Although difficult, data migration is essential in implementing an ERP system. Every ERP solution is built around a shared database that provides access to a centralized, standardized set of information for all employees within the organization. You must import all the critical data from your old systems into the new database while implementing a new ERP system.
Data migration can occasionally be a challenging and time-consuming procedure. Therefore, proper planning is essential. If you misjudge how much time and effort this process will take, the implementation of the ERP platform may be delayed. Since many aspects of your organization will rely on the database, the correctness of the transferred data is crucial; you must make a good decision here.
Defining data migration?
Data migration for ERP deployment is the process of moving data from its initial locations to the database of the new ERP system. Data transfers from various techniques, formats, and storage mediums into a single, centralized structure are typically required.
Some departments may rely on systems created to serve their functions before implementing an ERP. This frequently comprises items like separate accounting or human resources software. Other organizational groups may use spreadsheets and other more general tools.
A deliberate strategy must be used while transferring the data from these different departments. The information from these programs must be the following before being imported into the new database:
- Inspected
- Extracted
- Cleansed
- Transformed
Important Things to Keep in Mind When Migrating Data
- Data migration challenges include time, money, data redundancy, and integrity issues, possible regulatory issues, and stakeholder support.
- The effectiveness of your data migration strategy will determine how well your ERP implementation goes. A specialized team should be assembled to analyze data, carry out the move, and assess the outcomes.
- Starting the migration process early can help you minimize delays in the ERP implementation, which is one of the best practices for ERP integration. Data migration is a way of finding and eliminating old historical data.
Why is data migration crucial while putting in place an ERP system?
The data transfer process is essential for the new ERP platform’s data to be correct and comprehensive. Accuracy is crucial since many individuals in your organization will depend on this historical data. Additionally, it’s vital to maintain compliance concerning document retention.
Data migration that is adequately conducted can help guarantee that the larger ERP implementation project stays within budget and on schedule. There will be opportunities to delete unnecessary data from the older systems as you carry it out. If you give data transfer a low priority, you may run into problems like erroneous or duplicate data, and your go-live data may be delayed.
Challenges of Data Migration
When moving ERP data, various problems may occur:
- Cost
The price of extracting, cleaning, and reorganizing data may account for a sizable portion of the ERP implementation expenditure. Even if the procedure is straightforward, such as transferring data from an outdated ERP to a new one, the data migration process might increase the cost of the new system by 10% to 15%.
- Data integrity and redundancy
There may be duplicate copies of the same data regarding specific products or clients in other departments. However, as many departments may employ various standards for data categorization, this does not necessarily imply that their data is identical.
For instance, you might discover that names and addresses are saved in various forms or that various addresses exist for the same client. Data duplication and mistakes will likely result if every record from every departmental system is imported into the database.
- Legislative issues
How organizations retain and use numerous regional and sector-specific laws impacts data. Respecting these rules is crucial while making data transfers. For instance, regulations like GDPR mandate that businesses keep the option of erasing all customer data records upon request.
- Stakeholder support
ERP data migration may need to be higher on the list of priorities for company managers. However, obtaining stakeholder support is crucial to preventing internal strife. When different departments are used to inputting data in different ways, management support might be essential in ensuring they all work together to produce consistent data collection.
Four Simple Steps to Creating Your ERP Data Migration Strategy
- Set up a migration team.
Create a team to decide what data has to be transferred and how to clean it up. Members of several business groups should be included in this team, which will be a part of your broader ERP implementation team since their perspectives will help understand how those groups use data.
- Data visualization
Redundancies and inconsistencies should be considered in each source system. Before the data migration occurs, the team must decide on solutions. Each installation stage’s ERP database must be planned out in advance so that automation tools can control the data import.
- Choose what will be moved
Determine which outdated data should not be included in the new system. You can keep it offline on a different system if you’d like. (depending on your data retention policies).
- Move and experiment
Modern ERP systems frequently have features for automating data import. The data must first be rationalized and transformed into a format that the ERP can recognize. Run tests for each group in the organization when the migration is finished before going live.
Recommended Data Migration Practices
- Data migration needs to take precedence. It takes a lot of labor, and the ERP adoption may be delayed if done incorrectly.
- Consider the business’s intended use of the data. As a result, you can map it to the ERP database’s structure and create rules for translating that data during migration. This information must be compatible with the ERP’s database if you want the ERP to be able to provide you with meaningful insights and analyses.
- Consider the duty of data governance. Who is the data’s owner? Assign team members roles, and pay particular attention to any compliance rules that apply to your company.
- Be judicious when using the data; not all previous information needs to be available right now. You may improve the procedure and your new systems by eliminating outdated data.
Final Thought
Taking Your Business to the next step can only become a reality if you have the expertise to deliver outstanding solutions. At Seibert Consulting Group, we provide modern solutions to businesses that fully utilize the NetSuite ERP, SuiteCommerce, Shopify, and BigCommerce eCommerce platforms. We always customize our solutions to meet Your Business’ requirements and goals. Let’s start talking about your project and find out how we can help Your Business grow. Contact us via our chatbot or email at hello@seibertconsulting.com and via our direct line at 760-205-5440.
FAQs
What tips can help make an ERP data migration successful, especially in terms of testing and gradually increasing data subsets?
To ensure a successful ERP data migration, especially in terms of testing and gradually increasing data subsets, it is essential to follow key strategies. One important tip is to initiate testing the new system with a small portion of the migrated data and progressively expand the scope of testing over time. Starting with representative subsets of clients and orders can help identify potential issues early on. By gradually scaling up the testing process to encompass all information, uses, and applications, organizations can better ensure a smooth transition. Utilizing a comprehensive checklist and conducting tests where users simulate their regular tasks on the new system is crucial for detecting any overlooked issues that may arise during the migration process.
What are the top four methods for successful data migration in ERP systems?
In the context of successful data migration in ERP systems, there are key methodologies that organizations can implement to ensure a smooth transition and effective integration of data. The top four methods for achieving successful data migration in ERP systems include:
Prioritizing Data Migration: Making data migration a priority within the ERP implementation process ensures that the necessary attention and resources are allocated to this critical aspect of the project. By establishing data migration as a core component of the ERP strategy, organizations set the foundation for a successful implementation.
Utilizing Data for Strategic Business Purposes: Beyond simply transferring data from one system to another, organizations can leverage the data migration process to align with larger business objectives and strategic initiatives. By considering how migrated data can be used to drive insights, inform decision-making, and support business growth, organizations can maximize the value derived from the data migration effort.
Implementing Data Governance Practices: Data governance plays a crucial role in ensuring the quality, integrity, and security of data throughout the migration process. By establishing robust data governance protocols and mechanisms, organizations can maintain data consistency, enforce data standards, and address data quality issues proactively, thus enhancing the overall success of the data migration initiative.
Exercising Caution in Data Utilization: While data migration is a necessary step in ERP system implementation, organizations should approach data utilization with caution. By acknowledging the potential risks associated with data migration, such as data loss, corruption, or security breaches, organizations can implement safeguards and data validation processes to mitigate these risks effectively.
By adopting these four key methods — prioritizing data migration, leveraging data strategically, implementing data governance practices, and exercising caution in data utilization — organizations can enhance the success of data migration in ERP systems and facilitate a smooth transition to the new system.
