Keeping your eyes in your subsidiaries while running your headquarters

Get the best for your subsidiaries running a Two-Tier ERP Strategy

Your company is growing with new subsidiaries, new acquisitions and new global markets. You need to integrate these new entities with your corporate ERP, but in Enterprise Software, not one size ERP fits all timing, functional and budget needs. Not less important, you need to avoid the need to fit a big ERP system into small entities. 

The answer to your needs is called Two-Tier strategy, which connects yours headquarter operations with your subsidiaries, providing exceptional cross-company visibility, but taking into account the subsidiary’s needs, budget and timing.  

Tomas Fertig, President and CEO of Seidor USA shares his experience on the Two-Tier Strategy and how we can help parent corporations and its subsidiaries on the SAP rollout projects. 

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Question: Why running a Two- Tier Strategy?

Corporate connectivity to subsidiaries is key, says Tomas Fertig, President and CEO of SEIDOR USA. This strategy allows you to use the robust, comprehensive ERP system at the corporate level (tier one) while keeping the more flexible, agile, cost-effective and easier to implement solution called SAP Business ByDesign at the subsidiary level (tier two).

According to Fertig, ‘the Two-Tier ERP Strategy help you automate and integrate business processes, extend your global reach all while meeting local needs. You will gain entry into new markets faster and more affordably than ever before, still having a controlled solution map’.

Question: What are the challenges of SAP rollout projects for globalizing companies?

Fertig: Global companies running a world- class solution in their corporate offices and bigger subsidiaries mostly struggle to roll- out such big corporate solutions to their smaller subsidiaries. However, all these small acquisitions and subsidiaries implement several different local applications, which with time becomes a nightmare to manage, update and support.

Question: How do your customers handle those different local adaptions and how do you support them through this?

Fertig: Well, most companies start to define a Two-Tier strategy, with a Tier 1 solution for their corporate offices and bigger subsidiaries, and a Tier 2 solution for their smaller subsidiaries and acquisitions. SAP Business ByDesign (ByD) is a perfect fit for this strategy as a Tier 2 solution because it allows for a quick implementation, global coverage and centralized support, as well as simple usage and lower cost incurrence.

Most of our Two-Tier customers have corporate offices running ECC or S4HANA and decide to implement Business ByD in their smaller subsidiaries and acquisitions. We define a Decision Tree to pre-define where Tier 1 or Tier 2 solutions apply, and then help them with defining template/s and rollouts. Rollouts can be anywhere in the world, and the type of subsidiaries depends on the customer, but typically have simpler processes than the corporate offices and bigger subsidiaries.

Question: What is the United VARs concept? And what is Seidor‘s role in the global co- operation projects?

Fertig: In United VARs we are designed to deliver global projects and Two-Tier strategies perfectly match our capabilities because we are able to offer international coverage and local support through the member network at a lower cost than the big consulting companies; all in all in over 90 countries. In the US, we are the go-to option for Tier 2 implementations.

However, Seidor has subsidiaries in several other countries besides the US, such as Spain, South Africa, in Latin America and the UAE, therefore we can also help with global Tier 1 deployment around ECC and S4HANA in those countries. Nevertheless, in Two-Tier strategies, most of the times we help implementing the Tier 2 subsidiaries with ByD.

Experts knowledge

Get the insights from our experts about the Two Tier Cloud Strategy

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