What constitutes industry- or vertical-specific modules for ERP tools?

Michael:
Your question is a good one. In my experience, all of your choices are valid, at least to some extent. First, let me say that some software packages/vendors have well-developed followings within certain industries based upon their very specific software features, functionality, and by default, their use of industry-specific language, that is geared to a specific vertical. Some examples include JDA in Retail, J.D. Edwards in Real Estate, SAP R/3 for process manufacturing, Friedman Frontier in the make-to-order manufacturing or Peoplesoft in the academic setting.
These vendors typically have subject matter experts on their consulting staff. Such individuals can address implementation issues, germane to a given vertical. To further simplify the process, the vendor may also have a pre-packaged, industry-specific configuration as well. In addition, there may be a special interest user group dedicated to such a vertical as supported by the vendor’s software. Of course, what I’ve just described is the ideal situation and there’s quite a bit of variation from the ideal that exists in the marketplace. Anything less, represents a tangible risk to the ERP buyer.
If the software has a limited customer base within a specific vertical, or merely offers advice on how to use it in a given vertical, or perhaps has a pre-packaged configuration for a given vertical you’ll need to really understand what you’re getting, as it may fall short of your expectations.
For instance, any ERP system will do for a bank, an airline or an insurance company – at least for financials, human resources and perhaps materials management. After that, full support for one of these verticals represents more marketing spin and not much else.

Regards,

Bob