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Central vs. Distributed...


I have following scenario to consider:

Company AB Chem (ABC) has global operations all over the world. It is headquartered in Japan.

Company GH Inc. (GHI) is a wholly owned yet independent subsidiary of company ABC, but based out of US. But whereas ABC is primarily a chemical and Sales company, GHI is an automotive manufacturer and tier-1 supplier of OEMs in the automotive sector. In short, they are in two different types of businesses with not significant apparent overlap.

Company GHI is considering implementing SAP for itself. ABC already has global SAP in place. Therefore, there is a suggestion to use ABC's global SAP for GHI too.

The question is: is it advisable to go that route or should GHI have its own SAP implementation. What do you see as significant/potential issues related to using ABC's global ERP and becoming part of that? I am more interested in factors other than cost considerations: architecture, master data, processes, change management esp. post go-live , SLAs with the support vendor, upgrade paths this might lead to etc.

I would really appreciate some expert inputs on this.


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