Cost Optimization of ERP Project: Practical recommendations

Many companies looking to implement an ERP system encounter difficulty in establishing realistic budgets for both short- and long-term periods. They often underestimate many hidden costs and focus solely on the most visible ones. This study offers practical guidelines and recommendations for practitioners regarding ERP implementation and upgrades. These insights are drawn from existing literature, interviews with ERP consultants, and expert recommendations. During the interviews, participants were questioned about the factors contributing to hidden costs during implementation, as well as strategies for identifying and optimizing these costs. By integrating theoretical insights from the literature with practical findings, six actionable recommendations emerge that can significantly reduce the overall life cycle cost of the project and effectively manage the Total Cost of Ownership (TCO).