In a two-tier ERP strategy, a company that runs on a major ERP system on a corporate level is able to deploy a lighter-weight, easier-to-deploy platform across its various divisions and subsidiaries. Although a single-instance ERP system is most ideal and has been a long-time best practice of SAP, a two-tier ERP can be an effective way of supporting subsidiary needs and can make more fiscal sense. Companies with divisions across various global locations or  who operate in different lines of business can benefit greatly from a two-tier ERP strategy.

In a two-tier model, companies are able to choose a subsidiary ERP system that:

• Meets subsidiary requirements
• Is less expensive to deploy
• Is easier to change
• Is simpler to manage