ERP for internationally operating medium-sized companies

The growth of medium-sized companies with branches abroad is huge. Markets and globalisation make business activities abroad attractive. But the ERP system must also be able to be integrated into the international offices. What are the requirements for internationally operating SMEs?

More and more medium-sized companies are becoming international

More and more medium-sized companies worldwide want to go abroad. There are many reasons for this. A study by the Bonn Institute for SME Research (IfM) shows that international business promises success. The turnover of internationalised companies increased by 60 %. This is not just about manufacturing companies. The growing markets are also making foreign sales subsidiaries increasingly attractive for companies. Due to the increasing Globalisation also attracts companies abroad that have been successful on the German market for a long time.

On the trail of business partners

Another reason for the great interest of SMEs in becoming active abroad is the large companies. Suppliers in particular often follow their clients. In other words, corporations - from the automotive industry, for example - that operate international production facilities in Asia or Eastern Europe. According to the IfM study, as many as 37 % of SMEs are already represented abroad. 20 % are planning to become internationally active. And the trend is rising.
The attraction of this option is clear from the numerous success stories of companies operating abroad. Medium-sized companies that also shift their focus abroad are said to be twice as successful ( IHS study "Internationalisation-a driver for business performance").

The role of ERP software for internationalisation

But how can this step be implemented effectively?
The hurdles that a medium-sized company has to face when it wants to expand abroad are nothing new. IT systems in particular need to be adapted to international requirements. Above all, this involves the companies' respective ERP solutions, which have to be customised to local languages and legislation.
Which ERP system is suitable depends on many different factors. For example, it does not always have to be one software for all locations at the same time. It often makes sense to equip the first local branch with an ERP that can be managed locally. This minimises costs and integration effort.
However, if it is already the third or fourth branch, it is important that the different systems can interact with each other. A standardised database on a common platform is necessary here. Although spreadsheets are the quicker and simpler solution, they are not advisable in the long term.

The most complex, but also the most effective solution is to adapt the ERP system to a system that can be used internationally. Costs and implementation time are higher and longer than with other variants. Nevertheless, this method is popular because it provides quick and direct access to important business figures for all current or future branches is guaranteed. Incidentally, there are hardly any problems with the data connection. Even countries with generally poor infrastructure ensure a good Internet connection.

Other countries - other customs

Cultural differences often prove to be problematic. This is because until the corporate culture Workflows software has been running for a long time before the cooperation between the locations gets rolling. The different views on meeting deadlines, ideas about hierarchies and different ways of working do not make collaboration easy. No ERP system can help here.
Communication problems are also more common than you might expect. English is not at the level it should be everywhere. Not even in Germany. And in many Asian or South American countries, the level of English is very basic. Good managers are needed to organise cooperation between different company locations effectively under these circumstances.

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