Mitigating S/4HANA Upgrade Risks: Achieving a 'Clean Core' and 40% TCO Reduction With SAP BTP

How LeverX helped a manufacturing company modernize SAP ECC, implement a Clean Core strategy with SAP BTP, reduce technical debt, and achieve 40% lower SAP TCO with scalable extensions and secure integration.

Traditional SAP ECC development methods led to the creation of complex and inefficient code that is tightly woven into the system's core. This creates so-called "technical debt," which makes migration, especially to S/4HANA, high-risk and costly.

LeverX helped a manufacturing client modernize their SAP landscape by migrating from traditional ECC development to a Clean Core approach using SAP BTP. This solution helped reduce the total cost of ownership (TCO) by up to 40% and cut development costs by 30%.

Client and Challenge

A large manufacturing company faced significant problems caused by traditional SAP ECC development methods. These methods resulted in complex, inefficient ABAP code that was "woven" into the system's core. This practice violated the SAP Clean Core principles and created significant technical debt.

The main problems the client faced included:

• High Risk and Cost of Migration: The traditional approach required extensive code remediation during system upgrades, making migration to S/4HANA risky and very expensive.
• Significant Support Costs: Supporting and maintaining complex, legacy code led to high expenses and inefficiency.
• Lack of a Unified User Experience: Disconnected applications created inconvenience for users who had to work with different interfaces.

Solution

LeverX partnered with the client to execute a strategic "Clean Core" initiative, transforming their ERP from a rigid, customized system into an agile platform for future growth. This was not just a technical migration; it was a business-first approach focused on identifying high-value use cases where modern technologies like automation and AI could deliver a true competitive advantage.

Following the SAP Activate methodology, we began by assessing all custom extensions and objects. Instead of simply "lifting and shifting" old code, we re-imagined processes, moving the custom logic to the SAP BTP platform.

The solution enabled:

• Intelligent & Modern Development: Custom objects were redeveloped in the BTP ABAP Environment using modern, efficient programming models like OOP and RAP. This allowed us to streamline workflows and embed automation directly into the new applications.
• Secure & Agile Integration: The new applications securely consume data from the S/4HANA core through a managed API layer (via SAP Cloud Connector), ensuring the core remains stable, scalable, and ready for seamless future SAP updates.
• Unified User Experience: We provided users with a single, secure portal via SAP BTP Work Zone, which simplified access to all necessary applications, improving their workflow and reducing time spent searching for information.

Technology Stack

The solution is built on a modern and integrated SAP technology stack:

• Core Platform (SAP BTP): The central cloud platform for all custom development and innovation.
• App Development (BTP ABAP Environment): Used to build modern extensions that keep the S/4HANA core clean.
• Unified Access (SAP Build Work Zone): A single, modern portal for a simplified user experience.
• Database (SAP HANA Cloud): A high-performance database for real-time processing and analytics. 

Results

The project was not just a technical transformation; it was a strategic initiative that unlocked new business capabilities. The implementation led to significant, measurable benefits:

• Enabled High-Value Innovation: By creating an agile and stable Clean Core foundation, we enabled the client to finally pursue high-value projects that were previously impossible. They are now actively deploying intelligent automation and AI-driven processes in their finance department, turning their ERP from a cost center into a platform for innovation.
• Dramatically Reduced TCO: A scalable BTP infrastructure and simplified maintenance led to a 40% reduction in Total Cost of Ownership, freeing up critical budget to be reinvested in strategic growth initiatives instead of technical upkeep.
• Lowered Development Costs: Replacing rigid legacy code with modern, reusable extensions on BTP resulted in a 30% reduction in custom development and support costs, allowing the IT team to focus on value creation rather than maintenance.
• Future-Proofed the ERP Landscape: Adhering to the Clean Core principle eliminated the need for code remediation during system upgrades. This de-risked their S/4HANA journey and ensured they could adopt future SAP innovations quickly and cost-effectively.