There has always been a huge debate on what happens to a company's business technology when it merges with or acquires new businesses. Some of them typically try to integrate all of their new subsidiaries, industries and regions into an all-inclusive ERP.

Question 1: What is that the smartest way to integrate new businesses, industries and locations and make quickly use out of the available resources to add value to the organizational performance?

Thomas Kramer, All for One Steeb, Germany: Smaller subsidiaries often do not need the functional depth of the systems of corporate headquarters. They may even be overwhelmed by the so-called Tier 1 systems in terms of functionality and costs. Even though, Tier 1 ERP system is often considered essential for reporting to corporate headquarters, making it the only viable solution across the board.
There is another option: a quick-to-use, cloud-based alternative called a two-tier strategy that leverages the strengths of a leaner cloud-based ERP solution.

Question 2: What does two-tier strategy exactely mean?

Thomas Kramer, All for One Steeb, Germany: Two-tier strategy generally means that 2 ERP solutions operate simultaneously and integrated with one another. As a result, the robust, comprehensive ERP solution can be used at group level (Tier 1), while the flexible, agile and, above all, cost-effective solution is available at the level of the subsidiaries (Tier 2).

Question 3: Compared to any other procedure: What are the major benefits of a two-tier strategy?

Thomas Kramer, All for One Steeb, Germany: For our German-based, globalizing customers, who need a fast integration, a two-tier strategy may be the best solution. Benefits are, for example, that we can offer an excellent price-performance ration, it's simple and affordable, the integration is fast; and so on... With other United VARs members, we rolled out "HMD Global"; They are a fair example for a business transformation project from on-premise in-house manufacturing to outsourced production and cloud based solutions.

Connect Subsidaries - with All for One Steeb

Thomas Kramer is Head of Implementation of Cloud ERP, at All for One Steeb, the United VARs member for German-speaking countries.

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