Gartner Research

A Two-Tier ERP Strategy Should Balance a Corporate and a Subsidiary Perspective

Published: 30 January 2014

ID: G00261431

Analyst(s): Nigel Montgomery

Summary

Adopting two-tier ERP can accelerate subsidiary business unit ERP rollouts and provide a fast track to global data transparency. To find the optimal system/instance option, CIOs defining global ERP strategies must balance the often-opposed perspectives of corporate and subsidiary management teams.

Table Of Contents

Analysis

  • Leverage Pace Layering to Determine Shared Service Opportunities
  • Build Your Business Case Based on Consideration of the Corporate Perspective
    • Choosing a Balanced Approached
    • License Extension Opportunity
    • Purchasing Power
    • Vendor Stability/Ongoing Support
    • Coordination of Resources and Skills
    • Single-Partner Usage
    • Technology Alignment
    • Time to Value
    • Implementation Methodology Alignment
    • Integration Simplicity
    • Localization
    • Change Management Control
    • Process Efficiency and Shared Services
    • Governance
    • MDM
    • Scalability
    • Financial Transparency
  • If Choosing a Tiered Approach, Start With One Second-Tier, Resist Multiple Versions, but Accept the Potential for Multiple Instances or a Federated Approach
    • Total Cost of Ownership
    • Gain Support from Business Sponsors

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