Companies that expand operations to penetrate new markets and drive revenue face unique software requirements. The software must meet corporate needs for standardization and control while enabling autonomy and responsiveness at business entities like subsidiaries, divisions, suppliers, and partners. When you choose to run the SAP® Business One application at these entities, you get the best of both worlds. You can quickly and affordably integrate operations with those at corporate offices for consistency and visibility while maintaining the freedom you need to be agile and responsiveto new market opportunities.
Organizations often strive to balance the software needs of their extended enterprise. For example, the headquarters requires software that establishes uniformity, business process efficiency, and compliance while meeting its need for transparency and visibility. So enterprise resource planning (ERP) software that institutes a standard template is important for corporate operations.
Moreover, subsidiaries need to be nimble to fulfill their strategic purpose, whether it’s to grow the organization, penetrate a market, or reduce costs through global sourcing or manufacturing. These business units still need to be efficient and in control, but too much standardization can get in the way of innovation. They need room for flexibility while still fitting into the overall corporate structures. That’s where a two-tier ERP strategy can help. A two-tier ERP model lets you preserve ERP investments while equipping subsidiaries with an agile business management system.
Tier-one software like the SAP ERP application runs at your larger operations, while tier-two software such as the SAP Business One application runs at your smaller locations. The two software solutions are then integrated into one coordinated operation, bringing together your processes, applications, and data.