may offer enterprises exciting new growth opportunities in emerging markets,
but it can also introduce a complex array of operational risks. The challenge
is that without the right infrastructure in place to confront these risks,
international projects can immobilize an organization and lead to the biggest
consequence of all—putting the company out of business.
“Investing in the Unknown?” is a new report produced by The
EPPM Board that explores five key challenges facing global project delivery.
Produced for enterprise project portfolio management (EPPM) professionals, the
report examines the challenges of operating across borders, and details the
role of EPPM solutions in maintaining effective visibility and control.
A shifting risk profile. The increased scale of globalized operations is matched by
the increased level of risk, ranging from fluctuations in interest and exchange
rates to supply chain piracy. As these risks become more strategic, they
frequently involve greater levels of uncertainty that can impact capital
investments. Organizations therefore need access to a more comprehensive risk
framework, and the ability to analyze different scenarios and model specific
risks and costing options.
obstacles. Fast-changing regulations and local
policies can have a dramatic impact on the profitability of cross-border
investments, heightening uncertainty in rapid-growth markets. By adopting a
global platform for managing the project portfolio, greater visibility can be
gained into the procedures for overcoming regional barriers—and for developing
suitable contingency plans.
Cultural differences. Managing workforces when operations are separated by
thousands of miles, international time zones, and cultural and religious
differences can be an exacting challenge. To cope, the central organization
must be able to refine portfolio management and create an infrastructure that
maintains the diversity of international teams while also empowering local
Resource constraints. Increased competition for local talent often results in
skills shortages in key functions. This creates increased demand for effective
planning processes allied to dynamic resource management capabilities. While
the tools exist to support these activities, the trick is to review
intelligence from a consolidated global perspective. EPPM solutions provide a framework
for adopting this perspective and for balancing the risks of individual
projects across the portfolio.
Problem flexibility. The growing interdependence of international value chains
makes the consequences of major systemic disruptions difficult to manage.
Increased visibility into value chain performance, and processes for creating a
collaborative, two-way flow of information are the vital ingredients for
retaining flexibility and responsiveness. In addition, executives must be able
to select the type and frequency of data they review and zoom in on any
To succeed in globalization, organizations must manage challenges and risks at
an executive level. As a result, EPPM technologies that enable a more integrated,
top-down approach to managing projects and resources are becoming critical
components in many globalization strategies.
Read the full report and
learn about Oracle’s full portfolio of EPPM solutions.