Enterprise Resource Planning (ERP): A literature review and highlight on higher education institutions system

Enterprise Resource Planning (ERP): A literature review and highlight on higher education institutions system

البحث العلمي المؤتمرات العلمية ابحاث المؤتمرات العلمية

اسم الباحث     :    Marwa Al-hadi Nagi Al-Shaibany
سنة النشر     :    2017
ملخص البحث     :   

Abstract

Enterprise resource planning (ERP) system is one of the most used systems around the world. This system is used in order to have full benefits and these benefits will work toward organization enhancement. Recently, adding ERP in higher education system to intuitions helps in improving their production such as having clear and accurate information and having easy way of collages communications etc. Therefore, this paper divided into two parts, the first part focuses on ERP literature review, while the second part focuses on ERP in higher education institutions. The purpose of this paper is to have a clear vision of ERP system not only in companies but also in sections and other fields. This study recommends concluding pre-implementation steps toward having a clear, efficient and successful ERP system.

 

Keywords- Enterprise Resources Planning, Higher Education, ERP CSFs, ERP Modules.

I.    INTRODUCTION

T

he fact of combination of  information and information based processes that prepared within and across functional areas in an institution oriented toward using ERP system[1]. ERP was defined as a functional structure that had been held set of functional units and each functional unit works separated to achieve their own goal and objectives and also they can combine all the data and related processes of an institution into a unified information system[2, 3]. Besides, ERP was also defined as all the data within an institution’s or organization's business processes, and these data related to functional areas and also come together to represent a business application [4].

This innovation of ERP as a major system for numerous successful companies with a central database is a changeable point in information technology life [5]. ERP has the ability to solve errors, repetition, missed data, difficulty in  making decisions and unrelated works from multiple databases[6]. Success of ERP in big and complex business areas witnesses a proliferation in a small business area too[7].

In recent years, ERP becomes an essential part in management of multiple fields not only in the business fields but also in another filed such as  higher education field [8].That's according to the advantages that had been observed when using ERP  such as: enhancing information access and processes management, and planning and managing the organization as well as  upgrading services for students, staffs and also employers[9].

Implementation of ERP system in higher education institutions or universities is a pointer to a new technology revolution in that country and it is as a gain for higher education institutions instead of legacy administration and management systems[10]. In fact, replacing legacy systems at higher education institutions into ERP solutions will motivate enhancing services to the customer, and increasing work effectively, moreover it also facilitating administrative process[11]. In reality, depending on ERP in higher education institutions will reduce the yearly cost of legacy system and also the expected risk, in addition to enhancing the performance, whereas, the performance is the core  reason for deciding that the  system is success or not [1, 12]. 

According to standard processes, activates observation and data flow during the system, ERP cost becomes under control and could be lower than before, furthermore the availability of cloud ERP is ones of the most reasons to continue thinking, rethinking and using ERP in higher education system [13, 14].

As a matter of fact, critical success factors (CSFs) in institution’s systems help in deciding whether to complete the implementation of ERP or not[13, 14]. ERP system is one of those systems which relies on CSFs as a major point in the implementation process[15]. It is popularly believed that  budget size, cost, business process, information flow, project objectives  are considered as a major ERP CSFs [15].

 Actually,  the  educational  ERP system is used by many countries such as Austria, United States, India , China , Brazil and some other Arabian countries such as Egypt and Bahrain to manage their universities systems[10] whereas  in Yemen, ERP is still in its initial stage especially in higher education section. Knowing that, there are multiple educational institutions in Yemen loss the ability of good management.

 Therefore, the purpose of this study is to have a comprehensive view of ERP system and understand the main CSFs of ERP which able to answer requirements in higher education departments by having multiple studies about CSFs in the higher education sector. These CSFs should be taken in consideration in pre-implementation stage of ERP to assure successful ERP implementation. This study will also, discuss the most used modules of ERP and what the appropriate model is for each. In addition, this study will have a special concentrate on Yemeni universities and suggest for implementation ERP system in its.

II.    ENTERPRISE RESOURCE PLANNING:

  1. Evolution of ERP.

1990 has witnessed birth of a new concept into a computer world that called Enterprise resource planning which created by Gartner Group[16]. The beginning of ERP was from the legacy system in 1960s[16]. Legacy system or inventory control package is now outdated system[16]. When  enhancement of  Legacy system happened, it produced Material Requirement Planning (MRP), and that gave “The New Way of Life in Production and Inventory Management” [17, 18].  MRP meets the production schedule by determining the timing and quantity of production. This electronic handling helps in reducing wasting time on paper based [19]. Thinking of MRP in deep is generated a new generation of system which called Manufacturing Resources Planning (MRP II) [18]. MRP II has the ability to co-occur the materials with production requirements[18]. Exert multiple efforts on MRP and MRP II produce a new form of system called ERP. ERP is one database and a unified interface across the entire enterprise and it has specific modules[20]. Flexibility of ERP and its ability to have new modules built an extended ERP or ERP II [21].All those are clarify in  Table (1) which represents the evolution of ERP [17]. In recent year, adding cloud into ERP is becoming mostly used and thus for reducing the current cost of ERP system [22].

رجوع