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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 77

Volume 4, No. 6, June 2015

Enterprise Resource Planning (ERP): Role in an Educational


Institute
Dr. Ruchi Singhal, Associate Professor, Jagannath International Management School, New Delhi
Rama Rani, Assistant Professor, Jagannath International Management School, New Delhi

ABSTRACT all different functional aspect of the organization and


decrease the human efforts which might affect the
In todays time of Globalization each & every accuracy and rapid response during dynamic situation
organization is growing at a very fast speed as during workflow. To face and to fulfill all above aspects
compared to their previous speed. Every organization the organization require an integrated, automated, fast,
is facing the problem of resource utilization and it is feasible computerized tool which help in decision
one of the most difficult and challenging job for the making, strategy planning, monitoring and controlling
organization because to use the resources in an all the activities done during organization work.
optimized way is going to provide a good benefit for the
firm. So, instead of manual operation, an organization The above all aspects are having one common solution
needs an automatic tool for the resource utilization i.e. ERP. Enterprise Resource planning (ERP) is latest
activities. ERP i.e. Enterprise Resource Planning is one high-end solution, information has lent to business
of the latest technologies that many organizations have application. The ERP solutions seek to streamline and
undertaken for the effective utilization of their integrate operation processes and information flows on
resources. Typically, Enterprise Resource Planning the company to synergize the resources of an
(ERP) systems are software packages composed of organization namely men, material, money and machine
several modules, such as human resource, sales, through information.
finance and production providing cross-organizational
integration of transaction-based data management Educational institutions are becoming increasingly
throughout integrated business processes support and complex and are not limited to delivering education
information from various resources. alone. They deal with a multitude of activities like
The article presents research results in the field of ERP admissions, library management, hostel management,
systems and their use in higher education institutions. It placements, finance management and many other
compares all those activities which are important for internal and external processes.
the campus management such as admission, attendance
of students, Placement data etc. performed manually or ERP systems are designed to enhance organizations
later on by ERP system. competitiveness by upgrading an organizations ability
to generate timely and accurate information throughout
the enterprise and its supply chain. To be at par
Keywords globally, institutions are taking education to a whole
ERP, Resource Utilization, Effective Utilization, ERP new level by making use of the latest technology
module, informatics services to suitably equip students and at the same time
offering the parents/guardians frequent updates about
1. INTRODUCTION their wards performance and related information.

Todays era is rapid development era where everyone A successful ERP system implementation can shorten
looking for fast growth in their work and production cycles, increases accuracy of demand for
simultaneously the organization also want better materials management & sourcing and leads to
utilization of resources. Every organization tries to keep inventory reduction because of material management,
limited number of resource with high control over them etc. Moreover it can be used as a primary tool for re-
while running any activity or project to minimize the engineering.
cost of the activity or project which will also help to
increase their profitability. The resource utilization is ERP Implementation process: - ERP implantation
one of the most difficult and challenging job for any processes have three main phases, firstly Pre-
organization and every organization tries to reduce the implementation phase, secondly In-implementation
human dependency plus needs an automated tool which phase and finally Post-implementation phase. Every
helps to increase the effectiveness in integrity between phase is unique but interdependent to each other,

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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 78
Volume 4, No. 6, June 2015

following table shows ERP implementation in very step going to implement where all the different
detail. functional and modular information gathered together
logically. Next process is development of software
Table-1 ERP implementation model according to its design using some appropriate software
Phase Implementati Implementati Implementati tools e.g. SAP, BAAN, Oracle Soft etc. by getting
Pre on phase In on phase Post on phase actual package development .The most and crucial
Process BPR Development Monitoring process is testing, where we have to check whether the
+ Approach + ERP is implemented according to its objective or not in
BE + maintenance different prospective like functional, managerial,
SDLC operational etc. if everything goes as per plan then the
Activit Analysis, Planning, Review, deployment of the software package in organization is
y Business Design, Monitor, for actual use. Before handover the ERP into the
engineering, Implementatio Resolve, organizational people, the ERP development team has
TQM, n, Testing Control to provide special training to give some motivation to
Business Deployment, Maintenance the organizational employee to ERP specifications and
modeling Training the usability terminology. Finally the technical team at
Use organizational side will use the ERP, for which it is
Outco Ready to ERP is ready ERP Results actually implemented.
me implement to use and Reviews
ERP The Post-implantation phase also continuous, dynamic
and time consuming process in nature because none of
In the above mention activity every phase has different the team member guaranty about the problems which
sub-activities; in pre-implementation phase the may come after the ERP implementation. This phase
organization doing Business Process Reengineering reviews the ERP tool and monitor regularly, if any
(BPR) in which analysis current business process to technical issue may arise then according to its nature
achieve dramatic improvement, in critical, the suitable resolving get done for maintaining
contemporary measures of performance such as cost, continuous control over the ERP system. ERP
quality, service and speed. Ultimately BPR decide the (Enterprise Resource Planning) is an industry term for
strength and weakness of the organization and give the the broad set of activities supported by multimodal
result to management need for some improvement in application software that help a manufacturer or other
their old and traditional way of working. After getting business managers. Originally, ERP packages were
idea from BPR the organization has to do Business targeted at the manufacturing industry. ERP is a
Engineering (BE) where emerging two concept namely massive software engine that seeks to provide one
Information Technology and Business Process seamless interface to all departments, systems and
Engineering, which helps to maintain total quality existing data within the organization.
management to maintain the quality in their existing
working system and then the business management and A typical ERP system integrates all of an
modeling has to perform which gives an idea about Organisations functions by allowing the modules to
different modules of organization and their internal share and transfer information freely. In this paper, the
relationship, where the organization gets the different basic objective is to study and analyze the current ERP
data models and information which gives the resource module, specifically Human Resource management to
requirement and utilization needs through some get the difference between traditional workflow and
automated tool i.e. ERP. ERP module workflow.

After analyze the need of ERP in organization In- 2. OBJECTIVE OF THE STUDY
implementation Phase, where actual Software
development life cycle (SDLC) going to implement, To get the idea of traditional workflow of the
ERP implementation is the special and sensitive process Educational Institute before the ERP
for organization. It brings together in one platform, implementation and compare with the modern
different business functions, different personalities, way of working after implementation of ERP.
procedure, and ideology with an aim to pool knowledge Analyzing the Benefits of ERP for the different
base to effectively integrate and bring worthwhile and users.
beneficial changes throughout the organization. In
implementation phase first and most important process
is analysis of the current state and working
3. EDUCATION INSTITUTE
environment, information, need, resources, objective MODULES COMPONENTS
and goals of the organization. After analysis the design

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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 79
Volume 4, No. 6, June 2015

Educational institutions core challenge is centralizing, Managing procedures based on


tracking and managing the various operations and university/standards affiliations and common
information in a coherent manner to provide result tests.
oriented education. Optimization and resource Automating the admission process and processes
utilization are the key aspects to achieve the best result around the applicant database.
from the existing infrastructure. The chief modules of Facilitating the closure of the admission process
our ERP Solution are: for applicants, including the fees and registration
processes.
Admission of Students Enabling campaign management through
Attendance of Students effective use of the applicant database, even after
Lesson planning & Subject Assignment the regular admission process is concluded
Personnel Management
Recruitment B) Administration
Compensation Management ERP can help an institute coordinate all tasks around
Personnel Development student lifecycle management in a single place. It
Travel Management includes management of activities such as:
Payroll Maintaining student information-attendance,
The advantages of ERP system are as follows: marks, records,courses and overall performance
i. Swift and streamlined flow of information Scheduling of classes, tests, examinations and
ii. Less time taken for business process cycle events.
iii. Easy Content management Library management for the institute can be
iv. Improved existing processes due to diligent automated
features Automatic updating of the student database
v. Increased Productivity due to Less manual work during promotion or course progression
and calculation Automated report card and transcript generation
vi. Increased transparency and flexibility of for the students
operations Management of student services around
vii. Enhanced Decision-Making Capability due to transport, canteen and hostel
clear cut work bifurcation Knowledge management for the institute
viii. Improved utilization of resources due to including repositories of course material, notes
Standardization and collaboratively generated content
ix. Web login for guardians, students, staff Management of the placement process
x. Email/SMS notifications for constant update Managing communities of practice, including for
xi. Standalone/Distributed Model to synchronize the alumni and employers
data at a central location online
xii. View reports /MIS statements securely from C) Financial management
anywhere on the Internet Campus ERP makes financial management faster and
xiii. Single Click Interface that provides overview of easier, providing accurate information available at any
all the departments given time
Fee management of student- automated record of
Impacts on different functions of the institute fees and other charges
Admissions, Administration, Financial, Human Payroll management of employee and staff
Resource, Student and Faculty management,
Purchase of Asset and Inventory management for
Governance and Compliance are the crucial facets of an
the institute
educational institute.
Analysis and generation of financial statement of
the institute purchase and inventory, as well as
A) Admissions
statutory financial reporting.
Admission is always a cumbersome process with
Budget preparation and financial planning
a large amount of data required to be stored and

managed. ERP can drastically simplify the
admission process by D) HR System
Campus ERP help put an HR system into place:
Creating an environment that facilitates the
Class schedules for teachers, duties for staff
propagation of information around the admission
members can be effectively assigned
process, the courses available, selection criteria,
fees, capture of information about applicants and Maintaining attendance records of staff
supporting documents Efficient payroll management for staff members.
Training management for Faculty & staff

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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 80
Volume 4, No. 6, June 2015

Performance management and feedback right from maintain the record


advertisement, of college
There is a table showing the workflow change after the application visits for
implementation of ERP in institute receiving, recruitment
scrutinizes the process,
Table-2 Workflow change Difference between Pre- form, call for candidates from
implementation and Post-implementation interview, evaluate consultancies
Sub- Pre- Post- them according to and their resumes;
Components Implementation implementation their performance list of
Admission This was very long ERP maintain the in personal candidates
Management procedure right record of college interview and then available for full-
application visits for admission take the decision time
receiving, process, for recruitment. or Part-time work
scrutinizes the candidates from etc.
form, call for consultancies This HR module
interview, evaluate and their resumes; can be
them according to list of integrated with
their performance Candidates training
in personal available for management to
interview and then various courses. link with the
take the decision initial process of
for recruitment. the selected
Attendance of It was a manual This module helps candidates.
Students method including the students and Compensation Very long term This module, the
taking attendance their parents to Management process as top performed
in class and know their collection of data, employees are
feeding of data in attendance on daily compare his targeted and
system by basis after every performance with supported with the
Assistant. Only lecture. Students organizational compensation and
after the dont have to wait policies and make retention scheme
completion of till the End of the decision. as the planned
month attendance month to know objective
is compiled and their attendance. of the company.
students and their It helps them to
parents become keep a track of Personnel Continues ERP performance
aware of the % of their attendance Development monitoring over module
attendance. and easily they can the basically maintains
cover the short employee to get the history of
attendance. his performance employees'
Subject Assignments were ERP maintains the and performance and
Assignment given in class record of this become very determines the
either verbal or Assignment as difficult to take the number of
written on board if uploaded by the comparative employees eligible
student was not in Subject faculty, analysis of for reaching
class he/she may anytime a student different certain level of
miss that. can get access of employee hierarchy.
that. Travel Long and Manual This module is
Personnel Continues Performance Management process for integrated with
management monitoring over appraisal collected collection of data personal and
the online and organizational
employees to get compare their development
their performance. performance with where the total
organizational expenses on the
goals for better employee
evaluation organization and
Recruitment This was very . This ERP module their outcome
long procedure used to get compare with

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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 81
Volume 4, No. 6, June 2015

its cost. Benefits of ERP implementation for different parties


Payroll Manual and Employees After analyzing the above mentioned table, we can
difficult job for attendance and understand the benefits of ERP Implementation for the
account their different persons associated with each other in an
department like time of entry to Educational Institution.
calculate monthly work and exit A) Students: Student life can become easier with
attendance, are entered in the information available at all times attendance,
calculate his system to timetables, reports cards, event schedules, project
monthly salary determine the assessments, internal assessments, and course
according to its number of work materials. Thus, institution-student and faculty-
attendance, hours. student communication is improved with
distribution of This module information being shared in real-time resulting in
salary personally. tracks, check and students becoming more participative.
reports both the B) Faculty: Faculty can access information about
hours of work courses and students at all times. They can plan
and respective out classes and assignments for their students
wages of effectively. Evaluation also becomes easier and
employees. transparent. Faculty members can therefore
Payment is dedicate more time towards core activities
directly transfer instead unproductive tasks. Services such as
into leave management, payroll, purchasing can also
employees bank be automated.
account create C) Management: The most significant benefit that
transparency in management can achieve is the reduction of
Payroll system burden on manpower. Cumbersome processes
It also includes are simplified drastically. All data is accessible
the process of to all by the click of a button. With financial
calculating the activities being automated, the management can
taxes and deducts obtain results, reports and analysis at any given
from the salary and point speeding up the decision making process.
also D) Parents/Guardians: Parents and guardians are
garnishee wages among the most neglected stakeholders when it
for charity comes to accessing information about their
purpose like child wards. Parents can be empowered by providing a
support and real-time dashboard of information on their
for cancer patients wards, which they can accessed non-intrusively.
Time and Time consuming This module is This provides transparent flow of information
Attendance process difficult to integrated with between the institute and the parents.
Management control because of Payroll module.
following reason Apart from the 4. LIMITATIONS OF ERP
like Fake roles of Payroll
Attendance, proxy systems, it also The ERP is very vast and broad area for research and it
attendance in work concentrates on also has multiple number of different modules and
the sick leave of again these module further divided into sub-module so
the employees. my research is get restrict to only those fixed modules
Time and and that research at primary level of considering very
attendance are basic and core aspect of these ERP module . Some of
easily the limitations for ERP in Institutes are the following:
recorded to the In the starting time of Implementation of ERP
system by modules there may be duplicity of work to
scanning the manage the Manual work simultaneously as there
employee barcode is less trust on ERP system.
which is located in In India, one more problem is the Non
every acceptance of Technology change by the
employee's identity employees who will work with those new system
card or modules. So, Employees may don't feel
comfortable with the working on ERP modules.

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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 82
Volume 4, No. 6, June 2015

Also for successful Implementation, there is In today's emerging business environment, large
requirement for effective training module for the business or Institutions have no options to avoid such
users which can help them to use it in friendly massive IT packages.
manner. But most of the time the users may resist
not to learn it for the desired purpose. For the present competitive scenario, lagging ERP
A campus ERP solution may be a cost burden. technology seems to be unsuccessful for an Institutions.
ERP implementation without managing IT Thus, ERP systems have the possibility either to
infrastructure and Cost-effective availability of confine or expand the organization's capabilities and
internet bandwidth, which are still an issue with lead a pathway to competitiveness.
a lot of institutes, is invaluable.
Changes in Management or governing 7. REFERENCES
organizations may result into changes in method
of work , rules etc. which will be having the [1] http://www.sourceedge.com/industry-solution
impact on working of ERP. /education.html
[2] http://www.jenzabar.com/higher-ed-solutions
5. FUTURE SCOPE /enterprise-resource-planning-erp
[3] http://www.indiaeducationreview.com/article/h
As in previous section, I have mentioned the ERP is ow-erp-can-revolutionise-campus-management
very vast and broad area for research and it also has [4] Chen, I. J., Planning for ERP Systems:
multiple numbers of different modules. This literature Analysis and Future Trend, Business Process,
covers introductory aspect and it requires extending at Management Journal, 7(5), 374-386, 2001
different modules of ERP like finance, sales, Production [5] Hicks, D. A., & Stecke, K. E., The ERP
etc. useful to be reviewed by the training supervisors. Maze: Enterprise Resource Planning and other
Production and Inventory Control Software,
This literature also helps to consider primary aspect of IIE Solutions, 27(8), 12-16, 1995.
ERP with special reference to SAP. There are some [6] Shankar Ravi and S.Jaiswal, Enterprise
other vendors who implement ERP tools like BAAN, Resource planning, Galgotia Publications,
OracleSoft etc. So, their might be some changes may 1999
find. Their might be get to consider some different ERP [7] Sharma Dhiraj, Foundation of Information
implementation methodology that may change the Technology, p399, 2009
workflow, mentioned in this paper. [8] Vinod Kumar Garg & N.K.Venkitakrishnan
Enterprise Resource Planning, Prentice
6. CONCLUSION Hall of India, 2003

The challenges for higher education institutions have


changed over the years. Needless to say, as the size of
the institutions grows, they just need a campus
management product as a hygiene factor.

The information received from these modules is


required to have a continuous flow and accurate
evaluation for the Academic & professional
development and for the welfare of the Students,
employees and management. Thus, ERP is represented
as a useful tool to help and make the users easier and
focus their work in a direct relation with staff, skills and
aspiration of an individual related to the objectives and
the goal of the Institution.

Education Institutions can improve enrollment and


student success, reduce operating costs, and increase
constituent contributions and engagement with
comprehensive higher education ERP system.

It is a simple yet powerful one point integrated platform


that connects all the departments of an institution.

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