Maintaining ERP Systems: The Cost of Change

Research organization IDC surveyed 167 business executives to gain insights into their companies' use and ongoing maintenance of ERP systems. Among other findings, it discovered that 15% of the enterprises surveyed were forced to reimplement the entire ERP system, after most of them spent over US$2.5 million on the solution.

The study also set benchmarks for the cost of ERP implementation, maintenance and system modifications to respond to changes in business requirements. The average cost of implementation is US$825,000 while the average annual costs of maintaining ERP systems and meeting changing business needs are up to US$1.2 million, and can exceed US$4.1 million in extreme cases.

Contents

  • Methodology
  • Situation Overview
  • Inflexibility Not Resolved by Newer Systems
  • Effort to Meet Business Needs
  • Loss of Productivity
  • Obstacles to Successfully Modifying ERP Systems
  • Cost of Change
  • Learning to Accept the Unacceptable
  • Conclusion

 

 

 

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