Interest Grows in Two-Tier ERP

Mark J

Updated · Jan 03, 2011

Interest in two-tier enterprise resource planning (ERP) strategies seems to be growing.
According to this report on IT Business Edge, Two-tier ERP strategies offer a single ERP system at headquarters but a different system for global subsidiaries. This helps in cases where global companies that make acquisitions and/or create subsidiaries in new markets often find themselves running a hodgepodge of ERP systems.

“When I interviewed Paul Turner, senior director of product marketing for cloud-based ERP provider NetSuite, about the growing acceptance of ERP delivered via software-as-a-service, one of the topics we discussed was two-tier ERP strategies in which companies maintain a single ERP system at headquarters but use a different system or systems for their global subsidiaries.

“NetSuite in 2008 introduced a product called OneWorld that was designed for companies pursuing this two-tier strategy, which is also sometimes referred to as a hub-and-spoke deployment. According to Turner, OneWorld now accounts for 30 percent of NetSuite's new business.”

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