Understanding ERP Implementation Challenges

This assignment delves into the complexities of Enterprise Resource Planning (ERP) system implementations. Students are tasked with analyzing various critical issues that can hinder successful ERP deployment, drawing upon academic literature, theoretical frameworks, and real-world case studies. The aim is to critically evaluate the challenges faced during ERP implementation and propose potential solutions for overcoming them.

Enterprise Resource Planning in Holmes Higher Education Institute: A Comparative Case Study

Executive Summary
Business activities in modernized time period of today have been computerized, whether it is a
small scale organization or a vast industry. In almost every area of work, computers have been
installed and work progress is getting maintained through it. Similarly, a case study research in
the business activities related to institutions that provides higher education has demonstrated that
when alignment between organizations’ unique characteristics and software’s standard
characteristics do not match, what are the challenges that has to be faced in implementing ERP
systems.
In light of such discoveries, the motivation behind this report was to additionally investigate
business processes and requirements of an institution Holmes Institute and selection of best
possible software and vendor for implementing ERP system in Holmes based on extensive
research. This report also provides the guidelines on how the challenges and risks related to the
implementation of the chosen ERP system must be overcome and settled.

Table of Contents
1. Introduction..................................................................................................................................3
2. ERP Systems in Higher Education..............................................................................................4
2.1 Business Processes.................................................................................................................4
2.2 Business Requirements..........................................................................................................5
2.3 System Requirements............................................................................................................6
3. Software and Vendor Selection...................................................................................................7
4. Technical Preview of ERP in higher Education..........................................................................9
5. Risks associated with ERP Implementation in Higher Education.............................................11
6. Conclusion.................................................................................................................................13
References......................................................................................................................................15

1. Introduction
Enterprise Resource Planning (ERP) in the most important part of IS implementation which
helps the business to gain an advantage over its competitors by integrating every possible
business process and optimizing and managing resources available (Yelken, 2005). ERP is a tool
that not only provides automation to business activities but also helps in achieving business, a
long term success. Quite a few advantages include enhanced customer service, improved
efficiency, improved work flow and better data analysis and so on (Yelken, 2005).
Global trends are influencing the field of higher education at a steady pace and since the
government has notified the institutions to improve and enhance their performances and
efficiency, higher education providers are more concerned towards this agenda (Pollock and
Cornford, 2015). For this reason Holmes institute in Australia is concerned and willing to adapt
an ERP system solution into their university.
Implementing ICT in academic institutions has its own advantages and these advantages are not
limited only to the research activities and point of education but from the business aspect view
too, such as supporting accounting functions, organizational functions, and administrative
functions and so on (Beekhuyzen, Goodwin and Nielsen, 2012). There has been a 75% rise in the
number of higher education institutions who have introduced an ERP into their business
practices and this has helped them a lot in business operations enhancement and a smooth flow.
The activities for them are now more transparent and manageable (Calisir, 2014).
Vendors who develop such software are very much aware of the fact and they immensely work
on the updates and enhancements required by a particular institution or any organization. They

understand individual’s needs and tries to satisfy their requirements by aligning software
characteristics to that of institution’s (Calisir, 2014).
In the sector of higher education there is a thorough need to investigate the basic factors that
prompt a fruitful execution of an ERP framework. This paper investigates and evaluates current
researches on ERP implemented to various higher education institutions and determines the best
possible alternative for an ERP implementation for Holmes institution along with proper
measures to handle all the potential risks associated with it(Pollock and Cornford, 2015).
2. ERP Systems in Higher Education
2.1 Business Processes
The business processes at a university is different from that of organizations as the environment
and circumstances at a university are different (Kositanurit, Ngwenyama and Osei-Bryson,
2016). The ERP model for any higher education institution is based on academic purposes and
through ERP the members of the institution, such as staff members and faculty generally
interacts with basic official activities while students requires much vast knowledge and
information and enhanced e-learning atmosphere (Yelken, 2005).
In Australia universities are under immense pressure of government for reforming university’s
infrastructure and achieving higher organizational efficiency. The level of funds for the
universities has been reduced and institutions are in pressure to increase their funds by acting
more like business now (Kositanurit, Ngwenyama and Osei-Bryson, 2016).

2.2 Business Requirements
Viewing the current need of the universities to grow effectively and efficiently, the best solution
to the problem is implementation of an ERP system into higher educational institutions in
Australia (Bingi, Sharma and Godia, 2009). An ERP implementation will replace all the
management and administrative old systems with modernized new systems which will provide
automation to academic activities. Another reason and requirement to incorporate ERP systems
is to gain sufficient efficiency in business operations at the institution and to improve learning
practices for students (Abdinnour-Helm, Lengnick-Hall and Hall, 2013).
The ERP systems today are not only limited to these factors, in fact they support every
department of an organization, from manufacturing activities to processes department such as
managing orders, finances and accounts, human resource management and asset management.
Some of the latest ERP models even support supply chain management, marketing
automatisation, grant management and so on (Abdinnour-Helm, Lengnick-Hall and Hall, 2013).
With the help of an ERP system, the process of student enrollment will require minimal
assistance by the administration and a long hectic task will turn out to be easiest to handle (Bingi,
Sharma and Godia, 2009).
According to ECAR organization, the primary benefits of accommodating ERP into higher
education institutions are:
 Enhanced data access that will help in managing the institution well and will help in
planning for the growth.
 Services will get improved for every member of the institution whether it is staff,
students or faculty.

 Business risks will be lowered down.
 As the efficiency of the work done will get improved a lot, there will be high rise in the
yearly turnover as expenses due to excess labor will be diminished.
2.3 System Requirements
An analysis was conducted over business activities of higher education institute Holmes to
determine the information support to plan a suitable ERP design for Homes higher education
institution (Beekhuyzen, Goodwin and Nielsen, 2012). According to the results of the analysis:
 The primary requirements of the Holmes are decision support systems, business reports
and quality assurance which can only be efficiently achieved with the implementation of
a suitable ERP design (Babey, 2016).
 Implementation in the field of educational activities such as virtual libraries for students,
enrollment portals, simulations, teaching equipment such as e-books and presentations,
forums, portals and so on (Babey, 2016).
 Implementation in the field of research, for example, research software, e-support in the
development of project work, various laboratories to research etc (Babey, 2016).
 Implementation in other fields such as marketing and publishing information system,
administrative information system, Sales information system, human resource
management system and so on (Akkermans, Bogerd, Yucasan and Wassenhove, 2012).
 A vital requirement is student information system that would consist of every single
record of a student since student’s admission, such as semester schedule, choice of
subjects, marks obtained per semester, attendance and many other such things (Baptiste,
2011).

3. Software and Vendor Selection
Selection of software for the business activities requires consent with the person who possesses a
good knowledge regarding this, because if the software results in a misfit with the business
requirements, it can result in poor performance and evaluation process (Beekhuyzen, Goodwin
and Nielsen, 2012). For example, on the off chance that the ERP programming is not in
consistence with the authoritative condition, the renting organizations won't have the capacity to
give its clients exercises the privilege lawful system expecting is a charitable situation with – to
some degree a bureaucratic approach (Baptiste, 2011).
Some of the results of the cases where software was a misfit are:
 Over-dependency on highly customized systems: As the software was a mismatch,
customizations to the existing software was heavy who surely need time to get adapt to it
and resulted in overspent budget, project delays, and unreliable system (Marginson and
Considine, 2010).
 Deprived management of the ERP process: With limited knowledge of the ERP design it
will be a challenging task for the management to run the ERP system smoothly and
effectively as the task will require executives to manage people along with new systems.
Also a need to re-design business process (Marginson and Considine, 2010).
Hence the best software selection according to the requirements of an individual organization or
institution is the primary goal while deciding on to incorporate ERP systems to the organization
(Bruce, 2015).
As big ventures in the area of education struggles to in the era concentrated on commercializing
advanced education, vendors see this as a big opportunity for them to grow in the market which

could help them to earn millions of dollars. As a result, developing prevalence of ERP
innovation surrounded by tentative educational surroundings has a capability to re-define
operations and functions at an organization and transforming administrators’ functions
(Campbell, 2013).
At present the most famous ERP vendors in the area of higher education are Datatel, Jenzabar,
SAP, People Soft, SCT and Oracle (Ciborra, 2010).
According to a group, the solidification of merchants and the arrival to essential business
operations, affected ERP arrangements in the territory of advanced education (Cohen, March and
Olsen, 2012). A research has been conducted upon several ERP vendors and they have been
categorized under four quadrants according to their expertise.
 Prophets or Creative Thinker: This set contains the vendors whose software possess clear
vision for organization’s future operations and functions but a little inferior to the current
operations of the business. The vendor that belongs to this group is Oracle, however if
company plans to merge with PeopleSoft circumstances can be different (Cohen, March
and Olsen, 2012).
 Challengers: The vendors having a valuable market reputation but lack in a deep
knowledge of future development trends in the client’s organization (Kimaro, and
Nhampossa, 2015).
 Niche Players: endeavors which are effective in certain market sections. For example,
SAP, provides best solutions in the field of integral information but for the other areas it’s
not recommendable. The strategy and vision statement of SAP in the area of higher
education institution is uncertain (Kimaro, and Nhampossa, 2015).

 Cream of the crop: This is the best group of vendors in the field of ERP designs for
higher educational institutions. All the vendors in this group hold exceptional
visualization for the organization’s present and future business requirements. PeopleSoft,
Datatel and SCT are members of this group (Davenport, 2008).
The software solutions provided by above discussed companies covers the larger part of
principle elements of ERP framework such as managing human resources, handling process
of study and accounts and so on. Benefits of individual solutions can be noticed in different
areas. Oracle connects the back-office procedures and network with the use of E-business
platform, SAP on the other hand favors user centered ERP frameworks such as if the
software is designed for student part than it should be student oriented. PeopleSoft stresses
upon the role of web tech and internet (Kimaro, and Nhampossa, 2015).
Deciding on one software vendor is a difficult task and may not be feasible too. Hence the
better idea is to identify different department needs and match them with the appropriate
vendor skills and implement.
4. Technical Preview of ERP in higher Education
In a case study while executing advanced education ERP, a little consideration was put on
utilization of project administration standards, culture of the organization and strategic planning.
Despite the fact that these were effective contextual analyses, they contained confirmation of the
gigantic trouble of actualizing ERP arrangements (Friedman, 2008). The key to online
education is strategic planning. In some of the cases results of implementation of ERP in higher
education shows that considered planning for information technology in universities is in a state
of crisis.

While evaluating a stumbled or fizzled ERP execution and deciding upon the conditions that
prompted its fiasco, more often, administration will conclude that there is some ambiguity in the
software itself or it is excessively mind boggling, making it impossible to execute in their one of
a kind domain (Ellul, 2013). Administration additionally aggravates the disappointment by
asserting that the wrong ERP framework was picked, and in the event that they had the "right"
programming bundle they could recover their drive and accomplish their unique goals
(Eisenhardt, 2009).
However, the study demonstrates that it’s a rare case when software is actually the reason for the
failure. In fact, even if the right software has been chosen for the project, it will result in a failure
at later stage which could be more drastic then the first case.
The actual realization of successful ERP implementation depends upon the proper integration of
the ERP system and a manual exchange of data amidst ERP framework and the present legacy
system of the organization. Improper exchange of data may result in mutilation or loss of data
during export and it may result in number of complications (Eisenhardt, 2009).
The approaches utilized by other universities to overcome above discussed implementation
problems and to employ technology efficiently into the field of higher education are as follows:
 Internal Control: At the time of initial implementation of ERP software solution, to get a
hold of controls in a right manner is less expensive than retrofitting controls. In most
cases, the focus shifts to problems that may arise due to functionality instead focus
should be on control. The interior control comprises of ethical values, following policies,
segregation of duties, integrity and skill of an association's representatives.

 Workforce Assessment: To implement ERP system is a difficult task and to implement it
most efficiently and effectively is the main concern of the ERP vendors. During early
implementations vendors realized that most of the organizations are not able to achieve
even half of the estimated profits. To handle this situation implementer realized that it is
mandatory to manage the adaptation of change within the organization, which clearly
means that ERP projects are not about technology but about people. Responsibilities,
duties, process of conducting business activities, all will be affected by the
implementation of new framework A clear comprehension of the effect of progress
enables the business to outline an arrangement and address the diverse levels of changes
likewise. This approach makes client acknowledgment and purchase in of the new E R P
framework. When individuals utilize the framework, benefits will be accomplished.
 Alignment with present Rules and Regulations: Strategies and methods are imperative
assets which represent the functions of any ERP and specifically in the area of advance
education. They give conviction proclamations and working rules for board of directors
and other members with respect to the organization of ERP system (Beekhuyzen,
Goodwin and Nielsen, 2012).
5. Risks associated with ERP Implementation in Higher Education
Integral Information Solutions or ERP design systems are often denoted as integrated application
packages or connected information systems. They provide us with a unified architecture that
enables us to manage and administer all the vital operations within an organization or university
(Ihde, 2013). The primary goal of an ERP system is to connect all business operations, functions
and activities into an integrated computer system that fulfills the necessities of the entire

association. By executing such arrangements clients hope to enhance organization's productivity,
which in turn, enhance the quality, efficiency and productivity of organization’s activities.
Software packages are available in great number that empowers the connection business
procedures and transaction-oriented data through the entire association, also inside the entire
store network reaching out to a number of organizations (Greener, 2012).
In spite of guarantees for enhanced work procedures and more viable administration in the
organization, various research exercises have demonstrated a high disappointment rate in the
execution of incorporated data arrangements and in some of the cases, involvement of risk is
very high. To know the reason behind this failure, a research was conducted through the entire
history and strategies used for the creation of ERP systems. Based on the research results
reference models were created by analyzing most successful organizations and their main
business functions (Hossler and Pape, 2016).
Subsequently, this implied the execution of ERP frameworks included a high level of complexity
and adjustment to diverse associations. The reasons for the failure of the project can be (not
limited to):
 Unclearly defined vital objectives and strategic goals.
 The management of the client organization doesn’t participate in the implementation
process of the ERP system.
 The information solution provided for the client undervalues the complexity, size and
scope of the organization’s business activities and requirements.
 Company is not prepared to accommodate the changes came up with the new ERP system
solution.

 The vendor selected is not well experienced for this kind of solutions and project team is
not professional.
 Unsatisfactory guidance to the users of the new system which in turn results in loss of
interest to work with the new solution and thus a great risk of failure.
 Data solution generated through computer system is not accurate and possess errors
 Framework productivity measures don't permit for effective changes to occur (desires of
the association are most certainly not reasonable)
 Inquiries with respect to the strategy for framework usage in distinct parts of association
have not been resolved correctly
 Problems with technical part of the solution.
The achievement of the actualized ERP framework relies upon various factors, as the ERP
network is connected to all the business functions of an association. It includes involvement of
the client administration, a proper advancement of the existing policies and procedures, the
probability to interface the basic data arrangements with different business data frameworks, co-
operation amidst employees and advisers, and highly trained and educated staff members
(Hossler and Pape, 2016).
6. Conclusion
The benefits and impacts of implementing an ERP system in any organization require a
demanding assessment. It is rather improbable that in a market like ERP system solutions in
higher education institution, a small and unique department, there would be any financial
difficulty for the implementation process.

Holmes has to adhere to rules and regulations and had to sustain a high-performing cross-
functional group which can operate inside a relational database, to prevent the excessive costs of
the implementation because conventionally, if universities possess a structure that is loosely
coupled than it may not align with the ERP system and will result in extra implementation costs
to set up an alignment with the ERP. While establishing these cross-functional teams for the
Holmes, administrators are advised to consult registration supervision teams at MPU and LPS as
these institutions have a highly experienced cross-functional team and may prove beneficial for
the institution. It will help the staff to standardize and centralize business activities and tasks
without any difficulty and they will be able to adapt the new integral software easily.
The environment at Holmes institute of Higher Education is extremely dynamic as the training
framework has been in a general sense changed with the time. The desire of Holmes to build a
modern ERP system might shift general level task performed by less skilled employees to tasks
that will require specialized skills, knowledge and training. Hence institution might have to
recruit new skilled staff to handle ERP system successfully (Beekhuyzen, Goodwin and Nielsen,
2012).

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