ERP360 Market Analysis

2025 ERP Market Analysis and Strategic Planning Update

During the 2023–2024 biennium, CTS conducted a comprehensive market analysis of the Enterprise Resource Planning (ERP) system. The ERP is a critical system used to manage business processes across campuses, departments, and functional areas. It supports core operations including Financials (FIN), Human Capital Management (HCM), the Student Information System (SIS), and related ancillary systems.

The current on-premises ERP system, PeopleSoft, has been in use since 2002. Findings from the market analysis were presented to the State Board of Higher Education in May 2024. A Strategic RoadMap was also presented to the State Board of Higher Education in May 2024 and to the North Dakota Higher Education Users Group (NDHEUG) in October 2024. This work informed NDUS’s financial request for the 2025 legislative session.

Legislative Funding Request and Outcome

During the 69th Legislative Assembly, NDUS submitted a request within Senate Bill 2003 (SB 2003) for $10 million in funding to support readiness efforts for transitioning to a modern, cloud-based ERP system. The requested investment was intended to prepare NDUS’s core financial, human resources, and student information systems for a significant modernization effort. The goal of this effort was to improve service delivery, strengthen security, increase data transparency, and enhance operational efficiency across NDUS institutions.

While the Legislature did not approve the $10 million funding request, it acknowledged the importance and complexity of ERP modernization. In place of direct funding, the Legislature authorized a formal interim legislative study to further examine ERP modernization needs.

Interim Legislative Study Authorization

The authorized study was included in Senate Bill 2021 (SB 2021), the appropriations bill for North Dakota Information Technology (NDIT). Section 11 of the bill directed Legislative Management to conduct a statewide study during the 2025–2026 interim.

The study focuses on the enterprise resource planning system used by the State of North Dakota, including state agencies and institutions of higher education. Required areas of consideration include:

The current ERP system and potential alternative systems, including functionality, technical architecture, expected life cycle, and costs and benefits of cloud-based and on-premises solutions
Support, maintenance, and potential implementation costs
Desired functionality for state agencies, including financial management, human capital management, and procurement
Desired functionality for institutions of higher education, including financial management, human capital management, grant management, compliance management, procurement, and student data management
The costs and benefits of maintaining a single ERP system versus separate systems for state agencies and institutions of higher education

Legislative Management is required to report its findings and recommendations, along with any legislation needed to implement those recommendations, to the Seventieth Legislative Assembly.