How Global Operating Model Advisory Services Can Advance Your Business
Learn how Global Operating Model Advisory Services can help you streamline your business operations and expand your reach globally. Discover the importance of developing effective operating models that can adapt to local market conditions, and how seeking expert advice can help. Streamline your operations, expand your reach, and maintain financial control in your global operations.
- Expanding globally is crucial for businesses to remain competitive, but it comes with challenges such as navigating different legal and regulatory environments, cultural differences, and logistical complexities.
- To overcome these challenges and achieve success in global markets, businesses should develop effective operating models that can adapt to local market conditions while maintaining overall strategic coherence.
- Seeking expert advice from Global Operating Model Advisory Services can help businesses streamline their operations, expand their reach globally, conduct market research, ensure legal and regulatory compliance, and maintain financial control, among other benefits.
In today's globalized world, businesses must expand their reach beyond local markets to remain competitive.
However, expanding globally is not a piece of cake and comes with challenges, such as navigating different legal and regulatory environments, cultural differences, and logistical complexities.
To overcome these challenges and achieve success in global markets, businesses should develop effective operating models that can adapt to local market conditions while maintaining overall strategic coherence.
This is where Global Operating Model Advisory Services can help. In this article, I'll explore the benefits of global operations and how Global Operating Model Advisory Services can help you advance your business.
Challenges with Global Operations
An IDC InfoDoc, "A Guide to Growth" defines midsize business leaders as companies that expect higher revenue and market share in 2023 compared to 2022, respond effectively to disruptions, and prioritize digital transformation.
Moreover, they rank higher in several other facets of evolution, including launching new product lines or venturing into new customer channels such as mobile apps.
IDC reveals that 91% of midsize business leaders plan to expand into new business models and services to address evolving consumer expectations.
But what are some of the challenges that going global presents to businesses?
The Mindset Shift
I can't talk enough about this one!
As a Digital transformation expert working with businesses across the globe, I’ve seen the senior management struggle truly embrace what I call the "international perspective."
It simply means that to be truly international, business leaders, entrepreneurs, and managers need to develop the knack to be inclusive in their thinking.
Research from GLOBE suggests that a global mindset involves three main competencies: cognitive ability, affective ability, and behavioral ability.
Cognitive ability refers to having the necessary knowledge, skills, and understanding of global business practices, including cultural norms, legal regulations, and economic trends. A business leader with strong cognitive ability can make informed decisions about how to expand into new markets and manage international operations effectively.
Affective ability refers to having the curiosity and courage to take reasonable risks in pursuit of business goals. This includes being open-minded and willing to learn from different perspectives and experiences, and being adaptable and flexible when faced with unexpected challenges or setbacks.
Behavioral ability refers to having the skills to build cross-cultural relationships and work effectively with people from different backgrounds and cultures. This includes effective communication, active listening, empathy, and respect for cultural diversity. A business leader with strong behavioral ability can foster trust and collaboration with international partners, customers, and employees.
By cultivating these three competencies, business leaders can navigate complex international business environments, build successful relationships with diverse stakeholders, and drive sustainable growth for their organizations.
The Business Blueprint
Entering global markets is an exciting opportunity for businesses to grow and expand their customer base. However, it also presents a significant challenge in terms of developing a business blueprint appropriate for the new market.
This requires a deep understanding of local consumer behavior, preferences, trends, and legal and regulatory requirements. For example, a business that sells pork products may need to modify its product offerings in markets where pork consumption is limited or prohibited for religious or cultural reasons.
Analyzing and Reporting Business Performance
As businesses expand and diversify their products globally, consistent evaluation and reporting of performance become challenging. This difficulty arises due to different financial systems and data definitions in various countries where the company operates.
As a result, each location interprets and reports the performance of similar products and services differently than required by the corporate office.
This can lead to inaccurate analysis and wrong decisions. Inaccurate analysis can be detrimental to investment decisions and give the impression that certain parts of the business are more profitable than they genuinely are.
Maintaining Financial Control
Lack of financial control, particularly when venturing into emerging or smaller markets, is a problem that is often ignored.
Smaller markets often lack standardized procedures with adequate checks to ensure compliance across all locations. Consequently, it is challenging to monitor activities such as partnering with local suppliers and the number of bank accounts a local operation should have.
This lack of standardized processes makes it difficult to track and comprehend the state of assets, thereby increasing the risk of fraudulent activities. Even in cases where controls exist, they are often manual and limited to specific countries, making it difficult to audit or view them from overseas locations.
How to Avoid These Challenges…
There are numerous challenges associated with expanding your business globally, and the ones mentioned above are just a few examples. But...
There is a simple solution to circumvent these challenges - Seek expert advice.
Expanding your business internationally can be a totally different ballgame!
You've got to deal with different languages, currencies, cultures, and geographies. It's a lot to handle on your own, so don't be afraid to reach out to folks with international expertise.
They can help you tweak your business model to fit the new market.
I think it's a good idea to work with development experts who really know their stuff outside of the U.S. It might cost you a bit, but it's a solid investment to get your operations up and running in new territories.
How Global Operating Model Advisory Services Can Help You Advance Your Business
Here are some of the ways in which these services can help you advance your business:
- Market Research: Conduct in-depth market research to identify new opportunities in global markets and develop strategies to take advantage of them.
- Legal and Regulatory Compliance: Global Operation Advisory experts can help you navigate complex legal and regulatory environments in different markets, ensuring that your operations comply with local laws and regulations.
- Operational Design and Optimization: Design and optimize your operations to improve efficiency, reduce costs, and increase profitability.
- Cultural and Linguistic Support: Navigate cultural and linguistic differences in global markets, ensuring that your business operations are sensitive to local customs and preferences.
- Supply Chain Management: Optimize your supply chain for timely and cost-effective delivery of goods and services in global markets.
The global economy is evolving rapidly, and businesses must adapt to these changes to succeed. While US companies used to go global to reduce costs or outsource back-office work, the trend is now shifting as businesses are discovering the benefits of the immense talent pool available globally.
With cloud technology levelling the playing field, companies can use the same tech stack whether they're in Nigeria or New York. As a result, more regions are producing top talent and leaders. Innovation centers are becoming the first point of contact in new regions, and businesses need to focus on building relationships instead of just selling.
UniAspect Digital can help you navigate the complex challenges of global markets with their expert guidance and support. We offer Global Operating Model Advisory Services that design and implement effective operating models so your business can adapt to local market conditions while maintaining overall strategic coherence.
With UniAspect Digital by your side, you can achieve your global business objectives without investing excessive time and money. You can build a strong international presence and achieve success on a global scale.
Contact UniAspect Digital today to learn more.