ERP Implementation/Development Consulting Services ERP Implementation/Development Consulting Services ERP Implementation/Development Consulting Services

Implementation of ERP for overseas offices of Japanese enterprises

Having recognized this new trend, Pacific Business Consulting has been supporting ERP implementation for the overseas offices of Japanese enterprises since 2001. Pacific Business Consulting has continually strived to create even more improved solutions in the areas of Project Management, Implementation Methodology, Customization, Documentation, Localization and Support Services. Our commitment to Microsoft Dynamics products has helped establish Pacific Business Consulting current position in the industry. Selecting the best Dynamics partner in each country is not an easy task and the success of implementation depends highly on the quality of the professional consultants involved. Pacific Business Consulting has devoted special attention to addressing this important task.

 

Common Patterns of System Implementation

The methods of system implementation for overseas subsidiaries can be classified into the following three patterns.

 

sample
Develop and deply a template
The Japanese headquarters develops a corporate template and implements the template at their overseas companies.。
Compliance with corporate requests
Japanese headquarters compiles corporate requests and has overseas companies develop systems accordingly.
Initiative by overseas company
The overseas company takes the initiative for both system development and implementation.

 

 

The Japan headquarters develops a corporate template and implements the template at their overseas companies

Firstly, the Japanese headquarters conducts analyses to specify the Fit Gap among requirements for the corporate template, the localizations provided by local Dynamics partners and the specific business requirements of each overseas company. Some examples of corporate requirements are given below:

  • Code structure (Chart of Accounts, Customer/Vendor, Item)
  • Standardized inventory valuation
  • Definition of dimensions (Department Code, Reason Code for increase/decrease, Item Category Code etc.)
  • Interface with consolidation systems and BI Tools used at headquarters
  • Data extraction and interface definitions to obtain accurate inventory data
  • Overall business processes
  • Considerations for Internal Control, Security, Audit and J-SOX.

The above are regarded as crucial items to be clearly defined at the preparatory stage, prior to the commencement of project roll-out.
Usually the initial site for an implementation project is designated at the start of the corporate template development. For this reason, the requirements of initial project site are usually reflected in the corporate template. Because the template is developed at the headquarters, high system quality can be maintained. The actual system implementation is performed by local Dynamics partners. The local partner receives a “Knowledge Transfer” of the corporate template at the beginning, continues with requirements analyses, and performs system design and development followed by user training and live support.

Advantages Disadvantages

Japanese
headquarters

  • Knowledge of the corporate template remains at the headquarters, allowing headquarters staff to continuously support project roll-out at overseas companies.
  • The approach allows standardized system development which meets corporate requirements.
  • Time and efforts is required to develop the corporate template.

Overseas
subsidiaries

  • As the implementation project is led by headquarters, subsidiaries can receive support from headquarters.
  • It is difficult to reflect all local requirements in the standard system.

sample

 

 

The Japanese headquarters compiles corporate requests and has overseas companies develop systems accordingly.

The headquarters confirms the requirements and specifies them in the corporate request documents. The documents may be translated into English for the use of local Dynamics partners. It is also possible to roll out the system database developed in the first project to other overseas offices.

Advantages Disadvantages

Japanese
headquarters

  • By keeping good control of local Dynamics partners, overall corporate requirements can be reflected in the systems.
  • With too many country-specific requirements taken into account, the system database developed for the first site might not be adaptable for roll-out to other overseas companies.
  • Constant monitoring of local partners is needed to ensure that corporate requests are not neglected.

Overseas
subsidiaries

  • Provided corporate requests are supported, local requirements can also be reflected in the system, allowing a greater degree of system freedom.
  • Due to the increased development burden on the local organization, there is an increased risk of implementation failure.

sample

 

 

The overseas company takes the initiative for both system development and implementation.

Because local subsidiary takes the initiative, this is regarded as the most challenging scenario. Careful monitoring from the headquarters is required to ensure that the system is developed in the way that the headquarters demands, and that the subsidiaries is sticking to the original schedule and budget.

Advantages Disadvantages

Japanese
headquarters

  • There is a possibility of lower development costs.
  • There is a high risk of corporate requirements not being sufficiently reflected in the system.
  • It is quite difficult to develop a standardized system among multiple overseas subsidiaries.
  • If the development ends in failure, the project has to be re-started from the beginning.

Overseas
subsidiaries

  • The local requirements can be flexibly included in the system.
  • If the development ends in failure, the project has to be re-started from the beginning.

 

 

 

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