TL;DR: Greenfield ERP implementations start from scratch, offering flexibility and innovation, while Brownfield approaches retain existing systems, focusing on cost and risk reduction. Each has unique benefits depending on organisational goals, technical debt, and transformation strategy.
Greenfield vs. Brownfield ERP Implementations: Which Path Aligns with Your Strategy?
By Richard KeenlysideGlobal CIO | Business Transformation Advisor | www.rjk.info
Implementing an ERP system is one of the most critical decisions a business can make during a transformation journey. Whether to embark on a Greenfield or Brownfield ERP implementation is more than a technical choice—it’s a strategic one.
In my role as Global CIO at LoneStar Group and former IT Director at J Sainsbury’s PLC, I’ve led multiple enterprise-scale ERP rollouts, carve-outs, and migrations, from SAP S/4HANA to Oracle Fusion, and IFS to NetSuite. Across sectors like manufacturing, retail, and utilities, the debate between Greenfield and Brownfield is ever-present.
Let’s explore what these approaches entail and how to determine which suits your business best.
What is a Greenfield ERP Implementation?
A Greenfield ERP implementation is a fresh start. It involves designing and deploying an ERP system from the ground up—discarding existing legacy systems and starting with a clean slate.
Key Characteristics:
No reliance on existing business processes or infrastructure
Full process redesign opportunities
Ideal for radical transformation or startups
Higher initial cost and longer timeline
Advantages:
Maximum flexibility to align with modern best practices
Eliminates technical debt
Ideal for enterprises with fragmented systems or lacking process standardisation
Challenges:
Change management complexity
Potential resistance from stakeholders used to legacy systems
Longer time to value
I utilised this approach when leading the global ERP transformation at FitFlop. By replacing Microsoft NAV with NetSuite SaaS across multiple geographies, we achieved a consolidated digital core and reduced technical debt by £2.5 million annually.
What is a Brownfield ERP Implementation?
A Brownfield ERP implementation involves upgrading or reconfiguring an existing ERP landscape. This approach retains key elements of the current system while modernising processes or migrating to a newer version (e.g., ECC 6.0 to SAP S/4HANA).
Key Characteristics:
Preserves legacy architecture
Allows phased rollout and reduced disruption
Often faster and more cost-effective than Greenfield
Advantages:
Reduced risk and cost
Leverages existing configurations and user familiarity
Shorter implementation timelines
Challenges:
Retains outdated processes or inefficiencies
Limited innovation compared to Greenfield
Potential for long-term technical debt
When advising Webasto on their ERP carve-out for an EV charging division, we evaluated a Brownfield transition to SAP S/4HANA. The approach minimised business disruption and retained key integrations while reducing system overlap.
Comparing the Two: A Strategic View
Feature | Greenfield | Brownfield |
Approach | New implementation | Upgrade existing system |
Flexibility | High | Medium |
Time to Implement | Longer | Shorter |
Cost | Higher upfront | Lower upfront |
Risk | Higher due to change | Lower due to continuity |
Technical Debt | Eliminated | Often retained |
Ideal For | Radical transformation | Cost-conscious improvements |
Strategic Factors in Your ERP Decision
When guiding clients or internal teams, I recommend evaluating the following before choosing your path:
Business Objectives: Are you transforming or optimising?
Technical Debt: Is your legacy system holding you back?
Change Readiness: Can your organisation embrace major change?
Budget & Timeframe: Are resources available for full-scale transformation?
Process Maturity: Do your current processes add value, or are they in need of a rethink?
In the Mothercare PLC transformation, we took a hybrid approach—building new systems for retail and warehouse management while retaining financial systems temporarily, balancing innovation and risk.
FAQs
Q: Can you combine Greenfield and Brownfield approaches?
Yes, a hybrid ERP strategy is often used where core systems are rebuilt (Greenfield), and peripheral systems are retained (Brownfield), balancing cost and transformation impact.
Q: Which approach is more cost-effective in the long run?
While Brownfield is cheaper initially, Greenfield may offer better ROI if your legacy systems severely limit agility and innovation.
Q: How does change management differ between the two?
Greenfield typically demands more robust change management, as it involves wholesale process and system redesign.
Final Thoughts
The decision between Greenfield and Brownfield ERP implementations is fundamentally about vision, not just technology. Businesses that aspire for disruptive growth and lean operations may benefit from the blank canvas of Greenfield. Those aiming for operational efficiency and risk reduction might favour Brownfield.
As someone who’s lived through global ERP deployments in both modes, I’ve seen the value of choosing the right path aligned with your digital transformation strategy.
For tailored ERP guidance or digital strategy consultancy, don’t hesitate to reach out via richard@rjk.info
Richard Keenlyside is a Global CIO for the LoneStar Group and a previous IT Director for J Sainsbury’s PLC.
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