SAP leverages AI and clean core strategy for S/4HANA migrations

SAP is evolving its approach to ERP modernization, specifically regarding the migration from legacy ECC systems to S/4HANA. Historically, these migrations have been hindered by extensive custom code, outdated documentation, and a shortage of senior expertise.

To address these challenges, SAP is integrating generative AI through its copilot, Joule, alongside new agentic AI tools. This shift aims to automate complex tasks, such as analyzing custom code and managing technical debt, moving the process from manual labor toward more automated, specialized AI agents.

Parallel to these AI advancements is the evolution of SAP’s ‘clean core’ strategy. Originally introduced to encourage cloud adoption by minimizing invasive customizations, the strategy focuses on keeping the ERP core as close to standard as possible. This is achieved by decoupling extensions and moving custom logic to the SAP Business Technology Platform (BTP) and utilizing APIs for integration. The latest iterations of this strategy represent a more pragmatic approach to customer needs, focusing on making systems upgrade-safe and cloud-ready while acknowledging the realities of custom development.