Addressing the needs of large corporations with multiple locations and/or subsidiaries.
Companies that are expanding their business globally want to have an agile solution that can be deployed quickly and within a budget that is reasonable for their smaller subsidiaries. Learn about Two-Tier ERP Strategy, its benefits and Seidor’s experience with this approach.
What is Two-Tier ERP Strategy?
Two-tier ERP is an approach that uses two systems that operate simultaneously and are integrated with each other to address the needs of large corporations with multiple locations and/or subsidiaries. You can 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).
What are the benefits of the Two-Tier ERP Strategy?
- Two-Tier Strategy helps 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
- Real-time performance visibility and control without sacrificing the needs, time and budget of smaller operations, which live and operate in a rapidly changing environment.
- When working with SAP Business ByDesign, a flexible and easy to use ERP in a subsidiary, it increases the process flexibility, the organizational agility and even the assimilation of process innovations.
Seidor’s experience with Two-Tier ERP Strategy
According to Tomas Fertig, President and CEO of Seidor USA, SAP Business ByDesign 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.
What are the challenges of SAP rollout projects for globalizing companies?
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, explains Fertig.
How do your customers handle those different local adaptions and how do you support them through this?
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 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 SAP 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, added Fertig.
What is the United VARs concept? And what is Seidor’s role in the global cooperation projects?
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. In addition to our presence in North America, Seidor has operations in South America, Africa, Europe and Middle East therefore we can also help with global Tier 1 deployment around ECC and S4HANA in those places. In Two-Tier strategies, most of the times we help implementing the Tier 2 subsidiaries with ByD, concluded Fertig.
Success Story: SAP ByD Global Template Implementation for Cantel
Cantel wanted to standardize their financial and sales reporting by implementing SAP Business ByDesign with a Global template at one of their Australian subsidiaries in Victoria. This happened at the same time as implementing SAP S/4HANA at their USA office.
“We went to a Two-Tier ERP Strategy to optimize and gain visibility into country operations, to provide a right-sized system to countries and to gain speed and flexibility in how we reduce the number of operating ERPs around the world at Cantel”, said Mike Casey, Global IT lead at Cantel.