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CRM IMPLEMENTATION
Customer Relationship Management (CRM) is a core business practice that most everyone reading this post will be familiar with at some level. It is likely that you’ve read about CRM, have attended workshops and seminars on the subject and perhaps you even believe you’ve implemented what you feel is a CRM initiative. CRM – INNOVATE. INTEGRATE. TRANSFORM. For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” It is becoming more commonplace and some companies are quite aggressive with it. This follow up to last week’s post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here.. Over the years SAP has set itself apart by aggressivelyR3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT SolutionsCRM IMPLEMENTATION
Customer Relationship Management (CRM) is a core business practice that most everyone reading this post will be familiar with at some level. It is likely that you’ve read about CRM, have attended workshops and seminars on the subject and perhaps you even believe you’ve implemented what you feel is a CRM initiative. CRM – INNOVATE. INTEGRATE. TRANSFORM. For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” It is becoming more commonplace and some companies are quite aggressive with it. This follow up to last week’s post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here.. Over the years SAP has set itself apart by aggressivelyR3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT SolutionsCRM IMPLEMENTATION
Customer Relationship Management (CRM) is a core business practice that most everyone reading this post will be familiar with at some level. It is likely that you’ve read about CRM, have attended workshops and seminars on the subject and perhaps you even believe you’ve implemented what you feel is a CRM initiative. CRM – INNOVATE. INTEGRATE. TRANSFORM. For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” It is becoming more commonplace and some companies are quite aggressive with it. This follow up to last week’s post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here.. Over the years SAP has set itself apart by aggressivelyR3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM R3 NOW.COM IT STRATEGY SOLUTION BRIEF Page 1 of 4 http://www.R3Now.com R3Now.com R3 Now.com IT Strategy Solution Brief Results Oriented SAP, ERP, and IT Solutions CRM – INNOVATE. INTEGRATE. TRANSFORM. Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or Business Objects. Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option.CRM IMPLEMENTATION
From time to time I review academic literature about the application of technology and offer my SAP experience based perspective. Recently I was reviewing one of these studies from a few years ago when the authors made a key clarification: they recognized two types of implementations which are problem-based (i.e. address your “pain points”) or innovation based.R3NOW CONSULTING
Title: R3Now Consulting Author: Bill Wood Subject: Platinum SAP Supply Chain Solutions Keywords: SAP Supply Chain, SD. MM. PP, LE Created Date: 10/25/2012 8:07:58 AM INNOVATE. INTEGRATE. TRANSFORM. Business Solutions with SAP* Home
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WHAT IS IT STRATEGY? July 7th, 2014 by Bill Wood Business & IT Strategy We hear it almost every day, IT Strategy, Business Strategy, strategic customer accounts, strategic widgets, etc. Strategy is applied to so many areas and so many things that the word has almost become meaningless. The term “strategy” has become trite because it is used so much with so little understanding. I decided to build my own research based model around strategy because of all of the buzz and the lack of clarity or simplicity. In other words, how do you really determine if you are being strategic or just using tactics you are calling a strategy? What I discovered is almost universal confusion of what is tactical and strategic. The reason is simple, strategy is hard–, really, really hard. Also, strategy depends on your position and direction. You can take a more limited and more focused approach to produce tactical advantages, and in turn many refer to a tactical advantage as a strategy. Here is an oversimplification: * Tactics – execution steps which provide short term wins (_short term_ competitive advantage) * Strategy – methods, _which includes tactics_, to prevent opponents from winning (_mid-long term_ barriers to competition) Tactics are often related to operational effectiveness, or, how well you execute in a given area or context. You gain an advantage for a period of time but your improvements (tactics) can be reproduced by competitors. Strategy is more directly related to market strength. How well you engage, penetrate, and hold markets compared to yourcompetitors.
For an illustration of tactics vs. strategy, hockey player Wayne Gretzky said: “I skate to where the puck is gonna be, not where it has been.” Most hockey players ran to the puck where it was in play, just in time to see it passed to another player. Gretzky would go to where the puck was going to be and was prepared for the puck when itarrived.
A SIMPLE SPORTS ILLUSTRATION OF STRATEGY LAYERS To understand the strategic perspective, consider a football team. The Quarterback’s strategy is how do I win this game? To the coach, the quarterback’s strategy is a tactic, because his strategy is how do I get my team to win the season. To the owner, winning the season is a tactic because the owner’s strategy is how do I fill the seats, sell advertising, and create a long term winning team thatbrings in revenue.
The key to successful strategy is in understanding where you are in relation to the broader organization and goals. Then determine YOURunique strategy.
DO YOU HAVE AN IT STRATEGY? At the risk of offending my CIO and CTO friends at some pretty large companies, I’m not sure there is a genuine “IT Strategy.” Unless you are in a Technology business, I don’t think the term applies. There IS however an _IT Enabled Business Strategy_. By ensuring IT is focused on Business Strategy, the IT organization becomes a _strategic business asset_. By focusing on how IT can help a business to become more competitive now (tactical), by gaining market share, demonstrates IT value. By focusing efforts at creating barriers to competition (holding market share), IT becomes strategic. A business example wouldbe,
_CUSTOMER ACQUISITION IS MORE LIKE A TACTIC (AN EVENT) WHILE CUSTOMER RETENTION AND SELLING INTO YOUR CUSTOMER BASE IS STRATEGIC._ WHAT DOES AN IT STRATEGY LOOK LIKE? If your IT organization is able to engage, penetrate, and hold the “internal IT market” within your enterprise, you might have an “IT Strategy.” Like any marketspace, if you are doing this through monopoly power, then you are not strategic but relying on enterprise enforcement to ensure your monopoly position. It is only a matter of time, or changing leadership, that this monopoly will be broken up. Business units across various enterprises are taking their own budgets and bypassing the “IT monopoly” through BYOD (Bring Your Own Device), Cloud, etc. If you are not operating in a monopoly environment, the way to engage, penetrate, and hold the IT organization’s “market” is to deliver lasting, and hard to duplicate value, to the greater enterprise. CONCLUSION ON BUILDING A STRATEGY This short post only scratches the surface of strategy development. However, if you really want to become strategic you must learn your enterprise’s competitive landscape. If you can’t identify your enterprise’s marketspace competitive pressures, and understand your place in those areas, then real strategy will be elusive if not impossible. In fact, even genuine tactical advantage will be extremely difficult. After all, what are you trying to gain competitiveadvantage against?
So, if you want to make an SAP, ERP, or other IT project strategic it is important to understand how to design for business value and competitive advantage.RELATED POSTS:
* Competitive Pressures and Value Propositions, Is Lean the Answer? * The Real Reason Executive Participation Creates IT Project Success * Tactics, Strategy, ROI, TCO and Realizing Business Benefit from SAP * Striving for a Customer Focused Approach to Innovation 3 of 3 * CRM, ERP, BI, and IT Investment — Where Do You Find the BusinessBenefit?
Posted in: Business Strategy, IT
Strategy ,
Strategy
Tags: business strategy, CIO
, customer acquisition , customer retention, IT Project
, IT Strategy
, SAP
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SAP & IT OUTSOURCING – RESULTS MATTER! June 24th, 2014 by Bill Wood In House vs. Outsource Business today is looking for a way to provide shareholder value. Outsourcing has become one of the latest “crazes” to boost stock values because shareholders believe it will reduce costs. While your share price may increase in the short term, you may not see the cost savings and your share price will suffer later as your cost basisincreases.
It is sad that the cost saving “dream” presented during all those sales pitches often become a “nightmare” of spiraling costs and management headaches. If you go into your outsourcing arrangement with eyes wide open you are much more likely to get better results and you just MIGHT see some cost savings. INTRODUCTION TO OUTSOURCING RESULTS In the spirit of full disclosure I’ll provide some insight on why I am doing these outsourcing posts. The reality is I don’t like outsourcing, NOT because I’m threatened by it, and not because of any particular sense of betrayal by companies who take this path; my reason is simple, too often the outsourcing benefit claims are at best misleading and at worst blatant lies. If you know what to look for and how to structure these arrangements you just MIGHT get apples to apples comparisons on real outsourcing costs. If you know what you are getting into, and how to manage your outsourcing arrangement, you might benefit. But that is up to you to construct your contracts, management structure, monitoring mechanisms, and QA processes to ensure those results. EFFECTIVE MANAGEMENT OF IT OUTSOURCING VENDORS It may seem obvious that you do _NOT, NOT, NOT_ want to give up control of your business processes to an outsourced vendor but you would be surprised how often this happens. And when it does you are the outsourcing vendor’s cash cow. Someone will control the processes and if it isn’t you they will be controlled to favor the outsourcing vendor at your cost. One of the first areas to contractually ensure some measure of control is in oversight. You, as the client, must insist that you will have final say and control over all processes, standards, templates, and resources. This should include but not be limited to: * QA reviews and internal audits* All Deliverables
* Scope development and scope management * Change processes (or you WILL be change ordered to death!)* All code reviews
* Adjustment and approval of all standards * Adjustment and approval of all processes * Adjustment and approval of escalation procedures * Project Management activities * How OCM (Organizational Change Management) will be handled * Data standards and processes * Testing requirements * Required documentation * Control of all resources the vendor might provide* Etc.
You get the picture. The minute you give up management of any of these key areas you are headed for unanticipated consequences, change order costs, less than optimal results, etc. CONCLUSION ON IT OUTSOURCING When you outsource your management requirements increase rather than decrease. Because of the outsourcer’s profit motive you must be more diligent than ever to ensure you are getting results and getting what you pay for. If you are not aggressive in managing these areas you will likely experience some nasty financial surprises. My opinion is to do an honest assessment of your internal capabilities for more aggressive management of outside resources. Strong management must be a key competence of any company wanting a successful outsourcing arrangement. This is the wrap up to the series on Outsourcing: * SAP AND IT OUTSOURCING – VENDOR MANAGEMENT CONSIDERATIONS * SAP & IT OUTSOURCING – VENDOR MANAGEMENT TACTICS & STRATEGIESRELATED POSTS:
* SAP and IT Outsourcing – Vendor Management Considerations * SAP & IT Outsourcing – Vendor Management Tactics & Strategies * SAP Service Delivery versus Value Delivery * How To Navigate the SAP Business Transformation Journey * SAP Implementation Focus: Engineer Software or Business Processes? Posted in: IT Management, IT Services
, SAP
Tags: change management, CIO
, IT governance
, IT help desk
, IT outsourcing
, SAP
, software vendor selection, system
integrator
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DEAR SAP — IT’S PAST HANA TIME June 16th, 2014 by Bill WoodIn-Memory DB
Recently there has been a lot of activity around in-memory database processing. Oracle announced in-memory which it is positioning as a direct competitor to HANA ; IBM, Microsoft, and others are getting on the “in-memory” bandwagon as well . A quick check of Wikipedia indicates there are numerous companies claiming “in-memory” database processing as well . Then there is the huge performance difference between Solid State Drives (SSD) and physical media Hard Drive Disks (HDD), being somewhere around 75 times or greater the Database I/O performance (from about a year ago) . The cost difference for SSD vs Memory is significant and SSD technology is still in its infancy but improving quickly. This all creates a recipe for “in-memory” database processing becoming a commodity. SAP, there is a forward looking option where you can be_ STRATEGIC_ about increasing application sales, license revenue, and maintenance revenue. You can do this while makingcustomers happy.
Aren’t “win-win” situations great when they are available? WHAT DOES STRATEGIC MEAN? There is so much talk about “strategy” these days that it has become an overused word with little meaning. Too many think strategy means “clever.” While strategy is often “clever” in the business context it has a very specific meaning. Over the years I’ve developed the following model to define the strategic journey for any area of business. In this case, when I refer to strategic sales, I mean that you are creating real barriers to entry and real pressure for competitors. R3Now.com IT – ERP Strategy Model STRATEGIC SALES THINKING ON MANAGING SAP HANA COMPETITORS SAP, you have certainly recovered any R&D or development costs invested in HANA. Not only that, you’ve made some money along the way and will continue to leverage HANA as a revenue stream. However, you have a unique, AND NARROW, window of opportunity. As the dominant presence in the “in-memory” space, your opportunity is to limit Oracle’s new database sales growth _while_ still growing your revenue and application footprint with customers. You can use a similar approach to the one I outlined for keeping customers happy and growing revenue in SAP Third Party – Indirect Usage LicensingPart 2
.
Basically, give customers something of meaningful value while growing your revenue and application footprint. Fence out the competition. Use HANA to get out in front of Oracle database sales by bundling HANA with certain application and license sales as a “free” application but with some ongoing maintenance fees. You can limit the “amount” of HANA, for example make it the first 1, 2, or 3 64GB units as “free.” For existing customers who may have purchased a promoted combination of application(s) and HANA, provide them some future discount for Net NEW application (or license) purchases. You could also revive your old “safe passage” approach to get existing Oracle installed base customers OFF of the Oracle Database. By giving existing Oracle Database customers an equivalent HANA value to replace their Oracle Databases, but charging maintenance, you create tremendous pressure on Oracle to “cannibalize” their own installed base. This approach does a LOT of things: * Continued revenue generation by promoting the sale and license growth of existing applications. * Some revenue generation from HANA maintenance for those customers who accept the bundled version. * Targeted sale and promotion of the applications SAP as a company wants to more aggressively market such as mobility, CRM, or BusinessObjects.
* Net NEW database sales by Oracle, or other competitors, are more difficult to position against a MUCH higher performance “free” HANA database application option. * Establishes a competitive environment where Oracle has to dilute its own sales and marketing efforts to pursue existing customer while competing against HANA adoption for new applications. * It allows you (SAP) to continue to sell HANA into the existingdatabase space.
* HANA is well positioned as the future _defacto_ In-Memory database (similar to what IBM did with the PC in its early days). * You create more “stickiness” with any customers using HANA over the rival database companies. CONCLUSION FOR SAP HANA IN THE FUTURE HANA’s In-Memory dominance is challenged by numerous competitors entering (or already in) the marketplace. When you combine improvements in SSD performance and cost the pressure grows stronger. Oracle has just finished spending a significant amount of R&D on their In-Memory database product and is preparing to aggressively market it. By providing HANA so that it promotes the sale of the SAP application portfolio, while undermining the viability of new Oracle Database sales, Oracle will struggle to recover R&D while you (SAP) raises their expense to acquire and retain customers. Done properly Oracle would be placed in a position to cannibalize their own installed base to retain their customer base, all while SAP is left focusing on selling solutions from the SAP applicationportfolio.
Don’t let this opportunity slip away. You can gain additional application market share while placing your biggest competitor, Oracle, in a difficult competitive situation.==============
Oracle’s In-Memory Option Aims To Beat The Rest Within 12 Months. ZDNet, June 10, 2014. http://www.zdnet.com/oracles-in-memory-option-aims-to-beat-the-rest-within-12-months-7000030382/ In-Memory Databases: Do You Need The Speed? Information Week,March 3, 2014.
http://www.informationweek.com/big-data/big-data-analytics/in-memory-databases-do-you-need-the-speed/d/d-id/1114076 In-Memory Database. Wikipedia, retrieved June 16,2014. http://en.wikipedia.org/wiki/In-memory_database Tom’s Hardware, 2013 _HDD Database I/O performance_: http://www.tomshardware.com/charts/hdd-charts-2013/-20-IOMeter-2006.07.27-Database,2922.html; _SSD Database I/O Performance_: http://www.tomshardware.com/charts/ssd-charts-2013/IOMeter-Database-Benchmark,2817.html. retrieved June 16,2014RELATED POSTS:
* IT Outsourcing, Off Shore Support, Cost Cutting and IT DepartmentChanges
* Business and IT Alignment – Integrating Technology and IT Spendwith Business
* Using KPIs to Align Your SAP Business Case to Strategic BusinessDirection
* Competitive Pressures and Value Propositions, Is Lean the Answer? * The Real Reason Executive Participation Creates IT Project Success Posted in: SAP , Strategy Tags: CRM , customer acquisition, HANA
, In-Memory Database, Sales Strategy
, SAP
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