Tier 1 ERP software rollout strategy

One-Tier ERP are built for multinational companies with multiple department and global subsidiaries. Tier 1 ERPs are designed to service the needs of Fortune 1000 companies, which revenues are often measured in billions. These 1-tier ERPs are made handle the complexity large, multinational corporation require, for example, enabling multiple people to handle the same tasks. SAP ECC or SAP S/4HANA are such sophisticated ERP software. As part of that functionality, these systems are highly complex to configure, take a long time to implement and are equipped with a wealth of features which come with an initial high cost, as well as a high total cost of ownership (TCO). In comparison, a smaller company would be overwhelmed by the number of steps and the overall intricacy.

Tier 2 ERP software rollout strategy

Two-tier ERP is a strategy taken by large, multinational enterprises that uses tier 1 ERP for core common processes at the corporate level and tier 2 ERP for subsidiaries of the company to address specific needs. This approach to ERP saves money since 2-Tier is less expensive and gives smaller locations more control, flexibility and agility in meeting their unique and local needs. In a two-tier ERP approach, such as SAP Business One master data management requires assiduous attention to ensure that there is no duplication of data or inconsistencies , functionalities are comprehensive and intuitive, while the system allows an overall high range of customization and agility,

global rollout SAP 2 tier strategy

Listening to your subsidiaries' needs will help you define very clearly what type of ERP system they need. Here are commons goals and improvements multinational companies are looking for in a solution for their various branches: 

  • Cost Efficiency  
  • Speed of Implementation Cycle  
  • Usability & Trainability  
  • Transparency of Processes & Data  
  • Harmonization of Processes & Data
  • Harmonization of Reporting  
  • Integration Subsidiary to Subsidiary, or Subsidiary to HQ  
  • Improvement of Organization (Best Practice Approach)  
  • Flexibility