SAP S/4HANA – Brownfield vs. Greenfield

The switch to SAP S/4HANA is a crucial step in the digital transformation of a company. But which strategy is the right one? Companies must choose between two proven approaches: brownfield and greenfield. 

Both approaches have their advantages, but which one best suits the individual requirements of your company?

In brownfield migration, an existing SAP ECC system with all its settings, data, processes, in-house developments, and interfaces is converted to a new SAP S/4HANA system with in-memory database technology.

A technical conversion to SAP S/4HANA is not the end of a project; it is the beginning of many more innovations around the new "digital core" of your company. 

The right approach depends on a company's individual goals, need for change, and resources. Companies looking for a controlled transformation with minimal business disruption will benefit from brownfield migration, while greenfield is ideal for organizations seeking a complete realignment of their business processes. 

There are several key criteria or conditions that favor a brownfield approach for an S/4HANA transformation: 

• The existing system with its organizational structure and processes must be retained as far as possible.

With the greenfield approach, migration to SAP S/4HANA is achieved by completely redesigning the system landscape. Companies start with an empty, optimized system into which only selected data, processes, and workflows are transferred. This approach eliminates legacy issues, reduces complex in-house developments, and builds a future-proof ERP structure. 

Greenfield is the ideal way to drive standardization, automation, and cloud integration, especially for companies with highly customized systems. Migration happens on-premises or in the cloud. This allows companies to flexibly adapt and modernize their processes.

A Greenfield migration to SAP S/4HANA is the clear choice when companies want to fundamentally renew their existing processes and build a modern, future-proof system architecture. This approach is especially beneficial for companies that:
 

• Use old, heavily customized SAP ECC systems and want to be freed from complex in-house developments that have grown over the years

A hybrid approach to S/4HANA migration is the clear choice for companies seeking a flexible, low-risk transition to the new system. There are two main strategies: shell conversion and the mix & match method.

Shell conversion combines elements of the brownfield and greenfield approaches, with the brownfield portion being slightly higher and consisting of largely adopting existing processes and data. The greenfield aspect is reflected in the creation of a new S/4HANA "shell" into which the existing elements are migrated. This allows us to capitalize on the strengths of both approaches: maintaining established processes (brownfield) and leveraging the new S/4HANA architecture (greenfield).

The mix-and-match approach allows new S/4HANA functionalities to be introduced selectively and combined with existing processes. This allows you to benefit from the advantages of S/4HANA in certain areas without having to convert the entire system at once.

A hybrid approach to S/4HANA migration is the clear choice for companies seeking a balance between innovation and stability. This is the perfect solution for organizations with complex, mature IT landscapes. It is ideal for those that cannot or do not want to convert all processes at once. This approach is ideal when certain areas of the company or business processes are functioning well and should be retained, while other areas should benefit from the new possibilities offered by S/4HANA. 

A key factor in project planning is the fundamental decision of whether to choose a greenfield or brownfield approach (new implementation or conversion). If you've already decided, we'll use all the information already available to develop a plan. Our accelerator tools are the solution. If you haven't made up your mind yet, we'll gather all the important information so you can make the right choice. 

Our greenfield and brownfield accelerator tools and templates meet your challenges:

• Acceleration of the project through templates
• Minimizing risk with tools

A hybrid approach accelerates the runtime of a greenfield implementation. This will involve increased organizational and structural changes. Use the right tools and methods—like SAP Best Practices, the Data Migration Cockpit, Process Discovery for SAP S/4HANA Transformation, or SAP Custom Code Conversion—and the transition will be smooth.