Global and expanding organizations are increasingly adopting a Two-Tier enterprise resource planning (ERP) strategy to run their global businesses on two or more ERP systems to meet market needs.
SAP’s Two-Tier ERP strategy with SAP S/4HANA Cloud offers headquarter-subsidiary, central services, and supply chain ecosystem deployment models, enabling business and IT to work together to build sustainable, scalable solutions providing all benefits of cloud deployment – agility, standardization, and low total cost of ownership (TCO) – while maximizing existing investments in their ERP systems (in cases where an organization is not ready to transition to the cloud entirely.
Start Simple with SAP S/4HANA Cloud, Public Edition
Identify areas within the company with natural boundaries and processes that fit the SAP S/4HANA Public Cloud.
Examples to start simply with Public Edition include:
- Subsidiaries
- Minimally integrated lines of business
- Newly acquired businesses
- Geographical regions.
The above situations represent starting points for the first SAP S/4HANA Cloud, Public Edition implementation and building expertise in running ERP in the Cloud. This approach minimizes the impact on the rest of the organization using the existing ERP environment.
Expand your Cloud Business Solutions
The initial SAP S/4HANA Cloud system can be expanded, or new SAP S/4HANA Cloud systems can be added to the federated system based on the same criteria used to determine the first system. In addition, central services such as finance and central procurement can be brought into the scope to consolidate cross-company business processes and thus increase the horizontal usage of the cloud. In parallel with the subsequent rollouts, retrofitting of current SAP ERP processes should continue.
