Why pursue a brownfield approach to an SAP S/4HANA migration?
Brownfield focuses on upgrading existing systems, offering a time-efficient and initially cost-effective approach. Brownfield tends to cause less disruption to existing operations, as it requires less effort in change management and maintains the current system's functionality.
Brownfield enables businesses to retain valuable historical data and processes, which makes it a viable approach for organizations with extensive SAP estates that aren’t prepared for a complete overhaul.
Although brownfield can be more expensive in the long run, it allows gradual improvements and can lead to faster ROI. Many companies face project fatigue from recent SAP rollouts and may not be ready for another major change. Starting with brownfield allows them to keep using SAP with their existing setup.
How to choose the best migration approach for your company
So, how do you choose the right approach for an SAP S/4HANA migration? Start by running the SAP Readiness Check. This SAP tool presents a compatibility overview of your current system with the required preparation steps and updated applications.
Gathering data through the readiness check will help you understand the amount of breakage you'll likely experience when migrating to SAP S/4HANA, regardless of approach, and allow you to gauge your organization's readiness at a high-level. This includes evaluating your ability to make the necessary organizational changes. It's important to identify if there are any other major programs or projects that may conflict with the significant changes you’ll be making. All of which will help determine how far away your organization is from achieving ROI from the new system.
With this level of detail, your team will be better equipped to consider three factors that will guide a greenfield or brownfield decision:
1. Business roadmap for SAP S/4HANA:
You’ll need to look at how SAP factors in positioning the company for the foreseeable two to five years. For instance, a greenfield approach might be suitable for organizations that have expanded through acquisitions, undergone company reorganization or experienced divestitures. Such organizations will need to address legacy issues, standardize processes and streamline their IT landscape following these organizational changes. On the other hand, a brownfield approach could be more appropriate if your environment is streamlined, mature and well-structured within SAP.
2. Technology roadmap for SAP S/4HANA:
This involves figuring out your long-term trajectory and architecture. For instance, a greenfield approach might be beneficial if there are technical enhancements or system consolidations that could position your organization better within your market. Conversely, a brownfield approach might work better if you simply want to lift and shift functionality with minimal changes to your application or tech footprint.
3. Timeline and budget for SAP S/4HANA:
As with any significant technology investment, you’ll have to decide your funding model: CapEx or OpEx? A greenfield approach may require more upfront investment and time but will be advantageous if you're shifting towards an operational expense model or adopting software as a service. Meanwhile, a brownfield approach, typically requiring less time and resources, might be ideal for organizations with resource or time constraints.
