02.02.2010

Checklist for Global Implementation

By: Lindsay Alessi, Uta Spinger

As enterprises are getting ready to take their business beyond borders, they are facing some challenges. The Japan SAP Users’ Group has prepared a report, called the book of secrets (Tora-no-maki), providing comprehensive advice for enterprises what to watch for when implementing SAP globally.

Kyoshi Takigawa, JSUG Director Global Implementation SIG and General Manager Konica Minolta Information System (photo: JSUG)

SAP.info: How does the work of the JSUG Global Implementation working group look like?

Kyoshi Takigawa: The JSUG working group comprises companies from diverse industries that come together to discuss their experiences and issues surrounding the global implementation of SAP ERP. Until last year the Global Implementation SIG only met on a quarterly basis and mainly shared the cases they experienced. Members felt they weren’t getting the in-depth information they really needed. So, I changed the format of these meetings to produce more detailed deliverables based on the combined experiences of participants.

The group now meets every quarter, while smaller sub-working groups get together around once a month. Discussion topics stay on the table for around a year to allow enough time to cover issues thoroughly and produce comprehensive findings. Participants can now take away real advice and pointers on how to overcome specific issues.

SAP.info: How are the group’s findings presented and what themes are you currently discussing?

Takigawa: We recently published a report on the issues facing companies about to go global with SAP ERP. This was based on the experiences of 18 of our member companies. In Japanese this type of document is called a “tora no maki” (a book of secrets), which literally translated means “scroll of the tiger”. This is a kind of master text that provides comprehensive advice for enterprises getting ready to take their business beyond Japan – a kind of checklist to take them through from pre-implementation to operations. We also prepared a report for companies who have already gone global but are facing issues going forward. The report covers the typical challenges they can expect on the road ahead.

Another related theme we’re currently working on is global talent. We’re looking at what really constitutes global talent and how it’s best identified and fostered. Once this research is complete, we’ll put together another “tiger” volume. We hope to have this document translated into English to allow for potential input from other countries.

SAP.info: What did you find were the biggest challenges for companies going global?

Takigawa: It really varies depending on the company but one challenge that can cause all kinds of issues in a global rollout is information about SAP Global implementation, or a lack of it, and we hope the findings of our group help to overcome this to some extent. Another common stumbling block for Japanese companies is a lack of planning for post-implementation operations. Companies implementing SAP globally often don’t consider post-operational issues prior to embarking on their implementation. This can lead to problems later.

Consolidation is another major concern. Most Japanese companies with overseas operations run these systems separately. Given the fact that we need to comply with International Financial Reporting Standards and other global regulations, worldwide consolidation becomes a mandatory issue. It’s crucial that systems are established based on one convention so that all countries speak the same language.

Speed and cost are also key challenges. When a company with a large number of subsidiaries implements a core system globally, a basic rollout might only cover one company per year, which would obviously take far too long. Companies need a faster, lower-cost approach to implementation.

Next Page: How companies can differentiate themselves in the global market

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