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228 MANAGING KNOWLEDGE WORK AND INNOVATION

costs of systems installation were substantial, ranging from as little as $113,000
in small companies to $2,876,000 in the largest companies (you do not usu-
ally broadcast the upper end of these costs when asked by potential clients).
Interestingly, it did not cost more to achieve high ERP benefits – the degree of
computerization, management support and the implementation approach used
were more important in predicting benefits than the amount of money spent on
the IT system.
You are also aware that a lot of companies have run into problems introduc-
ing ERP software but then they did not have the benefit of your expertise.
You are fairly cynical about how good some other consultants in this area
are – some say sweet things but do not seem to have much of a clue when it
comes to actually implementing systems. Although you know little about the
furniture industry, basically all manufacturing businesses are the same. They take
in bits, process them, combine them, and then sell them according a broad stra-
tegic plan. And in between, the actual flows of all the bits have to be monitored
and accounted for. For this, essentially identical systems can be used. The nature
of the bits does not really matter. You have special links with one software sup-
plier, but of course you do your best to offer impartial advice. It would not serve
your interests to recommend a system that will eventually cause problems. Once
a company has bought into MRP/MRP2, they will probably continue to invest
and upgrade over a number of years before achieving a full ERP system. And
you will continue to help them. In making your presentation to the working
group at Oakland Furniture, you are very aware of the political dynamics of the
situation. Not everyone there is likely to welcome ERP. You only have limited
access to key decision-makers (e.g. Alex Rheingold) and you need to make the
most of it.

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