ERP Software

ERP SOFTWARE COMPANIES Pt. IX

Geo-Political Considerations for Global Diversification and the Impact of ERP Software Companies on Technological Innovation

In their business practices - as is the case with any type of provider - ERP software companies should cater only to those environmentally and socially responsible businesses that adhere to their respective local, regional and national standard government regulations, as well as to international policy. Otherwise, they may risk becoming entangled in the innumerable global corporate scandals making headlines in the news, which are currently at the order of the day.

A fundamental, underlying cause for the challenges posed to the ERP software giants by diversification, is determined by another central element in the ERP global implementation process which also deserves special attention: “System Landscape.” This aspect involves the assessment of worldwide business processes and the collection of relevant data from different countries. 

Because of the wide scope of such a process, which is still very technically complex and time-consuming, it has become common practice for companies to implement ERP solutions that suit the current global, standard business practices- thus limiting the potential introduction of newer technologies which may prove to be beneficial to the public, and also preventing their commercialization on a mass scale.

There are further problems connected to the diversification process, and they all exemplify the numerous variables involved in the complexity of such an operation for those ERP software companies willing to engage in the process on a global scale. Basically, there are simply too many factors to be considered. One of these is deciding which of the departments in the company levels will be responsible for what function in the implementation of the translation procedures necessary for customization in the target market of the country of preference.

Also, understanding where consultants or customer service representatives can get the necessary training and knowledge of a specific customer’s preference is fundamental- particularly if the client/customer is an innovative high-tech business or start-up with limited access to resources, capital and market visibility, and if it relates to a newly-released technological innovation.

With regards to legal international business practice standards, an ERP software company must integrate into its database not only information pertaining to individual countries as a whole and the respective market sectors of interest, but also the necessary data which will allow it to operate in that specified market on the local, regional and governmental level. This process involves gathering all the relevant data concerning the appropriate legal business standards of the target market overseas which the foreign company is required to follow.

Written by :

Amy Cruz