Epicor Software Corporation (NASDAQ: EPIC), a leading provider of
enterprise business software solutions for the midmarket and
divisions of Global 1000 companies, today announced the results of
its enterprise resource planning (ERP) strategy survey. The survey
received over 1,600 responses from a variety of companies worldwide
and a third of all respondents said they were considering a
two-tier ERP strategy.
"It was very interesting to note that although 59% of the
respondents have a single tier ERP strategy in place, only half of
them have actually succeeded in getting that system implemented in
the majority of their sites worldwide and over a third are actively
considering a two-tier strategy to solve this problem," said James
Norwood, senior vice president, worldwide product marketing for
Epicor.
"Epicor's unique ability to seamlessly co-exist with Tier-1
implementations coupled with its flexible deployment options
including on-premise, on-demand, hosted or any combination thereof
from a single next-generation ERP platform offers these
organizations the flexibility they need in order to realize
successful ERP strategies worldwide."
In line with a recent report published by Forrester Research,
Inc., which notes, "Some firms have found that the simplest ERP
standardization approach, which minimized IT costs, was not the
best for achieving enterprise goals." Furthermore, "When
formulating their ERP standardization policies, application
development and delivery professionals should carefully consider:
current and future likely operating models; the relative
attractiveness of 'on-premise' and 'on-demand' solutions; and,
deployment of new technologies."(1)
Norwood continued, "The survey also noted that the reasons why
organizations look to a tiered strategy include the need to better
meet functional requirements in various parts of the company,
improved data quality and reporting, as well as more rapid rollout
to the whole company. The biggest challenge with such a tiered
strategy seemed to be master data synchronization."
A two-tier ERP strategy is the combination of Tier 1 and Tier 2
systems, often from the same vendor, into a single integrated
environment. This often means retaining Tier 1 solutions in
locations where they are already deployed or where the complexities
of the business are sufficient to justify the increased
implementation, configuration and maintenance costs while using a
Tier 2 solution in the locations that need a powerful ERP system
deployed rapidly, yet either cannot justify the cost of, or lack
the local support resources to maintain a full Tier 1 environment
or wait for its implementation.
According to Gartner, Inc., "Many companies still have a
patchwork of ERP solutions across their business. Rationalizing
these applications can deliver economies of scale, support global
standardization of core business processes and simplify vendor
management, yet too many companies take an unstructured, transient
approach to the exercise."(2)
Today, Tier 2 solutions such as Epicor offer all the
capabilities that an organization would expect from a Tier 1 system
but without the associated cost of ownership. These include
end-to-end ERP processes, embedded workflows and strong governance,
risk and compliance (GRC) controls, as well as robust reporting and
performance management capabilities. In addition, Tier 2 solutions
continue to provide their long-held advantages of a lower total
cost of ownership, greater flexibility, and the ability to be
implemented more rapidly than their Tier 1 counterparts. Modern
Tier 2 packages designed with multi-site business deployment
scenarios in mind also offer ease of use, strong global
functionality, and a rich, repeatable footprint based on
established business processes and master data management (MDM)
stewardship.
Norwood added, "With its true global capabilities, modern
business architecture, embedded GRC and MDM functionality, support
for flexible deployment models (on-premise, hosted, and on-demand)
and a low total cost of ownership, Epicor is well placed as a
strategic component of any two-tier ERP strategy. With these dual
strategies in place, organizations can retain the benefits of
consolidated information, providing greater visibility, as well as
drill down to individual transactions, linking together sites,
divisions, and subsidiaries around the world in a truly virtual
enterprise."
This survey confirms an increasing trend toward two-tier
strategies, an area in which Epicor has considerable experience.
Benefits come from significant savings that can be achieved through
consolidated purchasing, but also during the rollout process to
multiple subsidiaries, coupled with lower maintenance and support
costs. By reducing the number of ERP packages and instances,
organizations can enable more consistent business processes across
the entire virtual enterprise.
(1)Forrester Research, Inc., "It's Time to Clarify Your Global
ERP Strategy," October 19, 2010
(2)Gartner, Inc., "A Two-Tier ERP Suite Strategy: Is It Right
for You?" by Nigel Montgomery and Denise Ganly (July 28, 2010)
About Epicor Software Corporation Epicor
Software is a global leader delivering business software solutions
to the manufacturing, distribution, retail, hospitality and
services industries. With 20,000 customers in over 150 countries,
Epicor provides integrated enterprise resource planning (ERP),
customer relationship management (CRM), supply chain management
(SCM), human capital management (HCM) and enterprise retail
software solutions that enable companies to drive increased
efficiency and improve profitability. Founded in 1984, Epicor takes
pride in more than 25 years of technology innovation delivering
business solutions that provide the scalability and flexibility
businesses need to build competitive advantage. Epicor provides a
comprehensive range of services with a single point of
accountability that promotes rapid return on investment and low
total cost of ownership, whether operating business on a local,
regional or global scale. The Company's worldwide headquarters are
located in Irvine, California with offices and affiliates around
the world. For more information, visit www.epicor.com. Follow us on
Twitter: https://twitter.com/Epicor;
http://twitter.com/EpicorEMEA.
Epicor is a registered trademark of Epicor Software Corporation.
Other trademarks referenced are the property of their respective
owners. The product and service offerings depicted in this document
are produced by Epicor Software Corporation.
Contacts: Lisa Preuss Director, Public Relations Epicor Software
Corporation 949/585-4235 lpreuss@epicor.com Damon Wright Vice
President, Investor Relations Epicor Software Corp oration
949/585-4509 dswright@epicor.com
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