence to Clean Core principles
- Corrective action plans for unauthorized modifications
Conclusion
Governance is a critical component of successful SAP S/4HANA Clean Core implementations. Without a structured approach, organizations risk excessive customizations, making future upgrades difficult and costly. By focusing on these described above, organizations can ensure their SAP landscapes remain standardized, flexible, and ready for future innovation.
Implementing a Clean Core governance framework is not a one-time effort—it requires ongoing commitment and collaboration between business and IT stakeholders. The right governance model ensures that SAP S/4HANA remains a scalable, maintainable, and efficient system while allowing organizations the flexibility to innovate using SAP BTP.
Are you implementing S/4HANA and interested in defining or optimizing your Clean Core strategy? Talk to us to learn how we can help bring the best practices and latest guidelines from SAP to help future proof your ERP.