What can a two-tier strategy do for your bottom line?
For a company located at a single site, the decision to upgrade or transition to a new financial management solution is relatively straightforward. Organizational systems and employees are all conveniently located under one roof, and the decision-making process is a linear journey.
But the path is not as simple for organizations that have multiple sites and multinational locations. In an economic climate characterized by mergers and acquisitions, joint ventures, and exponential growth, this structure is becoming more the norm than the exception. IT professionals in complex organizations know they must have a robust solution to meet the demand for consolidated enterprise-wide financial systems.
To combat these issues, an alternative approach-known as a "two-tier" financial strategy-is being pursued by an increasing number of organizations. With a two-tier strategy, businesses don’t view their headquarters and all subsidiaries or divisions as a collective whole when it comes to choosing financial management technology. Instead, they take into account the level of functionality required by various locations, as well as the operational capabilities that exist across the company. The result is identification of multiple systems capable of meeting diverse needs but also (importantly) able to work easily together. To keep complexity in check, most organizations settle on two options-one for headquarters or larger divisions and a second for smaller locations that do not warrant a full ERP implementation.
Please find more information about the two-tier strategy in this white paper.