SAP Two-Tier ERP

Large businesses are frequently met with the challenge of needing to deploy two or more separate ERP across their HQ, Subsidiaries, Divisions, or multiple Geographical locations. Managing these deployments can be difficult due to different requirements, capabilities and resources.

The Organizations are increasingly looking for a system and strategy that provides a strategic balance between centralized control and decentralized agility. This is where SAP and TRC Solutions can support through SAP Two-Tier ERP.

What is SAP Two-Tier ERP?

SAP Two-Tier ERP is a deployment strategy that allows organizations to operate a dual-layered ERP System. This approach is particularly beneficial for large, complex organizations with multiple subsidiaries, divisions, or geographical locations. In a two-tier ERP system, the primary (or Tier 1) ERP system is typically run by the organization’s headquarters, while secondary (or Tier 2) ERP systems are used by subsidiaries or smaller business units.

Why do businesses pursue Two-Tier ERP

When larger businesses scale up and expand to cater to ever-increasing market demand through strategies such as acquisitions, divestitures, joint ventures, new business models – they are met with the complications of taking on an entirely new business operation. SAP’s Two-Tier ERP strategy with SAP ERP offers headquarter-subsidiary, central services, supply chain ecosystem deployment models enabling business and IT to work together to build sustainable, scalable Solutions providing all benefits of cloud deployment – agility, standardization and low total cost of ownership – while maximizing existing investments in their ERP Systems.

Key Features and Benefits of SAP Two-Tier ERP:

1. Headquarters and Subsidiary Operations:

   • The Tier 1 system at the headquarters is usually an on-premise ERP, managing core, enterprise-wide processes such as financial consolidation, compliance, and strategic planning.
   • The Tier 2 system, is deployed at subsidiaries or smaller business units, enabling these units to operate independently and with agility while still being integrated with the headquarters.

2. Flexibility and Autonomy:

   • Subsidiaries can customize their Tier 2 ERP systems to meet local requirements, regulatory needs, and specific operational demands, without compromising the consistency and control maintained by the headquarters.

3. Cost Efficiency:

   • By leveraging Cloud-based Solutions for Tier 2 systems, organizations can reduce costs related to infrastructure, maintenance, and upgrades, while still benefiting from SAP’s robust ERP capabilities.

4. Seamless Integration:

   • SAP provides built-in integration capabilities between Tier 1 and Tier 2 systems, ensuring that data flows smoothly across the organization, supporting processes like financial consolidation, supply chain management, and reporting.

5. Scalability:

   • The two-tier model is ideal for businesses that are expanding rapidly, acquiring new companies, or entering new markets, as it allows for quick deployment of ERP systems in new locations or business units without disrupting the core ERP operations.

6. Continuous Innovation

   • The cloud-based Tier 2 systems receive regular updates and new features, enabling subsidiaries to continuously innovate and stay up-to-date with the latest technologies, such as AI, machine learning, and robotic process automation.

Transformation through the Cloud

Why TRC Solutions?

TRC Solutions is SAP’s leading Partner for Two-Tier ERP Projects. Through our expertise and Rapid Fit to Standard deployment methodology, we have been able to deliver stalling Projects and speed up Large Enterprise SAP Adoption by utilizing Two Tier ERP in SAP S/4HANA Public Cloud. Now, we are in the middle of multiple Two-Tier ERP Implementations across Europe and North America.

SAP Account Executives

TRC Solutions has a successful history of working with SAP AEs and supporting them to deliver Projects. We have been successful due to our experience in Two-Tier ERP, utilization of ACTIVATE Methodolgy and our Team’s dedication to putting the Client and their needs first. If you are an Account Executive with a Large Enterprise Client whose Project has become stalled with no resolution in sight, reach out to Client Advisory Manager, Patrick Nolan today: email – pnolan@trcsolutions.ie