Revised: December 12, 2024
ERP Trends and Challenges in Student and Finance Systems
The landscape of higher education is rapidly changing. The global pandemic fundamentally reshaped nearly every aspect of the traditional campus as institutions and their IT departments were forced to innovate and adapt to serve students virtually. This new reality is expected to be a permanent part of campus culture, creating a growing demand for virtual access to IT systems.
This change aligns with a broader shift in IT priorities across industries. A Gartner survey highlights that spending on IT is now a higher priority than many other initiatives. For educational technology, this means that cloud-based ERP systems will play a more prominent role in colleges and universities.
The ongoing demand for virtual access, coupled with increased IT budgets, will accelerate two major ERP-related trends. ERP systems in higher education are typically composed of a combination of a student information system, finance system or general ledger (GL), and human resources and payroll systems. Seamlessly integrating these systems provides a more streamlined and enhanced business process experience for users, reducing the manual effort required for data synchronization and transformation.
Let’s explore two key trends in student and finance systems and the challenges they present for ERP implementation and integration.
ERP Trends in Higher Education
Trend #1: The shift to hybrid multi-vendor ERP ecosystems
Institutions are shifting away from relying on a single vendor for their student and finance systems, moving instead toward a hybrid, multi-vendor ERP ecosystem. Driving this shift is the demand for superior user experiences and features, enabling administrators to create best-of-breed ecosystems using products from different vendors that meet their unique needs and operate seamlessly—essentially, an à la carte approach.
With most vendors providing cloud offerings, administrators can lower the total cost of ownership by minimizing expenses, such as upgrades and data center maintenance. This shift reduces IT burdens and enhances scalability, making cloud-based solutions an attractive option for institutions. A key challenge for vendors is building these solutions with seamless integration capabilities.
Trend# 1 Move from Single Vendor to Best-of-Breed Multi-Vendor
Trend #2: Accelerated cloud and SaaS adoption
The pandemic accelerated the adoption of cloud-based ERP systems, and this momentum is expected to continue. A survey of 650 colleges and universities showed that 96% of senior leaders found cloud services valuable in meeting institutional needs. Cloud adoption improves student services, online learning, enrollment, and administrative functions, helping institutions stay current with the latest technology without the need for extensive system overhauls.
Institutions are taking one of two paths to cloud adoption:
- Hosted/hybrid models: These models allow institutions with complex IT ecosystems to gradually transition to the cloud, providing a cost-effective, flexible solution.
- SaaS ERP: For smaller to mid-size institutions, the SaaS model offers an easy-to-manage, scalable solution that enables quick adoption of new technologies.
Trend# 2 Adoption of cloud and ultimately SaaS will gain a lot more traction
Challenges in ERP Integration
While these trends offer exciting opportunities, they also present several integration challenges that institutions must address.
Challenge #1: Managing multiple integrations
The shift to multi-vendor ERP ecosystems increases the number of system integrations required. Ensuring reliable, traceable, and maintainable data flows between student and finance systems is a significant challenge. Institutions must track the flow of data across multiple platforms to avoid costly errors or downtime.
Challenge #2: Bridging business process gaps
ERP integration is typically a three-step process: extracting data, translating it, and delivering it to the target system. However, in complex ecosystems, a fourth step is often needed to bridge business process gaps between systems. With a multi-vendor ERP ecosystem, reconciling the institution’s existing business processes with those of the new system is key for seamless integration but can lead to maintenance challenges.
Challenge #3: Navigating non-uniform technology stacks
The introduction of different technology stacks across multiple vendors presents its own challenges. Cloud-based vendors often offer APIs for real-time integration, but these APIs vary in maturity and standards. Some systems may only support batch processing, requiring additional rules and maintenance.
For institutions using hosted or hybrid models, there are further complexities. Integration may require coordination between the institution’s IT department and the cloud provider, particularly if the integration requires direct access to data stores. This adds networking and maintenance layers that can be time-consuming and costly to manage.
Overcoming ERP Integration Challenges with Transact
At Transact, we recognize the complexity of these ERP integration challenges. Our team is dedicated to building solutions that address these issues head-on. With our integration platform, institutions can confidently manage multi-vendor ecosystems, bridge business process gaps, and navigate diverse technology stacks.
We believe that while these challenges are significant, they’re also solvable. Through our configurable solutions, we help institutions create seamless, efficient ERP environments that drive success for both students and administrators.
Revised: December 12, 2024
Revised: December 12, 2024
ERP Trends and Challenges in Student and Finance Systems
The landscape of higher education is rapidly changing. The global pandemic fundamentally reshaped nearly every aspect of the traditional campus as institutions and their IT departments were forced to innovate and adapt to serve students virtually. This new reality is expected to be a permanent part of campus culture, creating a growing demand for virtual access to IT systems.
This change aligns with a broader shift in IT priorities across industries. A Gartner survey highlights that spending on IT is now a higher priority than many other initiatives. For educational technology, this means that cloud-based ERP systems will play a more prominent role in colleges and universities.
The ongoing demand for virtual access, coupled with increased IT budgets, will accelerate two major ERP-related trends. ERP systems in higher education are typically composed of a combination of a student information system, finance system or general ledger (GL), and human resources and payroll systems. Seamlessly integrating these systems provides a more streamlined and enhanced business process experience for users, reducing the manual effort required for data synchronization and transformation.
Let’s explore two key trends in student and finance systems and the challenges they present for ERP implementation and integration.
ERP Trends in Higher Education
Trend #1: The shift to hybrid multi-vendor ERP ecosystems
Institutions are shifting away from relying on a single vendor for their student and finance systems, moving instead toward a hybrid, multi-vendor ERP ecosystem. Driving this shift is the demand for superior user experiences and features, enabling administrators to create best-of-breed ecosystems using products from different vendors that meet their unique needs and operate seamlessly—essentially, an à la carte approach.
With most vendors providing cloud offerings, administrators can lower the total cost of ownership by minimizing expenses, such as upgrades and data center maintenance. This shift reduces IT burdens and enhances scalability, making cloud-based solutions an attractive option for institutions. A key challenge for vendors is building these solutions with seamless integration capabilities.
Trend# 1 Move from Single Vendor to Best-of-Breed Multi-Vendor
Trend #2: Accelerated cloud and SaaS adoption
The pandemic accelerated the adoption of cloud-based ERP systems, and this momentum is expected to continue. A survey of 650 colleges and universities showed that 96% of senior leaders found cloud services valuable in meeting institutional needs. Cloud adoption improves student services, online learning, enrollment, and administrative functions, helping institutions stay current with the latest technology without the need for extensive system overhauls.
Institutions are taking one of two paths to cloud adoption:
- Hosted/hybrid models: These models allow institutions with complex IT ecosystems to gradually transition to the cloud, providing a cost-effective, flexible solution.
- SaaS ERP: For smaller to mid-size institutions, the SaaS model offers an easy-to-manage, scalable solution that enables quick adoption of new technologies.
Trend# 2 Adoption of cloud and ultimately SaaS will gain a lot more traction
Challenges in ERP Integration
While these trends offer exciting opportunities, they also present several integration challenges that institutions must address.
Challenge #1: Managing multiple integrations
The shift to multi-vendor ERP ecosystems increases the number of system integrations required. Ensuring reliable, traceable, and maintainable data flows between student and finance systems is a significant challenge. Institutions must track the flow of data across multiple platforms to avoid costly errors or downtime.
Challenge #2: Bridging business process gaps
ERP integration is typically a three-step process: extracting data, translating it, and delivering it to the target system. However, in complex ecosystems, a fourth step is often needed to bridge business process gaps between systems. With a multi-vendor ERP ecosystem, reconciling the institution’s existing business processes with those of the new system is key for seamless integration but can lead to maintenance challenges.
Challenge #3: Navigating non-uniform technology stacks
The introduction of different technology stacks across multiple vendors presents its own challenges. Cloud-based vendors often offer APIs for real-time integration, but these APIs vary in maturity and standards. Some systems may only support batch processing, requiring additional rules and maintenance.
For institutions using hosted or hybrid models, there are further complexities. Integration may require coordination between the institution’s IT department and the cloud provider, particularly if the integration requires direct access to data stores. This adds networking and maintenance layers that can be time-consuming and costly to manage.
Overcoming ERP Integration Challenges with Transact
At Transact, we recognize the complexity of these ERP integration challenges. Our team is dedicated to building solutions that address these issues head-on. With our integration platform, institutions can confidently manage multi-vendor ecosystems, bridge business process gaps, and navigate diverse technology stacks.
We believe that while these challenges are significant, they’re also solvable. Through our configurable solutions, we help institutions create seamless, efficient ERP environments that drive success for both students and administrators.
Revised: December 12, 2024