Industry Insights 12 min read

Why Implementation Consultants Are Becoming Obsolete — And How to Become an FDE Instead

This article analyzes why ERP implementation consultants face declining rates and commoditization under the project-based delivery model, and argues they should adopt the Forward Deployed Engineer (FDE) role — focusing on co-creating business value with clients rather than just deploying software — to escape the 'tool person' trap and command premium pricing.

Digital Deification
Digital Deification
Digital Deification
Why Implementation Consultants Are Becoming Obsolete — And How to Become an FDE Instead

01. A Good Job Has Two Prices

The author cites a view that a good job delivers two values: social value (solving real problems for others) and personal value (decent income, respect, family stability). These should reinforce each other — greater social value yields higher personal reward.

02. Both Values Are Eroding for Implementation Consultants

Social value is thinning because most implementation work is traditional project delivery — done and gone, no accumulation. Personal value is declining: income, respect, and work-life balance all suffer. Consultants excel at details (configurations, prototypes, flow tests) but cannot articulate the business value of their work, often because they dare not ask.

03. Don't Blame the Consultants Alone

While some consultants merely click buttons after ten years, the deeper issue is systemic: why do many smart, passionate graduates all converge to the same mediocre outcome? When a whole group behaves identically, the problem lies in the model, not individuals.

04. The Root Cause: The 'One-Shot Deal' Model

Traditional implementation is a one-shot deal: consultants target minimal viable delivery, collect final payment, then disengage. Success is defined by on-time go-live and payment, not client value. With fixed revenue, the only profit lever is cost control, spawning three unwritten rules: (1) perfect delivery is 60% — just pass; (2) best solution is the least effort; (3) top performers are those who finish fastest, not those who create most value.

05. Immersion in This Model Changes People

Consultants internalize cost-minimization: first reaction to a requirement is how to expend minimal effort. They develop skills to reject or weaken demands, judging every request solely by cost, not value. The environment signals that creating value is a losing proposition. The result: consultants become 'tool people' with three traits — replaceable (anyone can do it, cheapest wins), no pricing power (market sets rate), and accountable only for actions, not outcomes (go-live equals delivery, client ROI irrelevant).

06. The 800 Yuan/Day Signal

Market rates for implementation consultants have dropped to 1,000–2,000 yuan/day, with extreme lows at 800 yuan/day. In this model, consultants are merely software installers — assembly-line workers who inevitably become cheaper. Only value creators command premiums, but the current model offers no opportunity to create value.

07. Clients Are Complicit

The race to the bottom is not solely the vendor's fault. Clients drive low-bid tenders, accept go-live as the sole acceptance criterion, and ignore post-launch outcomes. A vicious cycle emerges: client presses price → vendor cuts cost → delivery hits 60% pass line → client trusts less → presses price further. No winners: client gets no value, consultant earns no money, industry accumulates nothing.

08. The Cycle Is Breaking — Driven by Business Model Shifts

SaaS, subscription models, and AI transform one-shot deals into continuous services. Vendors must deliver ongoing value to secure renewals. Industry-specific, productized, and AI-enabled implementation shifts the consultant's role from 'moving bricks' to 'embedding industry best practices.' Value moves from 'knowing software operations' to 'understanding the industry and business.' Some vendors now adopt value-based or outcome-based pricing: more delivery, more revenue. The same consultants become assets, not costs.

09. The Fundamental Breakthrough: Redefine Yourself as an FDE

Originating at Palantir and adopted by OpenAI and Anthropic, the Forward Deployed Engineer (FDE) is an engineer stationed at the client site, accountable for business results. FDEs are not pre-sales, pure developers, or traditional implementers. They bridge the gap between product capabilities and client needs. Key contrasts: consultants deliver 'go-live'; FDEs deliver 'value.' Consultants leave after launch; FDEs stay to define and solve problems together. Consultants are costs; FDEs are assets. The daily tasks (requirements, configuration, on-site issues) remain similar, but the positioning shifts from 'installing software' to 'co-creating value with the client' — joint problem definition, joint execution, shared value capture.

10. Three Pieces of Advice for Those Still in the Field

Redefine yourself as an FDE starting now. You may survive in a broken model temporarily, but don't let it define your worth.

Move to the extremes, not the middle. Either go deep into business (able to converse with client CXOs) or deep into technology (irreplaceable technical depth). The danger zone is shallow in both.

Ask one more question. When a client raises a requirement, don't just accept it. Ask: 'What business problem underlies this? If solved, how much more will the client earn or save?' That question signals professionalism and establishes your pricing power.

Closing Thoughts

The flaw isn't the transaction but the 'one-shot' mindset. Treating every engagement as the last hammer blow prevents industry growth. The critical question: is your success metric 'can I collect payment on time' or 'what did the client actually gain'? The former consumes; the latter accumulates value. Define yourself as a tool person, and the market sets your price. Define yourself as an FDE, and the value you create sets your price. How the hammer falls is ultimately your choice.

FDE vs Implementation Consultant comparison
FDE vs Implementation Consultant comparison
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career transitionFDEForward Deployed EngineerERP consultingvalue-based pricingimplementation consultantSaaS delivery modeltool person
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