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blog | November 24, 2014

What Is Two-Tiered ERP?

ERP (Enterprise Resource Planning) software is becoming more and more common as companies look to automate their business processes. The incredible breadth of information that can be stored and...

By WorkWiseSoftware

ERP (Enterprise Resource Planning) software is becoming more and more common as companies look to automate their business processes. The incredible breadth of information that can be stored and accessed from an ERP solution is a huge asset to a company. However, that huge asset also comes with a huge price tag compared to other software solutions like CRM (Customer Relationship Management). In fact, global ERP sales are expected to exceed $45.5 billion per year and 1 out of every 10 dollars spent on software goes to ERP solutions.

So What Is Two-Tiered ERP?

Simply put, two-tiered ERP occurs when the corporate level/headquarters of a company has a different ERP vendor than one of their divisions/subsidiaries. In essence, although they are the same company, there are two or more different ERP solutions.

Why Would A Company Want A Two-Tiered ERP System?

The Future for Two-Tiered ERP Software Systems

It appears that the two-tier ERP model is only gaining more consideration as time goes on. For example, in 2011, 48% of ERP buyers considered buying a two-tier strategy for their ERP software (up from 32% in 2010 and 27% in 2009). Only time will tell as companies expand if the benefits will be enough to change the common mindset of having one set system company wide.

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