solution in detail: r&d engineering: commercial project management
TRANSCRIPT
Solution in Detail
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
R&D Engineering
Commercial Project Management
Executive Summary Solution Overview Contact Us
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
2 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Deliver More for Less
To professionalize their customers’ project
business processes, companies need to
improve process efficiency, increase process
transparency, and optimize overall project
profitability. Relevant data about projects,
however, is often spread across different
systems. Such systems typically have low
end-user acceptance, as well.
This means that decisions may be based
on inaccurate or outdated data. Rather than
steering the project and making correct
decisions, project managers and project
controllers wind up spending too much time
searching for information. Ultimately, such
organizations lack transparency into project
status, changes, and their impact on project
costs and budget overruns.
SAP solutions can help you to control and
speed up your customer project-related
business processes and optimize project
efficiency and profitability. 80% of companies report a
lack of seamless integration
between project and resource
management systems
Source: SAP Performance
Benchmarking
Companies that sell projects often need to professionalize core business processes
to scale their business model for each job – and deliver more for less. Project Efficiency
More for Less
SAP Innovations
Project Profitability
Executive Summary Solution Overview Contact Us
3 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Efficient execution of commercial projects
requires robust project management
functionality along with tight integration and
visibility into all relevant data and processes.
Maintaining accurate project information and
real-time transparency into financial data,
project progress, and issues, and being able
to anticipate the impact of potential changes
are essential ingredients for sound business
decisions.
Project effectiveness also depends on the
productivity of the professionals involved.
To improve productivity and efficiency, project
participants must be empowered to focus
on their business tasks instead of spending
time searching for and collecting relevant
information.
SAP solutions help companies to reduce
project failure rates and increase effectiveness
by managing project scopes, timelines, and
budgets with tight integration and greater
transparency.
Efficient Commercial Project Delivery
Control all aspects of your commercial project business and speed up processes
by combining functions and merging data from various applications and systems.
Executive Summary Solution Overview Contact Us
Project Efficiency
More for Less
SAP Innovations
Project Profitability
4 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Companies can increase project efficiency and profitability by integrating and
aligning business processes with project planning and providing real-time
transparency into relevant data and processes. Flexible, intuitive interfaces
allow business users to take advantage of applications – such as using Microsoft
Excel, for example, for financial planning – to improve productivity.
Commercial Project Profitability
Integrate management of customer projects across applications and systems
Enhance real-time transparency into critical activities, project progress, and items such as
change requests and potential budget overruns
Enhance productivity of team members and project professionals
Increase accuracy and traceability of bid estimates and baseline plans
73% Of organizations have limited
ability to collaborate with
contractors and customers
to track project risks from
identification to resolution
Source: SAP Performance
Benchmarking
Executive Summary Solution Overview Contact Us
Project Efficiency
More for Less
SAP Innovations
Project Profitability
5 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Analytics solutions provide flexible dashboards,
including tabular and graphical representations,
to enable insights into the health of complete
project portfolios and individual customer-
oriented projects.
Flexible project workspaces are tailored to
the needs of project professionals and their
roles, and provide real-time access to accurate
data across project-related objects and
applications.
Tools for estimating, planning, and forecasting
costs, revenues, and quantities integrate with
the SAP ERP application and leverage business
intelligence functionality and Microsoft Excel
user interfaces. Flexible planning processes
and powerful analytics improve efficiency and
differentiate the user experience.
Mobile solutions provide access to commercial
project and portfolio information and improve
user productivity.
SAP Innovations
Advanced analytics enable real-time transparency into commercial project
portfolio health. Flexible project workspaces and planning and mobile apps
differentiate the user experience and improve productivity. Accelerated business
processes improve project effectiveness.
Executive Summary Solution Overview Contact Us
Project Efficiency
More for Less
SAP Innovations
Project Profitability
6 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Optimize Commercial Project Profits
Portfolio Management
Manage and monitor commercial project portfolios.
Project Management
Manage commercial projects throughout the lifecycle by integrating functions across
applications and systems.
Project Issue and Change Management
Manage and monitor project-related issues, change requests, and their financial
impact.
Resource Management
Plan and level commercial project-related resource demands along priorities,
resource availabilities, skills, and costs.
Project Financials
Unify management of project quantities, costs, and revenues throughout the project
lifecycle.
Executive Summary Solution Overview Contact Us
Solution Overview
Project Issue and Change
Management
Project Management
Project Financials
Resource Management
Why SAP?
Enterprise Portfolio and
Project Management
Portfolio Management
7 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Solution Process Map
Executive Summary Solution Overview Contact Us
Solution Overview
Project Issue and Change
Management
Project Management
Project Financials
Resource Management
Why SAP?
Enterprise Portfolio and
Project Management
Portfolio Management
Project
Manager
Portfolio
Manager
Account
Manager
Back
Office
Project
Team Member
Project
Controller
Portfolio
Management
Resource
Management
Project
Management
Issue and
Change
Management
Project
Financials
Project Portfolio
Planning
Execution, Issue, and
Change Management
Selling and
Evaluation
Project
Planning
Billing, Forecasting,
and Closing
Issue
Clarifi-
cation
Define
Portfolio/
KPIs
Long-
Term
Planning
Decision
Manage-
ment
Portfolio
Analysis
Portfolio
Analysis
Portfolio
Analysis
Send
Quotation
Create
Contract
Create
Opportu-
nity
Create
Master
Project/
Item
Create
Project
Detail
Master
Project/
Project
Costing/
Create
Baseline
Create
Estimate
Staffing/
PO
Creation
Resource
/Material
Planning
Procure-
ment
Monitor
Project
Progress
Time
Recording
Create
Issue
Create
Change
Request
Approve
Change
Request
Adopt
Cost Plan
Billing
Fore-
casting
Project
Closing
8 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Companies running cost- and resource-
intensive customer-oriented projects often
lack insight into the overall commercial project
portfolio. SAP supports commercial project
portfolio management with functionality for
long-term planning of financials and capacities,
decision-making support, and monitoring
potential and ongoing projects on a portfolio
level.
The SAP Portfolio and Project Management
application helps you align projects with
your portfolio strategy, reduce project failure
rate, and increase overall project portfolio
profitability.
SAP solutions help you monitor and
control customer-oriented project
portfolios to improve transparency
and optimize efficiency.
Portfolio Management
Capabilities
Benefits
SAP Innovations
Solution Overview
Portfolio Management
Executive Summary Solution Overview Contact Us
9 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
The SAP Portfolio and Project Management
application enables you to monitor and control
customer-oriented project portfolios and
align them with your enterprise strategy and
available resources. Long-term planning
and capacity functionality, comparison with
actual data and available resources, and rich
analytical functionality provide transparency
into your commercial portfolio for ongoing and
potential projects. Decision process support
through questionnaires and scoring models
helps you select the right projects and reduce
project failure rate.
Do the Right Projects
Portfolio Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
10 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
For resource- and capital-intensive commercial
projects, executing on the right projects is key
to optimizing the overall profitability of the
commercial portfolio.
Using questionnaires and scoring models,
the SAP Portfolio and Project Management
application supports your decision-making
processes based on the technical feasibility
and risks of projects. The application enables
sound long-term planning and plan-actual
comparisons for ongoing and potential projects.
Portfolio analytics provides transparency into
the commercial project portfolio and enables
you to take timely corrective measures.
Selecting projects based on resources
available and transparency into projects
and opportunities helps you execute on
the right projects and increase portfolio
profitability.
Increase Commercial Project Portfolio Profitability
Portfolio Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
11 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
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image #
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Silicone
Silicone
Analytics solutions with flexible dashboards,
including tabular and graphical representations,
enable insights into the health of complete
project portfolios, including customer-oriented
projects. You can compare long-term financial
and capacity demands with detailed plans for
project opportunities and actuals for ongoing
projects, and analyze defined key performance
indicators (KPIs).
Gain real-time transparency into
commercial project portfolio health
with advanced analytical dashboards
and mobile apps.
Innovations for Commercial Project Portfolio
Management
Mobile solutions offer alternative access
options for commercial project portfolio
information. You can provide the right level
of information and enable decision making
with up-to-date portfolio information delivered
in real time to mobile devices.
20% Higher availability of real-
time insights into business
processes for organizations
that use analytics to track
strategic KPIs
Source: SAP Performance
Benchmarking
Portfolio Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
12 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
SAP solutions, including the SAP Commercial
Project Management application, SAP ERP
application, and SAP Portfolio and Project
Management application, enable enterprise
commercial project management.
SAP solutions help you handle customer
projects throughout the lifecycle with accurate
data and functionality integrated with enterprise
applications and systems. The solutions
enhance employee productivity and increase
project profitability with real-time insights and
control of project processes.
SAP solutions enable commercial
project management and improve
efficiency and transparency across the
lifecycle of customer projects.
Commercial Project Management
Capabilities
Benefits
SAP Innovations
Project Management
Executive Summary Solution Overview Contact Us
Solution Overview
13 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
86% Lower finance costs for
expertise subprocesses
when organizations focus
on accurate planning and
forecasting
Source: SAP Performance
Benchmarking
Success depends on recognizing and taking
advantage of opportunities early. But crucial
data often is spread across systems, planning
activities are decoupled from execution,
visibility is lacking, and end-user application
acceptance is low. The result is poor employee
productivity and reduced project profitability.
SAP solutions, including SAP Commercial
Project Management, SAP ERP, and SAP
Portfolio and Project Management, improve
transparency and provide robust and mature
project management tools for project planning
and execution. Workspace functionality enables
you to bundle existing business objects related
to customer projects, such as opportunities and
documents, for an integrated view across
systems and applications.
SAP solutions help you reduce project failure
rates by managing project scope, timelines,
and budgets to enhance the productivity of
team members.
Doing Projects Right
Project Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
14 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
With integrated project management, planning,
and enterprise processes and the use of
accurate, real-time data, the software helps
you to execute commercial projects efficiently.
You can better manage commercial projects
to reduce failure rates and keep within scope,
on time, and on budget.
Advanced, flexible, and user-friendly work-
spaces and monitoring tools help you integrate
data across applications and systems. Project
professionals can spend less time searching
for relevant data and more time on value-added
tasks, increasing the productivity of team
members.
By optimizing project efficiency and enhancing
employee productivity, you can increase overall
project profitability.
SAP solutions enable commercial
project management and help optimize
project efficiency, improve productivity,
and increase profitability.
Optimize Project Profitability
Project Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
15 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
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image #
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Flexible project workspaces tailored to the
needs of project professionals and their roles
provide real-time, accurate data across projects
and individual project aspects. Your business
users can access project-related objects,
including opportunities, sales documents,
purchasing documents, issues, and change
requests.
Flexible project workspaces enable
data access and analysis, and mobile
solutions improve business-user
productivity.
Innovations for Commercial Project Management
Mobile solutions provide flexible, real-time
access to commercial project data and
support the use of various mobile devices.
Professionals can use smartphones and
tablets to enable decision making while
traveling or during meetings with customers.
40% Higher employee productivity
when mobile access is
provided to employees across
all levels of the enterprise
Source: SAP Performance
Benchmarking
Project Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
16 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
With project issue and change management
functionality, you can document, clarify, and
track project-related issues as well as change
requests. The functionality integrates with
SAP Commercial Project Management, option
for cost and revenue planning. Activity manage-
ment functionality helps you further clarify
issues and support approval processes. SAP
software helps you reduce unapproved project
changes and increase the profitability of your
projects.
SAP Commercial Project Management,
option for issue and change manage-
ment, helps you manage project-
related issues and change requests,
and reduce the number of unapproved
changes.
Project Issue and Change Management
Capabilities
Benefits
SAP Innovations
Project Issue and Change
Management
Executive Summary Solution Overview Contact Us
Solution Overview
17 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
The SAP Commercial Project Management
application, option for issue and change
management, enables you to capture,
document, and bundle all project-related
issues and change requests. It supports issue
clarification and approval processes with
activity management functionality. Integration
with project-financial planning functionality
enables you to plan alternative changes to
project costs and revenues based on change
requests.
Project issue and change management
functionality helps you reduce unapproved
changes, increase the productivity of project
professionals, enhance transparency into
project issues and potential cost overruns,
and increase the profitability of your projects.
Manage Project Issues and Changes
Project Issue and Change
Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
18 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
SAP Commercial Project Management, option
for issue and change management, enables
you to systematically record and clarify project
issues, manage change requests, and under-
stand their financial impact.
You can reduce inefficient manual and
spreadsheet-based processes and get an
overview of all project changes and their
impact on project cost and budget overruns.
The application helps speed issue clarification
and change approval processes, reduce
unapproved changes, and improve project
profitability.
Our project issue and change manage-
ment functionality enables you to
document and control your project-
related issues and change requests,
along with their financial impacts.
Reduce Unapproved Project Changes
Project Issue and Change
Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
19 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
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image #
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Differentiate the user experience for
documenting, clarifying, and approving
project-related issues and changes. Reduce
unapproved project changes and accelerate
approval processes for project changes.
Enhance transparency into project
issues and change requests and
optimize project change processing.
Innovations for Project Issue and Change Management
Enable transparency into project-related
issues and change requests and their potential
impact on projects with enhanced analytics
and functionality for mobile devices.
Project Issue and Change
Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
20 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
A lack of resources focused on high-value
projects and inefficient staffing and procure-
ment processes can result in resource bottle-
necks and utilization issues and increased
operating costs. SAP solutions enable closed-
loop resource control, from high-level capacity
planning to detailed time entry and resource
consumption.
Integrated resource demand-planning, project-
planning, and costing functionality and support
for staffing and project-driven procurement
processes enable you to optimize resource
management and significantly reduce operating
costs.
SAP solutions enable commercial
project management and help you
optimize resource utilization, avoid
resource bottlenecks, and streamline
staffing and procurement processes.
Commercial Project Resource Management
Capabilities
Benefits
SAP Innovations
Resource Management
Executive Summary Solution Overview Contact Us
Solution Overview
21 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
SAP solutions help you specify the demand
for resources required during project execution
according to the project schedule, work planned,
and quali-fications required. You can identify
suitable internal and external resources, and
staff project resource demands according to
resource availabilities and skills.
Integration with processes including HR,
procurement, and accounting helps you avoid
redundant data maintenance and streamlines
resource planning and time recording pro-
cesses. With the solutions, you can manage
project resources and perform advanced
staffing activities. You can optimize resource
utilization, avoid resource bottlenecks, and
significantly reduce operating costs.
Effective Resource Handling
Resource Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
22 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
SAP solutions help you plan project resources
and align demand with project financial planning,
project schedule, and qualifications required for
accurate resource assignment along priorities,
skills, and costs. Advanced and efficient staffing
and procurement processes and increased
visibility into current status, availability, and
criticality of project resources help avoid
resource bottlenecks and utilization issues
affecting project profitability and operating costs.
Reduce operating costs by optimizing
resource utilization, avoiding resource
bottlenecks during project execution,
and streamlining staffing and
procurement processes.
Reduce Operating Costs Through Efficient Resource
Management
Resource Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
23 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
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Flexible, spreadsheet-based resource demand
planning and costs and revenue data is inte-
grated with the SAP Multiresource Scheduling
application. Cost and revenue data is auto-
matically derived from resource planning
information and not entered individually.
Improve resource management
efficiency and transparency through
improved planning and analysis.
Innovations for Commercial Project Resource
Management
Planning and analytics functionality and highly
granular plan-actual comparisons enable
improved efficiency and transparency.
Resource Management
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
24 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Finance functionality in the SAP Commercial
Project Management application enables proj-
ect controllers to estimate, plan, and forecast
quantities, costs, and revenues for customer
projects throughout the project lifecycle. The
unified, flexible, and user-friendly interface
enables processes from bid stage to baseline
planning to execution.
Integrated with project planning, execution,
issue and change management, and enterprise
accounting, finance functionality helps you
improve estimating, planning, and forecasting
accuracy and provides transparency into cost
drivers, deviations, and productivity.
SAP Commercial Project Management,
option for cost and revenue planning,
can increase project profitability via
accurate bid estimates, project financial
plans and forecasts, and improved
traceability.
Commercial Projects Financials
Capabilities
Benefits
SAP Innovations
Project Financials
Executive Summary Solution Overview Contact Us
Solution Overview
25 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Inaccurate financial planning and estimating
and nonintegrated planning tools can result in
inaccurate project data and cumbersome data
synchronization activities. Finance functionality
in the SAP Commercial Project Management
application provides a unified financial planning
application for all processes along the lifecycle,
including resource, material, expense, and
revenue management.
Powerful bidding functionality lets you transfer
high-level estimates into detailed project
costing and baselines. During project exe-
cution, planned costs and revenues form the
basis for forecasting and other processes as
well as monitoring project financials. The
flexible, user-friendly interface uses a Microsoft
Excel front end and advanced versioning and
analysis functionality. It integrates with the
SAP ERP application and resource planning
functionality for effective, accurate financial
data management.
Efficient Financial Data Handling
Project Financials
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
26 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Finance functionality in the SAP Commercial
Project Management application provides
flexible, user-friendly tools for consistent
handling of project financial data along the
project lifecycle. Integrated project planning,
execution, accounting, and resource planning
enables efficient project financial data control
and a high level of data accuracy. This allows
increased visibility into bid estimates and
baseline plans in comparison with actuals.
Accurate project financial data improves
visibility into cost drivers and project
productivity and profitability. Early insights
into financial deviations enable you to take
corrective measures in time and optimize
project profitability.
Efficient, integrated project financial
data management increases the
accuracy of project estimates, financial
plans, and forecasts and improves
project profitability.
Increase Financial Data Accuracy
Project Financials
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
27 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
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image #
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SAP Commercial Project Management, option
for cost and revenue planning, provides flexible
planning and analysis functionality that improves
end-user experience through integration with
SAP ERP.
Throughout the project lifecycle, business users
can employ a single tool to estimate, plan, and
forecast quantities, costs, and revenues on a
monthly, weekly, or daily basis.
Innovations for Commercial Projects Financials
22% Lower cycle time for fore-
casts when online forecasting
models are accessible glob-
ally for analysis
Source: SAP Performance
Benchmarking
Project estimation, planning, and
forecasting functionality integrates with
SAP ERP and differentiates the user
experience.
Project Financials
The definition of bid structures and resources,
additional characteristics for planning, and
valuation and data transfer strategies provide a
new level of planning customization and highly
granular plan-actual comparisons.
Executive Summary Solution Overview Contact Us
Solution Overview
Capabilities
Benefits
SAP Innovations
28 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Enterprise Portfolio and Project Management Value Map
Idea
Management
Enterprise
Project
Connection
Portfolio
Management
Project
Management
Resource
Management
Asset
Portfolio
Management
Capital
Project
Management
Monitoring
Capital
Investments
Portfolio
Management
Project
Financials
Project
Management
Project Issue
and Change
Management
Resource
Management
Project
Portfolio
Management
Project and
Resource
Management
Continuous
Product and
Service
Innovation
IT Portfolio and
Project
Management
Commercial
Project
Management
Capital Portfolio
and Project
Management
Executive Summary Solution Overview Contact Us
Solution Overview
Project Issue and Change
Management
Project Management
Project Financials
Resource Management
Why SAP?
Enterprise Portfolio and
Project Management
Portfolio Management
29 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Why SAP?
SAP Commercial Project Management provides configurable, flexible business
tools and user interface. The application integrates and improves the efficiency of
business processes along the project lifecycle and helps optimize profitability.
Transparent Management Across the Lifecycle
Bring together data and functions across applications and systems for optimized management of
customer-oriented projects. Enable long-term portfolio planning, bid and opportunity management,
project planning and execution, and handling of changes, billing, and closure.
Process and User Efficiency
Monitor and control project-related business processes leveraging SAP Business Suite software
and highly flexible and user-friendly workspaces.
Leveraging Technology Innovations
Benefit from the latest planning innovations, user interfaces, and mobile solutions.
Executive Summary Solution Overview Contact Us
Solution Overview
Project Issue and Change
Management
Project Management
Project Financials
Resource Management
Why SAP?
Enterprise Portfolio and
Project Management
Portfolio Management
30 / 31 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Executive Summary Solution Overview Contact Us
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Solution in Detail
R&D Engineering
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