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What is Side-by-Side Extension?

Published in Cloud Extension Strategy 5 mins read

Side-by-side extension is a strategic approach to enhancing business applications, particularly within the SAP ecosystem, by building functionalities that run alongside the core system rather than directly modifying it. This modern method allows organizations to innovate and adapt quickly while preserving the integrity and upgradeability of their core enterprise software.

Understanding Side-by-Side Extensions

At its core, side-by-side extension represents the extension and integration with custom or standard business applications of the SAP Business Technology Platform (BTP). This approach is primarily achieved through two key mechanisms: stable APIs (Application Programming Interfaces) or via business events originating from an SAP product, such as SAP S/4HANA.

This technique focuses on creating loosely coupled applications and services that communicate with the central business system. Instead of modifying the core application code, new features, integrations, and custom logic are developed as separate applications on a platform like SAP BTP.

Key Characteristics and Benefits

Side-by-side extensions offer a range of advantages for businesses looking to enhance their SAP landscape:

  • Loose Coupling: Custom logic and integrations run independently of the core SAP system, minimizing dependencies.
  • Reduced Upgrade Impact: Since extensions are separate, core system upgrades (e.g., SAP S/4HANA updates) are less likely to break custom functionalities, making maintenance smoother and more predictable.
  • Enhanced Flexibility: Developers can leverage a wide array of technologies, programming languages, and services available on platforms like SAP BTP, allowing for greater innovation and choice.
  • Independent Scalability: Extensions can be scaled up or down based on demand, without affecting the performance or resource consumption of the core system.
  • Faster Innovation Cycles: New features and integrations can be developed, tested, and deployed more rapidly, enabling businesses to react quickly to market changes.
  • Modernization: Facilitates a move away from monolithic, in-app customizations that can be costly and difficult to maintain.

How Side-by-Side Extensions Work

The primary methods for integrating side-by-side extensions with core SAP systems are:

  1. Via Stable APIs: Extensions consume data from and trigger processes within the core system through well-defined, public APIs. These APIs act as contracts, ensuring consistent interaction even as core systems evolve.
  2. Via Business Events: Core systems publish events (e.g., "sales order created," "material stock changed"). Side-by-side extensions subscribe to these events, reacting to them in real-time to perform specific actions or update other systems. This event-driven architecture promotes high agility and responsiveness.

Practical Applications and Examples

Side-by-side extensions are highly versatile and can be applied in numerous scenarios to add value to existing SAP landscapes:

  • Custom Approval Workflows: Develop an intelligent approval application on SAP BTP that integrates with SAP S/4HANA purchase requisitions. This application could incorporate machine learning for fraud detection or connect to external compliance services, offering a more dynamic approval process than the standard system.
  • Integration with Third-Party Services: Connect your SAP ERP system to a specialized logistics provider, a social media monitoring tool, or a payment gateway without altering the core SAP code. The extension handles the communication and data mapping.
  • Industry-Specific Functionality: Build unique features tailored for a particular industry (e.g., advanced tracking for perishable goods in food & beverage, specific regulatory reporting for pharmaceuticals) that are not part of standard SAP offerings.
  • Enhanced Reporting and Analytics: Create custom dashboards and analytical applications on SAP BTP that pull data from various SAP and non-SAP sources, providing a unified view and deeper insights for specific business needs.
  • Self-Service Portals: Develop employee or customer self-service portals that interact with core SAP data (e.g., HR data, order status) via APIs, offering a modern user experience without directly exposing the SAP backend.

Why Choose Side-by-Side?

The advantages of side-by-side extensions translate into tangible business benefits, making it a preferred strategy for digital transformation.

Feature Advantage
Maintainability Simplifies core system updates, reducing the effort and risk associated with upgrades.
Agility Accelerates the development and deployment of new functionalities and integrations.
Cost-Efficiency Can lower the total cost of ownership (TCO) by reducing the need for costly core system customizations.
Resilience Isolates issues; a problem in an extension does not typically impact the stability of the core system.
Innovation Provides a sandbox for experimenting with new technologies and services without affecting mission-critical systems.

Side-by-Side vs. In-App Extensions (Brief Distinction)

While both aim to extend SAP systems, their approaches differ significantly:

  • Side-by-Side Extensions: These are external applications or services developed and deployed alongside the core SAP system, typically on a platform like SAP BTP. They interact via APIs and events, maintaining loose coupling.
  • In-App Extensions: These involve modifications or enhancements made within the core SAP system itself, often using tools like ABAP Development Tools (ADT) or Key User Extensibility. While sometimes necessary, they can lead to tighter coupling and potential challenges during system upgrades.

In conclusion, side-by-side extension is a crucial strategy for modern enterprises, allowing them to extend and integrate their SAP systems flexibly, robustly, and with minimal disruption.