Put everyone on the same single instance of the ERP system that powers the HQ. So no matter where you are, you access the same system. General Mills, the consumer foods giant, has adopted this approach with all its subsidiaries worldwide, no matter how big or small they are. If the business process in a geography is different (e.g. local packaging material needs to be sourced from a local cardboard vendor to package cereal boxes), or there are local regulatory needs to adhere to (e.g. electronic tax deduction at source for employee payroll in India), the company creates templates and rolls them out so they can still fit within the ambit of the global single instance of the ERP running at the HQ. This approach is certainly not cheap but it ensures complete uniformity and central control by folks at the HQ.

Let everyone do whatever they want, as long as they give HQ controlling the 10 (or whatever the precise number is) pieces of information on a periodic basis. This way there is no disruption and the subsidiary can keep doing what it was doing before. Of course, the downside is that there is no global “single version of the truth” and the company can get blindsided by events they did not see coming. This is also an approach that is likely to cause some serious pain after a point e.g. imagine managing and upgrading multiple ERP systems and keeping the employee skill sets current or even trying to manage the various vendors who provide the software and the consulting services and keeping track of all the license-types, the patch details, the support entitlements etc.

Then there is a bit of a hybrid approach, where a company runs only those systems in the subsidiaries and regional sales offices etc which can seamlessly integrate with the main system it runs in the HQ. And this is where the advantages of working with the same single vendor kick in, for e.g. SAP has developed best practice software packages that allows its mothership SAP ERP application to conveniently integrate with its SME-centric solutions like SAP Business All-in-One, SAP Business One or the SaaS focused SAP Business ByDesign. In some sense, this allows a customer with the best of both worlds – they can retain the individual business processes that work best whether at the HQ level, the global level or the individual subsidiary level, the implementation & maintenance footprint of these SME-centric solutions is vastly lower than choosing option 1 above, and is a lot more operationally efficient than option 2 above.

Conclusion
Integration has remained a four-letter word in the ERP lexicon and despite countless efforts to tame that beast it offers a formidable challenge for customers even today. After all, it is hardly uncommon for customers to spend more on integrating their various software pieces than in implementing their core ERP system. And which is why I think SAP may have stumbled upon a market that is rife with opportunity – with its very established base of large enterprise customers, each of whom has hundreds (if not thousands) of entities in their extended enterprise networks, the market is indeed very large. Yes there are multiple integration vendors (like IBM Castiron, Boomi etc), but having access to native integration capabilities provided by the same single vendor is a very attractive proposition for a CIO. For instance SAP provides pre-configured country templates, pre-configured integration scenarios using various integration platforms (e.g. B1iSN, SAP PI), pre-designed intercompany scenarios and is extendable – these are things that make a single vendor consolidation option very attractive. As the old MasterCard commercial might have said: “Integration, check. Single version of truth, check. One throat to choke, priceless”.

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• A robust, industrial grade business software (like SAP Business ByDesign) to manage their entire business, but who do not have the means or the ability, to adopt the full solution all at once
• To address a particular functional requirement or pain point immediately, but want to lay the blueprint for future growth so they can add more functionality without disruption later

There are currently three (3) SAP Business ByDesign Starter Packages.

SAP Business ByDesign CRM Starter Package
The SAP Business ByDesign CRM Starter Package provides customers the full set of sales force automation (SFA) capabilities they need to efficiently generate leads, manage all stages of the sales process, and close deals, while laying the foundation for a full suite implementation down the road. The SAP Business ByDesign CRM Starter Package can be implemented in less than three weeks, which means that customers can start to realize fast time-to-value in an area – sales force automation – that is of critical importance to them.

The key benefits of the package include:

• A full set of sales force automation capabilities that customers need to generate leads, manage the sales process and effectively close deals
• The option to expand this CRM foundation into a full ERP suite implementation down the road, whenever the customer is ready

SAP Business ByDesign ERP Starter Package
The SAP Business ByDesign ERP Starter Package provides customers who have outgrown QuickBooks (or other equivalent products) with the financials and accounting capabilities they need to manage the next stage of their growth, while also providing a foundation for adopting the full SAP Business ByDesign suite. The package is designed for those SME customers who require the benefits of a large scale ERP application delivered on demand but who do not have the means or preference for adopting the full suite at once. The SAP Business ByDesign ERP Starter Package can be implemented in less than six weeks, which means customers can quickly realize the following benefits:

• A full set of sophisticated financial and accounting functionalities that customers need to run their business efficiently and profitably
• Establish the foundation for seamlessly growing into the full ERP capabilities provided by SAP Business ByDesign down the road, whenever the customer is ready.

SAP Business ByDesign Professional Service Provider (PSP) Starter Package
The SAP Business ByDesign PSP Starter Package is designed to give SME professional services firms affordable access to the world class business process management capabilities they need to not only manage their business end to end, but also to level the playing field against well-capitalized competitors. The SAP Business ByDesign PSP Starter Package can be implemented in less than 8 weeks, which means customers can quickly gain the capabilities they need to:

• Acquire and serve clients efficiently
• Improve the profitability of projects
• Increase the efficiency of internal processes
• Enable better financial and cash flow management

Do you have a need to implement an ERP system at a newly acquired business but simply can’t afford or justify the cost of a full SAP implementation?

Do you have limited IT resources that virtually eliminate the ability to develop interfaces and/or extractions from legacy systems?

Do you require deployment in a short timeframe and the ability to “roll-up” mission critical business information?

Do you have a need to minimize costs and required IT efforts while eliminating uncertainty about ongoing costs?

SAP Business ByDesign may be just what you are looking for. SAP BBD is a powerful on-demand business management system built from the ground up. It can help you run every part of your business (including finance, HR, CRM, supply chain, and procurement) and run it better! Utilizing a two-tier solution, you can make use of SAP’s extensive set of best practices while minimizing additional IT infrastructure outlays.

CLICK HERE FOR MORE INFORMATION ON SAP BUSINESS BYDESIGN

With SAP Business ByDesign, you can:

Apply all benefits of SAP to support a newly acquired business

Have an operational system in weeks to months

Minimize costs and required IT efforts with an on-demand solution

Utilize extensive best-practice expertise built into the solution

Eliminate uncertainty about ongoing software costs using a solution with a predictable subscription cost

Simplify maintenance of IT solutions

Build a foundation for expansion

And, of course, report results automatically to your existing SAP system utilizing a two-tier ERP landscape.

Making the first move just got easier and more affordable. Through June 30, 2011 only, SAP is offering Step Up to the Cloud, a powerful incentive that gives you up to 9 months of free subscription based on the duration of the initial contract.

SAP & PROCON MANAGEMENT SERVICES WILL SHOW YOU HOW TO:

FACILITATE A MOVE TO THE CLOUD

In a brisk introductory workshop, Procon will discuss how to maximize your client’s investment in business solutions software. Additionally, you will be presented with a no-nonsense introduction to “the cloud”. Next, we’ll provide you with a comprehensive overview and live demo of SAP Business ByDesign, followed by a Q&A session. In addition, we’ll share insights with you about the benefits of Software-as-a-Service and Cloud Computing.

Click here to learn more about SAP Business ByDesign

Click here to Register

Session Leads Jane Reiner (Procon), Jeff Moses (SAP) and Peter Illari (Domain Implementation Services) have been advising organizations on how to match IT solutions to business needs for more than 15 years respectively in various roles around ERP & CRM business platforms.

About Procon Management Services, Inc.
At Procon, we recognize that there are many variables in determining the success of your project. Our services are designed for organizations to have a defined roadmap and process of selecting enterprise software. We can accurately guide you through your project from start to finish. This includes leading the evaluation team, providing guidance with vendors, scoring and comparing results. While the final decision rests with you, our report and professional input aid in the decision of your overall selection. Your business objectives are accurately matched with IT initiatives which give your organization real ROI in technology.

About Domain Implementation Services Inc.
Domain Technology Group is an SAP Partner and IT consulting company providing network solutions that improve business operations. Their tailored approach is affordable, flexible, innovative, and focused on understanding your business functions and procedures and they support a variety of small to mid-size businesses with computer hardware and software, strategic planning, tactical guidance, implementation, and service maintenance.

We’re looking forward to meeting with you on May 12th in Fort Lauderdale.

Best Regards,

JONH OKUNSKI
SAP Americas

305-972-9599

JANE REINER
Procon Management Services
954-340-2990 x2015

PETER ILLARI
Domain Implementation Services Inc.
610-374-7644

SAP Business ByDesign
Workshop & Breakfast