TL;DR:A greenfield ERP approach provides a clean slate for merging systems, reducing complexity, technical debt, and creating scalable digital transformation.
Merging Two ERPs Using a Greenfield Approach
By Richard Keenlyside
In today's fast-paced, tech-driven business world, enterprise mergers and acquisitions are nothing new. Yet one of the greatest technical challenges in this space remains the integration of disparate ERP (Enterprise Resource Planning) systems. When two businesses become one, their legacy systems—often complex, outdated, and heavily customised—clash, slowing operations and undermining value creation.
That’s where the greenfield ERP approach comes into its own. As Global CIO of LoneStar Group and with three decades of M&A and ERP transformation experience under my belt, I’ve led multiple greenfield ERP initiatives across sectors including manufacturing, retail, and financial services. This article dives into the why, when and how of leveraging greenfield ERP to merge two systems into a unified, modern platform.
Why Choose a Greenfield ERP Approach?
A greenfield ERP strategy means starting from scratch rather than modifying existing systems. It’s like building a brand-new house rather than renovating an old one. When merging two ERPs, especially from different parent organisations, it allows for:
Clean architectural design aligned to new business processes.
Elimination of legacy technical debt, reducing long-term costs.
Standardisation of data and workflows across business units.
Faster scalability and cloud adoption, especially with platforms like SAP S/4HANA, Oracle Fusion, or NetSuite.
I’ve witnessed firsthand the complexity of retrofitting two aged ERP systems—endless data mapping, configuration mismatches, and ballooning costs. Greenfield lets you break that cycle.
Key Steps for a Successful Greenfield ERP Merger
1. Define the Target Operating Model (TOM)
Start by determining how the newly merged business should operate. This model will guide your ERP architecture and inform key decisions about processes, structure, and systems.
2. Conduct a Digital and Data Readiness Assessment
Evaluate your existing landscape. Identify outdated integrations, data quality issues, and automation gaps. This was critical when I led a group-wide ERP consolidation strategy at LoneStar Group—ensuring 13 countries could seamlessly adopt a unified platform.
3. Select the Right ERP Platform
Choose a cloud-native, modular ERP that aligns with your industry and future needs. In one recent carve-out, I helped evaluate SAP S/4HANA, Oracle Fusion, and Infor CloudSuite to find the best fit based on operational demands and user adoption capabilities.
4. Engage Business Stakeholders Early
ERP transformations are not IT-only projects. Collaborate with finance, operations, and supply chain leaders to design streamlined, standardised processes. Ensure global alignment and clear governance.
5. Execute a Phased Rollout with Change Management
Rolling out greenfield ERP in phases reduces risk. Pair this with robust change management—training, communication, and support structures—to boost adoption.
Common Pitfalls to Avoid
Underestimating Data Complexity: Legacy systems often have poor data hygiene. Start early with data cleansing and governance.
Lack of Executive Sponsorship: ERP projects need top-down backing. Without it, resistance to change can derail progress.
Trying to Rebuild the Past: Don’t replicate legacy customisations. Challenge teams to embrace modern standardised best practices.
FAQs
Q: When is a greenfield ERP approach better than brownfield?
A: Choose greenfield when existing ERPs are highly customised, outdated, or incompatible post-merger. Brownfield works better when you can reuse core configurations and integrations with minimal change.
Q: What industries benefit most from greenfield ERP implementations?
A: Manufacturing, retail, and fast-scaling PE-backed businesses often benefit the most due to operational complexity and growth demands.
Q: How long does a typical greenfield ERP merger take?
A: Timelines vary, but on average, 12–24 months for mid-sized global organisations. This includes TOM definition, platform selection, design, rollout, and stabilisation.
Conclusion
ERP consolidation doesn’t have to be a legacy nightmare. By embracing a greenfield ERP approach, businesses can build for the future—cleanly, strategically, and with agility. Whether it's reducing costs, improving data visibility, or scaling operations globally, greenfield unlocks the full potential of ERP in a post-merger world.
For any organisation embarking on this journey, clear vision, executive sponsorship, and experienced leadership are critical. It’s not just an IT decision—it’s a business transformation.
Richard Keenlyside is a Global CIO for the LoneStar Group and a previous IT Director for J Sainsbury’s PLC.
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