How your ERP system can support globalization aspirationsDecember 1, 2021 by Carole D'Arcy
How your ERP system can support globalization aspirations
If your business is beginning to expand, or you have developed a strategy to grow your business globally in the future, you’ll soon need a new ERP system that is flexible, agile, and efficient.
From data analysis, reporting, tracking and automation, ERP’s will provide your organization with the data needed to grow successfully.
In this article, we explore how your choice of ERP system can support your globalization aspirations.
What is globalization?
Globalization is the process in which businesses start to develop international influence or start operating on an international scale.
Due to globalization, a company that was once a successful national firm, might go on to become a multi-national business with subsidiaries in countries across the globe.
Global company vs multi-national company
When discussing globalization, it’s important to understand the difference between a global company vs a multi-national company.
A global company considers the world as one, singular market. They’ll offer the same products in different countries; this is known as a standardization strategy. The assumption is that one product can meet the needs of people across the world.
A multi-national company adopts an adaptation strategy, which focuses on adaptation of their products in different countries based on local needs, taste, and culture. An adaptation strategy works particularly well for companies that export their products, as it ensures that the product will meet cultural and regulatory requirements in different countries.
Of course, the type of strategy your organization needs depends entirely on the type of product or service you offer.
Once you know whether your business model uses a standardization or adaptation strategy, you’ll know exactly what features you’ll need from your ERP system.
How ERP supports globalization
Implementing a global ERP system is a great method to encourage improved digital collaboration, from anywhere in the world. For businesses aspiring to become global, implementing a new ERP is worth the investment. Here’s why.
- Agility
With global competition tougher than ever, a multi-national business must be able to beat out the competition when it comes to reaction time and efficiency.
With ERP, agility can be achieved by connecting data from various sources to offer a single system that is flexible for all departments. - Insights
Access to clear, easy-to-read data is key when it comes to monitoring performance and identifying any weaknesses in your business.
ERP provides detailed reports so that data is at the core of your decision making, ensuring you make strategic business choices that will drive your globalization efforts. - Productivity
Without an efficient ERP system, those manual yet important day-to-day tasks, such as generating reports and monitoring inventory, will become unavoidable - less than ideal for a business looking to expand globally.
With the right ERP solution, tasks can be automated instead, freeing up time and resources and ensuring productivity across all levels. - Integration
With 53% of businesses planning to move to an integrated ERP in 2021/2022, there is simply no need to waste time using a variety of separate systems.
Instead, your ERP system should integrate all data management processes into a global database, which can be accessed via one, standard system.
Integrating resources into a singular system allows for increased efficiency, visibility insights and improved productivity.
ERP implementation with Nolan Business Solutions
ERP implementation is a must for most small-to-medium sized businesses, but it is absolutely essential for organizations looking to develop global influence.
Interested in learning more about how your ERP can support your globalization aspirations? Looking for an ERP partner to take your business to the next level? Contact our expert team today - we’re always happy to help.