Complementing approaches in ERP effort estimation practice

Abstract

Projects implementing enterprise resource planning (ERP) solutions are characterized by specific context factors such as high level of reuse, scope of the ERP modules, interdependent functionality, and use of vendor-specific standard implementation method, all of which impose risks known to cause various degrees of project failure. We suggest a remedy to this issue by tackling it from a portfolio management perspective. Our solution rests on earlier work by other authors and is a combination of a classic cost estimation method (COCOMO II), a Monte Carlo simulation process, and a portfolio management model. We report on the results of a case study done in a company site in the telecommunication sector.

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