Title: Charting New Territory: How SAP's Cloud Extensibility Framework Affects Your Organization

Introduction

The recent launch of SAP's new extensibility framework has stirred up excitement in the ERP community and for good reason. As ERP professionals, it's crucial to understand the impact of this new framework on the S/4 HANA landscape and explore the benefits it brings. In this article, we'll delve into the key aspects of SAP's cloud extensibility framework, outline the guidelines for adapting to this new approach, and discuss the importance of embracing the framework for a smooth transition. We'll also look at how these changes affect you, your organization, and your ERP systems.

S/4 HANA Extensibility: A Quick Overview

Picture this: an S/4 HANA extensibility overview that encompasses all the key elements you need to know. Keep in mind that we're focusing on S/4 HANA on-premise systems, not cloud extensibility. In the coming weeks, we will discuss key user extensibility in detail, but for now, let's focus on the gray circle in the middle-left section of the diagram.

This gray circle represents all your current extensions – custom code enhancements, BAdIs, user exits, modifications, etc. If your organization, like many others, has a plethora of these, it's time to think about streamlining them according to SAP's new extensibility strategy and vision.

Guidelines for Adapting to SAP's New Extensibility Strategy

To align with the new extensibility framework, you need to follow these recommendations for using classical business logic extension techniques:

1. BAdIs: A good choice for extending applications, even if not released for cloud usage. Most likely, they will be released in future updates or replaced with successor BAdIs.
2. User exits (e.g., VOFM, SAPMV45A): Stable predefined coding parts from SAP that allow custom code implementation to extend business processes. However, they are technically treated as modifications and will likely be replaced by BAdIs over time.
3. Customer exits (SMOD/CMOD): Predecessor technology to BAdIs that should only be used in exceptional cases where no BAdIs exist. They will likely be replaced in future releases.
4. Explicit enhancement spots: Only use these extension points in exceptional cases to include custom-defined BAdIs into the SAP core. Do not directly include the extension code in the enhancement spot.
5. Implicit enhancement spots: Avoid using this technique, as it is similar to modifications and not recommended for extending core applications.
6. Modifications: Refrain from modifying SAP core objects. If absolutely necessary, use the modification assistant and ATC check to manage modifications after an upgrade.

The Road Ahead: Transitioning to SAP's New Extensibility Framework

Now that we've covered the guidelines, let's discuss two key aspects of the transition:

1. Readjusting old code: Develop a strategy to migrate your code and create a comprehensive test plan. This can be considered a project in itself.
2. Minimizing or avoiding classic extensibility: Focus on new side-by-side extensibility options to keep the core clean.

We talked about the first one above already. Addressing the second aspect requires a systematic approach involving people, technology, and management. Organizations must adopt new strategies, invest in the right talent, and provide the necessary resources to support this transition. Technical leadership should be on board with the idea of side-by-side extensions, and team members must understand the importance of "keeping the core clean." Investing in training and technology for SAP BTP can empower teams to build new solutions that align with SAP's vision.

As we move forward, it's essential for businesses to consider the following steps to ensure a successful transition:

• Develop a clear understanding of SAP's new extensibility framework: Invest time in learning about the key features, benefits, and guidelines to make informed decisions during the transition.
• Align with SAP's vision of "One common extensibility model for all S/4 HANA editions": This approach promotes a cleaner core and encourages the use of side-by-side extensions, which ultimately leads to better maintainability and scalability.
• Assess your organization's current extensibility landscape: Evaluate the existing extensions, custom code, and modifications to determine what needs to be adjusted or replaced according to SAP's new guidelines.
• Create a detailed migration plan: Outline the steps required to migrate existing extensions and implement new side-by-side extensibility options, taking into account the resources, timelines, and potential challenges involved in the process.
• Foster a culture of continuous learning and innovation: Encourage team members to stay updated on the latest SAP developments, attend training sessions, and participate in industry events to ensure they're equipped with the necessary knowledge and skills to adapt to the changing landscape.
• Establish strong governance and support mechanisms: Set up processes and tools to monitor the transition, track progress, and ensure compliance with SAP's recommendations. This includes adjusting existing change management and development processes to align with the new extensibility framework.

By taking these steps, organizations can effectively navigate the shift towards SAP's new cloud extensibility framework and unlock the potential for greater efficiency, flexibility, and innovation in their ERP systems.

Conclusion

SAP's new cloud extensibility framework is a game changer for ERP professionals, offering a unified model for all S/4 HANA editions. By understanding and embracing this new framework, organizations can streamline their current extensions and prepare for a more efficient and agile ERP landscape. The transition may be challenging, but with a clear strategy, the right resources, and a commitment to continuous learning, businesses can successfully adapt to this new era of extensibility and reap the benefits of a more robust and scalable ERP environment.