Gartner Research

How to Estimate the Costs of an ERP/Business Application Initiative

Published: 04 February 2013

ID: G00248475

Analyst(s): Denise Ganly


Cost-estimating processes help ensure that an application initiative's costs will be accurately calculated. CIOs and application leaders should use the processes outlined in this research to estimate the costs of a given business application initiative.

Table Of Contents


  • Establishment Costs
  • Recurrent Costs
  • Avoided Costs
  • Step 1. Identify the Tasks Required to Execute the Initiative
  • Step 2. Cycle Through Steps 3 to 6 for Each Identified Task
  • Step 3. Gather the Establishment Costs for the Initiative
  • Step 4. Gather the Recurrent Costs for the Initiative
  • Step 5. Gather the Avoided Costs for the Initiative
  • Step 6. Populate a Model With the Gathered Costs for the Initiative

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