What is a greenfield project in product development?

In most disciplines, a greenfield project requires you to build something from scratch, where there are no constraints imposed by previous work. This term used in product development is an analogy with the greenfield concept from the construction industry, when a site, undisturbed by prior construction, is built on.

In product development, a greenfield project entails developing a platform entirely from scratch, instead of modifying or building on an existing software product. A greenfield project represents opportunities and is not limited to architectural restrictions or constraints, as no code has been written for it yet.

In greenfield projects, there are no existing ideas to upgrade or modify. Everything is developed in an entirely new environment, hence its name “greenfield”, symbolic of “green” meaning “new.” 

A greenfield product doesn’t have:

• An existing codebase

• Earlier or similar versions of the product

• A well-defined user or buyer persona

• Feedback from key personas

• Total addressable market estimation

• Historical data indicating the most effective selling messages and pricing models

There are two main types of greenfield projects:

• A company's new platform: the product idea may be new to your company but already available from a competitor(s)

• The first platform of its kind: the product idea is entirely new to the market (like ChatGPT). All greenfield projects are challenging but a product without competitors is likely more difficult to build and educate users on what it is, how it works, and its benefits.

Greenfield development offers unparalleled flexibility and freedom. You are free to develop completely new technical architecture and application program interfaces (APIs) to speed up the development time and acquire specific features or functions more quickly.

You can build a solution with features tailored to your users, and you don’t need to worry about supporting legacy features, version compatibility, or out-of-date files in the new platform.

Let’s look at the main benefits of greenfield project development.

Innovation

A greenfield project provides a blank slate for building and implementing new ideas from the ground up.

Flexibility

Greenfield projects allow you to develop new products with great flexibility without the constraints of existing coding, notions, or business processes.

Customization

One of the most significant advantages of greenfield product development is the ability to custom-develop a platform. Greenfield projects allow you to create bespoke solutions tailored to your customers’ needs and preferences.

Right-sized scaling

Greenfield project designs consider current size and performance requirements as well as future scaling needs.

Low maintenance

Greenfield project designs can use industry-standard approaches that reduce maintenance needs. This requires less institutional knowledge and enhances employee flexibility.

Greenfield projects aren't without their drawbacks. Here are the major ones:

Slow project startup

Evaluating and discovering new business opportunities and identifying which ones to pursue takes time. As such, greenfield projects are often slow and require a lot of research and analysis, particularly in the initial stages.

Higher startup costs

Design and technology can be expensive to develop from scratch, especially during the early phases. On the bright side, you can recover the initial costs once the platform is operational by generating revenue and profits for the return on investment.

May require new skills

Your development team may need to learn new skills to implement new software. Learning something new slows down delivery which increases expenses and the timeline.

Adopting new technology can often mean hiring new staff or consultants while leveraging existing employees' skills and maintaining operations.

Lack of feedback

It can be challenging to get initial feedback that can be actioned, as the project is new and sufficient data to make decisions may be lacking.

Greenfield project risks

Building new technology can be daunting and requires careful consideration and thorough IT discussions. As a general project management rule of thumb, outline and clarify goals before setting out on a greenfield project and maintain a user-centric attitude. The greatest risk with a greenfield project is losing sight of what value is needed by the consumer or focusing on the wrong features for users.

An excellent way to mitigate this risk is product development within an agile framework. Agile ensures a seamless line of communication between design, production, developers, and quality assurance teams. It is designed to reduce deployment errors and to iterate quickly.

You can also consider building a minimum viable product (MVP) and getting it out to targeted end users to receive valuable feedback faster.

1. Define the project scope

The most common difficulty with greenfield projects is accurately defining the project's initial scope. Unlike brownfield projects, you have no reference or starting point. It's at this stage that you determine whether to start with the engineering or the design while also identifying what the MVP should be.

Start with creating and documenting a plan for your greenfield project, which should include:

• A clear goal and objective(s)

• Measurable success criteria

• Potential bottlenecks and risks

• Timeline

• Resources available

2. Carry out market research

Once the project scope has been outlined, the next step is to thoroughly research the market and end users of the platform. This will help you understand and define your target audience, and design solutions appropriate to their needs.

However, customer and market research can be challenging if insufficient data is collected for the product managers to make informed decisions so the development team can begin building.

Let’s look at some ways of researching the market to get valuable insights that will help your decision-making.

Identify your target customers

Determine who your target customers are, then pinpoint their preferences and pain points. You can do this through tools such as:

• Surveys

• Customer interviews

• Focus groups

This will help you tailor your product to the needs and preferences of your target market.

Research your competitors

Study any alternative solutions already available and how users interact with your competitor’s software. This will help you understand how you can capitalize on missing solutions to stay ahead of the competition.

Do an industry analysis

This involves understanding key players, market size, and significant patterns and trends in industry growth rates. Consider reading industry reports, journals, and government and statistical data to stay well informed. Analyzing data will give you an in-depth understanding of market behavior and help you identify key patterns.

Understand customers' needs 

A good way to understand your customers’ needs and pain points is by logging the customer journey. This goes from their first interaction with the product to making a purchase and referring their friends, family, or colleagues.

Another approach is to create user personas to further understand the challenges that your target users face and any frustrations they have.

3. Build a product roadmap

In any greenfield project, a product roadmap is an overview of the software development and release. This will help your development and leadership teams understand what they’re building and why.

A roadmap should include your overall and quarterly development goals. This will help you focus on the most valuable deliverables. Your roadmap will also allow you to visualize implementation timelines.

Key factors to include in your product roadmap include:

• Feature requests

• Customer feedback

• Backlog

• Internal input

Here are some tips to help you create a workable product roadmap for your next greenfield project.

• Define the MVP

• Understand what technical stack the software will be developed on

• Understand the team's expertise and define roles

• Define the project scope and timeline

• Prioritize essential features and functionality of the product

• Allocate sufficient resources

• Use a product roadmap tool

4. Implement the project

At this stage, the product, leadership, design, and development teams begin working together on the greenfield project. To stay on track, a realistic project plan is drawn up to manage deliverables and actively track progress to ensure deadlines are met.

The project plan must also consider limitations, the timeline of deliverable dates, and who is responsible for them.

5. Launch the product

Launching your product is the last stage of a greenfield project. As product development increases and more functionality becomes available beyond the MVP, you will also need to market your product to the target audience to increase awareness of your product.

There are different ways to market your product. These include:

• Paid advertising

• Content marketing

• Word of mouth

Once activity increases on the platform and users begin interacting with it, you can gather and analyze feedback to identify areas of improvement to increase the platform's value to users.

Brownfield development projects are the opposite of greenfield development projects. A brownfield project involves developing software solutions using existing code or making modifications or improvements to existing software and applications. Greenfield projects are brand new and have no existing code base.

The value you get from greenfield projects depends on what you hope to accomplish with your platform. A greenfield project may be the right choice if you want to build custom solutions that can fit your business needs like a glove.

A greenfield project is the way to go if you’re seeking any or all of the following:

• Enhanced user satisfaction

• Improved customer satisfaction

• Improved employee satisfaction

• New software from scratch