What Role CIOs should play in transforming companies from MNCs to a Global model?
The start of the 21st century witnessed the emergence of a new trend, in terms of how business was conducted at a global scale. Companies started expanding their businesses in order to increase their market reach - from setting up offices in various countries to modifying their products and services to suit local needs, a lot of changes were being made at every level.
We have come a long way since then - today companies are making all attempts to leverage the power of globalisation. An “international” presence is merely a start. The question then is ‘What distinguishes a global firm from a multinational one, and what role can the CIO play towards making their company truly global?’
Understanding Globalisation & its Challenges
The role of the CIO is evolving from - ‘aligning IT with business strategies’ to ‘enabling business transformation and growth through IT innovation’. A key feature of today's global market is the increasing dominance of the consumer. While multinational organisations primarily focus on spreading their base internationally, global firms focus on building strategies to attract consumer attention across all geographies. Thus it is imperative for the CIOs and top managers to accept, adopt and demonstrate a global mindset.
Globalisation means taking your business to a level where latitudinal and longitudinal differences do not matter, and cross-border operations are seamless and hassle-free. While this can raise your profit margins significantly, the process does pose some fundamental challenges, such as -
- Adapting to cultural and geographical changes
- Understanding local demands and needs
- Monitoring and managing a diverse workforce spread across multiple geographies
- Streamlining operations to achieve administrative ease and efficiency
- Achieving maximum visibility and control
As companies face the prospect of a second recession, CIOs are even more challenged to justify and deliver value while avoiding risky projects. Clearly, there is a need to rethink on your strategies, and focus your investment in areas that deliver maximum return.
Globalisation OR Deterritorialisation - The Transformation Process
Choosing a strategic model that works best for your business while keeping it competitive, can be a big responsibility. What kind of solutions would you look for? What would be the best way to enable a seamless transition process – from an MNC to a global organisation?
In order to achieve sustained competitive advantage, companies will need to rethink their strategies and find innovative ways to maximise profitability & achieve business growth . This can be accomplished by adopting innovative global business practices such as Co-sourcing. I believe, Co-sourcing is the perfect answer for organisations looking to enjoy the perks of a traditional outsourcing arrangement without giving up control over their business functions.
As companies deepen and broaden their presence in international markets, the need for culturally diverse management teams becomes all the more pressing. Therefore, it is important to look at flexible resourcing options to satisfy the needs of a diverse and widely distributed workforce.
The ultimate challenge for an organisation is to transform and adapt itself to the global environment, before it is forced to do so. Multinationals can no longer exist as a collection of country-based business units – they will need to re-think their strategy, management, operations and structure in order to stay competitive. To succeed in the global word, CIOs will need to adopt a broader perspective, and be ready to flex and adapt!
What do you think? What steps can the CIOs take, in order to drive business innovation and make their organisations truly global? Do models like Co-sourcing, flexible resourcing work? Do share your thoughts!
Richard Skellett
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