Too Long; Didn't Read
The two-tier ERP concept originated in response to difficulties that manufacturers experienced when deploying single ERP systems for their regional offices and subsidiaries. Instead of investing money and effort into retrofitting a legacy ERP to support the entire business, the model allows companies to leverage two distinct platforms: typically an on-premises tier 1 system for the main office and a cloud-based tier 2 for remote or functionally different divisions. The model is also more flexible than a monolithic one since updating or modernizing one small ERP platform is easier and less disruptive to corporate operations.