Tier 1 ERP Software

Tier 1 ERP software is typically used by the largest and/or most complex organizations and multinationals in the world, or those with the ambitions of becoming market leaders. Firms such as Gartner will typically describe Tier 1 ERP users as having in excess of 1000 employees and revenue of at least $500M USD per annum.

Only Tier 1 ERP software can consistently and reliably solve the problems of some of the largest organizations in the world, covering accounting, manufacturing, production, project management and programme management and more for companies such as Coca-Cola, Nike, P&G and more.

Advantages

• Tier 1 ERP software is typically extremely robust and can be made to fit almost any business scenario.
• Typically Tier 1 ERP is supported by millions of R&D and investment from ERP vendors to continuously improve it.
• Tier 1 ERP software is well used by other large companies, meaning you're rarely the only other company using it or on the same path.

Disadvantages

• Tier 1 ERP software can be expensive to purchase.
• Tier 1 ERP systems can take a long time to implement.
• Tier 1 ERP systems can be risky to implement as they are so complex
• Maintaining Tier 1 ERP software can be expensive and require some top IT or consulting talent.

Tier 1 ERP Software typically costs a minimum of $1 million in Year 1. The cost of your Tier 1 ERP software will consist of:

• 10-30% ERP software licensing
• 30-60% ERP implementation
• 10-20% ERP consultancy/change management

Tier 1 ERP software such as SAP, Oracle and Microsoft can take anywhere from 3 months to several years to implement. The length of time is typically dictated by:

• Internal and external resource constraints
• ERP project scope
• ERP project complexity
• Customization
• Integration