COMPUTING & IT RESOURCES Is digital transformation a lifeline
for UK higher education? Education Today hears from CHERYL WATSON, Education UK Vice President at TechnologyOne.
T
he UK’s higher education sector is experiencing intense financial pressure.
The Post-16 Education White Paper acknowledges the challenge, noting that “demographic shifts, inflation, the increased cost of research and volatility in international student numbers are driving financial pressures”.
The move to increase tuition fees with inflation, and the emphasis on universities operating more efficiently in return, is part of a solution. Unfortunately, the move is coupled with plans to impose a 6% levy on international student fees and reduce the graduate visa term to just 18 months – plans sure to further erode university revenue. The government itself predicts these reforms will result in a yearly reduction of 31,000 international students – a group accounting for 23% of total university income and 46% of tuition fee income.
University leaders need to use this moment to take stock. The challenges are complex. With financial constraints set in the Spending Review earlier this year, universities have no room for error when it comes to spending decisions. The dedication of higher education staff has provided a sticking plaster to ensure student experience is upheld, but with the pace of losses accelerating, something must give, and universities cannot afford for that to be the quality of education, support services or the student and staff experience.
As the White Paper recognises, the UK has some of the finest universities in the world – but the reality is that the technology a large majority of higher education institutions in the UK rely upon is archaic, with just 29% of higher
education staff agreeing that they have access to up-to-date digital systems (according to Jisc). Digital transformation, once seen as a long- term project, is now a necessity. Modern, integrated technology platforms offer a path to greater efficiency, resilience and insight – and for universities operating on tight margins, this can make all the difference.
However, it’s important to recognise that digital transformation is not a silver bullet. Technology is only one part of the equation. True transformation happens when digital capability is aligned with clear institutional strategy, supported by people and processes that embrace change. The universities leading the way are those that view technology not as a project, but as a catalyst for broader cultural and operational renewal. Most universities still rely on aging on-premise systems or legacy solutions hosted on external servers. While sometimes marketed as “cloud”, these solutions often replicate many of the problems of the on-premise systems they were meant to replace – with information silos, poor user experience, and high maintenance costs. The risk of project overspend puts off some universities from committing to overhauling their digital systems, but trying to modernise by incrementally investing in legacy systems does not allow for the wholesale transformation that is now needed to remain competitive, attract students, and enhance the student experience. Although UK higher education institutions are at different stages in their digital transformation, the focus is shifting towards a more holistic and strategic approach. The London School of Economics and Political Science (LSE) have recognised this imperative and adopted
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TechnologyOne’s Software-as-a-Service (SaaS) platform to consolidate and streamline management of financials, procurement and budgeting and drive long-term savings. The London School of Hygiene and Tropical Medicine (LSHTM) is the latest higher education institution to use TechnologyOne’s SaaS+ implementation model, replacing its legacy financial systems with OneEducation Financials solution. Its financial modelling capability is a critical tool for universities seeking to ensure their long-term financial sustainability. By creating detailed representations of a university’s financial situation using various assumptions and scenarios, universities can simulate different financial conditions and predict how changes in key variables might impact their financial health. LSHTM’s Finance Director, Andrew Dyer, has said that “moving away from legacy systems that require heavy manual work will significantly boost our efficiency and allow our teams to focus on delivering world-class education and research.” This shift is about more than technology. It’s an opportunity to reimagine processes, break down silos, and align operations with institutional strategies. A single integrated SaaS Enterprise Resource Planning (ERP) enables automation and real-time insights, helping universities proactively identify when students are struggling and intervene before issues escalate. In today’s environment, where seven in ten students have considered leaving university due to the cost- of-living crisis, the ability to prevent attrition is key. The University of Buckingham is another institution to have recently chosen an enterprise solution to replace their legacy systems. They began by looking for a finance system and when they saw the potential in TechnologyOne’s full OneEducation solution to unlock the power of their data and improve employee and the student experience, they broadened the scope of their digital transformation to include HR and Payroll, Student Management as well as Financials. With the recent announcements on capital spending and student immigration set to hit universities’ bottom line, investment into digital transformation may not appear to be the most natural next step. But given the opportunities to recoup costs through greater institutional efficiencies and preventing student attrition, embracing innovative technology is no longer a nice to have but a necessity.
Digital transformation alone cannot solve every challenge facing higher education, but it can be the foundation upon which new ways of working, collaborating, and innovating are built. As the academic year draws to a close, now is the time for universities to take stock – and take action.
January 2026
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