two-tier-ERP-system | Photo Courtesy of	 Victor1558 of having one ERP solution for the entire company, some businesses are finding it more cost-effective for specific divisions to have their own ERP solution tailored specifically to their needs. Creating separate, customized ERP systems can bring in a better ROI. A dual system also helps companies reduce cost as they reduce the number of users.

A two-tier system provides value because it can address the specific business needs of different divisions within a company. As an article on Enterprise Apps Today’s website explains, although running multiple ERP systems appears counterintuitive, it can actually help companies integrate various divisions with greater ease, especially if they use one ERP as the primary system and add others for more specialized parts of the business.

But large companies with disparate subsidiaries need to be careful that they don’t end up running hundreds of separate ERP systems to accommodate the various needs of each division.

A company with more than one ERP solution needs to ensure that all systems are integrated. Running many different systems to access and process the same information ends up wasting resources, which is why so many companies turn to ERP in the first place. This means companies need to pick ERP systems that integrate well with other software, including other ERP systems. If a business runs two separate ERP systems that do not coalesce, it will waste resources on redundant software. Therefore, companies looking to operate multiple ERP platforms would do well to consider how they integrate when making their selection.

Source: Enterprise Apps Today, May 2012