Modernizing Higher Education finance for a sustainable future
Finance departments at Higher Education institutions are on the brink of transformation. According to Deloitte, "To fulfill this mission [of delivering student value] today and in the future, institutions must be willing to challenge the status quo, take risks, and innovate." With increasing complexity, budget pressures, and evolving compliance requirements, the case for modernization has never been clearer.
Legacy systems and siloed data can no longer keep up with the demands of modern operations, leaving institutions struggling to make informed decisions and future-proof their strategies.
Add to this the finding from Tambellini that, in 2021, "More than 90 percent of institutions that made finance and HCM selections chose cloud implementation via either software as a service (SaaS) or a hosted or managed model," and the trend toward transformation becomes evident.
Transitioning to intelligent, data-driven systems like Cloud-based ERP (Enterprise Resource Planning) is not just a technological upgrade—it’s a strategic imperative.
Below, we explore why modernizing your finance capabilities is critical and how solutions like Unit4’s ERP can drive efficiency, sustainability, and agility in Higher Education institutions.
Why finance transformation in Higher Education matters
Higher Education institutions are navigating a perfect storm of challenges:
- Financial pressures: Rising operational costs, the Institute for Fiscal Studies' report of an 18% fall in per-student spending in England since 2012, and COVID-disrupted revenue streams highlight the urgent need for efficient and transparent financial operations.
- Compliance and reporting: Increasingly complex reporting standards, including IFRS16, ESG, and diversity metrics, require systems robust enough to collect, analyze, and present data seamlessly.
- Shifting stakeholder expectations: Students, employees, and funders now expect institutions to deliver value, transparency, and initiatives that reflect social responsibility and sustainability.
Modern finance solutions are enablers, giving institutions the tools they need to overcome these challenges while delivering greater value to students and stakeholders.
Download our eBook to discover how institutions are future-proofing their financial effectiveness with Unit4 ERP.
Click to read Modernizing Higher Education Finance (Gated)
Empowering decision-makers with data
Leadership teams in Higher Education face mounting pressures that extend beyond finance. According to Deloitte, these include financial stress, student ROI demands, and increased scrutiny around diversity, equity, and inclusion. Integrated data plays a pivotal role in easing these concerns.
With real-time analytics, a single source of truth, and key metric monitoring, leaders can make more informed decisions while staying ahead of evolving demands. For example:
- Fiscal resilience: Data insights improve the ability to forecast funding gaps, manage resources strategically, and ensure long-term sustainability.
- Transparency: ESG and governance factors increasingly influence funding decisions. Integrated systems simplify the process of gathering, analyzing, and reporting this data.
- Stakeholder satisfaction: Track student performance, employee engagement, and overall satisfaction to align organizational goals with the expectations of diverse stakeholders.
Staying ahead of reporting challenges
Higher Education institutions are under pressure to meet new and complex regulatory standards. From IFRS16 lease accounting to ESG and diversity reporting, these mandates demand systems capable of efficiently managing, analyzing, and reporting data.
1. ESG reporting & sustainability
A growing number of funders and stakeholders are emphasizing environmental and social responsibility. Institutions that fail to implement effective ESG reporting risk their reputations and funding opportunities. Carbon accounting tools, like those included in Unit4’s ERP, can simplify ESG compliance and contribute to your institution’s sustainability narrative.
2. Compliance reporting
Statutory requirements, including gender pay gap reporting and financial sustainability reviews, require accurate and timely data. Legacy systems often fall short, leading to potential penalties and operational disruption.
By upgrading to Cloud-based ERP, institutions can not only meet these increased demands but also elevate their financial governance practices.
Overcoming budget constraints with strategic investments
Tight budgets are a hallmark of most Higher Education institutions, making it challenging to allocate funds for transformation projects. However, the cost of maintaining legacy systems is often higher than the investment in a modern solution. Here’s why:
- Operational inefficiencies: Manual processes and siloed systems consume more time and resources.
- Outdated technology: Rising maintenance costs and a shrinking pool of experts to support older systems add to the strain.
- Security risks: Legacy systems lack the robust cybersecurity measures needed to prevent modern threats.
Unit4’s Cloud ERP offers a cost-effective solution. Its subscription-based model spreads implementation costs over time while providing scalability for future growth. By consolidating back-office systems into a unified platform, institutions can reduce operational complexity and support strategic priorities.
The risks of retaining legacy systems
Clinging to outdated finance systems comes with hidden dangers. Here are some of the critical risks that institutions face:
- Rising maintenance costs: Aging systems demand increasing resources for upkeep, eating into funds that could support innovation.
- Security vulnerabilities: Legacy systems often lag behind modern cybersecurity requirements, increasing institutional risks.
- Operational failures: Prone to breakdowns, outdated systems can disrupt day-to-day operations, affecting everything from payroll to student services.
The benefits of Cloud-based ERP
For Higher Education institutions, modern Cloud-based ERP solutions offer a lifeline, addressing key pain points and unlocking opportunities for growth and sustainability. Key benefits include:
- Enhanced security and compliance: Cloud ERP systems ensure advanced data protection and meet the latest regulatory standards, securing institutional data against cyber threats.
- Instant access to innovation: Frequent updates keep your systems at the cutting edge, ensuring your organization benefits from the latest technology advancements.
- Seamless integration: Unified systems allow data to flow effortlessly between departments, fostering collaboration and data-driven decision-making.
- Cost efficiency and future-proofing: Say goodbye to large capital expenses—with a subscription model that grows with your institution’s needs.
A strategic imperative
Modernizing your finance systems isn’t just about keeping up with trends—it’s about creating a sustainable future for your institution. Cloud-based systems like Unit4’s ERP empower Higher Education leaders to focus on what matters most—improving student outcomes and organizational efficiency.
Download our eBook to learn how leading institutions are overcoming their finance challenges with Unit4 ERP. Discover a roadmap to modern finance tailored for Higher Education. You can also talk to sales here or explore our suite of integrated solutions here.
