701 E. Chocolate Avenue, Hershey PA 17033-1240, USA Journal of Cases on Information Technology, 11(2), 42-55, April-June 2009 Tel: 717/533-8845; Fax 717/533-8661; URL-http://www.igi-global.com This paper appears in the publication, Journal of Cases on Information Technology, Volume 11, Issue 2 edited by Mehdi Khosrow-Pour © 2009, IGI Global
Enterprise Resource Planning Implementation in an Institution of Higher Learning: A Case Study of Drummond University
Randall B. Hayes, Central Michigan University, USA Kathleen M. Utecht, Sam Houston State University, USA
Enterprise Resource Planning (ERP) software systems are implemented in major corporations because of their unique design which enables the integration of information across the functional areas of a business. Implementations of ERP software, such as SAP or Oracle, are most commonly documented in the manufacturing sector. This case study, however, describes the implementation of ERP in an institution of higher learning. In particular, issues pertaining to implementing SAP in a university structure, measuring the return on an ERP investment in an educational institution, and managing organizational change are discussed. [Article copies are available for purchase from InfoSci-on-Demand.com] Keywords: Change Management; Enterprise Resource Planning; Higher Education
Drummond University (DU) was founded in 1892 in a small town in the Midwest. The university began as a teacher preparatory school, but over the years added both professional and liberal arts programs. Capitalizing on its small-town setting and diverse educational programs, the university has grown to become one of the largest regional universities in the Midwest. The university now enrolls approximately 18,000 students, of which 15% are graduate students. The school attracts students from 35 different countries: a signiﬁcant achievement for a rural institution. Currently, the university has nearly 2,500 employees on the staff. Much of the attraction of Drummond is due to its mission of offering a “high value” education. In the context of the university’s mission statement, “high value” means an excellent education at a reasonable price. The university’s tuition rates are among the lowest in the state,
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Journal of Cases on Information Technology, 11(2), 42-55, April-June 2009 43
and the university has been cited in one national news magazine as representing one of the top10 values in higher education in the Midwest. Tuition increases in recent years have been near the rate of inﬂation, a notable achievement when competing institutions have increased tuition at two or three times this amount. A president, who answers to an eight member Board of Trustees, governs the university. The governor of the state appoints the Board, and board members serve 8-year terms, although they can be reappointed. The president is responsible for a $300 million budget of which 57% goes for salaries and wages, 33% pays for supplies and equipment, 4.3% is for salable merchandise, 2% goes for debt service, and 4% is for miscellaneous purposes. About a third of the university’s revenues come from state appropriations, while tuition and room and board payments from students provide about half of the total revenues. The rest of the university’s income comes from a variety of sources, including donations and income from athletic events. Four divisions report directly to the president: Academic and Student Affairs, Business and Finance, University Advancement, and Athletics. The president selects the provost (who manages Academic and Student Affairs)...