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Many companies that run the SAP® ERP application as their corporate enterprise resource planning (ERP) system are moving to a two-tier model to support their subsidiaries. With this model, they choose a subsidiary ERP system that meets subsidiary functional requirements and is less expensive to deploy, easier to change, and simpler to manage. Yet it also satisfies corporate requirements, which typically include regulatory transparency, operational metrics visibility, use of centralized business functions, and key data rollup.

Many of these companies are selecting the SAP Business ByDesign™ solution as their subsidiary ERP system for those reasons. The powerful solution is fast to deploy, offers a low cost of ownership, meets functional and industry requirements, and provides deep integration with SAP ERP used at headquarters (“HQ SAP ERP system”). A recently released paper, SAP Business ByDesign for Subsidiaries -Overview of functional and technical integration with headquarters SAP ERP (see link), describes the six integration scenarios between SAP Business ByDesign and SAP ERP: data exchange, process integration, master data integration, analytics integration, IT management integration, and structured custom-integration scenarios. It then goes on to describe the technology architecture behind these integration scenarios.  Now you can get a quick overview of SAP’s current and future technical strategy to provide customers with a simple to implement 2-tier ERP solution for their subsidiary ecosystem. 

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