When a foreign enterprise in Japan plans to implement an ERP system, an approval from its head office is mostly required for final decision making. From this standpoint, in many cases IT department of the headquarters is deeply involved in the project from system selection to implementation. Sometimes, the partner who participated in the HQ IT project is invited to visit local office for project support and necessary coordination.

As a global organization, HQ needs information such as financial consolidation, IFRS compliance and inventory status. To meet such corporate requirements, it is mandatory to standardize a structure of accounting code, item master, dimensions, inventory valuation, inclusion of charges into item cost, security and internal control.

Microsoft Dynamics ERP solutions are widely used in countries in Europe and North America. Not a few enterprises recommend the solutions as a standard ERP platform for overseas subsidiaries. Sometimes the HQ requests implementation of Dynamics ERP already developed and used in other countries (so called roll-out project).

Pacific Business Consulting, Inc. has been providing implementation and consultation services of Microsoft Dynamics solutions since 2001. Our bilingual consultants from Asia Pacific countries have been engaged in implementation of the solutions by working closely with IT department and financial group staff of the customer’s head office. For the system implementation, PBC uses a world-wide proven methodology called “Sure Step”. After the system go-live, PBC offers maintenance and support services based on the specially developed service scheme using Dynamics CRM and our AquaGuard product.

If you have any queries about implementation, consultation and support for Dynamics ERP, please contact us from the link below.

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Common Patterns of System Implementation

The following three patterns are most commonly observed for the system implementation for foreign companies in Japan.

• ①Headquarters has made a decision to implement Dynamics ERP to Japan office and corporate template is already developed by HQ.
• ②Headquarters recommends Dynamics ERP as the standard ERP platform for overseas subsidiaries.
• ③The affiliated company in Japan takes an initiative for selection and implementation of the system.

In the following part, you can find descriptions about the three approaches.

Headquarters has made a decision to implement Dynamics ERP to Japan office and corporate template is already developed by HQ.

In this case, corporate template (database) is already developed by HQ for global use. Because it is not feasible for IT staff of HQ to gain enough understandings about business practices and taxation rules in Japan, the system template developed at the HQ is difficult to fit to the Japanese business environment without adjustment. It becomes necessary to translate the template and additionally develop specific functions to meet the local requirements such as Collective Invoice, Firm Banking, Promissory Note, Sales Tax, Distribution Management and related report out-put.

How to proceed with the implementation project

To start the project, firstly it is necessary to obtain enough knowledge about the corporate template developed by HQ. “Knowledge Transfer” session by IT staff of HQ, the Dynamics partner who participated in the development or the Dynamics partner who is assigned for global project support, is required. After validating the template, PBC sets up the system according to Japanese requirements.

As mentioned above, it is difficult to implement the corporate template for Japan Office without any customizations. Functions to meet the local business practices and/or customizations specific to Japan office are added to the system. While the project is making progress, it is important to monitor the project status and have periodical meetings with HQ IT staff. When the need of add-on function is identified, the corporate approval is usually required. All the above communication is to be performed in multi-language environment. Sometimes, information exchange with regional headquarters located in Singapore, Australia or Hong Kong is also required.

Headquarters recommends Dynamics ERP as the standard ERP platform for overseas subsidiaries.

When Dynamics ERP is a recommended package, the system would be developed based on the corporate requirements prepared by the headquarters.

How to proceed with the implementation project

Firstly, it is important to have a clear understanding of the corporate requirements. After validating the corporate requests, the local system development is to be performed in line with the global guideline. If the corporate requirements do not exist or are not clear enough, the joint efforts with HQ IT department are required to settle the issue.

In comparison with the Patten 1, the more flexible and user friendly system can be developed according to the requirements of local office, as far as the basic corporate requirements are reflected. Nevertheless, maintaining a good communication between HQ and local organization is essential by providing the appropriate project status reports for HQ.

The affiliated company in Japan takes an initiative for selection and implementation of the system.

The Japan office chooses the ERP system to be implemented and independently develops its own system.

How to proceed with the implementation project

Among the three patterns, this pattern provides the most flexible implementation. However, the company in Japan has to start with selecting an ERP system together with an implementation partner. At this stage, there are several points to be taken into consideration, which are;

• To select a world-wide well-known and reliable ERP solution
• To select an ERP solution with multi-language and multi-currency functions and IFRS compliance.
• Availability of bilingual consultants in the local partner to maintain a required good communication with HQ.

In addition to ERP implementation, many of foreign enterprises in Japan request to build the IT infrastructure at the same time. So it is also an important step to confirm the specification of IT infrastructure with HQ.

In any patterns, the establishment and maintenance of good communication between local office and HQ play a very important role for successful system implementation.

PBC always support your implementation projects with qualified bilingual consultants from Asian countries.

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