Gartner Research

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

Published: 04 February 2013

ID: G00248475

Analyst(s): Denise Ganly

Summary

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

Analysis

  • 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

Recommended Reading

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.