Starting a project from scratch or taking an already started one – this is what the greenfield vs brownfield question is mainly about. Easy? Easy. It brings, however, a few important issues. How to run such projects? Which approach is better for your needs? What does the development process look like? Check the answers below!
Today we come to you with the mysterious, yet appealing subject of greenfield and brownfield IT projects. You might have never heard of them, so let us first explain where this has all come from.
Both terms originally referred to direct investment. A company that decides to invest and chooses to build everything from the ground up, on a “green”, implicitly uncultivated field, can call this investment a “greenfield” one.
The “brownfield” investment, on the other hand, refers to a situation when a company builds upon already existing facilities or other resources, or even leases them, which means it operates on a field that’s been previously used and cultivated.
The same goes for IT projects – a greenfield project is a brand new one, developed from scratch, and not based on any existing systems, code or infrastructure, unlike a brownfield one, which is built upon already existing projects, code or other resources.
From this article, you will learn about:
The differences between greenfield vs brownfield projects
Their pros and cons
The project management process for both types
When to choose greenfield or brownfield projects
Curious to find out more? Read on!
Greenfield vs brownfield in the IT world
Both approaches can concern many types of IT projects, such as a software tool, an app, a website, a network, or an IT facility.
In the brownfield option, the task may be adding a new management module to the current CMS, integrating new features to an e-store or boosting the performance of an existing app.
Greenfield projects usually allow for more flexibility and innovation, which, on the other hand, means that you must thoroughly understand your business goals and set a clear path of development in order not to lose the scope.
To handle this risk, it’s best to use the agile methodology, because it allows for constant communication and the ability to catch small mistakes before they turn into big ones.
Brownfield projects usually come with some constraints and limitations, but in this case, much of the work is already done.
These differences have their implications, which you should consider while choosing how to launch your software – and we will talk about the use cases in detail later in the article.
Having said that, let’s look at the pros and cons of both approaches.
What’s good about greenfield projects?
The advantages of greenfield projects stem directly from their nature.
First one is flexibility. They can fit the business needs like a glove, because they are built exactly to cater those needs and provide all the custom solutions one can imagine.
FAQs
The same goes for IT projects – a greenfield project is a brand new one, developed from scratch, and not based on any existing systems, code or infrastructure, unlike a brownfield one, which is built upon already existing projects, code or other resources.
What is the difference between brownfield and greenfield implementation? ›
While a Greenfield approach represents a complete reengineering of your SAP ERP, a Brownfield approach is more like an upgrade. Using the Brownfield approach, you can get SAP S/4HANA up and running, and at the same time, migrate your existing SAP workflows and systems over to the newest version of SAP S/4HANA.
What is an example of a brownfield project? ›
Abandoned oil refineries, chemical factories and heavy manufacturing units, are some examples of brownfield project sites.
What are the pros and cons of greenfield projects? ›
Green Field Investment vs. Brown Field Investment
| Aspect | Greenfield Investment |
|---|
| Control | Complete control over design, operations, and strategy. |
| Risk Level | High risk due to uncertainties and initial setup challenges. |
| Time to Operation | Longer time is required for planning, construction, and setup. |
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Greenfield sites offer more freedom to developers for design and expansion than brownfield sites, which often redevelop existing properties and buildings. Unlike brownfield sites, greenfield sites are uncontaminated and give developers a blank slate for their projects.
What is the difference between greenfield project and brownfield project? ›
GREENFIELD AND BROWNFIELD PROJECTS. The widening/development of existing road is categorized as Brownfield, whereas construction of project on a new alignment is categorized as Greenfield project.
Is brownfield or greenfield more sustainable? ›
Greenfield projects offer a clean slate but may require more infrastructure investment, while brownfield projects can be more sustainable but may involve remediation costs. The "better" option depends on the specific needs and constraints of each project.
What is an example of a green field project? ›
Literal examples of greenfield projects are new factories, power plants, airports which are built from scratch on greenfield land. Those facilities which are modified/upgraded are called brownfield land projects (often the pre-existing site/facilities are contaminated/polluted.)
What is a real world example of a brownfield? ›
Common examples of brownfields include former: Gas stations. Auto repair shops. Dry cleaners.
What are greenfield and brownfield activities? ›
Key Takeaways
- Greenfield and brownfield investments are two types of foreign direct investment.
- With greenfield investing, a company will build its own, brand new facilities from the ground up.
- Brownfield investment happens when a company purchases or leases an existing facility.
Disadvantages of a Brownfield Investment
The facility may be old and, therefore, require high maintenance and upkeep cost. There may be operational inefficiencies if the facility cannot be adapted to new production needs. There may be scalability and expansion issues related to using already constructed facilities.
What are the disadvantages of a greenfield? ›
An extremely high-risk investment – a greenfield investment is the riskiest form of foreign direct investment. Potentially high market entry cost (barriers to entry) Government regulations that may hamper foreign direct investments.
What are the challenges of greenfield projects? ›
Greenfield Projects are Risky
Furthermore, the high level of uncertainty surrounding the success of a new product can add to the risk. With no historical data to rely on and a lack of market data, it can be challenging to predict if a new product will be successful or not.
What are the advantages and disadvantages of brownfields? ›
Cost Efficient
Many brownfield sites also have existing buildings, and depending on their state and structure, these could be repurposed, further lowering the cost to developers. However, some brownfield sites can have contaminated land and building.
What is an example of a brown field project? ›
These brownfield project locations, which were formerly used for large manufacturing facilities, railroads, petrol stations, and oil refineries, are primarily located in Western nations. Some examples of brownfield project locations are abandoned chemical industries, oil refineries, and heavy manufacturing facilities.
What are the benefits of greenfield? ›
A greenfield project offers the investor full control over foreign direct investment. That control includes freedom in setting prices and establishing a marketing strategy. Greenfields also avoid the need for intermediaries and may also receive tax breaks.
What is a brownfield implementation? ›
The Brownfield approach, also known as system conversion or selective data transition, involves migrating an existing SAP ECC system to SAP S/4HANA. This approach allows organizations to leverage their current system's investments while taking advantage of the innovations and features of SAP S/4HANA.
What is the difference between brownfield and greenfield supply chain? ›
Brownfield analysis is used to restructure the supply chain or when growing or shrinking your existing distribution network, whereas Greenfield analysis is used to find the best locations for a pre-defined number of new warehouses or facilities.
What is the difference between greenfield and brownfield PPP? ›
Greenfield projects: Project investments that relate to a DBFOM that is recently awarded or under construction. Brownfield projects: Project investments in infrastructure assets that existed before the time of procurement or that were previously greenfields, but are in operation at the time the investment is made.
What is the difference between brownfield and greenfield drilling? ›
A greenfield site is a new area that has not been explored or drilled before, while a brownfield site is an existing area that has been partially or fully explored or mined before. The main difference between them is the amount and quality of available data and information.
