Abstract:
The aim of this research is to develop a framework to predict the cost of the
resource complexities inherent in an ERP implementation. The framework
comprises two phases namely complexity assessment, and dynamic cost
estimation for resource complexity using agent-based modelling. The
complexity assessment phase involves complexity identification, uncertainty
evaluation for the complexity estimates, complexity assessment, complexity
classification, and complexity correlation reporting. The framework is
automated in a tool known as Complexity of Resource and Assessment Costing
Tool (C-REACT).
A number of activities have been undertaken in order to develop the ERP
resource complexity framework. Firstly, a detailed literature review was
performed in order to gain a contextual understanding of ERP implementation
challenges and complexities. Secondly, a case study analysis was conducted
to establish the current industrial practices concerning ERP implementation
challenges. Thirdly, a framework was developed and validated to identify,
assess and cost ERP complexity for each resource.
The key contribution of the framework is to introduce a new cost estimation
process to support ERP project cost estimation by predicting the cost of ERP
resource complexities, and a new process to identify, assess and control ERP
complexities inherent in the implementation stage. This framework should be
used in the needs identification stage of an ERP project lifecycle. The estimate
will inform an organisation of the potential costs of ERP resources from a
complexity perspective, thereby enabling them to make informed decisions on
ERP implementation complexity and cost reduction. Knowledge of potential
complexities will also aid the elimination of substantial errors during
implementation. Hence the organisation will yield benefits which they would not
otherwise reap in the face of complexity.
