In the world of digital transformation, organizations often face a dilemma when it comes to integrating localized, often highly specialized apps with a broader, more standardized ERP system. Local offices or business units might have applications that are perfectly aligned with their unique needs, but when it comes to implementing a global ERP system, these tools may not fit seamlessly into the new platform. How can organizations balance the need for advanced, localized functionality with the benefits of an integrated solution that brings consistency and standardization across the enterprise? This challenge is more common than you might think, and understanding how to address it can significantly impact the success of a digital transformation initiative.
Localized applications—often implemented in specific business units or regions—serve an important purpose in organizations. These systems are typically designed to cater to the unique needs of particular markets, departments, or operations, often providing functionality that is highly specialized. For example, a regional office may rely on a custom-built solution that handles a specific regulatory requirement or localized process that a global ERP system might not accommodate out of the box.
In many cases, these localized apps are deeply embedded in the daily workflows of their users. Employees may have become accustomed to the way these applications work, and they have often been tailored to perfection for the unique needs of a particular region or function. This high level of specialization and the resulting user comfort and productivity can make transitioning to a new system seem daunting. The challenge lies in ensuring that these localized tools can still provide value even after the introduction of an integrated ERP system.
One of the key strategies for managing multiple systems, including localized apps, is strong governance. When dealing with a multinational company, there needs to be a central governing body—typically a head of technology or head of information—that understands the full technology landscape across the organization. This governance team is responsible for keeping an inventory of all applications in use, how they are connected, and what data is being pushed in and out of these apps.
Having this governance layer is critical because it helps ensure that localized apps don’t become isolated silos within the organization. By understanding the functionalities provided by each application, the governing body can evaluate how these systems can either be integrated into the new ERP system or phased out in a controlled manner. This understanding also allows for better decision-making when it comes to whether a specific app should be retained, replaced, or integrated into the broader ERP infrastructure.
The next step in overcoming the challenge of localized apps is translating the functionalities of these systems into the context of the new ERP system. It's not just about technical integration—it's about understanding the core value each localized app provides and determining how that value can be preserved within a more standardized, global system. For example, if a localized app is used to manage a specific compliance requirement in one region, the goal would be to either replicate that functionality within the new ERP or find a way to integrate it so that the business process remains unchanged.
This translation of functionality requires collaboration between the IT teams, business leaders, and external consultants to ensure that the right processes are mapped from the legacy systems to the new ERP. While some functionality may be easily replicated, others might require more customization or compromise. This is where the flexibility and open architecture of ERP systems like Microsoft Dynamics 365 (D365) come into play—providing the ability to integrate with external applications and systems without disrupting the core functionalities of the ERP.
Even after determining how to integrate or replace localized apps, the true challenge often lies in managing the change that comes with it. Users who are accustomed to their old systems may be resistant to the new, integrated ERP solution, especially if they feel their specific needs are no longer being met. This is where change management becomes critical. It’s not enough to simply install the new system and expect employees to adopt it. Businesses must engage users throughout the transformation process, ensuring they understand the reasons for the change and how the new system can enhance their productivity.
A successful change management strategy involves continuous communication, training, and support. Employees need to feel that their input is valued, and they must be given the tools and resources to adapt to the new system. In some cases, this may mean customizing the ERP to better suit specific needs while maintaining global standards. Ultimately, the goal is to bring users along on the journey, helping them see how the new system will benefit them in the long run and ensuring that any frustrations or challenges are addressed in a timely manner.
When faced with the choice of keeping or replacing a localized app, organizations must carefully evaluate the pros and cons. If the app provides functionality that is critical to a specific business unit or region and there are no ready-made ERP solutions that can replicate it, it might make sense to keep the app in place. However, this decision should be weighed against the long-term goal of having a unified, integrated system. Keeping multiple apps can lead to increased complexity and maintenance costs over time.
On the other hand, replacing localized apps with the ERP’s standardized functionality can lead to greater consistency and efficiency across the organization, but it might require significant customization or process changes, especially in departments that are heavily reliant on their current tools. This can result in temporary disruptions and a learning curve for users, which is why a careful, phased approach to implementation is necessary.
The key to successfully balancing localized apps and an integrated ERP system lies in understanding the value of both. Localized applications are not inherently bad—they offer specialized functionalities that can drive productivity in specific regions or business units. However, the need for integration and standardization across a multinational organization often requires a more holistic approach. By employing strong governance, translating localized functionality into the ERP system, and managing the change process effectively, organizations can successfully adopt a global ERP system while still meeting the unique needs of individual business units.
Ultimately, the goal is to preserve the strengths of localized apps while aligning the organization with the broader goals of the digital transformation. By carefully managing the integration of these systems, organizations can ensure a smoother transition to a unified, integrated ERP system that supports both global and local needs.
At Third Stage Consulting, we are passionate about empowering organizations to successfully navigate the complexities of digital transformation. Whether you're embarking on a new transformation journey or aiming to optimize your current processes, our expert team is committed to providing comprehensive support throughout every phase. From initial strategy development to execution and beyond, we work closely with you to ensure that your transformation goals are met efficiently and effectively.
