The world in which we do business is shrinking, and virtually every enterprise is now involved in some form of international trade, whether marketing and selling to customers in other countries, or simply using parts or materials that are produced elsewhere. We can thank the Internet, or blame the Internet if you prefer, for opening markets to product and services almost without regard to time and distance. The “glass-is-half-full” crowd will view these developments as the onset of unlimited opportunity. If you lean toward the half-empty- glass crowd, you are likely to see significant threats in virtually unlimited competition from literally any place on earth.

Like it or not, every executive must recognize this new reality and factor global business into plans, processes and strategies. Design products to appeal to international markets. Search for suppliers in other geographies. Understand local regulations and expectations, import/export processes and requirements. Consider language challenges in labeling, documentation and marketing. Establish new sales channels or coordinate manufacturing operations across geographies and time zones. The Internet is a key tool for joining the global business community and conducting business around the globe.

Globalization and Web commerce have changed traditional business behaviors and practices. If manufacturers don’t expand into new geographic markets, their market share is likely to shrink as new competitors will enter their territory and target their historical customers. Companies must adapt their products and services to those new potential customers. They must leverage the Internet to quickly establish a virtual presence. They must use collaborative technology in order to respond to customer’s requirements better and faster.

Manufacturers often grow and enter new markets by acquiring or merging with other companies. This usually means, however, that different facilities within the newly merged enterprise are using several applications on different hardware platforms, applying different part numbers for the same items and using different operating procedures. The challenge is to bring as much uniformity to the varied facilities as practical without destroying the uniqueness and competitive edge that the individual units had before the merger. The new divisions need to communicate, exchange many kinds of data (product information, customers, suppliers, employees, etc.), coordinate and synchronize logistics operations, provide visibility to materials and components requirements, optimize fixed assets utilization across multiple facilities, consolidate financials and much more.

A natural consequence of having operations scattered through multiple locations, whether around the world or in a specific region, is the need to gain visibility across all sites. Visibility can lead to more negotiating power for purchased parts, more efficient centralized credit and collections and accounts payable, and opportunities for improved customer service by gaining access to world-wide inventories and production capabilities.