Quick Take:

  • What is Project Management Software?—Project management software helps project managers in day-to-day project planning, tracking, and monitoring with an emphasis on understanding and managing immediate priorities
  • What is Enterprise Project Management Software?—EPM software is similar to Project Management Software but operates on a larger scale. Because enterprises have more than one project in progress simultaneously, an EPM solution helps to manage, monitor, and assess the activities, schedules, and work breakdown structures for many projects across all departments.
  • What is Project Portfolio Management Software?—PPM software is designed to manage collections (portfolios) of projects, programs, or products, including current and future projects. PPM systems track the dependencies between projects and the enterprise, to provide project managers and executives a global view. A portfolio continuously optimizes the allocation, prioritization and scheduling of resources.

PM, EPM, and PPM Explained

If you already use project management software — or even a good project-driven ERP system — then it’s natural to question whether or not you actually need project and portfolio management software. To add to the confusion, some vendors sell each of these systems as separate applications, while others offer an all-in-one product. So can one platform really do the job of three — and save you software licensing costs?

Yes, it can, if it’s the right software.

Let’s examine the difference between these systems and sort out which software is best for your business.

PM: Project Management Software

Project management software involves functionality aimed at day-to-day project planning, tracking, and monitoring. Project Managers focus on the needs of their stakeholders. They obtain the resources necessary for success and apply technology, methodology, and resources to achieve project success.

A Project Manager is primarily interested in immediate priorities — who is supposed to do what activity when, and what are the costs involved. Software tools help teams collaborate and increase transparency through features such as milestones, Gantt charts, budgeting, calendars, and timesheets. PM software also enhances the communication and collaboration between projects.

Project management software is typically focused at helping individual project managers manage their projects.

EPM: Enterprise Project Management Software

Like project management software, enterprise project management software is also designed to facilitate day-to-day project delivery and management, but on a larger scale, generally company-wide. Since enterprises have more than one project in progress simultaneously, an EPM solution helps reach across the organization manage, monitor, streamline, and assess the activities, schedules, and work breakdown structures for the company’s existing set of projects.

Enterprise project management focuses across the enterprise, to prioritize business goals by managing and grouping projects to meet broader enterprise-wide objectives.

Getting a handle on success factors in enterprise project management can save companies significant money. The Project Management Institute (PMI) found in a study 14 percent of IT projects fail. IT gets worse.  Of the projects that didn’t fail outright, 31 percent didn’t meet their goals, 43 percent exceeded their initial budgets, and 49 percent were late.

PPM: Project Portfolio Management Software

Project portfolio management software is designed to handle projects, programs, or products across the enterprise in part by assigning projects to portfolios. Questions answered by PPM software go beyond “Did the project end successfully” to help determine other success factors, such as:

  • How did the project fit into the current mix?
  • Do projects of this type meet organizational goals?
  • What are the inter-dependencies between projects?
  • Three months from now, will we have enough resources to start the project?
  • Which projects are failing and should be terminated?

PPM systems show performance and resource demands of current projects, as well as projects that are being bid, sold, or will start at a future date. PPM systems show how projects fit with the rest of the enterprise, giving project managers and executives a global view of where skills and resources are invested.

PPM software generally aggregates project data from PM, EPM, or ERP systems to create portfolios of existing and future projects for evaluation organized by budget size, calendar year, budget year, business line, and so on.

Since PPM products provide a comprehensive zoomed-out view of projects, some software vendors may be good at the big picture but lack the tools needed to manage the granular aspects of an individual project or sub-project. The most effective PPM software handles both the macro and micro view of an organization’s projects.

Get the Real Thing

As technology rapidly advances, many ERP vendors are claiming they are capable of delivering the functionality of PPM, EPM, or both — which can confuse the buying process.

Also there are some EPM solutions that claim they are PPM solutions.

Don’t necessarily judge a system by its acronym. Instead, focus on pinpointing the goals and needs of your business, then evaluate and choose a project portfolio management software vendor that meets your specific needs.

If you need an enterprise-wide solution that aggregates project data to create portfolios of existing and future projects, that shows performance and resource demands of current and future projects, that delivers Project Prioritization, Project Management, Resource Management and Project Portfolio Reporting, contact us today at [email protected].

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    Quick Take:

    • Prioritization is rightly the first component of the Project Portfolio Management (PPM) process
    • Your project prioritization framework should be data-driven
    • Defining the value your organization seeks is critical to success
    • Your prioritization process should take into account these steps: Intake, Scoring, Selection, and Strategic Alignment
    • The data contained in your PPM software system is critical to project prioritization success

    While the four steps of the Project Prioritization process can be undertaken by several means, sufficient, accurate, real-world data and an application that can help you derive insights at each step is critical.

    Getting Project Prioritization Right is Critical to PPM Success

    Your organization probably does not lack for ideas for projects to improve efficiency, accountability, revenue, and other facets. But how can you determine which projects will deliver the biggest value? Deciding by the seat of your pants might work for very small organizations, but when there’s lots of work to be done, you need a way to rigorously evaluate project proposals and prioritize them.

    Project Prioritization is the first and one of the most impactful components of a Project Portfolio Management process. It enables your organization to focus on projects that deliver the most value. (The other PPM process components are Project Management, Resource Management, and Project Portfolio Reporting.)

    Start identifying the best projects by examining projects’ business goals, time, money, and resources required. Your project prioritization framework should be data-driven, objective, and scalable. It should support the concepts of Governance and Transparency.

    It’s likely that your organization has many different definitions of value. For some, value is determined by increasing revenue. For others, value means reducing cost. Or a measure of value could be a qualitative goal such as “going green.” And on, and on. To begin the project prioritization process, you must first define the value that a project or group of projects will bring to the organization. Once you have that sorted out, you can begin the project prioritization process.

    For most organizations, the project prioritization process consists of the following steps:

    • Project Intake
    • Project Scoring
    • Project Selection
    • Strategic Alignment

    A PPM software solution that features a project prioritization template and other tools to capture or create data for each of step of the process will be critical to delivering maximum value from your project portfolio.

    Project Intake

    In some organizations, there are many ways to get projects into production. Often these are ad hoc processes that generally are not the best way to select high-value projects. It’s best to create a framework to support this important process for project initiation. That framework should be able to track and contain the various decisions and ranking of projects required to fully vet new projects. Your process should include the following:

    • Definition: The project intake process includes the steps for submitting an initiative for evaluation
    • Data Gathered: Capture important details such as sponsor, project name, business goal, priority and requested due date
    • How To Implement: Project Portfolio Management software tools include an intake form template that you can customize to gather the appropriate information

     

    Project Scoring

    You want an objective process to ensure rational Project Prioritization. To be a success, this process must be able to score each project competing for funding. Doing so weeds out the nice-to-have projects from the critical projects and can surface projects that deliver the best value. PPM software can help make the scoring process move smoothly.

    • Definition: A scoring model is used to quantify a project’s various components along one or more axes that represent the quality and impact of the project
    • Data Gathered: Risk, reward, complexity, cost, revenue, and strategic alignment measures will feed the scoring process
    • How To Implement: Project Portfolio Management software usually enables a weighted scoring model to build a project scorecard to track results

     

    Strategic Alignment

    A project that is not strategically aligned with an organization’s goals can be distracting as well as a waste of resources. Your project may have scored well during the Project Scoring phase, but it may not be aligned for a variety of reasons. For example, management may have changed direction or failed to accurately communicate the strategic goals of the organization. Ensuring alignment is critical to effective Project Prioritization.

    • Definition: How well a project aligns with organizational goals
    • Data Gathered: Score vs. goal
    • How To Implement: Aligning projects to business strategy should be crucial in your Project Portfolio Management software scoring model

    The bottom line is that your Project Portfolio Strategy must be aligned with the organization’s Business Strategy. It’s not enough for your project strategy to just align with the Project Management Office (PMO).

    Project Selection

    So, your projects are aligned strategically. Finally it’s time to do what may be the most difficult step of the Project Prioritization process: selection followed by prioritization.

    • Definition: Determining if/when a project proceeds to the next stage in the PPM process
    • Data Gathered: Active projects, canceled projects, the project submitter, and the project score
    • How To Implement: Your project selection criteria should include the elements described above

    As part of Project Selection, you can determine or incorporate your organizational risk/reward baseline and use that to select projects.

    A robust project prioritization process will allow you to answer, at a minimum:

    • Who submitted this project and what is its purpose?
    • How do I compare these projects?
    • Which strategic goal does this project support?
    • Why was my project not approved?
    • If I have limited resources, do I cancel any of my projects? Which projects?
    • Do I hire additional resources for my project backlog?

    With the help of the right Project Portfolio Management software, you can streamline the Project Prioritization process and ground it in reality. PPM software can also reveal risks, rewards, and insights that can improve prioritization accuracy.

    Project prioritization ensures that you are making the best use of your organization’s resources. To learn more about the additional benefits that PPM can deliver please see our “Definitive Guide to Project Portfolio Management.”

     

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      Quick Take

      You need Project Portfolio Management (PPM) software if you run projects because:

      • Organizations using PPM tools are up to twice as likely to meet project objectives
      • PPM Project Prioritization  enables you to focus on projects that deliver the most value
      • PPM enables you to better manage resources by effectively and efficiently performing tasks such as assigning resource availability, aligning skills to projects, and resource leveling
      • PPM can provide an aggregate portfolio view and big picture analysis of all project plans as well as visibility into data at the project level
      • PPM reporting gathers and analyzes project data over time and across the portfolio to support hindsight analysis that improves future project success

      So, basically, if you run lots of projects, you need Project Portfolio Management software to help ensure success. If you’re not using PPM software, you are flying blind. We’ll expand on the concepts of PPM and give you tips to use to streamline success.

      Increased Project Success

      The Project Management Institute compared organizations not using PPM tools with organizations using PPM and found that tool users were:

      • 44% more likely to complete projects on time or early
      • 38% more likely to complete projects on budget
      • 52% more likely to hit the expected ROI

      We’re sure your organization would welcome improvements such as these.

      Project Portfolio Management also enables you to use centralized management of portfolios to leverage successful project selection and execution to achieve strategic objectives. Thus, PPM bridges the gap between strategy and implementation commonly found in organizations.

      What is Project Portfolio Management?

      Let’s dig into what exactly Project Portfolio Management is.

      PPM is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics.

      Project Portfolio Management enables organizations to more effectively accomplish:

      • Project Prioritization
      • Resource Management
      • Project Management
      • Project Portfolio Reporting

      We’ll take a look at these four facets in the following sections.

      Project Prioritization

      The first component of a Project Portfolio Management process is Project Prioritization. This process enables you to focus your organization on those projects that deliver the most value.

      The process begins by identifying the projects that can best improve business goals by analyzing projects based on time, money, and resources. Your Project Prioritization framework should be data-driven,  objective and scalable. It should also support the concepts of Governance and Transparency.

      A first step in prioritizing projects is to identify the value of each project and how the project contributes to the organization’s mission. It is important to create a robust methodology to support different definitions of “value.” For some projects, value may be determined by increasing revenue. For others, value means reducing cost. A third measure of value could be a project that meets a qualitative goal such as “going green.”

      A robust Project Prioritization process will also consider other facets when assessing the potential value a project might deliver. Your process should enable you to answer questions such as:

      • Who submitted this project and what is its purpose?
      • How do I compare these projects?
      • Which strategic goal does this project support?
      • Why was my project not approved?
      • If I have limited resources, do I cancel any of my projects? Which projects?
      • Do I hire additional resources for my project backlog?

      Your Project Prioritization process should consist of the following steps:

      • Project Intake
      • Project Scoring
      • Project Selection

      Your PPM solution should contain a Project Prioritization template to capture or create data for each of step of the process.

      Read our blog post on how to implement an effective Project Prioritization process here.  

      Resource Management

      Resource Management is the process of efficiently and effectively using your organization’s budget, inventory, personnel and information technology (IT) assets.

      Once initiatives have been selected and prioritized, the next step in your Project Portfolio Management process is to assign resources to projects.

      PPM enables you to determine resource allocation using a top-down approach—either at the portfolio or organizational level. Using your PPM system, you can effectively perform tasks such as assigning resource availability, aligning skills to projects, and resource leveling.

      Increased visibility into resource availability enables proactive management of resource schedules, which allows you to identify potential issues weeks or months in advance.

      One of your most critical resources is likely to be workers. There are three important ways that Project Portfolio Management optimizes deployment of personnel:

      • Resource Scheduling
      • Skills Management
      • Resource Leveling

      Read our blog post on how to improve your Resource Management process here.  

      Project Management

      It is essential that your PPM process provides an aggregate portfolio view of all project plans for big picture analysis. Project Portfolio Management software should also enable you to dive into data at the project level to analyze efficiency and resource allocation.

      Project management must also be able to edit  individual project plans and to visualize work breakdown structures for each initiative.

      With these resources, your PPM software should enable project-level management to effectively handle problems, identify patterns, and do issue tracking to ensure timeliness of portfolio goals.

      Effective Project Management workflow can classify and track projects, allowing you to answer questions like:

      • How many initiatives have been requested for funding?
      • How many projects are waiting for scoring?
      • How many projects are active?
      • Which projects have been archived?

      A Project Management/Portfolio Management process must have the ability to review and alter the following processes:

      • Project Workflows
      • Project Plans
      • Work Breakdown Structure
      • Issue Tracking
      • Timesheets

      Read our blog post on how Project Portfolio Management (PPM) improves Project Management here.  

      Project Portfolio Reporting

      An effective Project Portfolio Management process generates large volumes of data about every aspect of projects within the portfolio. Your PPM software must make this information available to stakeholders via reports, on-demand dashboards, and push notifications.

      Gathering and analyzing project data over time and across the portfolio supports hindsight analysis—the measure of how well a project did in meeting its goals. A clear understanding of past performance can positively effect future project success.

      Project Portfolio Reporting answers questions such as:

      • Are we going to meet our strategic goals? Why not?
      • What is the ROI on our portfolio?
      • Should we invest more money into capital projects?
      • Which department requested the most projects?

      Project Portfolio Reporting provides the right information to the right people:

      • Stakeholders
      • Executives – CIO, VPs, Directors
      • PMO staff and PPM Directors
      • Project Managers

      Project Portfolio Reporting includes:

      • Metadata
      • Metrics and KPIs/OKRs
      • Dashboards
      • Hindsight Analysis
      • Project Budgets
      • Project Scoring
      • User Access

      Read our blog post on how Project Portfolio Reporting can transform your business here.  

      Summary

      Managing Project Portfolios of any size without efficient, feature-rich software could be a recipe for disaster for your organization. Organizations that use Project Portfolio Management software benefit from:

      If you’re interested in how your organization can benefit from PPM, follow the links in this post or contact us.

      Click here to download the Definitive Guide To Project Portfolio Management.  

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        Portfolios, Programs and Projects are Essential to Managing Work

        Quick take:

        • Projects have a definite time-frame and are made up of tasks of finite duration to achieve a specific goal
        • Programs organize multiple related projects to meet strategic business objectives
        • Portfolios are collections of projects, programs, other smaller portfolios, and other planned activities that are managed to achieve strategic objectives

        These three management processes are crucial for effective project management, known as Project Portfolio Management (PPM).

        The 3 P’s

        Portfolios, Programs and Projects are known as the 3 P’s of project management. The following is a quick overview of the relationships between the 3 P’s.


        What is a project portfolio?

        Definition: A portfolio consists of projects created to meet an organization’s strategic goals. It is the top level of Project Portfolio Management systems.

        Details: These collections of projects can be established for an entire company or for a division within a larger organization.

        Need for PPM: Projectric provides a portfolio level solution that supports strategic alignment, transparency and governance.


        What is a program?

        Definition: A program is a group of related or similar projects managed in a coordinated fashion to achieve a strategic objective.

        Details: Program Management occurs at the program level. Program or Project Managers guide interrelated or interdependent projects as a group. The specific purpose of each project within a program should be defined and aligned with the goals of the program. A program can span years.

        Need for PPM: Because programs can span years, projects and people, optimizing resources among projects and reducing constraints across programs increases an organization’s performance.  This is Project Management.  


        What is a project?

        Definition: A project is a temporary endeavor undertaken to create a unique product, service or result.

        Details: A project is composed of tasks to achieve an end and is temporary—once a project’s objectives are realized, the project is delivered and closed.

        Need for PPM: Projects can be completed by teams dispersed around the world- this is where resource management from Project Portfolio Management software (like Projectric) becomes helpful.


        Examples of Portfolios, Programs, Projects Within Organizations

        Portfolio: University Facility Management

        Program: Going Green

        Projects:

        • Benchmark water and energy use
        • Build a “green wall” in the sciences library
        • Install new efficient air conditioning units
        • Install Building Automation software

        Learn how these customers—across many industries—use Projectric to manage their project portfolios:

        DeVry University

        Duro Bag Manufacturing

        Messer Construction


        Check out Projectric’s features.

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          Duro Bag Manufacturing Company is the largest manufacturer of printed and plain paper bags in North America. Duro Bag operates twelve plants in the United States and one in Mexico, employs more than three thousand people and sells point -of-purchase bags to department stores, grocery chains, and mass merchant retailers.  Here is how Duro Bag has used Projectric for their project portfolio management solution, from CEO to factory floor.

          Need for a Process Methodology

          When Duro Bag decided to streamline its portfolio management process, they sought to:

          • Increase project returns through better visibility, selection and control of projects
          • Optimize the use of limited company resources
          • Avoid project delays through timely communication of project status

          The critical attributes they wanted in their portfolio management solution were:

          • On-demand, hosted solution
          • Robust features, functions, and capabilities
          • Easy implementation
          • Affordable for a mid-sized organization

          Duro Bag found that Projectric best met all its criteria for portfolio management software. They were able to implement Projectric quickly and have since rolled it out across the company.

          Adapts to Industry-Specific Standards

          Duro Bag easily adapted Projectric to its manufacturing processes. Duro Bag uses Projectric to categorize its projects according to the Supply-Chain Operations Reference model (SCOR), a manufacturing process reference model for supply-chain management that describes the business activities associated with all phases of satisfying a customer’s demand. As a result, they were able to confirm quantitatively and objectively the benefits of their strong emphasis on customer related projects. Additionally, each department is able to show the strategic focus of their work efforts to senior management.

          Benefits The Whole Organization

          Duro Bag was so enthusiastic about the software’s quick implementation and demonstrated business value that Projectric quickly spread across the organization.

          • The Chief Executive Officer (CEO) is using the software to monitor progress on several corporate projects.
          • The head of Human Resources is using the software to manage and monitor several key transformation projects. Duro Bag is effectively using Projectric’s dynamic tools such as resource utilization “what if” capabilities and project milestone late reporting to more effectively manage resources, communicate project status and facilitate the achievement of its business goals.

          Duro Bag is effectively using Projectric’s dynamic tools such as resource utilization “what if” capabilities and project milestone late reporting to more effectively manage resources, communicate project status and facilitate the achievement of its business goals.

          Read about how other Projectric customers leverage our Project Portfolio Management (PPM) solution including:

          DeVry University

          Messer Construction

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            DeVry University provides rigorous, career-oriented undergraduate and graduate degree programs in technology, business and management. About 53,000 DeVry students access programs through a North American system of 78 locations and online.

            DeVry needed a Project Portfolio Management solution that offered a complete view of all projects and a methodology for selecting and managing the right projects.  Read on to see why DeVry selected Projectric in their new Project Management Office to better prioritize, balance and manage their portfolio of projects.

            Results From The Projectric Solution

            Devry required stronger alignment of projects to business value and improved utilization of resources through better organization, control and communication within the organization.

            “Projectric provides DeVry with extremely professional and helpful customer support. Projectric employees have attended staff meetings with our teams, helped with training, and go out of their way to assist us. Projectric recognizes that each customer’s implementation is unique and is committed to helping DeVry use the software to its fullest capabilities,” says Bob Kropidoski IT Director, Business Technology DeVry Inc.

            Linking IT Projects to Business Value

            The DeVry University Project Management Office (PMO) had three business goals when selecting software to better manage the growing wave of project requests:

            1. Work on the right, important projects for the business by better tying technology projects to business value
            2. Better measurement and achievement of Return on Investment (ROI) for projects 3. More effective use of the PMO and project team resources

            The company is now successfully using Projectric to manage application development projects and will next add IT infrastructure projects.

            Easy to Organize, Control, & Communicate

            Projectric provides DeVry the ability to organize all of their project information and consolidate it in one place. When questions arise, the dashboard gives management a good, concise view of what is going on in the department. Information is now easily accessible through Projectric lists and graphs.

            DeVry has better control over their project process through Projectric’s built-in methodology and decision support tools. DeVry’s use of Projectric scoring is allowing them to choose the right projects based on business value and simultaneously gain buy-in for projects from the rest of the organization.

            Projectric is providing DeVry with a platform for better communication. Project progress is more visible and project health is easily monitored through automated indicators. Projectric’s flexible reporting capabilities allow portfolio managers to quickly create custom reports that can be shared with sponsors and executives.

            Integrated Methodology, Quick Implementation and Affordability

            For DeVry, several major factors set Projectric apart from its competition and the software has delivered as promised.

            • The easy to use methodology provides decision makers a high level view of all projects so that the right projects are selected, resources are appropriately used, and progress is effectively monitored.
            • The implementation was quick, easy, and cost-effective. There was a very short learning curve as users rapidly applied the methodology.
            • The on-demand delivery model made Projectric affordable and a lower risk alternative. It allowed DeVry to pay only for what they needed, when they needed it.

            “Projectric is easy to use and very intuitive. Users were able to come up to speed quickly and resistance to change was very low. It is allowing us to use our leadership skills and bring more business value to the company,” offers Jim Ritchey Interim CIO DeVry Inc.

            Read more about how other customers use Projectric in these related blog posts:

            Duro Bag Manufacturing

            Messer Construction

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              Messer Construction Company, headquartered in Cincinnati, OH, has continuously operated since 1932. With ten regional offices, Messer’s impressive buildings include hospitals, educational facilities, aviation, arts & entertainment, religious, historic renovations, non-profit, industrial and commercial organizations.  While renowned for their construction, Messer was struggling with their backlog of IT projects and a fixed number of resources to meet demand.

              In this blog post, you will read about how Messer Construction implemented Projectric’s PPM solution to achieve a better means of qualifying business value, prioritizing projects, utilizing resources and communicating project status within the organization.

              Quick And Easy Solution

              Messer had been fighting the challenge of meeting business needs with fixed resources. As such, they did not have the capacity or energy for a long or costly implementation. After an enthusiastic endorsement from another company based in Cincinnati, OH, Messer discovered that Projectric could provide the benefits they needed in a solution that was:

              • Hosted
              • Low cost and low risk
              • Easy to implement and easy to use
              • Quick to return an investment

              Gary Thomas, Director of Business Technology Services for Messer, was able to implement Projectric in just a few weeks while still handling his other responsibilities. He relates that Projectric provides the “right tool set” for middle market companies.  

              “Projectric is a solution that provides low entry costs, virtually no maintenance, and instant visibility to the project portfolio. Implementation was straightforward and quick. Projectric pays for itself immediately.”

              Mr. Thomas continued, “Projectric fills a significant gap in the software market. Most packaged portfolio management solutions are geared to large Fortune 500 companies and do not scale well to mid-sized operations. Until [we found] Projectric our best alternative was costly custom developed solutions.”

              Projectric Helps Align IT Efforts with Business Goals

              Messer’s use of Projectric has helped IT to ensure that efforts accurately match up with business goals. Instead of making assumptions, each project is clearly aligned at the highest level.  Says Thomas, “The dashboard views provide a quick and easy way to take a pulse of what is happening. With Projectric we are able to map precisely which business plan goals each project supports.” He continues, “In addition, we can track many other Messer-defined attributes of our portfolio, providing the ability to accurately balance our investment in technology projects against those values that are most important to Messer.”

              Improved Communications

              Another advantage Messer has realized is better communications and relations throughout the company. According to Thomas, “When demand exceeds capacity, there tends to be a perception of failure . . . not to mention the uncomfortable task of discerning one project over another. Projectric combined with good management practice provides a clear way to articulate the trade-offs in value, while promoting healthy discussions around IT resource capacity and deploying those resources to the most important projects in the company.”

              Messer’s team of Projectric users readily accepted their role in the process and is enthusiastic about how the solution has helped them toward their goal of increasing business value for the company.

              Read about how other customers use Projectric in these related blog posts:

              DeVry University

              Duro Bag Manufacturing

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