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SAP S/4HANA®: The Next Evolution for Companies Running Two-Tier ERP Solutions

The two-tier enterprise……

For global multinationals and small businesses alike, it’s a model that’s worked successfully for years. Running a robust, large-scale ERP solution at headquarters and smaller, more specialized enterprise solutions at the subsidiaries have kept IT costs low, while providing a level of flexibility to meet each business unit’s specific needs.

However, just consider the layers of IT complexity needed to keep headquarters ERP solutions in synch with subsidiary ERP solutions. These IT layers may include middleware, application programming interfaces (APIs), and custom interfaces to integrate multiple vendor solutions, to third party analysis and reporting applications to get the information out to business teams.
That’s why in today’s highly competitive markets – where the need for digital, real-time business execution is critical – the current multi-vendor two-tier enterprise model no longer provides enough agility. The model has become too complex and costly, adding barriers to continuous innovation.

With SAP S/4HANA, you can remove the barriers to innovation and agility:

  • Common data model that supports all lines of business and 24 industries to simplify IT and business processes
  • Common user experience at headquarters and subsidiaries that’s consistent and intuitive, so you can reduce training expense and increase user adoption
  • Common development and reporting platform built on SAP HANA so that business rules, processes, and reports created  in one business unit can quickly extend to others
  • Flexible deployment options on premise, in the cloud, or a mix of both depending on the needs of each business location,…a true multi-tier capability
  • Centralized finance that enables all business units to share a single source of financial truth without the need for periodic reconciliations and manual updates across subsidiaries

SAP S/4HANA supports real-time insight and action across all business units and processes:

  • In-context, real-time data and analysis embedded directly into daily workflows so business users can act in the moment
  • Real-time collaboration among internal teams and external partners, including automated source-to-procure processes with suppliers
  • Instant analysis of structured and unstructured data from databases, e-mails, videos, equipment, and assets – regardless of data volume or location
  • Fully synchronized business processes that can adjust quickly to new opportunities like strategic partnerships, mergers and acquisitions, and outsourcing
  • Automation enhanced with predictive analytics and modeling so you can identify and address business risks and trends much earlier than the competition

To learn more, download the whitepaper from Enterprise Applications Consulting SAP S/4HANA: From Two-tier ERP to the N-tier Enterprise. The report describes the limitations of a multi-vendor, two-tier enterprise, and details the role of SAP S/4HANA in a company’s rapid evolution into a multi-tier enterprise that is more responsive to business change and opportunities.

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