To get approval for ERP initiatives, CIOs are often asked to estimate the total cost, but many have insufficient information at the outset to do so with any accuracy. This report will help CIOs develop initial cost estimates when few facts are available.
- Six Steps to an Initial Estimate of ERP Costs
- Get Upfront Estimates of All Elements Contributing to the Project’s TCO
- Focus on the Largest Elements, Pick Ranges and Beware of Averages
- The Largest Elements of the Cost Calculation
- Why Averages Are Dangerous
- Why Using Ranges, Not Absolutes, Is Important
- Document Assumptions
- Issue an RFQ or Work With Your Own Solution Architects and Other Resources
Gartner Recommended Reading
©2020 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.