Creating Budget Consistency
for an ERP Software Upgrade

ERP Software Upgrade

 

School:
Private University System in New York City

Project:
ERP Software Upgrade

Financing:
Finance Lease

Additional Resources:

Challenge:

Many educational institutions struggle with budgeting for software system improvements since they have to balance the benefits of system upgrades with many other critical campus projects. Unlike new facilities, a software system isn’t visible or flashy - but it is the central backbone that helps run the organization. Investing in a new ERP system can significantly increase operational efficiency.

A private university system headquartered in New York City with 30 schools worldwide, had been on the same ERP platform for more than 15 years. The school had repeatedly patched the nearly obsolete system to keep it functioning but recognized it was operating at a minimum capacity.

With its aging ERP system and rapid growth in enrollment and campus expansion, the school needed to implement a new system quickly. The school knew they had to invest more than $15 million for this upgrade and the biggest stumbling block was the upfront implementation costs required to get started. Not only did the school have to pay for ongoing costs and licensing fees for their existing system during the transition, they also needed to plan for approximately $6 million of implementation costs over the first 24 - 30 months. This critical step provides the support, data mapping, and conversion needed to get the school upand- running on the new system - and it is often the most unpredictable and costly part of the process. Read more about how the university overcame its short-term budget constraints.
 

The new ERP system met the needs of the university's growing enrollment and improved operational efficiency.

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