ERP deployment abroad: Eight tips for internationalization
Foreign markets are becoming more and more attractive for SMEs, as predatory competition is steadily increasing. However, only a few division, department and team managers are convinced that internationalization is already being sufficiently promoted in their own company. A central element for success is the cross-national use of ERP - as the digital backbone for all business areas.
Which factors are decisive in order to survive in global competition? Productivity, speed and efficiency are the most frequently used buzzwords. The software manufacturer proALPHA shows how ERP deployment can become a success on the international stage with the help of eight adjusting screws.
- Communication is everything: Use the cultural challenges as an opportunity for your business. Because decisions and planning are different in every country. It makes sense to take as much time as possible at the start of the project to agree on a uniform procedure with everyone involved. Draw up a plan in which project goals and processes are clearly defined and documented. This will protect you from misinterpretations right from the start. After all, functioning processes are an important basis for being as well networked and successful as possible abroad.
- Skillfully overcoming language barriers: In the international environment, English is the established working and project language. But especially between native speakers and non-native speakers, subtleties in communication can quickly get lost - misunderstandings arise, and the success of the project falters. Therefore, when preparing your ERP rollout abroad, rely on internationally experienced project managers who are able to navigate linguistic pitfalls with confidence.
- Identify local requirements: The legal regulations for companies differ from country to country - often even regionally. In order to be prepared for all eventualities here, you should already inform yourself about the respective framework conditions before establishing a foreign branch office. It also makes sense to be familiar with local business practices. A standardized questionnaire for the ERP roll-out is not helpful here, as it may not take into account essential success criteria. proALPHA relies on open workshops in these cases, in which users can openly address their hurdles and define individual requirements. Only then do targeted questions complete the picture.
- Get IT on board from the start: The technical target architecture must be defined as early as possible for an international deployment of ERP software. After all, a few additional user accounts are usually not enough. Consider the back-end setup as an essential success factor for your project.
In one possible scenario, you build your foreign branches as additional clients on an existing database. This saves licensing costs, reduces implementation time, and facilitates data exchange - although all countries are then dependent on one database server. In order to be able to act more flexibly with regard to maintenance and local requirements, a second scenario is possible: Each location receives its own database, but this is associated with additional licensing costs and greater effort when importing updates. - Standardization and its limits: Individual requirements for workflows and data structures quickly lead to deviations from the standard programming in the ERP system - especially at the company headquarters. However, since most foreign subsidiaries have a more compact set-up and require fewer special tools, adopting the complete architecture is rarely expedient. The solution: Develop a set-up with several country subsidiaries and modify the standard for your subsidiaries as little as possible. Adaptations per client or country can be implemented much more easily this way.
- Introduce mandatory master data management: The master client concept is a useful tool in central master data management when processes are similar at all locations and the same data is used. Despite the high effort involved, you thus uncover the potential of a globally uniform ERP system - and make it usable for your company. Master data is stored and maintained centrally and can be replicated in local clients. However, it is important to differentiate between global and local master data in order to take regional and national differences into account, for example when parameterizing country-specific tax laws.
- National language is trumps: The ERP application should be adaptable to the needs of the respective users - not least with regard to the language version. Even if user interfaces and menus in English are often the international standard, masks in the local language make work much easier. If your ERP provider does not have a ready-made language version for your requirements, he should at least provide a translation kit.
- Is an on-site consultation necessary? On-site consultant days are a huge cost when it comes to rolling out an ERP system abroad. Therefore, limit these appointments to the most necessary. In consultation with the project management, define the tasks that must be completed at the respective location. Country-specific settings for the ERP software and other work that does not require customer knowledge can then be completed conveniently and cost-effectively via remote consulting.
With these eight tips, SMEs should be well prepared for the most common hurdles and can optimally configure their ERP deployment even before venturing into internationalization.
Source and further information: www.proalpha.com
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