In order to maximize success and exposure in the modern media marketplace, it’s crucial to stay at the forefront of technology. Consumers’ tastes change at a rapid pace. Media organizations that fall behind technologically can lose advertisers, subscribers, and revenue.
Today’s media consumer expects more than ever before. Not only do they anticipate high-quality, informative, and entertaining content, but it also must be delivered quickly and in an easily accessible format. Like in many other industries, today’s standard for IT systems in the media industry is cloud computing.
Early adopters of cloud-based IT systems can testify that the transition has provided cost savings on hardware infrastructure as well as increased accessibility. In order to remain at the top of the industry, leading media organizations are increasingly opting to upgrade their IT systems with the help of a managed service company.
Unfortunately for small and midsize companies there is very little margin for error when it comes to restructuring technological systems. The time and resources required to successfully upgrade IT infrastructure make it a substantial investment for most organizations. If the wrong implementation approach is taken, it can be a serious setback. There are two ways to go about improving and updating your IT system: Greenfield strategy and Brownfield strategy.
These terms may sound familiar: they are used often within a broad range of professional industries. Perhaps most notably, Greenfield and Brownfield are terms used to discuss construction development, defining ground-up projects or projects built around previously-developed structures. There are parallels in the IT world between the Greenfield strategy and the Brownfield strategy. The former strategy is based around creating cloud applications completely from scratch while the latter entails building off of a company’s pre-existing infrastructure.
Greenfield strategy offers media organizations limitless opportunity to customize their systems to meet specific needs, but tends to be more expensive and time-consuming with a steeper learning curve. On the other hand, Brownfield systems require a smaller initial investment and offer a degree of familiarity, though they are limited in functionality and often require the development of complex workarounds. In order to understand which approach is best for your company, take a look at the following breakdown of Greenfield strategy advantages and disadvantages.
Advantages
One of the biggest incentives for choosing the Greenfield strategy is the flexibility to build the exact IT system your organization needs. Many of the technical constraints that shaped your company’s previous IT environment can be eliminated at the root. This gives you the ability to tailor a product that precisely fits your needs. Your organization will be able to avoid the time-consuming process of locating the necessary resources required to keep the system compatible with existing infrastructure.
While building off of a pre-existing system may offer your organization an advantage in familiarity, the Brownfield strategy’s reliance on existing infrastructure can lead to roadblocks. This is not the case when building a brand new system from scratch. Leaving legacy equipment behind you makes these systems better-poised to adapt to changing technologies and stay at the forefront of the media industry.
Despite greater up front costs, many businesses have found the Greenfield strategy to be a very cost-effective approach in the long-term,. According to a 2011 study by Morgan Stanley that polled 300 of the world’s leading IT professionals, their primary area of savings from cloud migration came from the elimination of server hardware. Leaping head-first into a brand-new IT system can feel daunting, but when done properly can result in a more efficient organization that is able to quickly adapt to the changing competitive landscape.
Disadvantages
Despite the many advantages that starting from scratch offers, most companies do not opt for that strategy. One of the major reasons for this may be the high barrier of entry. Utilizing existing infrastructure to modernize your IT system is a very cost-effective approach compared to the bottom-up changes that go hand-in-hand with the Greenfield strategy. Your infrastructure is a sunk cost, making it a difficult decision to leave it in the past.
Organizations that run on tight budgets or narrow margins may simply be unable to produce the kind of capital that is required for a proper Greenfield approach. This is especially true for small and mid-size organizations.
Another disadvantage of investing in a Greenfield system is the fact that Greenfield becomes Brownfield in just a few months’ time. The rate of change in the technological world is breathtaking, and what is brand-new today will be considered passé in less time than you might assume.
Any manager can attest that any wholesale changes can be met with apprehension and even resistance from long-time employees who have grown accustomed to the status-quo. This unfamiliarity and resistance can make the Greenfield strategy a difficult proposition both for end-users and leadership.
A company will experience some growing pains when transitioning to a new IT system. This period may be longer when familiar components of the previous system remain within the new system. A brand-new fully Greenfield system could make it difficult to retain normal capacity levels in the short term before returning to previous levels of efficiency.
Conclusion
Whether you choose the Greenfield or Brownfield approach, it is crucial for media companies to stay at the forefront of technology. Estimates show that 40 percent of companies that are currently in the top 10 of their sector will fall down the list due to inadequately preparing for digital transformation. Taking the first step and being proactive about preparing the organization for the future puts you in elite company, as only around 25% of businesses do so.
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