SAP S/4HANA and the Cloud today form the indispensable foundation for future-ready companies. Yet the expected benefits often fail to materialize: projects take longer than planned, costs rise, and innovation progresses slowly. The root cause rarely lies in the target system but almost always in the starting point. Transferring legacy issues unfiltered into the Cloud does not constitute transformation – it simply preserves existing problems.
Successful Cloud transformation goes beyond merely migrating existing systems. It offers the opportunity to consolidate data, streamline processes, and selectively modernize custom code. This is how the full potential of the IT landscape can be unlocked. This is exactly where the strategic approach comes in, supporting companies not just in moving systems but in driving real transformation. By carefully reviewing, cleaning, and optimizing data, processes, and systems, the Cloud becomes not just a target system, but an opportunity to leave legacy issues behind and unleash innovation.
The Iceberg Beneath the Surface: Technical Debt
In practice, only the tip of the iceberg is usually visible: data, processes, and technical functions actively in use. Beneath the surface, however, lie the real challenges: technical debt in the form of legacy issues. These slow down transformation, increase costs, and block innovation and agility.
Typical legacy issues include:
- A large data footprint that negatively impacts migration, performance, and costs, especially in the RISE with SAP context.
- Overly complex processes that are difficult to standardize and degrade the user experience.
- Outdated system components that are no longer cloud-compatible and can become real showstoppers.
- Unnecessary custom code that limits flexibility, blocks innovation, and slows down updates.
Clean Core as a Strategic Lever
Clean Core is not a buzzword – it is the central solution approach. A transformation to SAP S/4HANA should not be a mere lift-and-shift project. What matters is the conscious consideration of what should truly be carried forward into the future.
Clean Core means targeted “clean-up” in three dimensions:
- Data: Which data is actively used today? Which will be needed in the future?
- Processes: Which processes are proven and provide competitive advantage? Where does SAP standard create more value?
- Custom Code: Which in-house developments are business-critical, and which can be eliminated or moved to SAP BTP?
Companies that address these questions early save time and costs on the path to SAP S/4HANA and establish a stable foundation for future innovations.
Fit-to-Standard: SAP Strategy Fully Applied
The Clean Core concept aligns completely with SAP’s strategy. In the Cloud, SAP consistently focuses on Fit-to-Standard, modular services, minimal custom development, and clean data landscapes.
For companies, this means: not every historically grown solution is a competitive advantage – often it is simply a habit. Transformations that try to replicate the old system one-to-one in the Cloud inevitably become more complex, slower, and more expensive. The key is to prioritize boldly and consciously let go. This way, companies benefit from shorter projects, lower costs, and a platform that truly enables innovation.
Practical Examples: Two Paths, One Goal
Leading Bio-Tech Company: Radical Fresh Start
A leading bio-tech company deliberately chose a complete greenfield approach. The goal was a unified, global digital backbone – free from historical legacy, with clear governance structures and the highest data quality from the start. Historical systems were not migrated but completely replaced. The result is one of the largest Cloud transformations in the industry, with tens of thousands of users worldwide. Success was driven not just by technology, but by the clarity of the strategic decision.
Global Pharmaceutical Company: Speed with Precision
The global pharmaceutical company STADA chose a selective approach, focusing clearly on Finance and targeted innovations in Logistics. The guiding principle was “Speed beats Perfection.”
Instead of spending years optimizing old structures, a central SAP S/4HANA platform was established as the digital backbone. Legacy issues were selectively reduced, relevant in-house developments moved to SAP BTP, and processes standardized where they delivered real business value. The result: fast go-live, clear priorities, and a scalable platform for the next transformation steps.
Key Factors for Successful Transformation
These practical examples show that successful transformations repeatedly rely on the same critical factors, regardless of the chosen approach:
- Consistent Clean Core focus: Reducing data, processes, and custom code to avoid legacy issues.
- Fit-to-Template instead of Fit-to-Old: Leveraging proven standards and best practices rather than replicating historical systems.
- Clear governance and management: Especially important in global programs to control complexity.
- Strict scope and priority management: Only what is strategically relevant is implemented, controlling time, cost, and organizational load.
- Business-driven transformation: Actively involving business units rather than running the project purely IT-driven.
Conclusion: Clarity Creates Value
The Cloud is here to stay. The difference between success and disappointment lies in consistent execution. Companies that create transparency over data, processes, and custom developments and commit to a strategic Clean Core approach lay the foundation for fast, efficient, and future-proof transformation projects. This not only results in a stable IT landscape but also creates a platform that enables innovation and ensures long-term competitiveness.
