Erp Implementation

Topics: SAP AG, ABAP, SAP Pages: 24 (8034 words) Published: October 9, 2011
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- This paper appears in the publication, Journal of Cases on Information Technology, Volume 11, Issue 2 edited by Mehdi Khosrow-Pour © 2009, IGI Global

ITJ 4873

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] 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  significant  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  inflation,  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)...
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