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Monday, December 14, 2009

PROGRAM MANAGEMENT STRATEGIES

Used mainly by defense contractors to identify cost and schedule variances, earned value reporting is often ap- proached as a governmental reporting requirement to be fulfilled at the end of each accounting period. In this context, variances have time to per- petuate themselves throughout the program before they are identified. Companies need to be more proactive.

WHAT ANALYSTS RECOMMEND

Earned value management helps com- panies identify variances in real time before they disrupt the program. Stand-alone reporting solutions should be replaced with a unified system to coordinate budgets, schedules, prod- uct development, inventory manage- ment, and supplier collaboration. In addition, a wide range of program par- ticipants need access to data and func- tionality. This makes usability a critical success factor.

WHAT SAP OFFERS

SAP offers a powerful project system backbone that integrates with plan- ning and execution activities. Where necessary, SAP NetWeaver can be used to integrate with legacy project tools. SAP NetWeaver also provides a flexible portal environment that provides user-friendly, role-based access to all functions connected to the program. In addition, SAP capabilities for RFID and auto-ID improve inventory tracking to meet the U.S. Department of Defense (DoD) requirements.

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