For ERP implementation (especially for SAP S/4)  project there are several options :

• Upgrade the existing ERP solution to the new product (SAP ECC to S/4) – Brownfield conversion

• Create a new implementation project to a new ERP solution (SAP S/4 or another provider) – Greenfield project

• Make a mixture of them – upgrade the existing without data, then improve the solution and perform data conversion – let’s call it Mixed-field project

In most of the cases the decision between above option is done on criteria like:  is the existing ERP system very obsolete? Is it full of outdated custom developments? Does the business require a complete process and solution reengineering? What is the budget for the conversion/implementation project and timelines? ….

This blog aims to provide an additional aspect for the decision making – project portfolio management. In our changing world, organizations are facing main business challenges related to digitalization, climate changes, new regulations, AI revolution, ….

For this reason, the entire business and IT project portfolio need to be taken also into account

The picture below provides an illustration for a Brownfield implementation approach:

Here we can see, that most of the critical business and IT initiatives are running before or even in parallel of the technical upgrade project. This is possible, because all ERP related developments, enhancements, interfaces will be available after the technical upgrade.

Business project running in parallel of the technical upgrade need a detailed plan and alignment with the upgrade project, as in some cases double maintenance is required and the upgrade project will have some soft/hard freeze periods (couple of weeks).

It is important to underline that Brownfield project and ERP improvements & Innovations are compatible, only the way of doing it changes compared to a Greenfield implementation.

A Brownfield project can also enable to descope all custom developments which are touching ERP standard objects and to make a transition of custom developments to the new development standards (ex SAP Cloud development – keep the core clean)

The picture below presents the illustration of above project portfolio in a Greenfield implementation project :

Here we can see, that the critical business improvement projects have a different schedule. The main reason can be that all ERP related impacts would be lost in case of a new implementation project. Some business initiatives need to be postponed, simplified or  integrated directly to the new ERP platform (considering the rollout waves to all regions/business units).

On the other hand, business reengineering and some innovation projects can be part the Greenfield project and rollouts.

Mixed-Field approach is not detailed here, as this can provide a lot of combination options of above models.

Summary : the objective was not to provide any preferences for Brownfield or Greenfield implementation project – both can have benefits and drawbacks. The main idea is here to encourage project teams to perform in the ERP strategy definition a detailed portfolio analysis as well to provide a right decision. And of course, this important study need to be done together with Business, Functional teams (ERP and all other concerned applications) and IT/Technical teams. All Together make it better!!  :-)