Custom code is the key to Clean Core, upgradability, and a successful SAP transformation. A joint white paper with IT-OnlineMagazin, including new data from the 2026 SAP Trend Survey.
Most S/4HANA programs budget for infrastructure, data, and architecture, then discover the custom code base late — when it's expensive. This white paper examines why the code base is the risk most transformation programs miss, how automation and AI change what's possible, and what it takes to reach and hold Clean Core after go-live. Includes an interview with smartShift founder Stefan Hetges on where AI helps and where it quietly fails.
Nearly half of SAP customers name completing the S/4HANA transformation as their single biggest challenge. Maintenance deadlines are expiring and innovation stalls without a cloud-capable ERP foundation. Source: IT-OnlineMagazin 2026 SAP Trend Survey
Custom development is the rule, not the exception — and much of it supports business-critical processes. Source: ASUG and smartShift joint research
Technical modernization is rules work, not language model work. A rule-based engine analyzes the entire custom code base into a structured metamodel before AI is applied anywhere.
Automated modernization acts on maintenance, testing, and development cost at the same time. Source: Forrester Total Economic Impact study
Why historically grown custom code stays invisible in program planning until it starts driving timeline and cost.
How tight coupling to standard SAP turns every change into a regression testing exercise, and what unused code costs you every year you carry it.
How automated analysis evaluates entire code bases, clarifies dependencies, and identifies risk before it reaches your project plan.
Why source code shows implementation but not intent, and what happens when a language model has to invent the design it was never given.
How SAP's Levels A through D classify your extensions, and what each level means for upgradability.
Why Clean Core is an architectural decision rather than a project, and what governance keeps new technical debt from rebuilding.
Learn how global enterprises are reducing custom code complexity, accelerating SAP S/4HANA transformation, and building more maintainable SAP environments.
Your custom code holds decades of business logic. smartShift modernizes it without throwing that away. Automation does the heavy lifting, so transformations run on a fixed price and a fixed timeline with guaranteed quality — and the code stays upgrade-ready long after go-live.
Frequently Asked Questions About SAP Custom Code, Clean Core and AI
Clean Core is an architectural principle for keeping the core SAP software as close to standard as possible. Extensions are built through defined interfaces, APIs, or extensibility models rather than direct modifications. The result is lower technical complexity, better upgradability, and easier operation in cloud environments.
Systems that have grown over time carry thousands of extensions with varying quality standards, incomplete documentation, and tight dependencies on standard SAP. Many access internal tables and functions directly. That coupling makes every change laborious, forces extensive regression testing, and raises the cost and risk of every upgrade.
SAP defines four. Level A is the target state, where extensions use only released APIs and modern extensibility models. Level B covers classic code running over upgrade-stable interfaces. Level C describes extensions that changes to standard SAP can affect. Level D covers modifications and direct interventions in the core, which are considered critical to upgradability.
Not reliably on its own. Source code shows implementation, not intent — a filter on a region code could be a deliberate regulatory requirement or a workaround for a bug fixed years ago, and those look identical to a model without context. smartShift uses a patented two-step approach: a rule-based engine first analyzes the entire code base into a structured metamodel, handling technical modernization at 99.99% precision, and AI is applied only where it adds value, working from the relevant excerpt of that metamodel rather than raw code.
Both, applied to the right work. Deterministic automation delivers the consistency, security, and predictability that large-scale technical modernization requires — rules outperform any language model on these tasks. Generative AI adds value in functional redesign, where interpreting business context matters. The distinction is what separates a model that hallucinates its own context from one drawing conclusions against a structured one.
Around 40% of a custom code landscape is commonly identified for decommissioning. Much of it is rarely used in production but still generates maintenance and testing effort every cycle. Carrying it into the new system inherits the technical debt along with it.
During an S/4HANA transformation, ECC and S/4HANA run in parallel and both keep changing. Dual Maintenance compares, resolves conflicts, merges, and remediates ECC changes into S/4HANA so development continues without manual replication, rework, or long production code freezes.
Five stages that run as a continuous cycle rather than a sequence with an end. Analysis builds an understanding of the custom code base, checking usage and dependencies and making risk and complexity visible. Reduction removes unnecessary extensions and decommissions unused programs to cut maintenance and testing effort. Standardization prioritizes fit-to-standard and reduces custom solutions. Transformation modernizes the remaining code and establishes cloud compatibility. Governance safeguards the result through development guidelines and continuous monitoring of custom code.
No. Clean Core comes from a continuous process of analysis, targeted modernization, and governance. Development guidelines, defined extensibility models, and clear decision-making structures are what stop new technical debt from accumulating once operations resume.
A Forrester Total Economic Impact study reports 253% ROI over three years with payback in under six months and 191,000 hours saved. The savings compound because modernization acts on maintenance, testing, and development effort simultaneously rather than a single cost line.
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