Two-Tier ERP: A Strategy for Success


Many large companies employ a two-tier ERP strategy to manage the complex IT needs of both corporate functions and local business units. A “tier 1” ERP system handles functions like finance, HR, and supply chain for the entire company. Meanwhile, “tier 2” ERP systems are tailored to the specific requirements of business units or regions. 

The benefits of a two-tier ERP approach include: 

  • Cost efficiency – A global tier 1 ERP avoids the high cost of implementing and maintaining multiple separate ERP systems. Tier 2 systems only contain the additional functionality needed at the business unit level. 
  • Flexibility – Tier 2 ERP systems can be customized to meet the unique needs of different business units, regions, or divisions. From industries to languages to tax and compliance requirements, tier 2 systems provide flexibility. 
  • Risk mitigation – The tier 1 ERP manages core functions for the entire company, reducing compliance and regulatory risks. The smaller tier 2 systems have contained impacts if issues arise. 
  • Data consolidation – Data from tier 2 ERP systems can be consolidated within the tier 1 system to provide a unified view of performance, risks, and opportunities across the business. 


  • However, two-tier ERP strategies also require careful planning and management to succeed. Key factors include: 
  • Clear requirements gathering from business units early in the process 
  • Robust integration between tier 1 and tier 2 systems 
  • Customization of tier 2 systems only when necessary 
  • Strict change management processes for each ERP system 
  • Balanced allocation of IT resources to support both tiers efficiently 
  • Continuous evaluation of the strategy’s effectiveness and opportunities for improvement 

 Overall, two-tier ERP can provide an optimal balance of global standardization and local agility when executed properly. With the right planning, governance, and ongoing review, organizations can maximize the benefits of this strategy. 

Regarding SGH handling stress for your company, the key would be assessing the specific sources of ERP stress and building processes and technologies to mitigate them. This could involve tools to improve workflow efficiency, reduce manual data entry, automate reporting, monitor ERP performance, provide self-service access for internal users, and enhance training and support for end users.  

With a comprehensive strategy that considers people, processes and technology, SGH should be able to recommend solutions to reduce your ERP-related stress points. 

Here are some ways SGH can help you achieve a successful ERP implementation in Odoo: 

  1. Requirements analysis – SGH can conduct a thorough analysis of your business requirements to determine the best configuration and customizations for Odoo. This includes understanding your processes, data needs, integrations, and reports. 
  1. Project planning – SGH can develop a detailed project plan for your Odoo implementation, including timelines, tasks, resource allocation, risks, and contingencies. This ensures the implementation stays on track. 
  1. System configuration – SGH can configure Odoo based on your requirements, including setting up custom fields, statuses, workflows, user access rules, and other system parameters. 
  1. Customizations – If needed, SGH can build any custom modules, reports, or interfaces to integrate Odoo with other systems, using Odoo’s native development tools. 
  1. Data migration – SGH can migrate your existing master and transactional data into Odoo, transforming and cleaning data as needed. 
  1. Training – SGH can provide training to your users, from basic navigation and functionality to using specific modules within Odoo. 
  1. Go-live support – SGH can provide support during your Odoo go-live to ensure a smooth transition, troubleshoot any issues, and make post-launch adjustments. 
  1. Ongoing support – SGH can offer ongoing Odoo support and management after your implementation, including upgrades, new customizations, bug fixes, and performance optimizations. 

In summary, SGH can handle all aspects of your Odoo ERP implementation from start to finish, or provide support for specific phases as needed. A key focus would be a successful go-live and optimum utilization of Odoo to meet your business goal.