Two-tier ERP concepts provide an efficient way of modernizing business management solutions quickly and economically, provided the software is future-proof.
In this article, Epicor sets out the key criteria for evaluating a two-tier ERP solution and explains how you can protect the investment in the long term, says Johani Marais, channel manager Africa, Epicor Software Corporation.
There are many good reasons for using a two-tier ERP strategy. It’s not just about achieving significant cost savings (although this is of course a key benefit); two-tier strategies can provide an organisation with unparallelled choice and flexibility in terms of deployment models, implementation speed, and time to value.
Using a two-tier ERP strategy, companies can, for example, take advantage of the latest technology to support international growth strategies, simplify system consolidation and modernise their internal management control processes.
Two-tier ERP strategies are therefore worth considering when the transfer of a powerful, tier one ERP system used in the corporate headquarters, to all its branches and production sites, does not make financial or technical sense.In fact, modern two-tier ERP solutions create a surprisingly new degree of freedom, provided they fulfil certain criteria.
Any organisation evaluating two-tier ERP strategies is therefore advised to examine the following aspects:
Flexible deployment models: Customers should be provided with a choice. It should be possible, depending on the individual requirements of the location, to deploy a two-tier ERP solution in different ways without having to sacrifice functionality, regardless of whether it’s in the cloud, offered as a hosted solution, or on-premise in a company’s own data processing centre.
Flexible implementation models: Regardless of which version of the ERP solution has been selected for a specific location, requirements can change quickly. It is therefore necessary, in order to protect the investment, to be able to easily switch from ERP in the cloud to on-premise and vice versa. The same applies to ERP as a managed service. This option should be provided by the ERP vendor from the very outset, in order to avoid the unnecessary expense of a complex migration at a later stage.
Tier-one capability: Even when it is time to fundamentally modernize the ERP platform in the company, many shy away from a radical restructuring. Instead, they first put their trust in a mid-size ERP platform, which can be installed step-by-step in individual business units and local branches. With good integration capabilities, there should be a seamless process between the two platforms, ensuring consistency with data and reporting. Make sure that you evaluate the various features and functionalities carefully.
Standardized interfaces: A two-tier solution must guarantee consistent and central data maintenance throughout. Standardized interfaces to tier-one solutions are therefore beneficial, as they render individual programming unnecessary. They can also speed up the integration of data and processes at headquarters and simplify the maintenance of software, including continuous updates.
Modular architecture: In manufacturing and processing industries in particular, requirements among the various departments differ: production facilities need different functionality than sales offices, and assembly and logistics departments differ considerably from administrative offices or research and development departments. Having a set of functionalities that is at the same time modular and wide-ranging ensures that all departmental and country-specific requirements can be addressed by a global solution. Even specific local accounting features can be implemented in a universal IT environment.
International support and multilingual capability: Two-tier ERP strategies often entail integrating international locations. The multilingual availability of the ERP software is therefore just as important as the provision of local support by the manufacturer and its partners. In particular, their ability to implement global ERP projects from a single source, but where customers can still benefit from the expertise of the individual countries, is an invaluable asset in terms of both cost and time. For example, this can relate to templates which, once they have been created, can be used for all other countries. The same applies to interfaces, process models and configurations for automated workflows.
Data migration: The transfer of data to new systems is a challenge that delays many ERP projects. Data migration tools that automate much of the extraction, cleansing and upgrading of data can provide relief. Control functions relating to the business logic and alert messages ensure that manual interventions are reduced to a minimum.
Mobile availability: The demand for mobile use of ERP is increasing dramatically. A two-tier ERP must therefore be geared to this requirement. If the existing ERP system doesn’t offer a mobile option, a two-tier strategy provides an elegant way of introducing mobile ERP applications into the company—from full versions for laptops and lean versions for tablets, to apps for specific field service tasks.
Software that complies with industry standards: What seems at first glance to be functional should also be modern and compliant behind the scenes. Next-generation ERP needs to comply with the latest industry standards, so that it’s economical in terms of data maintenance and future development.
Complex IT strategies can easily be implemented using two-tier ERP concepts if the above criteria are fulfilled in a solution. The model can be applied to any modernisation or growth strategy, from integrating and simplifying an IT environment across national borders following corporate acquisitions, to a successful overhaul and modernization of a company-wide ERP system.
