SAP S/4HANA Greenfield vs. Brownfield: What's Best for You?
The concept of migrating to SAP S/4HANA can be a major change for any company, and with SAP ECC due to be at its end-of-support in 2027, the pressure to upgrade is real, and the greatest challenge hinges not only on when to complete the migration but also on how.
There are two primary migration strategies: Greenfield and Brownfield implementation. Each path has its own advantages and disadvantages. If you are trying to decide which path is most suitable for your company, this guide will help you in determining that.
What is SAP S/4HANA Greenfield implementation?
Greenfield is the idea of starting fresh. Rather than modifying your current ERP, you are building an entirely new SAP S/4HANA system from the ground up, and installing the newest and greatest features and best practices available in SAP.
When a Greenfield approach is right for your business
- Your existing ERP system is outdated or over-customized.
- You want to rethink and simplify business processes.
- You are starting a bigger digital transformation project.
Key benefits your business gains from Greenfield:
Blank slate (73%) – No legacy data baggage or outdated processes to hold you back. This is one of the most cited reasons companies choose Greenfield, enabling faster innovation.
Best practices (62%) – Implement SAP’s latest industry-standard workflows from day one, improving compliance and reducing process complexity.
Future-proof (49%) – Build a foundation that easily supports integration with AI, IoT, and advanced analytics to maintain long-term competitiveness.
Source: SAPinsider 2023 SAP S/4HANA Migration Benchmark Report
What is SAP S/4HANA Brownfield implementation?
Brownfield is more like a refit/renovating and less like a full rebuild. It involves converting your current SAP ECC system to SAP S/4HANA without losing your data, configs, and customization’s.
When the Brownfield approach is right for your business:
- Your current processes are running effectively.
- You want to minimize risk and disruption.
- You are looking for a faster, cost-effective migration.
Key benefits your business gains from Brownfield:
- Faster migration (70%) – Repurposes your current system configuration
- Cost-effective (58%) – Less work in comparison to starting anew.
- Less disruption (54%) – Workers can stick to established procedures.
Source: SAPinsider 2023 SAP S/4HANA Migration Benchmark Report
Greenfield vs. Brownfield: Key differences
| Greenfield Implementation | Brownfield Implementation |
|---|---|
| Fresh start with new system | Upgrades existing ERP |
| Opportunity to redesign processes | Retains existing processes |
| Higher initial cost and effort | Lower cost, faster migration |
| Best for outdated or heavily customized systems | Best for stable, well-optimized systems |
| Longer timeline | Shorter timeline |
Whether you want to upgrade your current system or start from scratch will determine which option is ideal for you, even though both lead to SAP S/4HANA.
Let's drill down to see how to choose the right approach
Selecting Greenfield or Brownfield depends on your business needs. Ask yourself the following:
- Is our current ERP system too complex or outdated?
- Do we want to upgrade and streamline our operations?
- Are there time and budget limits for us?
- Are we willing to implement SAP best practices?
Why Greenfield is often the future-proof choice
Although Brownfield may provide a faster and more economical route, many companies are opting for Greenfield due to its long-term advantages. Starting fresh lets you:
- Streamline too complicated or out-of-date procedures.
- Use SAP’s per-configured best practices.
- Create a modern, scalable ERP that can grow with your organization.
Greenfield gives you the flexibility and freedom if your goal is about digital transformation and not just a tech upgrade. It’s about rethinking how your business works, not just improving what’s already there.
Real-world example
A global manufacturing business has moved towards the Greenfield path because their legacy ERP had significant custom code and outdated workflows. Starting with a clean slate gave them:
- 50% faster order processing
- Better visibility into their supply chain
- Lower maintenance costs
On the other hand,
A finance company decided on the Brownfield path as they were happy with their workflows. They simply wanted the speed and analytics of S/4HANA, with little or no overlap to their processes.
Hybrid approach: Migrate only what matters
Some organizations embrace a hybrid approach, incorporating elements of both processes:
- Selective Data Migration: Start with a Greenfield base, transfer only the selective configurations you truly need, retain essential customizations, and gradually optimize your processes step by step over time.
- Phased Transformation: Begin with a Brownfield method to maximise efficiency, but prepare for a future Greenfield transformation. With a continuous improvement approach, you can gradually move towards SAP best practices.
Making your choice
The choice of whether to pursue greenfield or brownfield is more than a technical decision; it is a strategic decision. Consider the specific context of your company:
Greenfield – if you are looking to redesign your business processes, have time and money for a major change, and are committed to best practices from SAP.
Brownfield – if your current processes are working well and you need to be up and running in a short period of time, or your company is not in a position to make a major change.
Hybrid – if you want to take advantage of both approaches and can create an incremental change plan.
Final thoughts
Since the migration to SAP S/4HANA involves a number of challenges so the choice depends on various factors, like business needs, existing IT infrastructure, and the desired level of change.Take the time to honestly evaluate your readiness for change, outline your goals for the future, and carefully consider where your organisation is now.
Remember that this is a long-term organization impacting decision-making. Having an experienced SAP consultant can help you evaluate your scenario and suggest the best possible choice for your particular requirements. Whether it’s brownfield, greenfield, or somewhere in between, the most successful S/4HANA projects seamlessly integrate with the company’s objectives, culture, and skills.
Are you prepared to determine your SAP S/4HANA path? The Dynnext team of SAP specialists is proficient in Greenfield implementations, enabling organizations to realize the complete capabilities of SAP S/4HANA. We will assist you throughout each phase, from planning to go-live.