Greenfield implementation approach is radical and transformational, in that when companies implement SAP S/4HANA using this methodology, they literally restart from scratch without being held back by the existing systems. While there are many benefits, such as creating a custom system and applying best practices to systems, it poses numerous problems. There are demands that must be addressed effectively when success is to accompany this implementation. So, let’s start and see what the common obstacles are we face during SAP Greenfield implementation in this article.
1. High Initial Costs
Challenge:
Greenfield implementations can carry large costs up front. These costs can be around licensing, hardware, software consultancy and training fees. The need to develop the system from scratch also extends project lengths, escalating costs even more.
Solution:
It is important to fully examine the costs so that you can compare them for cost-effective provision of management services. Find out the benefit that may directly or indirectly give you a return on your investment. Divide the implementation into smaller phases, so that you can make small investments while doing one big upfront expenditure. You should also try to negotiate with SAP and your 3rd party vendors for better pricing, as well as explore potential cloud-based solutions which could reduce hardware & maintenance costs.
2. Complex Project Management
Challenge:
In the case of greenfield implementations, there will be several stakeholders with their own set of needs and requirements. It can be very difficult for managing these stakeholders, who know how to manage their teams and keep the project on track. Added to this, the absence of a molding paradigm from past quarters is every decision and consideration being approached carefully with more delays seen.
Solution:
This challenge can be easily overcome with the help of efficient project management techniques. Define clear governance structure and roles. Leverage project management tools to follow-up, Resource Management and Communication. Scheduled meetings and status updates sync everybody up, so if anything is going wrong it gets fixed quickly. It also helps have a native project manager or team familiar with the challenges of SAP Greenfield implementations.
3. Data Migration Challenges
Challenge:
Data migration is one of the key challenges for SAP Greenfield implementation. The old SAP environment poses several challenges, the prominent one being data migration from legacy systems into the new system. There is a high risk of losing data, corrupting it or making work if they are incompatible separately during transmission. This can cause delays and operations suspension.
Solution:
A comprehensive data assessment makes the best shield against any bad things might occur during a migration process which also involves risks. Determine data that is key to be moved. Before migration, perform a data cleansing and standardization to preserve the consistency of accuracy in your data. Use the SAP-supplied data migration tools plus potentially also get in some third-party consultancies who are specialists for Data Migration into an SAP system. Do at least a couple of test migrations and verify data before shutting down the source.
4. Customization vs. Standardization
Challenge:
Control on the customizing done and keeping it to a minimum is a key decision which projects must take if they are into Greenfield implementation. While customization may be ideal as it will further tailor the system to your business requirements, this can also introduce complexity and additional cost & maintenance overheads. There is equally a risk of over-customization that results in a broken system and all the hard work it entails to repair.
Solution:
Wherever possible, you should focus on standard SAP processes to keep a balance. The best practices of SAP are designed to fulfil the business requirements and allow easy upgrades later. If you must customize, — it better be documented and support long-term business objectives. Involve stakeholders in this decision to have the buy-in and see what we give them if needed.
5. Change Management and User Adoption
Challenge:
For any greenfield, it will require a turnaround in the way an organization has been operating. This can also provoke backlash amongst employees used to their procedure and methods of working. User adoption, or the lack of it rather, is a primary reason why many SAP implementations fail.
Solution:
Spend your money on a change management plan that also includes communication, training and support. Involve employees early and include them in the decision-making process to foster more buy-in. Utilize effective and non-confusing ways of communicating the new system(s) and how it will affect your employees’ work. All employees must be trained, which should include training programs that are specifically developed to meet the needs of different user groups. Post-implementation support is equally important to troubleshoot any issues or reinforce new Processes.
6. Resource Constraints
Challenge:
An effective Greenfield implementation needs a team of experts — including SAP masterminds, project managers, data analysts and change management pros. Yet, all organizations are limited by resources, be it through their set budgets or lack of qualified team members.
Solution:
Create a team of experienced experts coupled with internal resources to eliminate resource challenges. They will also bring in skilled knowledge and experience that you may not have the people power or expertise to house yourself. But equally imperative it is to develop internal capacities by including your existing team members in the project. This will bring the spirit of learning in between your teams and also gradually reduce dependency on outside resources. Phased implementation, to minimize the demand on resources and not exhaust your team or/and yourself.
7. Integration with Existing Systems
Challenge:
As can be expected with any new system, a Greenfield implementation almost always requires you to integrate it within your existing systems and third-party applications. You need to ensure that this integration is smooth so as not to cause data silos, operational disruptions or inefficiencies.
Solution:
This is the first way in which you can provide input so that you define what your systems are and do some analysis of data flows. Leverage integration tools and middleware from SAP to ensure that the new system can communicate with current applications. Bring in technical subject matter experts to design and qualitatively test integration points thoroughly. It is also essential that the testing process includes business users to validate integrated systems operate as required.
8. Maintaining Business Continuity
Challenge:
During the Greenfield implementation, there is a risk of operational disruptions which may be harmful for business continuity. Lost productivity and revenue — When the system is down due to maintenance, bugs or data migration issues.
Solution:
Draw up a fail-safe business continuity plan that incorporates backup systems, fallback options and communications paths. Perform a risk assessment to identify potential threats and their effect on the operation. Gradual rollouts or pilot implementations prove to be an effective way of reducing mass interruptions.
9. Regulatory and Compliance Issues
Challenge:
Especially in industries such as finance, healthcare and manufacturing there are multiple regulatory requirements that greenfield implementations must adhere to. Non-compliance can likewise lead to legal expenses and a tarnished public image.
Solution:
Work with legal resources and compliance experts in the early stage of a project to understand regulations that would be applicable; this will help ensure your new system meets all requirements. Use industry-specific SAP solutions that are built to meet specific regulation standards from the start where applicable. Develop a detailed system to document all compliance procedures and regulations met during the entire implementation through regular audits.
10. Post-Implementation Support and Maintenance
Challenge:
Post go-live this new SAP system will need to be supported and maintained. If the right support is not in place following implementation, users may face issues that hinder the effectiveness of a system and provide less-than satisfying user engagement.
Solution:
Be sure to have post support planned well before the implementation. Create a support team to deal with problem-solving, training and maintaining the system. Create a help desk / ticketing system and get a strong workflow in place to manage priorities on support requests. Having frequent system audits and performance monitoring makes it possible to intercept potential issues before they get big. In the same manner, continuous training and engagement of users are prerequisites to maintain business dependability with the system.
Conclusion
The SAP Greenfield implementation gives you the ability to construct a tailored future-ready system in harmony with what your organization wants! But in that comes its own set of struggles and poor management can break the project to be a success. Navigating the challenges outlined here, and applying associated strategies organizations can address these complexities of Greenfield implementation to derive maximum value from their SAP investment. Be it Cost management, data consistency, or user adoption; Proactive planning to enable them with effective execution is the way out of these challenges & ensuring a successful SAP Greenfield implementation.
