More and more companies open up international offices in global competition. But different laws, accounting rules, languages and banking systems complicate the organization.Companies should therefore use standardized ERP solutions that take into account country-specific features. Important for the selection also is an on-site service in implementation, rollout and support.
Globalization is not just an issue for large corporations. Even the middle class to take advantage of its international business, either with the export of goods or the establishment of branches in other countries. But here lurk many stumbling blocks. Finally, the companies are required to comply with different laws, accounting rules, currencies, languages and banking systems. At the same time increase the world's claims of tax authorities and other institutions. This applies to the reporting or compliance with applicable in the countries’ policies and laws.
The opening of international offices and the acquisition of companies from other countries also provides for IT is a challenge. You must integrate these new locations into the existing IT infrastructure. A central role is played here the ERP system. A single solution for all countries helps to optimize business processes across national borders to share information faster and manage inventory more efficiently.
This article shows what international (midsize) businesses should consider when choosing the right ERP solution and the role of the local service of the provider plays.
Multilingualism and Unicode
An international ERP solution must naturally be multilingual. It should be possible to show documents (invoices, product descriptions) and rules on the various locations in the local language, enter and process. This also applies to companies without international subsidiaries that do business with companies in other countries businesses.
To be prepared for future markets such as China and Russia, the ERP solution also must Unicode -capable because languages like Chinese or Russian special characters, explains Karsten Sontow, Board of Trovarit, an analyst firm, which differs from the selection Business Software specializes. This does not only documents, but also the UI menu or the help system.
Exceeded budget
Although the project was less extensive than before, with an average budget of 2.8 million last year, many projects are run financing and deadlines for getting out of hand. Two thirds of respondents have achieved with their ERP installations less than 50 percent of the expected benefits.
Why ERP consultants committed
External consultants are the internal forces are with their experience and skills to the side or manage the implementation. Often there are also strategic partners who help shape the project.
Provider choice
SAP is the provider, the most common lands on the short list of companies. In the actual decision as to which system is installed, Oracle has the edge (34 percent). This is probably due to the fact that the study is US heaviest.
Sales
Shown is the annual turnover of the companies surveyed.
What improvements
In most cases, the availability of information has improved. But the productivity, efficiency and interaction across the enterprise have won the ERP installations.
Satisfaction with ERP functions
The satisfied (purple) and neutral (green) Reviews outweigh the questions of satisfaction with the various ERP functions. The best value reaches the general software functionality (52 percent satisfied or very satisfied).
Amortized cost
27 percent of respondents from that the cost of ERP project has not amortized.
Exceeded schedule
A quarter of the participants have their project on time served, even completed two percent ahead of time. All others had to pull over.
Business interruption
More than half had already complained stoppages due to faulty ERP installations. The reasons may be technical, procedural and organizational nature. Easy to fix, so write the adviser of Panorama Consulting, are technical errors.
Number of named users
Almost half of the responding companies have designed their ERP installations for up to 100 named users.
Reasons for ERP implementation
Respondents about the reasons for the ERP project most responded quite general increasing business performance. The other answers are more specific and reflect on improved customer service, integrated offices and compliance requirements.
Successful installations
Although the project runs often bumpy, the user assesses their subsequent installations mostly good. 63 percent of respondents describe it as successful.
What ERP consultants are committed?
In most cases the dedicated ERP Consultants are eligible for the implementation used. Often they are also obliged to train staff and to accompany the change management.
Savings through Cloud
The savings with the cloud deployment quantify 36 percent to zero percent to 20 percent (blue) and a further 18 percent of respondents to 21 to 40 percent (green). The judge's consultants are panoramic than too little.
Project cost overruns
37 percent of respondents have completed the project within the budgeted costs. All others had to pay more. One in ten had to pay 51 percent and more.
Realized Benefits
The information on the benefits derived from the ERP project is very diverse. Often the problem is that the goals are not clearly formulated and what has been achieved cannot be reconciled with the expectations. Nevertheless, information such as we have no business case and we have no measurable benefits achieved worrying.
Dominated on-premise
Pure SaaS deployments are a marginal phenomenon, self-hosted ERP cloud are rare. Together, these two modes come in 2013 to 15 per cent. In last year's survey, there were even 18 percent.
Local law and currencies
An international ERP solution must also cover various currencies and legal foundations. While this is at first glance, of course, but it’s not every software fulfills this requirement as standard. When writing about all relevant invoices, legal and fiscal requirements of the country must be observed. Because under compliance -viewpoint is zero defect tolerance the measure of all things. Even items such as accounting rules, standard chart of accounts, commercial, contract or copyright law must be considered.
No manufacturer can adjust his system completely a priori to all countries. This grows over time and must always be supplemented in the short term, Christian Hestermann, research director ERP is the IT research and consulting firm to consider Gartner Germany. This is particularly true in countries such as Brazil, China or Russia, in which the financial laws and regulations change very frequently. In order to overcome these costly challenges, working ERP vendors , according to the analysts usually together with local partners who are familiar with the specific needs of countries.
Multi-site function and consolidation
The ERP software must also all international locations with country-specific parameters such as amounts, currencies, calculations or price lists cover in one instance and consolidate (multi-site feature, and multi-company or multi-org). She covers all business areas such as finance, production, purchasing and sales as well as inventory.
For example, the French subsidiary of a German company ordered a product that produces the branch in Romania. An ERP solution map all processes of this intercompany transaction between the national companies as possible automated.
About the multi-site function, it is also possible to create indicators such as costs, sales trends, or stocks of branches of all the regions and the central quasi push of a button and consolidate. So it is especially important to the accounting that the data for all countries are in common formats in order to compare them internationally can. The goal is a centralized data management, which allows as few variations and differences in the national companies. This provides an international ERP system for efficient controlling and a transparent financial accounting.
Scalable ERP system
An internationally oriented ERP solution should allow growth among users and be in a single location as well run as many locations. In addition, it should be possible to introduce functions as needed, step by step, if the company needs it. Especially in small locations abroad or at branch offices with a few businesses, jobs should the ERP solution can also be operated via a browser.
Implementation Methodology and local service
A key issue in the selection of the ERP vendor is the procedure for the implementation of the solution. Here companies should ask the following questions
• If the provider itself represented in my destination country with a branch
• They work in these countries with partners, and these partners are coordinated centrally
• Are these partners positioned internationally with several branches?
• Who is coordinating the rollout of the ERP system, when several countries need to be covered in parallel (vendors, partners, customers)
• As the rollout expires (key users, the people trained, or partners)
• Is there a common implementation methodology
The success of an international ERP project and falls with the fact that the partners working together locally well in the center. In his opinion, companies should consider whether the ERP vendors is well networked in the respective region and has built alliances. It is important native, mother tongue on the ground, is in the country's culture at home, knows the regulations and these tunes individually if necessary, also with the authorities. Even the project-specific process know-how must be transferred in the target regions.
In addition, the supplier and its partners should use a standardized implementation methodology and process standardizes the rollout. This makes a medium to long term role as the system survives. These Gartner analyst Hester man The methodology included documentation is for an upgrade in later years important when about a new partner comes into play This should then work with the identical methodology, especially as the most important business processes are stored in the ERP system..
Countries roadmap and question of reference customers
The choice of the ERP system, of course always depends on the company's unique needs and the industry. Analyst Hestermann advises companies that want to expand internationally to observe in any case two points
1. It is important that countries roadmap that determines which countries will be the future for the company is important and what system is used for example in an acquired company.
2. The provider should be able to call up a three reference customers from the corresponding region in a few days and make contact. Then you are on the safe side. Skepticism is the word when the seller hesitates and cannot mention any references. In the telephone conversation with the user then it quickly becomes apparent whether he was satisfied with the system and the implementation by the supplier, explains Hester man , Questions would be How did the tasks solved How did the implementation How closely the partners associated with the manufacturer Was the manufacturers flexible, it is proactively helping or demand.
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