Greenfield, Brownfield, and Bluefield Approach for SAP S/4HANA

“Greenfield, Brownfield, and Bluefield”: These names must make you think if this blog is about a different concoction of colours, it is not. It is about data and nuanced systems to define and demarcate the flux of data through different organizations. 

 

Data is always in motion, it constantly moves from one firm to another. Data also plays a very important role in the formation of one cloud from another. As IDG Connect has rightfully written, all data is not created equal, and the flux of data is creating an unequal sum of the existing parts in the organizational system. 

 

The entire system of data management starting from the very beginning, that is installation of software refers to the greenfield project. When things get a little complex a little bit of data preparation, deduplication, parsing, etc., turns into a brownfield project. Finally, when both the greenfield and brownfield projects are merged together, it becomes the Bluefield project.

 

Such a brief description is not enough to understand these concepts. This article is mainly an introductory blog of these three developments where we will learn what they actually are, and how are they different from each other.

 

But, to understand these, first, we need to understand what SAP S/4HANA is. 

 

 

SAP S/4HANA:

 

SAP S/4HANA Cloud is a full enterprise resource planning (ERP) system with AI, machine learning, and advanced analytics integrated within it. It assists businesses in adopting new business models, managing rapid business transformation, orchestrating internal and external resources, and utilizing AI's predictive capability. 

 

There's a lot of jargon floating around when it comes to SAP S/4HANA deployments and migrations. Different terminologies that mean the same thing, words that are similar but unrelated, and meanings that overlap. 

 

With SAP's Organization Suite 7 software reaching end-of-life in 2027, the great majority of organizations are considering a migration to SAP S/4HANA. Some are still in the planning stage, while others are at the proof-of-concept stage, while yet others are in the execution phase.

 

When it comes to implementing SAP S/4HANA, businesses have two options: the greenfield strategy (new implementation) or the brownfield method. Now let us look at what each of these individually is.

 

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Greenfield Approach:

 

The Greenfield method denotes a clean slate, a fresh start with SAP S/4HANA "on a Greenfield site." This entails extensive reengineering as well as the prospect of substantial process simplification. This is based on the most recent technological breakthroughs. The Greenfield method ensures that the new implementation adheres to SAP standards and best practices.

 

During the deployment of this method, all processes and systems are entirely reinstalled and configured. All environmental systems will be reviewed and, if required, replaced throughout this process. Companies may put current in-house innovations and third-party systems to the test with the new implementation, and see whether these functionalities aren't already present in the SAP S/4HANA core and best practices.

 

Some advantages of this method include:

 

• It is the easiest way to get started with SAP S/4HANA. Legacy systems at some firms have been built up in such a manner that they are difficult to administer, with a lot of bespoke code, impromptu solutions, and various settings. One can simply push aside this unsortable, non-upgradable mess and start over with greenfield.

 

• Businesses are never static, it is possible that the company has changed its services or geographical location. A greenfield deployment might be addressed in stages if a corporation has many locations. Temporary solutions for intercompany moves and maybe parallel systems functioning at the same time will be required. (Source)

 

Some disadvantages of this method are:

 

• A greenfield SAP S/4HANA deployment will be more expensive at first than alternative options.

 

• The firm will lose historical data as well as the extensive testing of new procedures that are necessary.

 

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Brownfield approach:

 

The brownfield strategy involves converting an existing SAP ERP system to S/4HANA. As a result, this is an upgrade. Processes, data, and individual advances are all moved to the new SAP S/4HANA system.

 

The brownfield strategy is best suited for businesses whose existing systems are still relatively young (3-5 years), have little heterogeneity, and are near to the SAP standard. This is due to the fact that the present system's complexity, which is often heterogeneously created, is retained. As a result, the status quo is maintained. S/4HANA's full potential cannot be realized.

 

It's also appropriate for individuals who wish to get right into the new SAP S/4HANA system.

 

Some advantages of brownfield technology are:

 

• Because the things that function well for the firm don't have to be rebuilt from start, a brownfield migration is less expensive.

 

• In comparison to greenfield initiatives, the implementation effort is reduced. Furthermore, existing constructions can be saved.

 

The Disadvantages of this approach can be:

 

• The fundamental problem with a brownfield migration is that it must be completed all at once, a process known as a "big bang."

 

• This generally has long-term consequences for firms with heterogeneous and complex IT system landscapes: because the complexity persists, today's IT environment issues remain and cannot be addressed within the scope of such a project.

 

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Bluefield approach:

 

For huge organizations with incredibly sophisticated structures, this is the most effective alternative. The migration will need the use of specialist tools to extract the present configuration– without the data– and migrate it to S/4HANA, followed by the selection of data to proceed with. 

 

Bluefield is a hybrid strategy that preserves the value of the present solution while providing for additional flexibility in the go-live phase definition, allowing for distinct go-lives for different business codes and system downtime optimization.

 

This is clearly a massive undertaking, but it offers the opportunity to re-evaluate data and customizations that have been in place for years, if not decades. It also allows businesses to reconfigure their systems in accordance with the new business principles demonstrated by S/4HANA.

 

In this method, each company must do a cost-benefit-risk analysis before deciding on a specific cloud migration path. Instead of focusing just on short-term payback, part of the study should reflect longer-term potential advantages. 

 

These advantages could come in the form of being able to quickly implement new business techniques or exploit new technologies, such as machine learning or the Internet of Things; or they could come from archiving older data to reduce the amount of storage space used and thus save money on hardware or hosting.

 

Which approach is best suited?

 

The industry, organization, and history of a firm, as well as the structure of its IT infrastructure, all, play a role in determining its best path to SAP S/4HANA. 

 

When it comes to SAP S/4HANA installations, there is no "one-size-fits-all" solution; each one must be customized. Because all options are theoretically conceivable in most circumstances, businesses should consider a range of considerations when making their selection. Finally, they will be able to develop a solution that is acceptable to the organization.

 

Greenfield approach is best suited for organizations that:

 

1. Are more flexible and standardized, and the utilization of technological procedures for commercial purposes is improbable.

 

2. The Greenfield strategy is more likely to be chosen if current processes are to be modernized, made more flexible, and standardized.

 

3. Brownfield and selective migration are not viable options when the present Information Technology environment comprises several ERP systems that must be harmonized and merged.

 

Brownfield approach is best suited for organizations that:

 

1. Technically focused methods are more likely to be chosen if the IT environment is at the forefront and the original and intended goal architectures are the same.

 

2. This is also true if solution extensions are to be kept, as well as if the whole history of transaction data must be kept.

 

Bluefield approach is best suited for organizations that:

 

1. Prioritize low risk and short project duration; 

 

2. Wants to divide or merge systems and combine this with a move to S/4HANA to reduce effort;

 

3. Attempting to make significant modifications to their system without losing all of their data;

 

4. Require a huge installation to prevent a 'big boom,' or if their database is exceptionally massive - resulting in considerable downtime during a transfer.

 

 

Conclusion:

 

Regardless of the strategy a company takes to migrate, it must always have the aim in mind. Working with a cloud migration services partner that can provide assistance will very certainly be a vital component of the migration process at all levels - analysis, planning, and execution. 

 

In conclusion, these three approaches have their individual advantages and disadvantages, and choosing them completely depends on the requirements of the customer. In this blog, we have discussed Greenfield, brownfield, and brownfield approaches and what are the favourable conditions for selecting them. 

 

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