Strategic initiatives in Finance require a complete view
As a CFO, or an IT executive supporting the Finance team, you are focused on executing strategies in Finance that drive competitive advantage and higher profitability. Initiatives such as dynamic intelligent finance, continuous accounting and closing, working capital optimization, and intelligent cost control and tax, are top of mind. But no strategy can be completely successful if you don’t have real time visibility and connectivity across your entire organization, including all your subsidiaries. With many subsidiaries, many different ERP applications, many vendors, and many interfaces that constantly change with each product release, most Finance organizations struggle to see that complete picture, much less see it in real time.
2-tier ERP accelerates your journey to the Cloud
The world is moving to the Cloud, no question there. Many companies are starting the Cloud migration process by delivering cloud solutions to their subsidiaries. This makes a lot of sense because subsidiaries tend to have less sophisticated needs and a Cloud solution is exactly what they need to be dynamic and competitive in their local markets. Plus, cloud experience learned in the subsidiaries can be transferred back to Corporate when the Cloud migration happens at Corporate. When companies have one ERP solution at Corporate, and a different solution in their subsidiaries, the industry calls this a 2-tier ERP strategy.
Corporate connectivity to subsidiaries is key
So, a 2-tier ERP strategy makes a lot of sense from a “journey to the cloud” perspective, but how can you ensure that your strategic initiatives in Finance incorporate what is happening in your subsidiaries? And how do you keep it simple and cost effective? Two thoughts. One, ensure that you move to a single-vendor solution across all your subsidiaries. Two, take advantage of out-of-the-box integration from your subsidiaries to corporate to streamline consolidations and simplify collaborative financial planning across the entire organization.