Evolution of ERP in Higher Education

Revised: December 12, 2024

At Transact, we provide a range of campus solutions to help universities and colleges manage essential functions, including solutions for integrated payments, campus ID, and commerce. These products are designed to streamline operations as well as enhance the student experience with easy, secure payments and safe, convenient access to campus services.

A critical part of this process is integrating our products with enterprise resource planning (ERP) systems. These integrations must work seamlessly across a range of campus environments, from on-premise to cloud-hosted and fully SaaS-based solutions.

Addressing ERP Integration Challenges in Higher Education

Higher ed ERP systems are evolving rapidly, with campuses shifting from single-vendor ecosystems to multi-vendor, best-in-class approaches. As cloud and SaaS adoption grows, institutions face increasing challenges such as multiple system integrations, business process gaps, and non-uniform technology stacks.

With more higher education institutions moving toward cloud-based ERP systems, we recognize the need for greater flexibility and ease of use. That's why Transact continues to develop advanced integrations that not only meet today's needs but anticipate the future of ERP in higher education.

The Evolution of ERP Integration Technologies

ERP integration technologies have evolved significantly since the 1980s, paralleling the broader move from monolithic, multi-function applications to distributed, specialized solutions. Below, we'll take a brief look at how these technologies have developed over time.

Figure 1: Evolution of Integration Technologies

1. Data Integration
   Early integration technologies were focused on data exchange, such as file transfers and electronic data interchange (EDI). This approach, still prevalent in many higher education ERP systems, allows separate processes to communicate without being dependent on a common technology stack. Although simple, these methods are asynchronous and less suitable for real-time integration needs.
   
   
2. Functional Integration with Remote Procedure Calls (RPCs)
   RPCs were one of the first methods used for functional integration between applications. Over time, standards such as COM, DCOM, and Common Object Request Broker Architecture (CORBA) emerged, allowing systems to communicate across different platforms and programming languages.
   
   
3. Service-Oriented Architecture (SOA) and Web Services
   In the early 2000s, SOA and web services represented the next step in the evolution of ERP integrations. Using technologies like SOAP (Simple Object Access Protocol), institutions were able to create reusable service components that facilitated both data and functional integration. SOA helped universities establish more robust, flexible integrations for their higher education ERP systems.
   
   
4. REST Architectural Style
   By 2010, the REST (Representational State Transfer) architectural style began to gain traction as a simpler, more efficient way to integrate systems. REST is now the preferred method for integrating university ERP systems, allowing for easier interaction with resources and faster data exchange compared to SOAP-based approaches.
   
   
5. Integration Platform as a Service (iPaaS)
   As integration technologies proliferated, the need for a centralized solution to manage multiple integration methods became evident. This led to the rise of Integration Platform as a Service (iPaaS), a suite of cloud services that connects both on-premise and cloud-based processes, services, applications, and data.
   
   However, while iPaaS platforms offer many benefits, they often fall short in key areas for higher education:
   • They are primarily designed for large enterprises.
   • Few iPaaS products include pre-built integrations specifically for higher education ERP systems.
   • Many are built with a "technology-first" mindset, overlooking the unique business needs of colleges and universities.
   • Most don't allow customization to meet the institution's specific business needs.

Transact's Solution: A Business-First Approach to Integration

We saw these challenges as opportunities and developed a modern, scalable platform—Transact Exchange—designed to address the specific needs of universities and colleges. Our platform emphasizes a "business-first" approach to ERP integration, ensuring that institutions can easily manage the growing complexity of higher ed ERP environments without sacrificing functionality or flexibility.

Transact Exchange not only optimizes data flow and system integration but also supports institutions in achieving greater operational efficiency and resource management.

Revised: December 12, 2024