Mastering the Cost of Higher Education with Oracle Applications
By Mohit Phogat on Jan 23, 2014
Parents are starting to ask how and why this storm is happening. Well, both college endowments and state appropriations are either decreasing or stagnant, while university expenses and enrollments are increasing. Yet universities are being forced to keep tuition costs flat.
So how can Higher Education intuitions better understand and manage these issues?
We realize that Higher Education institutions might have good visibility into total operational costs and total revenue collected, but little or no visibility into individual program, degree and course costs, or the cost per student. Currently, colleges and universities have not implemented activity-based costing which is used in many commercial enterprises. Activity-based costing goes beyond the traditional allocation of overhead and provides institutions with better insight into information needed to make strategic decisions about cost containment and allocation of resources. With governing and regulatory bodies currently recommending (and likely soon requiring) this type of analysis and reporting, it is becoming critical for higher education institutions to have this type of insight for both long term and short term planning and reporting.
To survive, Higher Education institutions need to either make programs financial sustainable, or ensure there are other programs that have enough surplus to make up for the deficit of programs.
Oracle can help with:
- Transparency that enables institutions to ensure resources are aligned correctly based on actual measurable information
- Understanding the true cost to implement new programs and the ability to make pricing decisions based on those costs
- A thorough understanding of costs at a more granular level and the root cause of the costs. This information enables institutions to make informed decisions
- Creating accountability that enables departments to understand the resources they consume as it relates to the revenue that they generating
- Addressing concerns and questions from various stakeholders, e.g. CFO, Board of Trustees, State and other governing boards and accreditation bodies.