Going global: Are modern enterprises engaging the world stage?
Before the advent of the internet, everything from the most basic enterprise communications to business-to-business transactions could be laborious. Now, the digital age offers more freedom than ever.
Consequently, more connectivity and the ease of doing business overseas has effectively seen the world shrink, with more companies looking to take on the global stage.
Expanding with technology
The key to doing so effectively? Technology.
Today’s enterprises have more opportunities to think laterally, and can be far more sweeping and experimental in their strategic planning than they could have been in the past.
Companies can now imagine a radically different, and far more effective way of managing operations, according to research from McKinsey & Company.
For example, even smaller enterprises can permeate into other markets for a fraction of the cost it would have taken in the past. This comes down to improved network capacity and consequent reduced response times in which business decisions can be made.
Moreover, companies with interests across a number of markets are more able to centralize their vision. Ultimately, an enterprise may be present in countries across the globe, but its business plan can be kept as unified as possible.
The risks of globalization
While going global has its benefits, and technology has certainly made the whole process easier, there are still a number of systematic risks for businesses to consider.
Research from insurance company Lloyd’s points to the fact that any shared practices can present issues.
For example, a company in Australia may need high speed internet and thorough network support to run its IT infrastructure. These may not be as widely available in a lesser-developed market, which can cause problems if the enterprise is attempting to streamline all of its processes across several markets.
There can be little denying that organizations can benefit from broadening their interests into a different country’s. However, as the potential for more integration into new markets grows, the point to keep in mind is that the risks will similarly expand.