Globalization has fundamentally changed the mode in which businesses operate. Organizations need to scale up and expand to cater for the ever-increasing market demand. Businesses proliferate mainly inorganically, through mergers and acquisitions. The need is to onboard newly acquired subsidiaries, which may be in different geographical locations and with a different set of established business processes, into existing IT systems, or integrate the disparate IT systems of multiple entities.
Organic growth is achieved by diversifying lines of business (LoB), where existing IT systems need to be adapted for new LoB-related business processes. In addition to all this, businesses are feeling the need to integrate with the extended supply chain comprising vendors, sub-contractors, distributors, and so on, in different IT landscapes.
In a digital economy, two-tier ERP attempts to solve this paradox of seamlessly integrating multiple ERP landscapes. Two-tier ERP entails an organization’s IT landscape operating in two different tiers: tier 1, focusing on the stable and traditional areas of the business processes that require stability, and tier 2 for the innovative and disruptive aspects of the business need for agility. This course explains the concept of two-tier ERP and provides a detailed view of how organizations can get set for a journey towards digital transformation with two-tier ERP with SAP S/4HANA Cloud.
First, we’ll provide you with an overview of SAP S/4HANA Cloud, followed by the business case for two-tier ERP. We’ll then briefly explain how master data can be handled centrally, and you’ll learn which integration concepts are applicable in a two-tier ERP model.
After you’ve been introduced to the finance and sales processes, we’ll present manufacturing and procurement use cases that are available with the latest release of SAP S/4HANA Cloud.
We’ll also have a special unit from one of our early SAP S/4HANA Cloud adopters, Topcon Positioning Systems, who will share their perspective and experience of how they successfully leveraged the concept of two-tier ERP with their on-premise ERP system and SAP S/4HANA Cloud.