Multinational Software Deployment
Introduction
If you go back in time
to the 1970s and 1980s, there were few international software packages
available. This was for a number of reasons. First, there were fewer mergers and
acquisitions on an international scale. Second, the hardware, databases, and
other technology were not sufficiently advanced to support the networking
requirements for international applications. A third reason was the challenge of
trying to create software that could fit a number of different cultures. The
most successful software packages tended to be engineering, manufacturing, and
assembly-type software that were technically rather than culturally or
regulatory based.
The change came in the 1990s with the emergence of enterprise
resource planning systems (ERP systems). There are today over 100 significant
ERP systems; among the most prominent are SAP, Peoplesoft, BAAN, and J. D.
Edwards. ERP and other enterprise software systems offer tantalizing benefits:
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There can be standardization around a region or around the
world.
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Management can obtain information with much less effort on a
more timely basis.
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There is increased communications among the various users of
the software in the company.
Yet, many ERP implementations have either failed or been scaled
back. These systems, in addition to the benefits, have the following problems:
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The cost of the overall implementation can be 10–20 times
the cost of the software.
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Obtaining qualified consultants to support the
implementation is a must. Few firms have had a successful international
presence.
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It can be difficult to demonstrate the benefits of the
system to in-country managers and staff—creating problems and resistance.
Most companies, however, either are involved in a region or
globally seek to implement the same systems in as many locations as possible.
Some of the operational benefits of the same software are:
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Simpler and easier sharing of information between locations.
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Centralized support that reduces the overall software cost
over the life cycle.
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Capability to take advantage of improved data communications
and networking.
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The pressure of e-business to automate transactions with
suppliers, employees, and customers.
There are drawbacks in that the local regulatory and cultural
factors are difficult to accommodate with the same software. In the longer-term
future this situation will improve as software makers adopt object-oriented
methods that are more flexible and can accommodate national and regional
changes.
Multinational software deployment is complex. Here is a
factor that affects this type of project: You cannot do it yourself so that you
must rely on consultants and contractors. Now we are not talking about a few
people—there could be 20–100 or more of these consultants involved in different
locations.