ERP SOFTWARE HIGHER EDUCATION BEST PRACTICES
ANALYSIS OF DIFFERENCES
Taking into account the four previously mentioned best practices over which CFOs and CIOs perceptions differed, chief financial and information officers generally agree about what constitutes ERP software implementation best practices.
Overall, CIOs ranked best practice statements higher than did CFOs, indicating that the former group has had more experience with technology driven initiatives. However, the differences that exist in perceptual differences is likely best viewed within the context of administrative software computing history. Functional areas on campuses traditionally have operated separately from one another, with little or no sharing of data or processes (the functional silo concept). Administrative software systems were chosen based on their functionality for specific processes and often without context to a larger picture. The administrative computing path was fairly narrow and predictable, and largely handled by IT staff.
ERP applications traverse a much broader path that offers both risk and opportunity. These systems call for data integration as opposed to data residing in separate shadow systems with no interface. Because ERP software has to be implemented rather than simply installed, it requires a fundamental shift for most functional users. ERP implementations usually require people to create new working relationships, share information that once was closely guarded and make business decisions they were never previously required to make.” CFOs approach business processes from a practical orientation, whereas CIOs tend to be more technically oriented. CFOs often focus on accomplishing the task, and function rather than form is an ultimate factor. CIOs focus on the separate methodical steps needed to complete the task, and form rather than function is the stronger consideration. CFOs concentrate on the issuance of the pay check and the associated taxation and legal reporting requirements, while CIOs concentrate on technical aspects such as system resources, integrity, security, access controls and backup. These contrasting perspectives promote differences in approaches to ERP software implementations between CFOs and CIOs.
Four Best Practice Differences
The survey results revealed that CFOs’ and CIOs’ perceptions differed specifically on four best practices.
Project Team Composition
CIOs were much more likely than CFOs to agree with the best practice statement that the implementation project team composition should represent all functional areas where the software will be implemented. Researchers advocate broad user involvement and note the sensibility of this practice in higher education administrative systems development, pointing out that user involvement in the design phase results in a superior system built to the specifications of those who will actually use it.Team Training
CFOs and CIOs perceptions differed about whether employees should receive training on how to work as a project team before implementation kick-off. CIOs ranked this best practice higher than did CFOs. As a related side note, the presence of members on the project team who cannot be trained or reassigned is a factor listed by the IBM Skill Dynamics as one of the top 10 reasons why projects fail.Project Management Office (PMO)
CIOs more so than CFOs believed that a separate, dedicated work environment specifically created for the project team aids successful implementation efforts. The PMO model is widely employed by business, industry, and political parties. At the heart of the ERP software functionality is its enterprise-wide design, which spans divisions, departments, geographies and reporting boundaries. Functional users from throughout the institution should be brought together with technical staff in the PMO to collaborate, plan, design, build and pilot the proposed system. This project environment is comparable to the extended discussion and analysis involved with business process redesign. Having a PMO reduces the time spent arranging for project team meetings in different locations and the installation of appropriate equipment provides stable resources.User Training
CIOs also ranked higher than CFOs the best practice of providing thorough training for all staff who will use the ERP software. Countless authors have advocated this best practice and point out how hindsight often reveals insufficient training as one of the most significant errors made in an ERP application implementation. Without thorough training, employees may be limited in their ability to correctly perform administrative processes or extract data from the system at senior management’s request.Budgets and Funding
An Enterprise Resource Planning software implementation normally spans several fiscal years and consumes substantial investment. It is difficult for administrators and project teams to make sound, timely decisions if information about available resources is hard to locate. Accurate cost accounting is impossible without a budgeting system that provides a structure for expenditures. Higher education institutions historically have had trouble accurately tracking information technology expenses. ERP software implementations are notoriously expensive. Commonly used estimates place the ratio between the ERP software implementation phase and the software purchase itself at about 5:1. ERP applications are typically built according to generic best practices for functional processes, so the institution often must reengineer its business processes to fit the software. Examining and revising these processes enterprise-wide is both time-consuming and expensive. The software’s complexity spawns unexpected tasks that usually consume additional project dollars. Because of the software’s intertwining nature, delays in one area of the project cause other areas to fall behind schedule, thereby requiring additional funding for consultant fees and project plan realignment.
Continue to next page of Higher Education Best Practices Review
ERP Software Best Practices
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