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The Role of ERP in Globalization: A low-cost approach to new markets

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Articles in Business Technology

A majority of companies (79 percent) view global markets as a growth opportunity.

Of those seeking to exploit new markets, half are also feeling pressures to reduce cost either by procuring materials from low-cost sources, out-sourcing manufacturing operations where labor is less expensive, or establishing their own or joint venture manufacturing operations in these same locations.

Aberdeen applies a methodology to benchmark research that evaluate the business pressures, actions, capabilities, and enablers (PACE) that indicate corporate behavior in specific business processes.

These terms are defined as:

  • Pressures- external forces that impact market position, competitiveness, or business operations
  • Actions- strategic approaches that an organization takes in response to industry pressures
  • Capabilities- the business process competencies required to execute corporate strategy
  • Enablers- the key functionality of technology solutions required to support the organization's enabling business practices

Peter Ostrow Peter Ostrow
VP & Group Director, Customer Management, Aberdeen Group

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Jeff Hill Jeff Hill
Senior Research Analyst, Technology, Aberdeen Group

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