A new trend is evolving in enterprise resource planning (ERP). It’s the concept of two-tier ERP, and it has become a growing area of discussion in corporate finance and information technology (IT) departments. Done well, it promises to finally attain the global visibility, standardization, and efficiency we all imagined large-scale ERP would bring back before those systems proved too complex, costly, and slow to deploy.What is two-tier ERP, and when is it right?
By understanding how organizations are taking advantage of cloud ERP to reshape their businesses, we can begin to discern what lies ahead for enterprises as they move their systems to the cloud. That in turn can tell us what new demands they’ll place on their business systems, and thus how the ERP application platform itself must evolve to allow them to take full advantage of all that the cloud brings.
When was the last time you upgraded your ERP system? If the answer is “not in recent memory,” then you aren’t alone. About two-thirds of mid-sized businesses are running old versions of their enterprise resource planning (ERP) system—in some cases, it’s software that’s three or more versions old. This is the legacy of decades of on-premise (in-house) software deployments, incremental releases that never seemed worth the pain of a major upgrade migration project, and fear of losing critical customization.
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