Gartner expects that most organizations will shift from monolithic ERP to a hybrid approach by 2017. Gartner is not alone. Accenture Technology agrees that a distinctive feature of today’s ERP is that it is built inherently on a hybrid architecture. Commonly, such an architecture is referred to as a “Two-Tier Model”—that is, the combination of core ERP capabilities with cloud/Software-as-a-Service (SaaS)-based capabilities on the edge in areas such as sales, CRM and collaboration—all integrated with the ERP system.
Accenture continues, “CIOs today need to manage the legacy environment, ERP systems (sourced either through a public or private cloud), SaaS technologies, as well as various platform as a service, business process as a service or SaaS offerings from vendors and integrators. And all the while companies need to be thinking about the proper way to incorporate today’s leading technologies including in-memory computing, analytics, mobile and social.
In the April 12, 2016 issue of Enterprise Apps Today, reviewer Drew Robb discusses two-tier ERP software and looks at the leading Cloud ERP providers.
According to Robb in agreeing with Gartner and Accenture, finds Cloud ERP software is becoming increasingly popular for two-tier ERP deployments, the model Gartner describes in which companies run more than one ERP system – typically a primary On-Premise one at headquarters with additional Cloud ERP software at the subsidiaries. Rob explains that, with millions of dollars and thousands of hours invested in their On-Premise system, most companies are reluctant to rip them out. But, to expand to new markets and be able to adapt to change, they need ERP that can be implemented in months, not years. The answer – Cloud ERP.
The article continues, “More than just introducing new features, two-tier ERP is about making business units more agile and helping them explore new opportunities. Companies that are spun out by a divestiture, for example, are re-launching their businesses on cloud ERP software. Similarly, fast-growing new businesses typically began in the cloud and don’t plan to leave any time soon. Rather than a two-tier ERP strategy, they use a single code base and a single instance of cloud ERP software.
What Robb Said about Rootstock
“Rootstock is …(a) provider of cloud ERP software for the manufacturing and distribution sectors. While it gravitates more toward discrete manufacturers, it also serves tiny operations of five or more users, up to large organizations with many sites and hundreds of users. Its product suite comprises a large series of modules, which can be deployed alone or in tandem with others. These include production engineering, inventory, lot and serial control, material requirements planning, capacity planning, scheduling and shop floor control.”
To read more, go to http://www.enterpriseappstoday.com/erp/11-cloud-erp-software-options-2.html.
You also may want to read Rootstock CEO Pat Garrehy’s article “Manufacturers Are Looking to the Cloud” which appeared in Manufacturing Business Technology which also covers this topic and others as well. Click here.