How the Next Generation Enterprise is Different
From Multinational to Global (part 1 of 10)
The globalization mantra is, "Think global, act local"-- meaning, "Have a global perspective but behave according to the requirements of local markets." However, the corporation is being transformed by a merging of the world's economies; the rise of Asia as the global engine of growth; the development of a highly skilled, low-cost, and mobile global workforce; and the rapidly declining costs of collaboration. Yet today, most companies are still operating in a regionally-focused, multinational mindset.
To compete in a global market, corporations must Think Global and Act Global, adopting common business practices and standards for business processes and technology, and harnessing the best talent and skills around the world. Corporations that adopt a Think Global, Act Global strategy can improve efficiency and leverage economies of scale while increasing their flexibility, their ability to innovate, and their responsiveness to local markets.
Our research shows that it pays to have global capabilities -- including truly global workforces, unified global processes, and a global IT platform to enhance collaboration amongst all of the parts of the business, as well as a company's web of external partners.
By definition, a truly global company has no physical or regional boundaries. It builds planetary ecosystems for designing, sourcing, assembling, and distributing products on a global basis. The emergence of open IT standards and platforms makes it considerably easier to build a global business by integrating best-of-breed components from various geographies. Ralph Sygenda, the CIO at General Motors envisions how such unity might play out for GM. "Whether we're developing a product, manufacturing, sourcing, or distributing," he says, "we'll be able to link up all of our activities in a seamless global operation." GM has already taken large steps towards this vision, which may well be the company's ticket to recovery.
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