Greenfield: A fresh start
In a greenfield implementation, you set up the ERP system completely independently of your old set-up, making full use of the latest SAP standards and best practices. The major advantage is that you can establish a clean core straight away. A “clean core” gives you an SAP ERP system in which the standard processes and functionality remain intact, without custom code embedded in the ERP. Any necessary extensions or adjustments are realised outside the ERP, for example by using flexible low code options on top of SAP. This keeps the ERP system flexible, transparent, and future-proof. At the same time, it lays a solid foundation for innovation, integration with new technologies, and rapid adaptation to future developments.
On the other hand, a greenfield approach often requires more initial time, budget, and effort compared to other scenarios. This is not only from a technical perspective but also organisational: Employees are confronted with new processes, roles, and ways of working. Strong change management and a clear vision are therefore essential to bring the entire organisation along with this fundamental reset.
It is also possible to retain data in a greenfield implementation, but this is usually done selectively through a dedicated data migration project, where you decide which historical data to carry over and which not.
Brownfield: Modernising while preserving existing business processes and data
In a brownfield implementation, you take your existing ERP solution as the starting point. Processes, data, and configurations are retained as much as possible and directly migrated into the new environment. Where feasible, you implement improvements and optimisations. This approach usually results in shorter implementation timelines, since many existing processes and configurations are reused. However, if extensive data cleansing or custom code reduction is required, a brownfield project can still be time-consuming. The end result also feels familiar to employees, as many business processes remain recognisable.
A key consideration, however, is that you risk carrying over old pain points and inefficiencies. As a result, achieving radical process improvements or fundamental innovation is often more difficult. A brownfield approach is therefore particularly suited to organisations that largely want to retain their existing way of working, but still want to benefit from the technological advantages of the new SAP environment, such as automatic updates, scalability, enhanced security, integration with innovative cloud services and continuous access to the latest functionality. Brownfield also requires conscious decisions about which data, custom code, and processes are carried forward into the new environment.
Hybrid: The best of both worlds?
A hybrid approach seeks to strike the right balance between preservation and renewal. You migrate components that work well and add value, while redesigning other business processes entirely according to best practices. This creates a balance. You benefit from the speed and familiarity of a brownfield approach while combining it with the innovation and future-readiness of a greenfield approach.
This approach requires careful analysis upfront. Which processes are distinctive and deserve a fresh start, and which ones are stable enough to retain? The advantage of a hybrid approach is that you migrate with greater agility and leave room for innovation. The downside is that complexity increases, as you are essentially pursuing two paths simultaneously.
Which approach suits your situation?
That depends entirely on where you are now and where you want to go. Here are some common scenarios:
- From no ERP to Cloud ERP: Here, greenfield is the logical choice, as you can start entirely from scratch without having to take an existing system into account.
- From a non-SAP ERP system to SAP: A greenfield implementation is often attractive for creating a modern setup, but a hybrid approach may help preserve existing functionality and processes.
- From any other SAP solution to SAP Cloud ERP (formerly SAP S/4HANA): All three strategies are possible. The choice depends on how radically you want to renew your business processes, how quickly you want to migrate, and whether you want to achieve a clean core for future innovation.
Expansion or consolidation of multiple ERP systems: For organisations merging several systems (for example, due to acquisitions). A hybrid approach is often suitable to combine the best of different systems, while a greenfield provides a clean slate.
Flexible and transparent: Combining clean core with low-code
For new SAP implementations, a clean core is an important principle. This makes the system easier to maintain, simpler to upgrade and future-proof. A greenfield approach makes it relatively easy to set up such a clean and maintainable system. A brownfield approach, on the other hand, often requires additional data cleansing, reducing custom code, and making conscious choices about which processes to retain.
Low-code can play a key role here. Customisation and company-specific processes that deviate from best practices are created and maintained outside the ERP solution. This way, your ERP system remains transparent and flexible, while new functionality can be added quickly and easily via low-code applications.
