Report: AIS/ERP System Adoption for Educational Institutions

This report presents a business case for the adoption of Accounting Information System (AIS) and Enterprise Resource Planning (ERP) systems within an educational institution. It begins by defining the business processes typical of such institutions, including accounting, student record management, and exam scheduling. The report then outlines the business requirements for an ERP system, emphasizing the need for efficient information sharing, automation of manual processes, and data security. Various ERP software options are evaluated, with a recommendation for Sage ERP due to its scalability, flexibility, and comprehensive features. The utilization of technology to improve organizational efficiency is discussed, highlighting benefits such as improved productivity, streamlined decision-making, and centralized financial management. The report also addresses the efficiency of technology implementation and potential risks involved, proposing mitigation strategies to ensure data security and operational effectiveness. The conclusion reiterates the value of implementing AIS/ERP systems to enhance the management and operational capabilities of educational institutions.

Strategic Information Systems

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Contents
Introduction.................................................................................................................. 2
Defining business process...............................................................................................2
Development of business requirements............................................................................4
Selection of the software................................................................................................7
Utilization of technology to improve the efficiency of the organizations..............................8
Efficiency of technology implementation.........................................................................9
Potential risks involved................................................................................................ 10
Mitigation of the risks..................................................................................................11
Conclusion..................................................................................................................12
References.................................................................................................................. 13
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Introduction
The purpose of compilation of this report is to present a business case for an educational
institution for the adoption of the Accounting Information System (AIS) and Enterprise
Resource Planning (ERP) systems. Written specifically to serve the business needs of an
educational institution with the help of a software that organizes all their data and makes it
accessible, this business report comprises of an understanding of the processes that are
carried out in educational institutions and the requirements that may arise from the same for
an Enterprise Resource Planning system. Once these needs are analysed, we will evaluate the
various options available in the market to choose from, in the form of AIS / ERP system
software, compare their features, and suggest the one that would be best suited to be adopted
by an educational organisation. We are also going to analyse the results that the organisation
aims to obtain by the adoption of this system for the management of their resources. This
report also explores the potential risks that might be involved with the introduction of
technology in the business processes of an educational organisation and suggest strategies for
the mitigation of these risks to ensure efficiency and productivity of the organisation without
having to compromise on the security of their data and resources (Swartz & Orgill, 2013).
Defining business process
For studying the business process of any organisation very to first understand the various
functions that they perform and the process being followed to carry out these functions. Most
of the standard business organisations operating in any industry have their core business
processes documented, standardized and well managed. This is done to ensure efficiency and
to maintain competitiveness and agility in the changing environment. However, since
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educational institutions do not operate as business organisations with profit maximization as
their ultimate aim, the business processes of these institutions are generally unorganized and
unregulated. The management and the administration of educational institutions includes
related processes like accounting and management of fee payment, library management,
management of the records to be kept of the students, exam scheduling, admission
management, managing the finances etc. The enterprise resource planning system for
educational institutions can help in aligning and simplifying the flow of information between
all the stakeholders including the institution staff, students, alumni, parents etc. The figure
below lists all the standard activities and processes that are carried out for the educational
institutions.
Figure 1: Processes for management of educational institutions
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Computers are slowly becoming omnipresent in all the offices and institutions. Technology
and its advent into the workplaces has revolutionized the way they operate, and made it a lot
better in terms of management and efficiency. An educational institution needs to manage
funds and finances related to the institution and track them by creating a report that comprises
of all the inflow and outflow of the organisational resources. There are also a number of other
processes that are carried out in an educational institution which include inventory
management, human resource management, accounting, financial management and the
management of the operations of the entire institution (Consulting, 2012). The educational
institutes also need to maintain a record having the details of the staff and students in a single
place to refer to it whenever required. There are a number of activities there are conducted in
every education institution in a calendar year, all these activities need to be carried out
efficiently and their details need to be recorded and stored in order to refer to them if required
in future.
Development of business requirements
In order to make the management and working of the educational institutions improved,
efficient, manageable and all the more transparent, it is important to make a transition
towards technology and adopt the enterprise resource planning system for the same. The
educational system has changed completely in the last few years with the introduction of
technology in its various spheres (Sharma & Gaur, 2013). However, the adoption of
enterprise resource planning system helps in compiling all these processes and integrates
them into one software that makes the management and access of the information related to
the organisation quicker and more efficient. For doing this we need to first identify all the
processes that are carried out in an educational institution and also identify the business
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requirements to help these organisations in choosing the most optimum software out of all the
ones that are available in the market. The educational system and institutions have activities
going on round the clock and throughout the year. The session begins with admissions,
conduction of classes, examinations, keeping a record of the marks of the students,
production of results and other documents, and keeping a record of all the data related to the
students, the teachers and the rest of the staff (Joseph & George, 2011). For understanding the
business requirements of an educational institution, we need to first understand and identify
all the stakeholders of the organisation the stakeholders of an educational institution include
teachers, trainers, students, staff, the management, parents and their alumni. A software
solution that integrates all the processes of an educational institution will help in efficient
Information sharing within and among the stakeholders of the organisation. It will also allow
the institution in the dissipation of information in the form of alerts and any other relevant
information related to the functioning of the organisation which includes news, alerts,
newsletters, emails. They will also allow these people to have chats and discussions which
help in building trust towards the organisation and also helps the institution in their
development and in improving their management procedures (Aljohani, et al., 2015).
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Figure 2: Requirements from an ERP system for educational institution
The educational institutions require a software that can helps in the automation of the manual
processes which helps in making these processes more accurate and results in less time
consumption. The adoption of a software will also help in making their functions more cost
effective and well organised. They need a system that provides security to the data related to
the students as well as the institution and maintains a backup of this data to help in the
preservation of the information in regular intervals. Another expectation from an enterprise
resource planning system is to provide improved access to the information that will
contribute to better management of the funds and easier and quicker access to the information
required by the staff and the students (Microsoft, 2012).
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Selection of the software
Presently there are a wide number of organisations providing ERP solutions for educational
institutions. The institutions can make a choice among all the available alternatives on the
basis of the features that they provide and the requirements that the organizations have,
related to their functioning and operations. The most common options available to choose
from are Sage ERP, Academia ERP, Redox Technologies ERP solution, Fedena ERP solution
and Digiuniv ERP software. Of all the available options, we have found Sage ERP system to
be best suited for the educational institutions running standard practices of an educational
organisation. This software has the ability to carry out all the operations related to the running
of an educational institution, and also provide the required support to the members of the
organisation, by providing best services at optimum cost. Investing in an ERP solution is a
one-time task which results in a long-term decrease in the expenditure and gives continuous
benefits to the organisation by increasing the efficiency of their operations (Rabaa'i, 2009).
Sage ERP is a scalable solution with a robust software, backing up the services provided for
enterprise resource planning. It helps in providing superior flexibility that gives the
organisations the freedom to customize the solution as per their needs, and helps in smooth
configuration for its applications. The reporting application of this enterprise resource
planning solution is diverse and it offers a wide range of options to choose from for the
preparation of the records. The intelligent solutions by Sage ERP can revolutionize the
management operations of an educational institution and also develop strategies for better
integration of all the activities. While providing all the above services, the Sage ERP also
takes into consideration the security and privacy of the data stored in its system. The sage
ERP portal allows restricted view of the information, and the access to the stored data is
given to only the users that have the permission to take control and view the data. With the
implementation of enterprise resource planning software, the information of the educational
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institution can be accessed from any place at any time, which helps in faster decision making
and also allows the organisation to efficiently share the information with their stakeholders.
Thus, Sage ERP is our software of choice for the introduction of enterprise resource planning
systems in the academic organizations (Sabau, 2009).
Utilization of technology to improve the efficiency of the organizations
The implementation of enterprise resource planning software in the educational organisations
can benefit them in a number of ways. The key benefit that the organisations receive is the
improvement in the efficiency and the productivity of the organisation. This is done by
continuous measurement, monitoring and management of the organisational data and the
resources. All these steps help in maximizing the potential of the organisation and the results
obtained from their operations (Hawking, et al., 2008). Since the enterprise resource planning
software constantly consolidates the data from the various dimensions and functions of the
organisation, the consolidated drilling helps in making the decision making process of the
organisation more effective and efficient. With the introduction of this software, the
organisation can get an online integrated and up to date report of all the data and the key
parameters. The ERP systems also help in centralizing the auditing, accounting and
bookkeeping functions of the organisation, thus, reducing the cost for the monitoring and
record keeping of all these activities. In addition to this, the enterprise resource planning
software also helps in streamlining the organisational activities and optimizing the operations.
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Efficiency of technology implementation
An ERP system creates an online role based integrated information system for the entire
educational organisation and also helps in defining, modelling, operationalizing and
systemizing the best practices of the organization for their further promotion and adoption to
make the organizational operations more efficient. The software also helps in keeping a
constant track of the deviations that may occur from the compliance requirements for an
educational organisation (Ellucian, 2012). It provides the managers and the decision makers
of the organisation a complete visibility of the day-to-day operations of the organisation and
also provides all the required reports at one click, which helps in giving a clear picture in the
form of theory as well as statistics. Another factor related to the enterprise resource planning
software that helps in the improvement of the efficiency of the organisation is that of
accounting and financial management (Bologa, 2007). The software helps in continuously
monitoring the financial health of the organisation and also helps in initiating any corrective
action as and when required for the same. The system automatically creates reports related to
unrealized payment receipt and gives out timely alerts that help the organizations in keeping a
follow up of these delayed payments. These systems can also be used for budgetary control
and the management of both planned and unplanned expenses of the organisation. This helps
in the prevention of cost escalation and keeps the wasteful expenditure of the organisation in
check. The software also provides projections for the cash flow of the organisation which
guides the organisation to plan their working capital accordingly. With the automation of all
the processes related to the organisation and their operations and with the adoption of these
technologies, an absolute removal of human errors can be done which drastically improves
the efficiency of the organisation and makes all the operations more effective and faster
(Jensen, et al., 2005).
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Potential risks involved
The modern day enterprise resource planning solutions help in the amalgamation of the
organisational data, latest technology and business operations to provide an integrated
software solution for the organisation. However, the implementation of the software in the
organisation is a big task that involves a lot of work and a fair amount of risk as well. This
section of the report lists all the risks that might be involved in the implementation of the
enterprise resource planning software in an educational organisation. The biggest risk that is
involved with the implementation of the software applications is the lack of clear vision in
terms of the requirements and the required results. Poor planning is the number one risk to
the ERP implementation’s success because if the implementation process is not planned
appropriately, the project is likely to fail. Any organisation adopting ERP solutions without
properly analyzing their needs cannot receive the required results and stay competitive in the
market. There is a potential risk of people not collaborating and buying in the idea of
adoption of an ERP system and automation of the organisational processes. The stakeholders
of the organisation may not participate in the training programs and also oppose the changes
being brought about in the organisation. Along with the possible people issues, there are a
number of system issues that may also arise due to the introduction of technology in the
organisational operations (Graham, 2009). The adoption of an ERP solution by an institution
requires the submission of huge volumes of data to the system, which may sometimes be
sensitive and private. This data, when exposed to the wrong people can have adverse effects
on the organisational working and their performance. Any breach of security in the ERP
software and its working can result in not just monetary losses, but also cause a loss of
reputation for the organisation.
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Mitigation of the risks
While there is a fairly good chance that the implementation of enterprise resource planning
software in the organisation will increase the efficiency and the productivity, there is also a
chance of the failure of this implementation. However, most of these risks can be managed if
the implementation is well planned and executed. When a case is made for the automation of
the organisational processes and the adoption of enterprise resource planning solutions, it is
necessary that the organisation has a clear vision of all that they expect from the software and
also the time and resources that they are willing to invest for the same (Baweja, 2015). It is
always better to write down clear and measurable goals in order to objectively determine the
success or failure of a project. People are intrinsically wired to resist changes, therefore, it
becomes important to clearly communicate to all the stakeholders of the organisation the
benefits of the software that is being implemented and the way it is going to impact their
working and the organisational processes. The organisation should also plan in advance by
providing training sessions and help in clarifying any doubts that may arise before and while
the implementation process goes on (Abugabah, et al., 2013). They must also engage the
users and seek feedback to constantly improvise and make changes in the implementation
process to make it even better and get improved output out of it. Not all ERP software
comprise of the same features and deliver the same results. The organisation must thoroughly
analyse the processes and the requirement from the ERP system in order to choose the one
that is best suited for their operations. They must also carry out testing of the software with
the organisational stakeholders to make sure that the chosen software meets the needs of the
organisation and does not create any problems post the implementation process. When
choosing a software application, it is also necessary to make sure that the software is
customizable as per the needs of the organisation and modifications can be made to it in later
stages as the organisation progresses and makes changes in its processes (Hawking &
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McCarthy, 2000). There are a number of ERP software available in the market that help in
customization as per the requirement of the customer and also provide add ons or patches
whenever the organisation asks for it.
Conclusion
This business report comprises of an understanding of the processes that are carried out in an
educational institution and the requirements that may arise from the same for an Enterprise
Resource Planning system. This report has been compiled to present a business case for an
educational institution for the adoption of an Enterprise Resource Planning (ERP) system.
Since educational institutions do not operate as business organisations with profit
maximization as their ultimate aim, the business processes of these institutions are generally
unorganized and unregulated. The management and the administration of educational
institutions includes related processes like accounting and management of fee payment,
library management, management of the records to be kept of the students, exam scheduling,
admission management, managing the finances etc. This report explores the potential risks
that might be involved with the introduction of technology in the business processes of an
educational organisation and suggest strategies for the mitigation of these risks to ensure
efficiency and productivity of the organisation without having to compromise on the security
of their data and resources.
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References
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Higher Education:Insights From Users. (IJACSA) International Journal of Advanced
Computer Science and Applications,, 4(12), pp. 1-7.
Aljohani, A., Peng, A. & Nunes, M., 2015. Critical factors leading to ERP replacement in
Higher Education Institutions in Saudi Arabia: A case study, Available at:
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Baweja, S., 2015. Uses of Educational Enterprise Resource planning. International Journal of
Engineering Research and General Science, 3(1), pp. 1-4.
Bologa, A., 2007. ERP for Romanian Higher Education. Revista Informatica Economica
journal, 3(43), pp. 100-103.
Consulting, H., 2012. 15 Tips for a Successful 15 Tips for a Successful Higher Education
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http://www.ellucian.com/Brochures/Banner-by-Ellucian/
Graham, J., 2009. Enterprise resource planning implementation in higher education,
Available at:
https://mospace.umsystem.edu/xmlui/bitstream/handle/10355/6179/research.pdf?sequence=3
Hawking, P., Foster, S. & Ding, H., 2008. ERP Education in China: The Tale of Two Paths.
pp. 893-905, Available at: https://rd.springer.com/chapter/10.1007/978-0-387-76312-5_12
Hawking, P. & McCarthy, B., 2000. Industry collaboration: a practical approach for ERP
education, Available at: https://dl.acm.org/citation.cfm?id=359388&dl=ACM&coll=DL
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Jensen, T. et al., 2005. Issues in ERP Education Development – Evaluation of the Options
Using Three Different Models, Available at: https://pure.au.dk/ws/files/880/88_ICESAcc05_-
_Jensen_et_al__2005.pdf
Joseph, G. & George, A., 2011. ERP, Learning Communities, and Curriculum Integration.
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Microsoft, 2012. Next Generation ERP for Education, s.l.: s.n.
Rabaa'i, A., 2009. dentifying Critical Success Factors of ERP Systems at the Higher
Education Sector, Available at: https://eprints.qut.edu.au/29841/1/29841.pdf
Sabau, G., 2009. An Evaluation Framework for Higher Education ERP Systems, Available at:
http://www.wseas.us/e-library/transactions/computers/2009/29-795.pdf
Sharma, R. & Gaur, G., 2013. Role of enterprise resource planning to enhance education
system: a review, Available at:
http://shodhganga.inflibnet.ac.in/bitstream/10603/102584/13/13_reprint_of_research
%20_paper.pdf
Swartz, D. & Orgill, K., 2013. Higher Education ERP: Lessons Learned, Available at:
https://www.educause.edu/ir/library/pdf/EDU0013.pdf
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