Go ahead and use Topographic utilities to derive slope, aspect, viewshed etc. and hydrological analysis tools for watershed boundary delineation and stream ordering. You will get various free add-on tools to carry out operations like line-of-sight, cut-fill etc etc...
If you go through the ArcToolbox (image attached) in ArcGIS, there are a number of tools which can help with the DEM analysis. For example, Under Spatial Analyst Tools you will find,
1. Surface tools such as Aspect, Slope, Hillshade, Curvature etc.
2. Hydrology tool contains Basin, Stream Order, Sink, Watershed etc.
3. Groundwater tools
4. ...
... and the list goes on. If you are using ERDAS 2014, the 'Terrain' Tab (image attached) comes with a list of tools. Try them! Also check out the youtube tutorials on DEM Analysis.