Implementing extensions

Do you need to implement an extension? We have started by asking this question on purpose. For business applications, there is a strong trend toward SaaS applications. With SaaS solutions, businesses expect to reduce the total cost of ownership by primarily staying away from the complexities of running the operations below the application layer. In such cases, companies are happy to give up on the flexibility of on-premise deployment models. As a result, we see the fit-to-standard approach is within the principles of most SAP S/4HANA transformation programs, where businesses intend to standardize their processes and align with the models put forward by the SaaS solutions. Some companies are much keener on standardization after the bad experience they’ve encountered due to the high level of modifications and customizations they’ve applied to their systems in the past.

On the other hand, as we learned in this chapter’s introduction, creating...