This document discusses next generation ERP solutions and provides recommendations for a successful ERP project. It summarizes that cloud ERP solutions offer benefits like reduced costs and quicker implementation over traditional on-premise solutions. However, ERP projects still fail if key factors like requirements management, data management, business adoption, and governance are not addressed. The document recommends developing a 12-month action plan to define an organization's ERP strategy and next steps.
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Learn how innovative organizations can manage and optimize the application portfolio, releasing time and costs for more strategic and valuable programs.
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• Visualizing application and technology roadmaps for future decision making
• Identify overlaps and gaps in IT capabilities
Agile helps to break down the functional scope
of ERP into a smaller set of features that small teams
can deliver in sprints. This iterative approach helps
projects to realize business value quickly
Free Gartner Report: Aligning Supply and Demand for IT Services
Cloud computing is transforming how IT manages costs and standards, but its impact extends into how IT itself is managed as a business. Public cloud computing puts pressure on the entire IT cost structure to become wiser and more efficient about balancing the supply and demand for IT services.
While cloud commoditization is driving down prices, IT is forced to manage resulting increases in consumption. The report recommends steps CIOs should take to improve the maturity of their approach to IT service management, installing:
• Benchmarking and chargeback to manage demand for cloud services
• Expand their strategic vendor management and IT procurement practices
• Become a broker of services, including external cloud computing.
Consider using IT cost transparency improvement as a cultural change agent to transform the IT organization from a focus on “speed and quality” to one of “IT cost and business value”.
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An introduction into how solution architecture is a discipline that helps teams and organization understand technology challenges and problems before they happen. Understand why apparently free solutions may often become the most expensive. Learn too expect that having too much choice (and freedom) isn't always a good thing when building state of the art systems in the real world. Find out why integrating systems is a necessary evil that must be tamed, not avoided. And be prepared to ask questions - because defining the problem is often a lot harder than finding a solution.
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Next Gen ADM: The future of application services.IBM
Rapid technology advances are driving higher expectations around speed, efficiency and resilience. Expectations for how technology should help meet business goals are rising. To meet increasing expectations around agility, time to value and cost optimization, Businesses are seeking new ways to manage apps. Born-digital companies are setting new standards for speed, efficiency and resilience. We will discuss how companies can optimize the core, unlock legacy and unleash digital to thrive in the new normal.
A vendor, or a supplier, is a supply chain management term that means anyone who provides goods or services to a company or individuals i.e. WEB ERA Company is the vendor for panacea ERP software.
According to the 2013 UK ERP selection guide, we will need to assess the vendors who are most appropriate to our organization and what size of resources, geographic coverage and breadth of product rage we expect them to have.
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This ppt explains Future Directives in ERP, ERP and Internet, its critical success and failure factors, Hit 'Like' button if the ppt turns out to be useful for you in any way. Enjoy :)
SAP ABAP support by bob panic www.rockstarconsultinggroup.combob panic
Enterprise resource planning (ERP) is a system that integrates all of these functions into a single system, designed to serve the needs of each different department within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several software applications, brought together under a single, integrated interface.
Enterprise resource planning (ERP) systems integrate primary business applications; all the applications in an ERP suite share a common set of data that is stored in a central database. A typical ERP system provides applications for accounting and controlling, production and materials management, quality management, plant maintenance, sales and distribution, human resources, and project management.
Agile helps to break down the functional scope
of ERP into a smaller set of features that small teams
can deliver in sprints. This iterative approach helps
projects to realize business value quickly
Free Gartner Report: Aligning Supply and Demand for IT Services
Cloud computing is transforming how IT manages costs and standards, but its impact extends into how IT itself is managed as a business. Public cloud computing puts pressure on the entire IT cost structure to become wiser and more efficient about balancing the supply and demand for IT services.
While cloud commoditization is driving down prices, IT is forced to manage resulting increases in consumption. The report recommends steps CIOs should take to improve the maturity of their approach to IT service management, installing:
• Benchmarking and chargeback to manage demand for cloud services
• Expand their strategic vendor management and IT procurement practices
• Become a broker of services, including external cloud computing.
Consider using IT cost transparency improvement as a cultural change agent to transform the IT organization from a focus on “speed and quality” to one of “IT cost and business value”.
For more cloud management insights visit http://vmware-erdos.com
An introduction into how solution architecture is a discipline that helps teams and organization understand technology challenges and problems before they happen. Understand why apparently free solutions may often become the most expensive. Learn too expect that having too much choice (and freedom) isn't always a good thing when building state of the art systems in the real world. Find out why integrating systems is a necessary evil that must be tamed, not avoided. And be prepared to ask questions - because defining the problem is often a lot harder than finding a solution.
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Learn about the user experience enhancements in the next generations of PeopleTools and PeopleSoft. See how Oracle has delivered on streamlined navigation, efficiency, and easy of use. In PeopleSoft in particular, see the newly available PeopleSoft HCM self service capabilities, including direct reports org chart, manager dashboard, talent summary, and related actions. See a demonstration that showcases these new features.
Next Gen ADM: The future of application services.IBM
Rapid technology advances are driving higher expectations around speed, efficiency and resilience. Expectations for how technology should help meet business goals are rising. To meet increasing expectations around agility, time to value and cost optimization, Businesses are seeking new ways to manage apps. Born-digital companies are setting new standards for speed, efficiency and resilience. We will discuss how companies can optimize the core, unlock legacy and unleash digital to thrive in the new normal.
A vendor, or a supplier, is a supply chain management term that means anyone who provides goods or services to a company or individuals i.e. WEB ERA Company is the vendor for panacea ERP software.
According to the 2013 UK ERP selection guide, we will need to assess the vendors who are most appropriate to our organization and what size of resources, geographic coverage and breadth of product rage we expect them to have.
Future directives in erp, erp and internet, critical success and failure factorsVarun Luthra
This ppt explains Future Directives in ERP, ERP and Internet, its critical success and failure factors, Hit 'Like' button if the ppt turns out to be useful for you in any way. Enjoy :)
SAP ABAP support by bob panic www.rockstarconsultinggroup.combob panic
Enterprise resource planning (ERP) is a system that integrates all of these functions into a single system, designed to serve the needs of each different department within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several software applications, brought together under a single, integrated interface.
Enterprise resource planning (ERP) systems integrate primary business applications; all the applications in an ERP suite share a common set of data that is stored in a central database. A typical ERP system provides applications for accounting and controlling, production and materials management, quality management, plant maintenance, sales and distribution, human resources, and project management.
Enterprise Resource Planning (ERP) exists in every enterprise. It is often a low priority for IT managers until changes to the business make a very real, and very expensive, project. The real cost of a failed ERP initiative is IT careers. ERP is always challenging, so IT leaders must determine which of three strategies are most appropriate:
•Stick. Maintain the existing system and establish a date to revisit the strategy.
•Augment. Stay on the existing ERP platform, but augment with additional modules, custom development, or bolt-ons.
•Rip & Replace. Initiate the move to a new ERP system.
The best way to develop an ERP plan is through an annual audit that assesses the priorities of the enterprise and capabilities of the existing ERP platform. Use this storyboard and associated tools to get your ERP strategy on the right track.
Sap erp and oracle erp alternatives for small manufacturersMRPeasy
On many occasions, the most recognized systems with the highest market share, such as SAP ERP or Oracle ERP, are the chosen ones. But at the same time, there are many alternatives that can offer cost-effective solutions for small manufacturers.
#saperp #erp #mrp #mrpeasy #manufacturing #manufacturingsoftware #oracleerp #smallmanufacturing #erpsoftware
A detailed presentation related to ERP Systems in Oracle. It is very popular for any firm/organization to work in their platform and solve the business work and provide solution. Software development processes helps to built software using Agile models.
A complete guide of Oracle ERP System. It is the most advanced system of current market scenario. A brief written content with the help of researchers, scientists and engineers. Oracle is targeting the current ERP market and increasing their productivity and providing a better solution for Organizations to improve there business.
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2. Why read this report?
This report is intended to give senior business decision makers an impartial
view of the issues, opportunities and challenges presented by the next
generation of ERP solutions.
Who should read this report?
Any senior decision maker in an organisation looking to increase efficiency in
their operation or increase the performance of their current ERP investment.
About the author
Jim Foster has over 20 years experience in leading and advising Enterprise
Resource Planning (ERP) implementation programmes.
As a Partner in PwC Consulting, he led the UK SAP and ERP Financial Services
consulting practices.
He established Timeline Consulting as an independent provider of ERP
Programme Management and Advisory services, working with clients to
optimize the value from their investment in ERP solutions.
.
Introduction Page 1
3. The broken promise
The promise of Enterprise Resource Planning (ERP) systems was that it would
be possible to replace a number of systems with one easily customisable,
integrated solution operating on a single database and with a consistent set of
user screens.
The reality has been different.
ERP systems are often complex to implement, leading to:
• Costs exceeding budget
• Delays in project completion
• Difficulty in responding to changing business requirements
• Focus on getting the solution to work, rather than educating users in
how best to use the system to support business operations
Once implemented, ERP systems:
• Require users to adopt a disciplined approach to using the system in
the right way at the right time
• Are usually cumbersome to use, with users often needing to access a
number of screens to complete a single transaction
However, a lack of focus on managing user adoption allied to the difficulty in
using the system can result in users failing to use the ERP system in the way
that it was intended. As a result:
• Users continue to use informal systems (paper and spreadsheet
based)
• Data maintained by the system is incomplete and inaccurate
• Reporting is time-consuming and inconsistent
• Anticipated Benefits are not fully realised
As a result, it is not surprising that Gartner reports that between 55% and 75%
of ERP projects fail to meet their planned objectives. This is in addition to the
high profile ERP project failures experienced by companies that include
Hershey, Nike, HP and Waste Management.
The current ERP challenges
Page 2
4. What is next generation ERP?
There is now a next generation of ERP solutions, Cloud ERP solutions, that pro-
vide an opportunity to deal with a number of the problems that organisations
have encountered in implementing and operating the traditional On Premise
ERP solutions.
Cloud ERP solutions are typically licenced on a per user subscription basis and
provide less opportunity for customisation. The Benefits that organisations can
realise from adopting Cloud ERP solutions include:
• Reduced Cost
• Quicker Implementation
• Greater Flexibility
For example, PwC has estimated that, over a 5 year period, the costs of a typi-
cal On Premise ERP solution are over three times those of an equivalent Cloud
ERP solution.
Although there are Cloud ERP solutions available, for example Netsuite, SAP Business
ByDesign, that can meet the needs of a number of business functions, most Cloud ERP
users are adopting solutions that meet the requirements of a specific set of business
processes, such as Salesforce.com for Customer Relationship Management, and Work-
day and SuccessFactors for Human Capital Management.
At the same time, many of the suppliers of On Premise solutions are introducing im-
provements to their solutions, particularly in the areas of:
• Reporting/ Analytics, to make all data available in real time.
One of the key innovations has been the availability of In Memory Database
technology with products such as SAP HANA and Oracle Database-In-Memory
• User Interface, to make the solution easier to use, and to allow them to be used
on multiple types of device.
IInnffoorr has introduced the Infor SoHo user interface as the standard front-end to
its various ERP solutions. SSAAPP’’ss Fiori applications deliver a consistent front end
to the most heavily used SAP transactions, and its Personas development tool
can be used to simplify screens, removing unnecessary fields and information.
OOrraaccllee is also introducing a simplified User Interface for its ERP products.
Consequently, many organisations are adopting a Hybrid ERP approach that involves
integrating a Cloud ERP solution with an existing On Premise ERP solution.
Next generation ERP
On Premise Cloud based
Typical One Time Costs $80m $7m
(Average)
Typical Ongoing Costs $17.5m $21.3
(5 Year Cumulative Average)
Typical 5 year Costs $97.5m $28.3m
(Average)
Source: ERP in the cloud. Is it ready? Are you?
Page 3
5. McLaren - Leading the way since 1963
One example of an organisation that is adopting the Hybrid ERP approach is
McLaren, whose Chief Information officer, Craig Charlton, stated recently;
“The monolithic ERP is dead…..It’s now about a core
central ERP surrounded by business networks and
cloud-based solutions, and having a robust integration
layer so you can move the data between the platforms”
Benefits of the hybrid approach
Talking in ‘SAP business trends’ Craig talked about the development of his dual
axis approach to on premise and cloud based ERP management. Creating
greater mobility and access for their workforce throughout the world. This
approach has also underpinned any future scale and device access without the
need for capital cost traditionally associated with an ERP system refresh.
Next generation ERP
Page 4
6. We consider that there are two key challenges in delivering on the
opportunities offered by the Next Generation of Hybrid ERP solutions:
• Solution Integration, and
• Project Execution
Solution Integration
To deal with the challenge of integrating On Premise and Cloud solutions,
Gartner considers that companies need to develop a “Post Modern Application
Integration Strategy”, but predicts that “through 2018, 90 percent of
organizations will lack a postmodern application integration strategy and
execution ability, resulting in integration disorder, greater complexity and cost.”
Project Execution
Unfortunately, the availability of a New Generation of ERP software will not, in
itself, result in reducing the percentage of ERP projects that are considered
failures, nor avoid project disasters.
It is important that the lessons learnt from these failed On Premise ERP proj-
ects are applied in ensuring the success of Next Generation ERP projects.
Next generation ERP Page 5
7. Project success factors
We have identified 8 critical areas for consideration to
avoid ERP project failure. We discuss the implications
of these factors on projects involving Cloud ERP
solutions in more detail in the following pages.
Next generation ERP
Page 6
8. The plan should take into account all the activities, covering the following
workstreams, required to deliver a successful ERP project:
• Solution Development
• Solution Acceptance
• Data Migration
• Business Adoption
• Technology Infrastructure Design and Deployment
• Service Introduction
For a number of these workstreams, key considerations in preparing plans for a
project involving a Cloud ERP solution are included in the following sections of
this report:
• Solution Acceptance (Page 9: Requirements & benefits management)
• Data Migration (Page 10: Data management)
• Business Adoption (Page 11: Business adoption)
Key considerations impacting other workstreams of a Cloud ERP project include:
Workstream Key Considerations
Solution Development Take account of all solution development, for
example Integration, and not just configuration
of the Cloud ERP solution.
Technology Infrastructure Design Inventory existing end user devices (PCs, tablets,
and Deployment mobile phones) to determine that operating
software is at the correct version level to operate
the ERP solution
Security of system access
Service Introduction Development of processes for managing regular
software releases
Planning Page 7
9. In resourcing each work stream, key considerations for a project involving a
Cloud ERP solution include:
Workstream Key Considerations
Solution Development Ensure that, in addition to Solution Configurers,
the project team includes Solution Consultants
who understand the options available in the
Cloud ERP solution and the implications of
selecting particular solution options.
Ensure that there are effective working practices
in place between developers working on the
integration of the On Premise ERP and
Cloud ERP solutions
Data Management Involve individuals who will have ongoing
responsibility for management of
data quality
Involve data security specialists.
Service Introduction Ensure that support arrangements include
resources that will be responsible for managing
the business adoption of regular releases of the
Cloud ERP solution
Resourcing Page 8
10. Requirements Management
Requirements Management is the process for defining
requirements and monitoring their delivery through the
design, build, testing and implementation phases of a
project.
Cloud ERP solutions offer less options for tailoring the
standard solution to meet user needs. Consequently,
there is likely to be a gap between the requirements de-
fined by users and the solution that is delivered. It is im-
portant that there is visibility of which, if any,
requirements will not be met, that this is approved and
is reflected in the anticipated benefits.
Requirements & benefits management
Benefits Management
Although almost all projects are justified on the basis of
a business case that sets out, and attempts to quantify,
anticipated benefits, our experience is that little atten-
tion is usually paid to these until after the solution has
been implemented. Not surprisingly, the anticipated
benefits are rarely fully realized.
This is borne out by the Association of Project Manage-
ment’s The State of Project Management Survey 2016,
which reported that:
• 45% of the 317 organisations surveyed
identified Benefits Realisation as one of the
three most difficult processes to adopt
• 31% of these organisations never or sometimes
delivered the full benefits of its projects
Addressing this issue is of significant importance given the ex-
pectation of the benefits that adoption of a Cloud ERP solu-
tion can deliver.
The key features of an effective Benefits Management process
should include establishing for each Anticipated Benefit an
Owner who is accountable for the realization of the Benefit.
As part of this accountability, the Owner should:
• Define a Benefit Realization Plan, defining the
activities to be performed in order to realize the
Anticipated Benefits
• Define a Benefit Realization Profile, setting out the
level of benefit to be realized over time
• Provide a monthly report containing information
on the current level of Anticipated Benefits,
particularly taking into account approved changes in
scope, and the status of defining and implementing
Benefit Realization Plans
Page 9
11. In a recent survey by Panorama Consulting, The 2016 ERP Report: Organi-
sational Change Management, Data Issues were the most cited reason (by
49% of respondents) for delays that their organisation had experienced in
its ERP projects.
It is important that effective management of data starts early in the proj-
ect and, importantly, continues throughout the lifetime of the system.
For each Data Object that is required, it is important to:
• Understand how data will flow between the On Premise ERP,
Cloud ERP and other solutions, and establish where the “Master
Record” will be maintained. This provides a key input to defining
the Application Integration Strategy
• Determine Data Sources, Level of Completeness/ Cleanliness,
Volumes to be migrated, Method of Extracting, Transforming and
Loading, and Ownership
Data management Page 10
• Establish procedures for testing the quality of Data Loading, and
for conducting Dress Rehearsals to confirm the sequence and
timing of data load and acceptance during Cutover
• Ensure that the Owner of each Data Object is responsible for
maintaining the quality of the data throughout the lifetime of the
solution in accordance with agreed data management processes
It is also important to understand how the security of data that will be
held outside the organization will be managed. Key questions to be ad-
dressed include:
• What are the security arrangements?
• What data encryption is used?
• Who has access to the data?
• Can relevant regulatory requirements be met?
• What happens if there is a security breach?
12. Many project teams focus their efforts on training users to understand HOW to
use an ERP system, but far less effort on WHY they need to use the system in
the prescribed way.
We consider that this need for explanation is even greater for Cloud ERP solu-
tions, which are provided typically on a “multi-tenanted” basis where all user
organizations use a similar version of the solution. There is the opportunity to
configure the solution to meet the requirements of individual user organisa-
tions, but these are far fewer than for On Premise ERP solutions. Although this
provides benefits in terms of cost and speed of solution build, it puts much
greater emphasis on the need to work with users to explain the rationale for,
and gaining their acceptance of, adopting a standardized solution.
Business Adoption Page 11
13. Adoption of a Cloud ERP solution
can be viewed as providing a “low
cost of entry” but it is important that
the Total Cost of Ownership for the
lifetime of the solution is under-
stood.
Key implications to consider include:
Cost Element Key Considerations
Software Cloud ERP solutions are sold typically on a subscription basis, involving a monthly fee based on the number of
users. As such, it represents a more attractive alternative to the “up front” purchase of On Premise ERP software
licences that may or may not be used.
However, the annual subscription fees are likely to be greater than the annual licence cost for an equivalent On
Premise ERP solution, and over time the total licence costs will converge.
There may also be costs for specialist Application Integration software to support the integration of data between the
On Premise and Cloud ERP solutions
Services Development Costs are likely to be lower than for an On Premise ERP solution, given that there is less opportunity
to configure the standard solution.
However, Business Adoption Costs are likely to be higher given the need to ensure that users are committed to
using a standard system that may require changes in working practices.
Hardware If the solution is operated on a public cloud, the costs of acquiring hardware to operate the solution will be re
placed by a subscription for using the public cloud service. As with software licence costs, consideration should be
given to the total cost involved throughout the lifetime of the solution.
It may also be necessary to upgrade or replace PCs to ensure that they are capable of operating the Cloud ERP
solution, and there may be a requirement to acquire additional devices, such as tablets, for users to access the
solution.
Resources New versions of many Cloud ERP solutions are released on a regular basis, and users have to adopt these. Support
resources need to be in place to ensure that users understand the changes made to the solution and the
implications that these have.
The costs of ensuring that data quality is maintained throughout the lifetime of the solution should also be taken
into account.
Cost management Page 12
14. Because of the potential benefits and the low cost of entry of ERP solutions,
there is a risk that user departments initiate projects and fail to put in place ef-
fective processes for monitoring, managing and reporting the status of the
project.
This includes implementing a project organization structure and a set of
governance meetings that ensure the flow of accurate and timely information
on Progress, Costs, Risks and Issues, and Solution Scope from members of the
project team to the Project Manager and then to key decision makers and
stakeholders.
Governance Page 13
15. The growth in adoption of Cloud ERP solutions is evidence of the potential
benefits that Cloud ERP solutions can provide.
However, it is important that organisations approach the project in the correct
way to confirm that a Cloud ERP solution is the right solution and, if so, to en-
sure that these benefits are realized and that the project failure is avoided.
Conclusions Page 14
16. Your 12 Month ERP Action Plan
We believe that it is important for organisations to be clear about the actions
they plan to take in response to the opportunities provided by the Next
Generation of ERP solutions. To help organisations to do this, we are offering to
develop a 12 Month ERP Action Plan at a Fixed Cost.
To do this, we will:
• Provide you with a questionnaire about the solutions used currently
to support your key business processes
• Analyse the responses to your questionnaire and meet with
key individuals in your organisation to discuss your responses in
more detail
• Develop and present a customised 12 Month ERP Action Plan
The Plan will cover the recommended Actions in one or more of the following
categories:
• Define/ Refine Strategy for Adopting Hybrid ERP
• Select Additional Software
• Implement Additional Software
• Enhance Existing Solutions
• Optimise Usage and Benefits of Existing Solutions
What next?
01372 824 770
enquiries@timelineconsulting.co.uk
Page 15
17. 01372 824 770
enquiries@timelineconsulting.co.uk
For an impartial and objective view on your ERP investment please contact
one of our experienced consultants
About Timeline Consulting
Timeline Consulting is an independent provider of Enterprise Resource Planning (ERP)
Programme Management Consulting Services.
We provide a range of services that are intended to assist our clients in ensuring that
their ERP implementation programme is delivered to scope, schedule and budget.
We have provided these services to some of the UK’s largest organisations on
engagements ranging from a number of days to a number of years.
Our team of consultants has hands-on experience of leading and advising ERP
implementation programmes for some of the world’s largest users of ERP solutions