ERP Systems in Egyptian Higher Education
ERP Systems in Egyptian Higher Education
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Noorliza Karia
Operations Department
Universiti Sains Malaysia, USM
11800 USM, Penang, Malaysia
noorliza@[Link]
Abstract— Enterprise Resource Planning (ERP) system is indeed crucial for service operations competencies in Higher
Education Institutions (HEIs). Previous studies ascertain that ERP system improves an operational efficiency and enhance
competitiveness. Though literature has indicated the importance of ERP system for enhancing a firm’s operational performance,
there is only a small-scale of ERP adopters in HEIs; hence ERP application in HEIs are still at an embryonic level. Indeed, only few
research exists and little is known about strategic resources acquired for achieving high operations competencies and issues how
ERP system, innovative technology enables a better performance. This implies that ERP system has not been perceived as an
emerging innovation capability that improves operational cost and service efficiency. To enhancing such crucial understanding,
this study reviews the benefits of ERPs, further identifies challenges and issues in implementing ERP system in HEIs in particular
Egyptian HEIs. The research contributes to the advance of concepts and dimensions for ERP system from HEIs' standpoint and
grants practical verification to defend the innovation of service operations in HEIs.
Keywords— Benefit; Challenges; Egypt; Egyptian Education; Enterprise Resource Planning System; Higher Education; ERP;
HEIs
I. INTRODUCTION
Enterprise Resource Planning (ERP) system has been acknowledged since 1970 that integrates information within and
across the functional areas in an organization. It has been developed in the concept of materials requirement planning (MRP)
from the production management to strategic and tactical decision making by integrating the functionality of sales, human
resource management, accounting and financial services. Since 2000 onwards, ERP has extended version of ERP II systems
that have enabled integration across supply chain such as transportation management systems (TMSs), advanced planning
systems (APSs), analytics, warehouse management systems (WMSs), business intelligence (BI), customer relationship
management (CRM) systems, supplier relationship management (SRM) systems and e-business [1, 2]
Expanding knowledge and advance technology have brought new competitive landscape for the higher education sector to
meet global customer requirements on quality and performance; government and stakeholder demands. These have forced
higher education institutes (HEIs) to improve their service quality level and innovation by implementing ERP system which in
turn enhance their performance and efficiency [3, 4, 5]. The ERP system has been adopted to replace the existing
administration and management-related computer systems [3], in order to increase the performance of the end users by
providing better managerial tools to enhance levels of efficiency and performance [4]. Therefore, ERP system plays a
significant role in integrating information of an organization for the service operations competency of HEIs.
HEIs have been developing and integrating ERP system to automate and incorporate their business processes. This includes
the processes of student recruitment, student admission, student records, financial aid for students as well as some of the
universities’ administrative and academic services [5]. There is a notion that “ERP entails gaining the knowledge of the best
business practices and applying these practices to improve or completely replace existing legacy practices” [6].
ERP systems have been defined as “configurable information system packages that integrate information and information-
based processes within and across functional areas in an organisation” in accordance with [7]. An ERP system comprises
marketing and accounting software (MAS), supply chain management (SCM), human resource management (HRM), customer
relationship management (CRM), students and academic resources (SAR) and a library information system (LIS) [8, 9].
The ERP system is not simply an automation of an organisation’s business processes but enables an opportunity for an
organisation’s business processes to be re-engineered and this can auger well for an organisation’s success in the long-term. A
system of ERP provides a number of benefits. These include the capacity for better data analysis, improved levels of
organisational performance and efficiency due to enhanced processes in place that allow for improved levels of customer
service. Thus, the ERP system has emerged and enhanced the level of productivity and profitability as well as improved
organization’s efficiency [13]. Such ERP advantages provide benefits and values to organisations and enable organisations to
be more competitive in the market [10].
Due to substantial benefits of ERP system, some universities have allocated an investment of more than five billion dollars
in the ERP system [15]. The adoption of the ERP system in universities is aimed to create improvement levels of efficiency
and performance so that colleges, departments and schools have an improved capability for teaching and research at a low or at
a practical cost [16]. Although universities have invested substantial resource, the ERP system still fails to deliver its expected
benefits. Therefore, it is a robust desire by researchers to examine and explicate the causal factors that underpin good
performance when a system of ERP is applied [17].
II. APPLICATION OF THE ERP SYSTEM
For decades, the ERP system has had a marked influence, worldwide, on the market. In fact, it is anticipated that the global
market for ERP software would almost double from the sum of 28.88 billion dollars in 2006 to 47.7 billion dollars by 2011
[18]. The ERP system is the largest enterprise application in the software market in 2012, with a projected revenue of 24.9
billion dollars. In comparison, this is followed by the office suites which are projected to reach 16.5 billion dollars; a modest
growth of 2.2 percent [19]. The rationale as to why organizations have chosen to adopt the ERP system; is that it enhances an
organization’s ability for business process management (BPM) engagement [20].
In particular, ERP system plays a prominent role in integrating business function and facilitating information sharing and
communication. Through the integration of ERP system, remarkable gains in speed and productivity can be attained. As an
example, Cisco Systems utilised ERP to underpin their new global networked business model which allowed Cisco Systems to
become the global networking industry market leader. Cisco’s business model utilises a platform of electronic communications
to build knowledge-based and interactive relationships with its stakeholders, employees and suppliers. Since the application of
an ERP system, each year Cisco has been able to double in size and has increased its revenue and cost savings in the order of
hundreds of millions of dollars. As an example of increased levels of efficiency, a design software company, Autodesk, after
implementing a system of ERP reported an astounding decrease in time required to fill orders from a two-week period to 24
hours [21].
In university, the system of ERP is frequently the single largest software application implemented with a considerable sum
of money allocated for the implementation phase. Despite the fact that the majority of universities have implemented an ERP
system or are in the process of applying one [8, 14, 22], there is a dearth of research examining ERP in the context of the
environment of a university, in comparison to other environments. Accordingly, in this paper an examination and critical
review of previous research relating to the ERP system in the higher education sector is made in the context of the country of
Egypt. This critical review will evaluate previous research and will assist in determining the need for research in this area into
the future and will ascertain the advantages of ERP in the higher education sector.
III. ERP SYSTEM FUNCTIONS AND CHARACTERISTICS
ERP system has been defined in diverse terminologies. It has been recognized as an integrated commercial package that
supports 0 in real time and in an integrated way. Soliman and Karia [51] regard ERP characteristics and functions in line with
higher education context that enable HEIs to rise their operational efficiency and to reduce the duplication of resources. Table
1 comprises all characteristics of ERP system and their benefits [52].
TABLE I. THE MAIN CHARACTERISTICS OF ERP SYSTEMS AND THEIR USEFULNESS FOR HEIS [52]
Characteristics Explanatory elements Usefulness
Integration Interconnections between functions and hierarchical Campus-wide integration on a common system.
levels, and Increase data integrity, validity and reliability.
The interaction between the various processes.
Completeness A wide range of functions, Applicable to various Create a more seamless integration between technology and education
(generic function) types of firms, and Connectivity with the outside. delivery by providing a single platform based on new technologies
Homogenization Unique data referential, Uniformity of human- Support sophisticated data analysis for use in decision-making.
machine interfaces, and Unicity of the system’s Develop and maintain consistent data definitions.
administration.
Real-time Real-time update and consultation. Access to data in real time
Adaptability Capability to follow rule and organization changes Improve the self-service environment for students and faculty.
(flexibility) (made possible by parameter-in ). Enable higher availability of administrative systems.
Provide accessible, user-friendly administrative and student support
services.
Best practices The system embeds best practices in the field. Reduce or eliminate manual processes.
Integrated workflow, industry best practices, and reduced dependence
on paper.
TABLE II. TABLE 3: PROCESSES AND BENEFITS IN SAP FOR HEI [53]
Modules Advantages
Financial management Improved efficiency of budgeting and planning processes through cross-organizational financial
control and visibility.
Enterprise asset management Reduced break and fix repair work and equipment downtime. Improved
capital expenditure management. Increased equipment and asset utilization.
Maximized efficiency for work-order processing.
Human capital management Reduced cost for common HCM processes such as recruitment, administration, payroll, time
management, and legal reporting.
Performance management Efficient storage of business intelligence data from across the organization
for reporting and analysis. Enhanced security of access to integrated data.
Improved decision making by providing real-time, accurate, consolidated data
and tracking status against specific KPIs and metrics.
Procurement Reduced purchasing expenses without compromising supplies for researchers,
instructors, administrative staff, and asset maintenance employees.
Compliance, security, Improved protection of sensitive student, financial,
and risk mitigation and operational data and increased data consistency through master data management functions.
Business process integration Enhanced efficiency of workflow processes through integrated systems. Reduced need for custom
integration. Increased cost savings through reduced integration and maintenance.
Grants and funds management Improved effectiveness of grant administration from pre-award to post-award,
across multiple fiscal years, with enhanced accuracy of spending tracking.
Reduced manual processes and workload in planning, managing and reporting grants.
Relationship management, institutional Enhanced institutional responsiveness to all stakeholders. Streamlined enrollment management
development and enrollments and process. Improved end-to-end customer relations, from
management applicant to alumni.
Student lifecycle management Minimized administrative paperwork through real-time faculty access to student data and automated
functionality. Improved advisory services through consolidation of real-time student data. Automated
fee calculations and billing processes for improved cash flow.
The increased level of expectation from domestic and international students have increased the demand for HEIs, hence
force HEIs to improve their quality service and innovation [4]. Indeed only few research exists and little is known about what
are acquired for achieving a high operations competencies and issues how ERP system, innovative technology enables a better
performance. Recognizing the deficiency of HEIs to meet these global requirements, most governments have urged universities
to improve their overall efficiency and performance [3, 27] by implementing ERP system. HEIs have applied ERP system to
assist them to cope with these increasing demands of a changing university environment [6] by discarding the standalone
application designed for administrative and academic departments. The ERP application provides greater capacity for HEIs to
provide education and research [16]. With a significant sum of money invested in ERP system, it is challenging for HEIs to
understand what and how the adoption of ERP system can provide the benefits of profit for HEIs and value for customers.
Currently, only a modest amount of research has been undertaken in relation to the application of the ERP system in the
university environment in comparison to other environments [27].
V. HIGHER EDUCATION INSTITUTIONS (HEIS) IN EGYPT
In Egypt, the higher education sector encompasses universities and also technical and professional training institutions in
accordance with the study conducted by [14]. As noted by [15] this system is comprised of:
• 21 public universities including Alazhar University and four branches which will soon develop into independent
universities;
• 13 non-university based institutions which are public and made up of 8 technical institutions;
• 19 universities which are private;
• 11 institutions which are non-university based and were established under special agreements or by other
governmental entities (i.e. not the Ministry of Higher Education);
• 96 private institutions; of which 8 are two-year Middle Technical Institutes (MTI). Four of these institutions offer
both four-year and two-year degrees, whilst 88 institutions offer four-year degrees; and
• Eight private foreign institutions.
[30]; and Egypt’s pharmaceutical sector comprises large-sized enterprises (either state-owned enterprises, private-owned
enterprises, or foreign-owned subsidiaries) that have the capacity to financially support such information systems (ISs) on a
large scale. Despite ERP system is being widely studied, there is still a lack of empirical understanding in the application of
ERP system in the Egyptian context and market [36].
VII. BETTER OUTCOMES FOR HEIS BY USING ERP AS AN INNOVATIVE TECHNOLOGY
Previous studies ascertain that ERP system improves an operational efficiency and enhance competitiveness [16-20]. There
is a number of studies in implementing ERP in HEIs, indicating a significant development in the information communication
technology (ICT) industry with a noted increase in investment in ERP systems in the education sector. This study holds that
HEIs could achieve the competitive advantage through ERP system such as the following:
1) Increases the capability to access a wide range of information sources in order for an institution’s members to
work seamlessly with data derived from different sources;
2) Provides flawless integration of business processes and data flow as well as improving the sharing of information
throughout an institution;
3) Allows the capability of a centralised data storage that can aid in increasing the levels of control, providing
optimal storage and management of information;
4) Can increase the workflow and internal efficiency, such as the process of online student registration;
5) Can assist in developing learning and teaching pedagogies whereby, for example, a lecturer teaches a given
tutorial in the normal setting of a classroom and afterwards utilises a system of ERP to express that which is being
taught;
6) Allows for optimal use of hardware resources, by enhancing efficiency and reducing the institution’s overhead
costs;
7) Effectively manages program alerts and communication, for instance, the system can keep watch over alerts and
e-mail flows;
8) Effectively undertakes new business processes, such as e-commerce, e-procurement, e-learning, e-portfolio and e-
government;
9) Allows for an improvement in operations’ planning within institutions through the provision of relevant
information sought by managers to support strategic decision-making;
10) Allows for an easily understandable web interface system that supports interactivity. Furthermore, wide-ranging
administrative functions can be provided through the interface by way of enhanced integrated portals and one-stop
shopping;
11) Can increase the level of information sharing, leading to increased levels of efficiency, enhanced workflow, by
minimising the reliance on printed material and paper.
Priority Name
1 Lack of senior manager commitment
These identified risk factors demonstrate a number of organisational considerations such as organisational fits; project
management and control; skill mixed; user involvement and training; design of the software system; and technology planning.
As any implementation programme, the implementation of an ERP system also will cause organisational changes, thus requires
support from the organisation’s senior level of management in the process and ensure they are able to resolve any conflict. In
the absence of commitment from the senior-level management, the implementation of an ERP system is at a high risk of
failure.
There may be resistance throughout an organisation to adopt the ERP system due to the difficulty in accepting changes in
business processes. As an ERP system connects and integrates an organisation’s business functions, it is crucial that the staff
of management-level have a high level of commitment to the success of the ERP implementation. In particular, an organization
furnish employees to embrace ERP business functions that influence clear pathways for communication. Risks are also created
with the insufficient or ineffective end-user training that leads to inaccuracy and creating a layer of confusion, thereby leading
to user dissatisfaction and ultimately affecting the integrity of the system[26].
For the success of the ERP implementation, a first-rate project management is required. In order to effectively implement
an ERP system, project teams ought to be given clear guidelines outlining the objectives of the project and be given a work
plan that integrates with a resource allocation plan. In fact, in the absence of effective project management, ERP
implementation projects, particularly those which are large-scale and take place over longer periods of time, may ultimately
end in failure. In addition, the composition of the members of the project team plays a significant role in the implementation of
an ERP system. As an ERP system integrates a varied range of business functions across an organisation into a single system;
this requirement dictates that an integrated and complex software package is required to meet these needs. In the event the
changes in its organisational structure are not clearly understood by all the members of the project team, including the
processes and strategies of the ERP implementation, then, the organisation will not be best positioned to benefit from the
competitive advantage provided by the system of ERP. In order for ‘best practice’ of implementation ERP system, the project
team members ought to be chosen by ensuring there is a balance between the members with business acumen within the
organisation as well as external experts who specialise in ERP [26].
Meanwhile Pollock and Cornford [50] argued that ERP system is a generic type of solution, but not a specific solution, hence it
is a high-risk strategy for universities to adopt it. In spite of the need for HEIs to have business functions which are unique, the
ERP system can confine universities’ choices and support the HEI's adoption of any type of solution.
Another challenge is that ERP system is a dynamic and complex large integrated packaged solution, therefore, it may
create problems for the IT staff and management during the implementation phase, even, for those who might have a detailed
understanding of their own organization. This may be due to the fact that universities possess an expanded array of systems;
many of which may have competing functions whenever there are a specific needs. In the worst case scenario, universities may
not have IT staff or management who are sufficiently well-trained to understand the complexities of organisational functions.
The key features of an ERP system are integration and standardisation, thus may reduce the flexibility within a university’s
systems. This limited flexibility may lead staff members to carry on the previous processes rather than applying new and more
efficient processes. In responding to an emerging ERP system, it may eventually increase staff workload and cause a data gap
between reality and the system [26].
IX. CONCLUSION
Overall this paper advances the theoretical ERP system of HEI’s efficiency and competitiveness. The review finding of
this paper indicates the impact and advantages of implementing an ERP system. HEIs need to implement ERP system – new
technology and processes to increase their performance and efficiency. Accordingly, the motive to prompt studies on ERP in
the higher education sector in the Egyptian context is to increase the level of understanding of ERP systems, to get a better
appreciation of the substantial change required, as well as considering the adoption and use of the ERP system itself. As the
Egyptian HEIs are being met with significant challenges, the system of ERP introduces new techniques and tools that can
provide solutions to the problems confronting Egypt’s HEIs. The ERP characteristics and functions or modules leads to
enhance HEIs operational performance along with improving the quality of educational services provided. Future research is
suggested to examine the impact of ERP system on HEI’s performance.
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BIOGRAPHY
Noorliza Karia is an Associate Professor of Logistics and Operations and Chair of the Department of Operations at the Universiti Sains
Malaysia (USM). She received her PhD in Logistics from University of Hull, UK, MBA from USM and Bachelor of Science in Production
and Operations Management from University of Denver, Colorado, USA. She has gained industrial experiences in production planning,
supply management, assembly and mass production in manufacturing industry. She is the Chartered Member of the Chartered Institute of
Logistics and Transport, United Kingdom. Associate Professor Dr. Noorliza has published her works in high quality journals and
conferences. Her research interests center on logistics, operations and quality, resource and capabilities, halal logistics and service,
competitive advantage, sustainability and innovation.
Mohamed Soliman is a PhD candidate in the operations department at the school of Management at the Universiti Sains Malaysia,
Malaysia. He earned B.S. in Information system from the faculty of Business, Economics and Information System at Misr University for
Science and Technology, Egypt and Master of Business Administration in Management Information System from Arab Academy for
Banking and Financial Science, Egypt. He has an academic teaching experience. He has published journal papers. His research interests
include innovation technology, technology management, MIS, ERP and higher education.