The tailoring of a product to local requirements, by a global (or at least globally aspiring) organization.
Glocalization is the tailoring of a product to local requirements, by a global (or at least globally aspiring) organization. Everyone prefers something that has been made especially for you, rather than a copy of what someone else already has. In business, if you want any sort of competitive advantage, that is exactly what you need! The problem, of course, is that the lowest cost product often corresponds with the highest production volume.
Achieving the Holy Grail
You might have seen HSBC’s advertisements on the future – that in the future even the smallest business will be multinational. A lot of this pressure has exploded over the last 10-15 years with internet shopping and ordering. So, you need to be more flexible with what you produce, be willing to sell to anyone and act quickly.
Sounds normal to me!
Clearly part of this challenge is being able to have a strong match between what you are selling and what your customer actually wants. An easy way to achieve this is to have someone local working with your customer. Someone who understands their specific, local requirements
From a financial perspective, all sorts of business models are being used. Everything from franchising, strategic partnerships and joint ventures to consortia, virtual organizations and wholly-owned subsidiaries. So to really deliver value to your customer, you need to think about how to get someone local to your customer. If you have a global presence already, great! If not, now is the time to really leverage your network to build the partnerships so that you can be represented elsewhere in the world.
Putting the Business Models in Place
To help you put these business models in place and manage them effectively, IFS provides strong support for enabling your business globally, including support for multiple languages, currencies and units of measure. Get the full story on how IFS can help you run your global business in the white paper on How to Achieve Global ERP.