In order to provide a framework for addressing computer literacy and program development considerations, this document discusses issues in computer implementation on higher education campuses and outlines a preliminary plan for Cedarville College to meet computer-related needs of faculty and students. The growth of the computer industry and the response of educational institutions is summarized, and the dilemmas caused by rapid technological advancements are examined. An analysis of problems involved in defining computer literacy concludes by suggesting a multi-level view of computer literacy as a means of addressing both student and faculty needs for computer-based education, as well as continuing a commitment to the liberal arts. Computer-based education, computer-managed instruction, and computer-assisted instruction are briefly explained. Program goals are identified and discussed from the perspective of both faculty and student computer literacy issues, and 10 initial educational objectives for computer-based education at Cedarville College are listed. A summary of current plans to meet the objectives describes new computer system purchases, development of an Academic Computer Center, and 10 parallel efforts to assure optimum use of the new system. Footnotes cite 23 sources. (LMM)