What is an ERP?
An Enterprise Resource Planning (ERP) system is a central software platform that connects and runs an organization's core business operations. U-M’s ERP is used for finance, human resources and student business.
Why change now?
M-Pathways has served the university well, but it is more than 25 years old. Oracle plans to end support for this aging product. It requires heavy customization and maintenance and is based on an outdated, non-cloud-based technology, making it increasingly difficult and costly to maintain.
At the same time, the broader higher education and healthcare landscapes have shifted. Modern, cloud-based ERP systems offer stronger security, improved data and reporting, more standardized interfaces, and regular updates that help institutions stay current with regulations.
Continuing to rely on aging, fragmented systems increases risks and limits the university’s ability to adapt.
What phase is the project in now?
U‑M is currently in the strategy phase. This will be followed by phases for pre-planning, planning and implementation of FIN & HRMS. Phases for student administration will follow.
What's happening now?
In summer 2026, ERP vendors will provide demonstrations of their modern, cloud-based systems. Campus stakeholders will have opportunities to take part in the demonstrations and share input as part of this process.
What will a new ERP do?
A modern ERP will unify core functions and create more consistency for users across the university.
It will:
- Replace multiple systems with one unified platform.
- Strengthen data security and privacy.
- Improve reporting and analytics.
- Simplify and standardize business processes.
- Reduce the burden of maintaining customized systems.
- Deliver a more intuitive user experience.
- Provide easier access to information.
- Provide more automation and reduce the compliance burden.
- Allow for more seamless system updates.
What does this mean for U-M?
This work is about more than technology. It is an investment in the long-term stability and effectiveness of the university’s business processes.
A modern ERP will help U-M:
- Reduce operational risk.
- Support future growth.
- Provide better tools for decision-making.
- Align with peer institutions that are moving to cloud-based systems.
What ERP systems does U‑M use today?
U‑M currently uses three separate ERP systems: M-Pathways, UM Health-Sparrow ERP and UM Health-West ERP.
What is M-Pathways?
M-Pathways is U‑M’s long-standing business management system for finance, human resources and student administration, used by thousands of people every day.
Why is U‑M moving to a new ERP?
A cloud-based ERP would unify U‑M’s three ERP systems with a modern, more efficient system. This will reduce risk, simplify processes, and support long-term growth.
Why are many organizations moving to cloud-based systems?
The broader market is moving to cloud-based systems because they can offer stronger security and privacy, regular security and software updates, improved data and analytics capabilities, ease of use, and reduced compliance burden.
How long will the transition take?
The move to a new ERP is complex and will occur in phases. It is expected that this will take somewhere between 3-5 years.
Will campus stakeholders have opportunities to engage in the ERP modernization process?
Yes. This is an institution-wide effort. Units across the Ann Arbor, Dearborn and Flint campuses and Michigan Medicine will be represented throughout the process, and their input will help shape key decisions. Ongoing communication will be a priority. Only a few national vendors offer ERP systems that meet the needs of complex organizations like U-M, and they will provide demonstrations for campus stakeholders in summer 2026.