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Prelude: My article on company blog. First one on a serious note. I will aim to write such sedative articles more consistently as I am now more close to research and customer pulse. If not anything, I promise, these should drive you to deep sleep.
Cheers!
‘When the world starts to move from a primarily vertical (command and
control) value-creation model to an increasingly horizontal (connect and
collaborate) creation model, it doesn’t affect just how business gets done. It
affects everything’ –The World is Flat, Thomas L.
Friedman.
Not very long ago firms were happy reaping profits by just focusing on local
markets, competing with local players or enjoying the status of monopoly.
Massive regulatory, geographical and technological barriers ensured longevity of
such a regime. But recently, we have seen these barriers crumble, changing the
rules of the game. As the world gets flatter and flatter with technological
advancements, economies are increasingly embracing the collaborative mode of
working. To summarize, there has been an unprecedented strategic shift.
Collaboration will inevitably lead to learning and unlearning. Multinational
presence of firms is pushing this trend further. To improve the bottom line,
subsidiary firms have no option but to emulate global practices. This forms the
basis of my discussion – Pervasive Innovation. Firms from BRIC group
(Brazil, Russia, India and China) and other emerging economies in APAC are
looking for innovative solutions to gain a competitive edge. ERP has been one
such innovation which companies are finding irresistible especially for tighter
integration in the supply chain. For major ERP vendors, APAC-Japan have become
the most sought after markets. One reason for this change could be that western
markets have started to mature, but primarily it is because of increased trading
and an emphasis on increasing efficiencies in new markets. This trend is not
limited to developed and now developing economies. Within each of these, the
major propellant has been the SME (small and medium enterprise) segment. Close
to 55-60% of SAP’s worldwide revenues come from SME segment. The desire to
innovate is just ubiquitous!
In any organization cost-benefit analysis is an indispensable tool to
evaluate any solution. However, in the case of developing economies and the SME
segment, it becomes extremely critical. In my next write up, I will discuss my
experiences with firms from these regions and how ERP vendors, enterprise
solutions like Winshuttle care to play a Samaritan’s role.