The business opportunity is for ERP systems to make companies more efficient and to provide a foundation for e-commerce. Benefits occur in the areas of reduced inventory, people efficiency, and advancing firms to more current technology. Also, the implementation of ERP allows the enforcing of a process across functional silos. John also suggested that Activity Based Costing is a prerequisite to a successful ERP implementation. The pitch is made to the most senior executives.
Customized solutions are common.
The ERP market is slowing up, and some resources at firms specializing in the software or implementation are being shed. Also, vendors are moving from time and material based implementations to fixed priced contracts. John suggested that what is most prone to work is a results driven mindset based on business transformation imperatives that are linked to business results. John answered that people still need to focus on business results and cultural changes rather than listening to the ERP salesman. There is no gain without some pain.