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Gartner Research Report — Top ERP Cost Optimization Actions Post-COVID-19: Respond, Recover, Renew

The COVID-19 pandemic severely disrupted operations for businesses around the world. To remain solvent, many had to change spending patterns and rethink strategy, including high-cost ERP solutions and initiatives.

In this report, Gartner recommends minimizing as many ERP-related expenses as possible to continue to combat the disruption. Specifically, Gartner outlines 12 short-, medium-, and long-run actions for application leaders to help their enterprises achieve ERP cost savings and respond, recover, and renew post-COVID-19.

Key Research Findings

Some Gartner report key findings include:

  • Cut costs, freeze spending, and free up cash in the short term to maintain viability. IT leaders who cut costs effectively will gain favor with the CFO and top leadership.
  • Improve efficiency and productivity, and generate value from limited new spending in the medium term to gain stability. The pandemic has forever changed the status quo; returning to previous business-as-usual activities will result in lost market share.
  • Maintain digital flexibility and shift from cost optimization to value- and risk- optimization in the long term to drive organizational renewal.


Gartner recommends that IT leaders who are responsible for ERP cost optimization:

  • “Respond with quick actions to reduce spending by renegotiating terms, rationalizing or outsourcing staff, and delaying new IT investments.”
  • “Recover stability by planning efforts to standardize and consolidate ERP systems. Scrutinize new investments while embracing agile and product approaches.”
  • “Renew organizational capabilities by moving systems to the cloud, delivering composable differentiation and accelerating automation.”

For the full analysis, including details on Gartner’s 12 recommended post-COVID-19 actions for ERP cost savings, read the research report.

Reference: Gartner, Inc. “Top ERP Cost Optimization Actions Post-COVID-19: Respond, Recover, Renew.” October 6, 2020, Paul SchenckTim Faith

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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