Wednesday, June 30, 2010

Enabling Rapid and Centralized International Expansion

Retailers today have complex store operations, with multiple brands and store formats and hundreds or even thousands of stores. Store systems for these retailers are complex, with store system customizations, integration with merchandising and ERP systems, as well as cutting edge store inventory management functionality.
With multi-national store operations, the process of unifying business processes becomes even more challenging. Companies looking at international store system roll-outs face political, cultural, language, organizational, and tax complexities. The global roll-out of retail store solutions thus becomes even more challenging with increasing risks compared to single-country implementations.

Retailers planning international store system expansion often experience:
Number of stakeholders involved, with conflicting priorities and varying sets of requirements
Taxation and currency-related issues
Country and region-specific regulatory compliance issues
Lack of training for end-users and support staff across multiple locations
Complexity of different business environments across geographies
Time-zone related issues

Given these challenges, it is easy to see why CIOs consider an international store system roll-out to be a higher risk project with longer implementation duration in comparison to a single-country implementation

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