8 tips for successful ERP deployment abroad
The foreign market is becoming increasingly attractive for SMEs. According to the Kienbaum study, more than 30% of respondents see enormous growth potential in Europe and overseas. Yet only 15% of divisional, departmental and team managers are convinced that internationalisation is already being sufficiently driven forward in their own company. A central element for success is the transnational use of an ERP system - as the digital backbone for all business areas.
Now the question arises: 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 8 adjusting screws for the ERP roll-out, with which hidden champions also shine on the international stage.
1. 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 all those involved. Draw up a plan in which project goals and processes are clearly defined and documented. This way you are protected from misinterpretations from the very beginning. After all, functioning processes are an important basis for being as well networked and successful as possible abroad.
2. skillfully overcome 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 project's success falters. Therefore, when preparing your ERP rollout abroad, rely on internationally experienced project managers who are able to confidently navigate linguistic pitfalls.
3. 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. It also makes sense to know the local business practices. A standardised catalogue of questions for the ERP roll-out is not helpful here, as it may not take into account essential criteria for success. In these cases, proAlpha relies on open workshops in which users can openly address their hurdles and define individual requirements. Only afterwards do targeted questions complete the picture.
4. get IT on board from the start
The technical target architecture must be defined as early as possible when using ERP software internationally. Because it is usually not done with a few additional user accounts. Consider the set-up in the backend 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 the implementation time and facilitates data exchange - however, 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 accompanied by additional licensing costs and a higher effort when importing updates.
5 Standardisation 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 realized much more easily this way.
6. 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.
7. national language is trump
ERP systems should be adaptable to the needs of the respective users - not least in terms of 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.
8. is 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 coordination 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 8 tips, SMEs are well prepared for the most common hurdles and can optimally configure their ERP system even before venturing into internationalization.
Source: proAlpha
