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| Tuesday, 12 June 2018 |

The importance of the right ERP system in a Company's Internationalization

Open borders, removal of customs barriers, much better and cheaper infrastructure and communication, internet and IP telephony have made the world much more available, much easier to reach and simpler to integrate into the company.


A modern ERP system is designed to create a structure of information that is important for a company and ensures that the relevant information is readily available to the persons in a company‘s value chain.


ERP is, at the same time, the flexible framework that supports the company’s infrastructure, business model and processes. A modern ERP system integrates or often also includes BI, CRM, Supply Chain Management, Big Data management, e-Business, etc, and is the backbone of the company’s operations and transactions. ERP can also structure and facilitate a company’s internationalization process, if you choose the right ERP system and design it to support the company’s international ambitions.


“The right ERP system” in an international context is a system designed for international use and that therefore includes localizations (language and local legislative requirements) in the countries where the company expects to establish themselves. It is also important that it includes local payroll modules, bank-modules, etc, that can be integrated with the ERP system and moreover that it supports the local business practices.


At the company’s headquarters level, it is also important that the ERP system allows for consolidation of data so that, for example, the Finance Department can monitor the company’s international results on an ongoing basis. So regardless of whether the company is looking at starting new operations abroad or has bought a foreign company, having the right ERP solution allows to immediately deploy the entire enterprise infrastructure, business model and best practice in the country concerned.


It gives a tremendous strength for a company to be able to implement “its own DNA” to new subsidiaries growing abroad. It minimizes risks while saving costs.


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Read 1141 times Last modified on Thursday, 05 July 2018

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