Knowing that cost overruns are a part of any major project

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Reference no: EM131143796

For many months, your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment. The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures-with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least, the customization required will add $250,000 to the implementation and training cost. Your client’s implementation team is not aware of the issue, and you know that the additional $250,000 required to optimize the software for the client is not in their initial budget. Knowing that cost overruns are a part of any major project, what do you do and why?

Reference no: EM131143796

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