dcsimg
Main » TERM » T »

two tier enterprise resource planning (ERP)

Organizations use two-tier enterprise resource planning (ERP) to run two integrated ERP systems simultaneously. One system, the legacy application, also called the the Tier-1 system, is typically deployed at the corporate level and the other is managed at the subsidiary level. Two-tier ERP software is often used by large corporations with multiple sites or by an organization that's based in multiple geographic locations.

Recommended Reading: Webopedia's enterprise resource planning (ERP) definition.

The Benefits of Two-Tier ERP

Two-tier ERP enables an organization to optimize regional back office processes at a site that operates under a business model that is separate from the main company. At some locations the ERP requires special considerations — including translations or regionalized business models — and organizations my look to maintain a legacy ERP at headquarters with two-tier ERP solutions to support specific needs at the subsidiary level that fully integrates with the corporate system.

Master data management is one of the biggest concerns for organizations deploying two tiers of ERP. There should be no duplication of effort between the two ERP systems. Consistency is required at the second tier to ensure the corporate first-tier ERP achieves a single source of information for financials, orders and other business.

When Do Organizations Use Two-Tier ERP?

Often a Two-tier ERP system is implemented when the legacy, Tier-1 system, becomes very large and costly to customize, maintain and upgrade or when mergers and acquisitions leave an organization with multiple ERP solutions that they are unable to consolidate to a single ERP system.

According to EnterpriseAppsToday, the following scenarios are common in organization that use  two tiers of ERP:

Top 5 related ERP Questions

1. What is ERP?
2. What is small business ERP?
3. What is enterprise application?
4. What is the difference between CRM and ERP?
5. What is an ERP module?










LATEST ARTICLES
Facts about IT & Coding Boot Camps

The following coding and IT boot camp facts and statistics provide an introduction to the changing trends in education and training programs. Read More »

Top Cloud Computing Facts

The following facts and statistics capture the changing landscape of cloud computing and how service providers and customers are keeping up with... Read More »

Texting & Chat Abbreviations

From A3 to ZZZ this guide lists 1,500 text message and online chat abbreviations to help you translate and understand today's texting lingo. Read More »

STUDY GUIDES
Java Basics, Part 1

Java is a high-level programming language. This guide describes the basics of Java, providing an overview of syntax, variables, data types and... Read More »

Java Basics, Part 2

This second Study Guide describes the basics of Java, providing an overview of operators, modifiers and control Structures. Read More »

Network Fundamentals Study Guide

Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »