Creating a Global Presence: What to Consider, and Not Consider, on the Road to Globalization

Creating a Global Presence
What to Consider, and Not Consider,
on the Road to Globalization
SAP White Paper SAP for Industrial Machinery & ComponentsContent
^ 4 Executive Summary
^ 5 Globalization Strategies
^ 7 Key Business and IT Challenges of Globalization 7 Business Challenges 8 Technology Challenges
^10 Creating a Global Presence 11 Best in Class 12 Technology Infrastructure 12 End Users 13 Multinational Functionality 13 Localization Functionality 13 A Globalized Enterprise
^14 Globalization Success Stories 14 Sauer-Danfoss Inc. 15 Goss International Corporation 16 Scientific Atlanta Inc., A Cisco Company
^17 Global Connections 17 Get Connected TodayExecutive Summary
Seeing with Global Eyes
Organizations preparing to meet the global economy head on face a complex set of business and technology challenges that can be overcome only with a new set of competencies and technologies. This white paper helps you prepare.
Before you can focus globally, you reducing total time from order to need to turn your eyes internally to d­ elivery. Operating as vertically inte-understand the business drivers that grated enterprises, they can make The exploitation of shape your globalization strategy. Is it s­ ubstantial gains in global market new markets and the profitable growth or cost reduction, or share. And to achieve interoperability both? To help you, this paper ranks the of applications on a global scale, they need to lower manu-leading strategies other large, midsize, are integrating their internal operations. facturing costs are the and small manufacturing companies are pursuing to create their global presence. Although no two companies' globaliza- wheels that turn the It also focuses on the challenges unique tion strategies are the same, there are main engine of global-to companies going global today - from key considerations common to all com-the new supply chain complexity of panies that want to improve their global ization: profitable entering new markets to the need for vision. From a technology infrastructure growth.global visibility and standardized that supports global processes, end-processes. user interfaces, and multiple languages as well as multinational and internation-Furthermore, it gives you a snapshot al functionality, this paper addresses of how best-in-class companies are those considerations. And to provide executing their globalization efforts to insight into what other companies are reach their strategic objectives. For doing, this paper concludes with case example, companies with automated studies of how three SAP customers workflows across multiple sites can put those considerations successfully experience huge improvements in into action.
4 SAP White Paper - Creating a Global PresenceGlobalization Strategies
Exploiting New Markets and
Lowering Manufacturing Costs
For most industries, including the Strategic Objectivesindustrial machinery and components What are your company's primary strategic objectives?(IM&C) industry, the highway to global-ization began when world markets were infiltrated with lower-priced products Increase profitability 39% 27% 19%from emerging nations with inexpensive Increase overall revenuelabor. In reaction to this challenge, IM&C 24% 22% 18%companies increased their reliance on Reduce costs 4% 29% 26%low-cost country sourcing coupled with outsourcing of manufacturing opera- Provide a superior 27% 9% 22%tions and the opening of production customer experienceplants and facilities in foreign countries. First-to-market innovation 4%10% 12%Furthermore, as these low-cost com-petitors edge into U.S. and European Other 3%/3%/1%markets, the resulting competitive p­ ressure to enter new markets and 0% 20% 40% 60% 80% 100%the a­ dded supply chain complexity First choice Base: all respondents, 161.that goes with it are leading manufac- Second choice IndustryWeek® - A Penton Media Publicationturers to reevaluate and modify their Third choice © 2008 Penton Media Inc. All rights reserved.globalization strategies. Figure 1: Leading Strategic Objectives for Industrial Machinery and Components CompaniesThe exploitation of new markets and 3the need to lower manufacturing costs The second study , prepared by ­increasing overall revenue, reducing are the wheels that turn the main IndustryWeek m... [download for more]