ERP implementation effort estimation using data envelopment analysis

Abstract

ERP implementation projects have been encountered as very risky and complex, and frequently exhibit time and cost overruns. Therefore both a comparison of their efficiency, and especially an estimation of effort and costs associated with new projects are of high interest. Since ERP implementation differs from classical software development projects, as the main focus lies on adapting and customizing a complex system, and even changing the organisation, traditional models like COCOMO can not easily be applied. The non-parametric DEA on the other hand has been developed to compare the efficiency of units with multiple inputs and outputs with different measurement scales. In this paper, we will describe the application of DEA using a data set of 39 projects, drawing on the results of applying DEA for effort estimation of future projects.