ERP implementation can be expensive. It is not unusual for a company to spend $1 million or more on an ERP system, and the costs can go even higher if customization or consulting services are required. Many companies underestimate the cost of ERP and its impact on their budget. For example, a Gartner study found that 43 percent of companies implementing ERP projects exceed their budget by 26 percent. Other unforeseen costs include the need for additional staff to manage the new system, data migration challenges, and increased downtime during implementation. Therefore, it's essential to do your research and understand all the costs associated with an ERP implementation before you begin, so there are no surprises down the road. In addition, ERP systems often require significant changes in business processes and worker skills, leading to increased costs in terms of training and lost productivity while employees learn the new system. And finally, there is always the risk that an ERP implementation will not meet expectations and that the company will have to invest still more money in correcting problems.