A159 - Revised Final Submission

Challenges in ERP implementation at a newly established Private University
Milind M Athawale
Vision Infocon Ltd.
mmathawale@visioninfocon.com
Saroj Koul
Jindal Global Business School
skoul@jgu.edu.in
Literature is abundant with articles written on challenges in ERP implementation in general and institutions of
higher learning in particular. However not much is written on challenges in ERP implementation at a newly
established private University. Even though challenges are similar in nature, they take on a different meaning in a
newly established institute of higherlearning.This article is born out of the authors own experience in implementing
an ERP system in newly established private University and focuses on these key differences. This particular
University offers multi-disciplinary courses at under graduate and post graduate level.
Keywords: ERP, Integrated Systems, Change Management, Private University, Institutions of Higher Learning
1. Background
ERP stands for Enterprise Resource Planning but as the word suggests, there is no resource planning involved. ERP
essentially is a business system that integrates all core and allied functions in an organization in a cohesive manner
for improved efficiency. It is pertinent to briefly touch upon the history of ERP systems and how they came into
existence. Early eighties saw emergence of desktop computers and heads of many functional areas (excluding
finance & payroll) jumped onto computerization bandwagon thereby creating a plethora of heterogeneous systems
without any interface OR shared database. These islands of information could not talk with each other (as they were
developed by different vendors at times on different technology platforms) resulting in creation of duplicate
information in different formats without any awareness of which one is up-to-date and which one is not. As network
technology developed and costs decreased, a strong need was felt for having an integrated systemworking on single
database where there would be no duplicity of data and everyone would be working on a common database with a
their own view of data.
ERP was born out of this need for having a single enterprise wide system to cover all functional areas. ERP
implementation in any industry is a challenge as it largely involves change management. Business Process Re-
engineering (BPR) is an essential part of any ERP implementation. Any change management process is challenging.
In the case of a University setup, as compared to corporates, an ERP can be used for both administrative and
academic purposes by universities. Administrative functions include: human resources, accounting, payroll, and like.
Academic functions include: admissions, registration, examinations, promotions, alumni and all aspects of student
life cycle management. Thus an ERP is an information technology solution that integrates and automates
recruitment, admissions, scholarships, student records, and most academic & administrative services.
Over the previous decades many institutes have made significant investment in ERP, while implementation is
pretty successful in most cases, a considerable number of them have failed to achieve the expected objectives. The
present study takes an in depth examination of the various facets associated with implementation of ERP in
education sector.
2. Literature Review
Experts in the field have advised, based on their own experience as Head of IS, on the precautions universities need
to take for a successful ERP implementation [Swartz and Orgill, 2001]. The ERP systems are large & expensive.
They can take 2-3 or even more years to implement. It is important to guard against scope creep and cost creep. The
future looks bright as University processes mature and they move towards common best practices, it is possible to
move towards cloud based outsourced model for better uptime & support. It is also emphasized by some writers
[Ahmad, Othman and Mukhtar, 2011] the importance of planning before implementation. According to them
planning is an important success factor in implementation of ERP as it is a kind of revolution for the organization.
The implementation process needs acceptance, compliance and commitment of the entire organization. Authors have

also provided a 4 phased frame work with critical success factors, deliverables and responsibilities which are kind of
unique for institutions of higher learning in Malaysia.
Research studies carried out in educational institutions thru structured questionnaire [Ghuman and Chaudhary,
2012] also perceived that the effectiveness and efficiency of operations improve significantly by implementing an
ERP solution but could not show any clear trend in nature of their experience with implementation. If certain
percentage of participants reported their experience with ERP to be excellent then an equal number also reported
their experience to be worse. The respondents did not agree that implementation of ERP can improve efficiency in
certain departments whereas there was agreement that it does improve efficiency in certain other departments. This
study also indicates that if implementation issues such as managing resistance of employees, proper requirements
gathering and timely customization are taken care of could lead to better success rate in ERP implementation.
Whitepaper on ERP implementation [Krigsman, 2010] gives 15 tips for successful implementation of ERP in higher
education. The paper covers entire gamut of activities starting from activities in pre-implementation, implementation
and post implementation phases of the project and what precautions one needs to take at each of these stages to
make ERP implementation a success. Another study based on the review of ERP literature in Australia [Rabaa’I,
2010], identifies 12 critical success factors for ERP implementation. Top management commitment and support as
well as change management are the most widely cited factors of ERP implementation success. A whitepaper on
Enterprise Systems in Universities point out that implementing ERP in the HE sector is a daunting prospect. Costs
and risks are high and the payback is medium to long term. A number of universities nevertheless feel that the
potential benefits are worth the investment and effort. Another reason cited for many failures in ERP
implementation [Štemberger and Kovačič, 2008] is companies having concentrated exclusively on the technical
aspects while ignoring the change management process. Lack of appropriate cultural and organizational readiness
was also cited by the authors as another important factor contributing to the failure of an ERP project. In case of
higher education, ERP systems develop in the direction of support for key administrative and academic services
such as student administration, human resources management and financial accounting [Zornada and Velkavrh ,
2005]. Consequently there are many reasons, authors point out, for failure of ERP implementation due to complexity
and adaptation involved inherently in ERP implementation. According to authors [Abugabah and Sanzogni, 2010],
the aim of ERP implementation in universities is also to provide colleges, schools and departments, with an
enhanced ability for research and teaching at reasonable or low cost. Unfortunately however, it has been claimed
that as many as 60 to 80 percent of all ERP systems fail to meet expected outcomes, while other implementations
did not improve performance with users explicitly expressing dissatisfaction with performance.
Based on the body of knowledge that is available on the subject, it can be said that ERP systems are expensive
and can take long time for implementation however payback is worth the cost, time & efforts if the implementation
is handled properly. It can be concluded that key success factors remain more or less the same in any ERP
implementation whether it is a manufacturing industry OR a service industry OR an institute of higher learning.
There is only a minor variation in importance of certain factors over others. The key success factors which emerge
are top management support, right selection of vendor / product, effective change management, prevention of scope
and cost creep, elaborate planning before implementation and proper requirements gathering to start with.
The remainder of the paper is organized as follows. In Section-3 an attempt has been made to list out the major
differences between the ERPs used for education versus the other Industry verticals. Section-4 enumerates the
benefits for the various modules of the Student Life Cycle Management. Challenges in the implementation of ERP
systems are detailed in Section-5 and finally the conclusion are presented in Section-6.
3. Differences in ERP for Education and other industry verticals
An Education Vertical ERP essentially comprise of:
 Back Office Operations
 Student Life Cycle Management
 Learning Management System
These three components as in Figure 1 will work
together in a seamless manner and will provide the
necessary support to admin staff, faculty and students in
their respective areas of work. Table 1 enumerates
attempts to list out the major differences between the
ERPs used for education versus the other Industry Figure-1 Educational Vertical

verticals.
Table 1 Major differences between the ERPs used for education versus the other Industry verticals.
Sr.
No.
ERP Benefit Education Other Industries
1 Reduce costs and
improve
Efficiency
 Efficient Handlingof admissions andexaminationprocess
 Assistance in time-table preparation by optimizingresource
utilization
 Efficient conductionof surveys andFasteranalysis
 Reduce InventoryLevels and
inventorycarryingcosts
 On-time andaccurate deliveryto
customers
2 Availability of
timely and
accurate
informationfor
decision making
 Student Attendance
 Faculty publications andresearchwork
 Teachingfeedback surveyresults for Performance Appraisal
 Real time viewof rawmaterial, WIP
andfinishedgoods inventory
 Order Bookingstatus
 Change in productionschedule andits
impact
3 Streamline
Processes
 Better handlingof student records  DemandforecastingandAccurate
productionplanning
4 Completeandon-
time delivery of
finishedproduct
 Efficient deliveryof lectures
 Assistance in research & publications
 Assistance in internal assessment of students
 Streamliningof paperbasedandon-line examinationprocess
 Changes in delivery requirements
shouldalso translate intochanges in
Production schedules
5 Interface with
other systems and
external partners
 Self Service portal bringhuge efficiencies andsave lot of
time for administrative departments andfor facultymembers
 Interfacingwith industries / companies for training,
placement, admissions, etc. becomes easy
 Interface with customers,
dealers/distributors andvendors
6 Mobile Integration  Mobile alerts
 Mobile approval process
 SMS integrationforkeyevents
 Availability of key information on
mobile devices
 Mobile alerts
 Mobile approval process
3. Student Life Cycle Management – Modules and their Key Benefits
The broad interfaces between various components of ERP at a private university are at Figure-2.
Figure-2 ERP Block Diagram (Authors View)
Table 2 lists major modules of the Student Life Cycle Management ERP system of Figure-2. Some of these
modules include the modules for Admissions, Student Attendance, Teaching Time Table, Electives Bidding,
Feedback Survey, Examination, Classroom and Venue Bookings, Events Calendar, Notice Board, Hostel
Management, Training & Placement, Gate Pass module among many others.

Table-2: Modules of the Student Life Cycle Management and its key benefits
Sr.
No.
Module Key Benefits
1 Admissions The online applicationsystemwith payment gateway integration saves lot of manual efforts and time. It is
easier to generate multiple cut-off lists, shortlist candidates and also generate offer letters.
2 Students Profileand
Faculty Profile
It is possible to generate student lists as per requirement almost instantaneously. You can generate list of
students in different programs, courses,sections or onmultiple filters. It is also possible togenerate student or
faculty profile in any format (PDF, Word) at any time for further distribution
3 Student Attendance Professor can mark attendance in less than 5 minutes as against 15-20 minutes it would take to mark
manually. Up todate attendance recordcan be viewedon-lineanytime by faculty member, students andeven
parents can be given access to this information based on institution’s policy and requirement.
Consolidationofattendance at the end of term (semester or trimester), which includes merging students
medical andOD (on duty) records, takes less thanan hour as against 2-3days in a manual process depending
on the student strength.
Automatic reminders can be sent tostudents who are irregular with a copy to Dean/ Asst. Deanandevento
parents.
4 TeachingTime
Table
Time Table is a complexproblembut a basic (not fully optimized) solutioncan be generatedby the software
quickly, which takes careof eachfaculty workload, theirpreferences andclass roomcapacity & availability.
The solution can be further improved manually.
5 Electives Bidding Students can bidon-line for electives andthesubject allocation can be done based on multiple parameters
such as maximum intake of students per subject, student preference and student rank (CGPA / SGPA) or
simply on first-cum-first serve basis.
6 Teaching&
LearningFeedback
Survey
This module helps students togive their feedback anonymously onquality ofteaching for a faculty member
for a particularcourse. The surveycan be conducted in a secure and controlled environment such as class
room, which makes survey findings more fair and credible. ERP system also makes it easier to analyse,
summarise and publish the results once the survey is conducted.
7 Examination It is possible to conduct normal as well as on-line examination at anytime usingdynamic questionbank. It is
possible to assign different weightages forinternal andend –termexamination. The marks obtained in each
internal test can be further assigned individual weightage as per faculty preference. The system helps in
consolidatingmarks of internal assessments andfinal examinationat the endof theterm and to calculate the
overall marks once the final examinations are over.
8 Classroom and
Venue Bookings
The on-lineportal makes it easytobooka facilitysuch as class room, conference room, auditorium, etc. by
faculty members or staff without creatingany conflict situations. The module saves lot of manpower and
time. Automaticmails can go todepartments who areresponsible to provide the facilities required. Everyone
can see the venue availability on-line and also know who has booked a facility and for what purpose.
9 Events Calendar A calendar of all events can be maintainedenablingeveryone to have a single view of all events/ functions
takingplace in the campus. It is also possible touploadphotographs andreport on the proceedings once the
event is over.
10 Notice Board Notices can be publishedfor anydepartment orschool andfora select audience with expiry date. The notices
can be made visible to a person based on whether that person is intended recipient or not.
11 Hostel Management Easy to maintain records of Hostel Room allocation including list of assets provided by the institute.
12 Training&
Placement
This module helps in postingsummer internshipandjoboffers on portal where students can view and apply
for these positions on-line. Settingup eligibility criteria can makeit possible to make these offers visible to
only eligible students. The students canuploadtheirprofiles andtheprofiles of eligible students can be seen
by or sent to prospective employers.
13 Gate Pass module Gate Pass can be appliedfor by students on-line andthe samecan be approvedthru the systemorthrue-mail.
Mail alerts can go to all concerned including parents
14 Parents Portal Parents can be given toaccess totheir ward’s progress in terms of their mark sheets, attendance records,
disciplinary actions, etc. or any other information which institute feels necessary.
4. Challenges in the implementation of ERP systems
Different Organizations face different types of challenges while implementing an ERP System. Even though
challenges are similar in nature, they take on a different meaning in a newly established institute of higher learning.
While implementing an ERP system at newly established private University the following emerged as a major
challenge.
1. Basic Processes are evolving
Any ERP implementation involves process re-engineering which means you start with As-Is process and
develop To-Be process before you start development activity. In case of a newly established university, the
basic processes are constantly evolving thereby making it difficult to have a starting point. The challenge is to
develop a working model on the basis of only brief understanding of the requirements. Many assumptions need

to be made at this stage regarding requirements and workflow, to make the software intuitive and generic for the
users.
2. Processes change frequently resulting in lot of re-work
This is an off-shoot of point no. 1 above. In any new setup the processes change frequently resulting in lot of re-
work. There are no established processes to start with. At least 3 iterations are required before we get a
workable solution which meets most of the requirements. It was observed that many modules take at least 3 to 6
months to stabilize. Many assumptions are necessary at the initial stages to make the software workable.
3. Waterfall Model or Iterative and Incremental (Agile) Methodology
The standard methodology OR linear development OR waterfall model is found to be in-effective in a situation
where processes are evolving. Also benefits are deferred till such time all modules are developed and delivered
at the very end of the project. The idea behind agile development is to develop small portions of the systemin
short period of time followed by implementation. The learning comes both as part of development and then by
use of the system. Agile methodology also helps in deploying a workable solution at the earliest showing quick
gains thru enhanced efficiency also leaving a window open for further improvement. A well thought thru user
feedback is essential at this stage to make it a success. Major gains come when the systemreaches its maturity
after subsequent iterations.
4. Change Management
Any ERP implementation involves a lot of change management. Most of the literature on ERP elucidates this
point. Users need to learn new ways of working and also unlearn some of the old ways. How users embrace
change is a deciding factor for success or failure of any software project. In case of newly established
University, this is not a great challenge because there is very little unlearning. People are also receptive to new
ideas. Also change management in agile development is relatively easy because the first workable model that is
implemented is easy to understand and use. This results in faster adaption by users as they know their feedback
is valuable and would be given due consideration in later versions of the software. They are also found to be
more receptive to the first cut implementation when they know that a window for change is open.
5. Process owners change frequently
In case of newly established university the changes in management structure also take place relatively
frequently as many new initiatives are started and resources are moved / shifted as per the requirement. This
results in new ideas every time there is a change in the process owner and lead to further iterations in an already
iterative process.
6. Not enough time for discussion and freezing of requirements
In any new institution which wants to grow at a fast pace tasks are enormous but resources and time are limited.
This results in a typical situation where everyone wants benefits of computerization but do not have enough
time for it. Though this is really unintentional, it is difficult to get time from users at the design stage when
requirements are gathered. In such a situation it also helps to go with iterative approach so that the first working
model can be developed with minimum inputs.
7. Module priorities change
In any upcoming institution which is growing, module priorities change frequently which are mostly incident
driven. Academic institutions reach their full strength after all batches are operational which means it can take 3
to 5 years depending on the nature of programs offered. Apart from base modules (which are setup modules)
such as Program / Sessions management, Student database, Faculty database, etc. which are pre-requisites for
other modules, priorities of other modules change based on the need of the hour. Because of this shift in
priorities it is difficult to stick to a documented project plan.
8. Vendor Selection - Small Vendor vis-à-vis a Big Vendor
In an iterative development it is easier to work with a small vendor as they are more open to changes in design
as it happens in an agile development. The scope can increase anywhere from20 to 30 % depending on how the
development goes and what kind of feedback is received from the users. A customizable or parameterized
design at initial stages definitely helps in subsequent rework.

It is noticed that a small vendors are open to changes in scope if the same is discussed & agreed upon at the
time of signing of contract. However there are risks associated with s mall vendors in terms of availability of
right kind of resources, business closure due to financial and /or other problems, single person or owner
dependency, etc.. All these factors will adversely impact the project deadlines. However one needs to take this
decision after properly weighing of all pros and cons.
9. Cost Benefit Analysis
This is a difficult task as is the case with any IT project since benefits are largely intangible. It is also difficult to
calculate ROI over a short period as real benefits accrue when the institution grows in size and student strength
increases. This also makes it difficult to get top management buy-in for the project investments. However if
proper implementation is done, real impact can be felt in processes such as admissions, student records, student
attendance, examinations, document management, etc. However efforts can be made to assign a notional value
to these intangible benefits to arrive at ROI.
10. Customized Software or Off-the-Shelf Product
It is very difficult to get a best fit product in the market for all your needs. It is good to rely on a vendor who has
a basic framework in place and who is willing to work with you to develop the product further. There are
known disadvantages of customization as it impacts the delivery dates since software needs to go through
repeated testing after every customization. Post implementation support for customized software is difficult and
needs long term commitment from the vendor. Overall if there is a proper commitment from the vendor to carry
out all customization and deliver a bug free product on time, it is better to go in for a customized product.
5. Conclusion
It can be concluded that challenges in ERP implementation remain more or less the same. They vary slightly from
industry to industry. The key success factors in a newly established university are proper selection of vendor,
following an iterative approach, early deployment of base version of software and developing an effective feedback
mechanism.
6. Acknowledgement
The authors are grateful to the officials at the University and in the IT Dept. for discussions and data during 2011-
12. The authors are also grateful to the reviewers for their valuable suggestions that have made the paper more
systematic and instructive.
7. References
1. Dave Swartz and Ken Orgill, (2001), Higher Education ERP – Lessons Learned –EDUCAUSE QUARTERLY,
Number 2, pp 22-27.
2. Raja Mohd Tariqi Raja Lope Ahmad, Zalinda Othman and Muriati Mukhtar (2011), Campus ERP
Implementation framework for private institution of higher learning environment in Malaysia, WSEAS
TRANSACTIONS on ADVANCES in ENGINEERING EDUCATION, 1(8), pp.1-12.
3. Karminder Ghuman and Sonika Chaudhary, (2012), Incorporation of ERP in Educational Institutions: An
Empirical Study – International Conference on Technology and Business Management, pp. 318-324.
4. Micheal Krigsman (2010). 15 Tips for a Successful ERP Implementation in Higher Education – White paper
5. Ahmad A. Rabaa’I, (2010). Identifying Critical Success Factors of ERP Systems at the Higher Education Sector
- White paper.
6. Enterprise Systems in Universities Panacea or Can of Worms – Whitepaper by JISC Center for Expertise in the
Planning and Implementation of Information Systems
7. Mojca Indihar Štemberger and Andrej Kovačič, (2008) The Role of Business Process Modelling in ERP
Implementation Projects- South East European Journal of Economics and Business, pp.89-96
8. Leo Zornada and Tamara Bertok Velkavrh (2005) -Implementing ERP Systems in Higher Education Institutions
–27th Int. Conf. Information Technology Interfaces ITI 2005, June 20-23, 2005, Cavtat, Croatia
9. Ahed Abugabah and Louis Sanzogni (2010) -Enterprise Resource Planning (ERP) System in Higher
Education: A literature Review and Implications - International Journal of Human and Social Sciences 5:6
2010.

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