Many medium-sized companies find it difficult to find a suitable Enterprise Resource Planning System (ERP system). You buy oversized solutions that cause unnecessary costs. SAP Business ByDesign in the cloud is ideally suited for the requirements of medium-sized companies thanks to its scalability.

Why effective project management is so important

The majority of German SMEs and large companies have extensive projects that they carry out alone or with business partners. They are unique, limited in time and deal with complex issues. The projects are made to develop new products or to optimize existing ones. And to ensure higher sales, cost reductions and better compliance. According to a study commissioned by the German Society for Project Management (GPM), the share of projects in the gross domestic product was already 36.7% in 2013. Today, many German companies generate more than 50 percent of their sales through projects. But to be successful with these, you need professional project management. Because many projects are complex and require a lot of staff. Therefore, without competent and experienced project management, serious problems often arise. Establishments without one have none

  • clearly defined project goals
  • detailed planning of how this goal is to be achieved
  • realistic planning of financial, human and other resources
  • Definition of responsibilities
  • regular cost-benefit monitoring
  • Critical analysis after the end of the project whether the intended benefit has actually been achieved

In addition, sometimes too many processes run simultaneously within the project. Some project managers also fail to take the human factor into account. These avoidable mistakes result in frustrated employees whose initial motivation turns into the opposite. And of course high costs because the project goal is not or only partially achieved. Smaller companies and many medium-sized companies in particular cannot afford such mishaps financially.

Business consultant that focus on Project management services specialized, support companies with a combination of advice and operational support. They advise not to underestimate the human factor: even if the advancing digitization makes the implementation and control of projects more manageable and easier, it is people who decide on the success of a project through their cooperation. Therefore, objective communication with clear formulations and clear target agreements is the basis of successful project management. And of course the timely involvement of the specialists planned for the project.

How project crises arise

A project is in a crisis when it no longer automatically achieves its goal. The resources available in the project are not sufficient for this. Or the planning is not optimally coordinated with the goals and existing structures. It is typical of project crises that they go unnoticed at first. They develop insidiously until they can no longer be ignored. If the project manager speaks openly about it, he has taken the first step in crisis management. Then he either gets external help from special service providers. Or he switches on the next higher management level or a specialist department. A critical state arises when several of the following indicators come together:

  • The actual and target state differ greatly from one another
  • Deadlines cannot be kept
  • important investors are no longer interested
  • Any problems that arise are no longer communicated to the teammates
  • the team no longer knows which project phase it is in
  • the controlling effort increases disproportionately (more and more reports)
  • the mood between teammates deteriorates. More and more of them work alone.
  • the error rate increases. At the same time, there is less willingness to accept and correct mistakes.
  • the project goals are constantly changing
  • the client is no longer willing to take responsibility

This is what effective project management looks like

To find out what characteristics successful projects have, scientists conducted several studies. Despite different concepts and target groups, the projects examined had the following in common:

  • Management support (37%)
  • Use of optimally suitable methods and instruments (27%)
  • successfully completed qualification (19%). The project team is qualified in such a way that it correctly implements the required instruments, methods and processes.
  • the organizational structure of the project (12%)
  • the use of suitable software (5%)

The percentages mentioned come from the large study that Volkswagen Consulting GmbH carried out in cooperation with the University of Bremen (source: https://www.projektmanagementhandbuch.de/handbuch/projektinitiierung/erverbindsrechte-von-projektmanagement/). These results show that as an entrepreneur, you are well advised if you

  • and your client will define the project goals as precisely as possible
  • plan enough time for your project
  • Provide suitably qualified personnel and sufficient funds
  • Hire a qualified project manager who has experience in project management
  • Use standardized processes and instruments that you already use in other operational departments
  • make sure that communication works well. Formal details (reporting, documentation) and interpersonal communication (joint project office, video conference systems) are important.
  • Don’t just address risks, but actively manage them

As a client, you are of course interested in receiving regular real-time reports. In addition, ask for technically suitable alternatives and then make a decision without unnecessary hesitation. If you are a project manager or a team member, you must always include your client. Submit reports to him at regular intervals and request the decisions you have prepared. And be sure to present workable alternatives. Because the projectification of German companies is progressing unexpectedly quickly, it is advisable to support your own project with the right software solution. Comprehensive systems that digitize the entire operation, such as Enterprise Resource Planning (ERP) systems in the cloud, are best suited for this. With such a comprehensive digital solution, as an entrepreneur, you also meet the requirements of Industry 4.0.

The German carmakers are setting a good example because digitization is well advanced for them. For example, the Daimler Group plans to lead the product development department as a project team. The decision-makers imagine that at least 20% of all employees work together on a topic-related basis. So outside of the operational hierarchy. These projects should function like a start-up and make the entire company more innovative and flexible. The introduction of such an agile project management can be controlled excellently with the help of comprehensive software solutions. These often use the cloud for data storage.

Why Cloud ERP can make your company digital

A cloud ERP system is enterprise resource planning software that uses a cloud platform or cloud services. The extensive software solution networks all operational processes. It includes the areas of procurement, order management (CRM), logistics, marketing / sales, accounting / controlling, production, human resources, project management, customer service, business analytics / reporting and, if required, additional industry-specific program parts. All areas are integrated with one another and can be supplemented at any time with add-ons (expansion solutions). Cloud computing enables the ERP system to be used as Software as a Service (SaaS). This saves you having to buy expensive hardware. Because the provider makes this available in his data center. Your IT department, if any, can focus on more important tasks.

Your cloud provider takes care of backups, software updates, maintenance and repairs. This also lowers your costs. You only pay a monthly usage fee and you always have full cost control. Cloud ERP are so technically mature that they are no longer only suitable for start-ups and new operating departments, but control the entire company. The modules can be easily integrated and adapted to the respective company: Companies without production simply forego the production module when putting together their software package. You can also change the number of licenses at any time as required. New technologies such as artificial intelligence and machine learning ensure even more efficient processes and precise real-time analyzes. These provide you with data sorted according to key figures and other criteria and thus enable well-founded operational decisions. Your cloud ERP

  • increases productivity by streamlining processes
  • enables resources to be saved
  • makes all processes transparent and controllable
  • Thanks to the common database of all specialist departments, it enables precise real-time analyzes and the clear presentation of the results as a diagram or table. Thanks to the integrated AI, you can make reliable forecasts.
  • allows quick action in the event of an incident
  • enables real-time reports that you can use as a basis for negotiations with business partners
  • is highly available (99.9% in specialized data centers)
  • offers a high level of data security through storage in different locations and in several versions

SAP Business ByDesign

SAP Business ByDesign is a cloud ERP software. It is offered by SAP SE as Software as a Service. The flexibly adaptable solution is equally suitable for small, medium-sized and larger companies. SAP SE has more than 40 years of experience in the field of ERP solutions. SAP Business ByDesign can be accessed via the SAP cloud. All you have to do is pay a monthly all-inclusive rental price with no initial investment. You don’t need your own IT department and you don’t have to install anything. Just a stable internet connection.

Advantages of SAP Business ByDesign

The modern cloud ERP offers you

  • quick and easy integration into your existing IT environment and efficient work thanks to networked operational processes. This saves time and money and increases the motivation of your employees.
  • the problem-free compliance with applicable (inter) national standards and laws
  • unproblematic access to real-time data. Regardless of whether you want to find out more about the sales of your bestseller, about return rates or certain incoming payments. With SAP Business ByDesign you are always up to date. And thanks to predictive analyzes, you can intervene immediately in the event of undesirable developments and market opportunities.
  • individual scalability with company and industry-specific functions

SAP Business ByDesign: projects and project management

The project management functionality in SAP Business ByDesign offers benefits to your team members and customers alike. It makes your and your colleagues’ work easier by automating routine tasks. So you can concentrate on the really important tasks. Your customers benefit from products that are completed on time. Thanks to optimized processes, these are of consistently high quality, as desired.

Start a new project and create it in the Projects menu under New Project. You can also call up general information about your project there later. Use existing templates and the data from your existing projects to create them. That saves time and effort. at SAP Business ByDesign Each project is managed under its own project number and can therefore also be processed by other specialist departments as required. In addition, the individual project tasks are numbered: At SAP Business ByDesign they are billed separately. Because project management is linked to other operational departments such as finance and human resources, procurement and order management, you always have a precise overview of the project status. A special menu item is also available to you for planning and managing your project costs and revenues. There you can calculate your costs and you will be informed immediately if the costs are exceeded. And you can look at the revenue structure and individual costs.

In the project scheduling area, you define all the information relating to the timeframe of the entire project and its tasks and the chronological sequence of the milestones and tasks. Based on this information you will be charged SAP Business ByDesign the earliest start and the latest completion of each individual task. This will avoid unnecessary delays. In the course of the project, you can also enter the time actually required for the project task. The system then automatically corrects your project scheduling. If you have previously managed projects with Microsoft Project, you can quickly and easily integrate them into your new one SAP Business ByDesign integrate. The project plan created as a basic plan can be checked for deviations from the plan under the Change Management menu item. As a project manager, you have access to the entire project under Project Management. There you plan and manage the procurement of materials and employees and the appointments. After the project has been approved, the necessary subsequent processes are activated and the costs are automatically posted. With the help of special reports you will be informed about the status of your project and all costs incurred so far. Under order processing, you will later manage the sale of the products manufactured as part of your project.

If you would like to work more efficiently with the help of business intelligence and the cloud and save unnecessary costs, we would be happy to help you with the implementation of SAP Business ByDesign . As a SAP partner, Bradler GmbH specializes in SAP Business ByDesign and has many years of experience in the implementation and consulting of Cloud SAP solutions for medium-sized companies. In addition, we offer you tailor-made operational software solutions and support you in the digital transformation of your company. Just talk to us!

SAP Business ByDesign , the modern cloud ERP for medium-sized companies.

All statements without guarantee.