What is ERP Data Migration?
Data migration in ERP systems involves transferring organizational data from its original sources to a centralized ERP database. Typically, data comprises multiple file formats, originates from disparate sources, and is used across multiple systems. The challenge lies in transforming this data into a single data structure that can be stored in the ERP database tables.
The migrated data must be free of duplicity, redundancy, and irreverence in any data migration process. Once the data migration process is complete, the data must be available in a format that can be further processed and analysed for business purposes easily. Data migration must ensure the organizational data’s accuracy, validity, consistency, and completeness.
Next, let’s look at the top ERP data challenges.
4 Challenges in ERP Data Migration
ERP data migration can present a host of challenges, including the following ones:
1. Redundant Data
Within any enterprise, various business functions or departments can store their version of customer or product data. However, this does not mean they have identical data records or information. For instance, the sales department may store customer records in a different format than other departments.
By importing all the department-wise data into the ERP database, you could face the challenge of redundant or duplicate data.
2. Data Without Credibility
Before the data migration process, organizations do not spend sufficient time analyzing and understanding their data. They do not focus on the importance of data discovery and quality. Additionally, business executives infer inaccurate conclusions based on a small data sample.
These challenges lead to the generation of inaccurate data or data without credibility.
Also Read: A Starter Guide to ERP for Small Business
3. High Migration Costs
Depending on the size and complexity of their data, organizations can incur high costs in migrating the data to their ERP database. To reduce their costs, they often neglect the process of data extraction, restructuring, and cleaning. On average, data migration costs constitute around 15-25% of the overall ERP implementation budget.
4. Industry Regulations
Many industries have specific data privacy and security regulations to protect consumers. These industry regulations also dictate how organizations can store and use their data. During ERP data migration, organizations have to comply with these industry regulations.
For instance, HIPAA regulations in the healthcare industry stipulate that selected documents and records be retained for at least six years. Similarly, the GDPR states that organizations must delete the consumer’s records on request.
Next, let’s look at some of the ERP data migration best practices for implementing this process.
Best Practices in ERP Data Migration
Data migration is an integral part of any ERP implementation project. Here are the 4 best practices to follow when migrating data to an ERP system:
1. Prioritize Data Migration During ERP Implementation
Data migration during ERP implementation is a complex and time-consuming affair. Hence, organizations must prioritize and allocate sufficient time to data migration. Here are some valuable tips:
- Start data migration from the initial phase of ERP implementation.
- Allocate sufficient ERP resources to prevent any delays.
- Design processes to extract and clean data from various sources.
2. Build an Effective Data Migration Strategy
For a successful migration, you must create a customized data migration strategy for your business goals and objectives. Here’s what you can include in your migration strategy:
- Segregate your data into various categories based on its utility.
- Remove any unnecessary data for faster migration.
- Extract only data that is necessary and relevant to your business.
3. Assign the Proper Data Migration Resource Responsibilities
Organizations must assign data migration resource responsibilities to the right teams and personnel for proper data governance and compliance. This practice clearly defines who owns or governs which data. With this practice, teams can determine which data version must be migrated to the ERP system.
Additionally, it’s a good practice for organizations to appoint a resource responsible for checking compliance with industry regulations.
4. Test the Data Sufficiently
Typically, data migration involves multiple types of testing, including unit, system, and batch application testing. Ensure you test the organizational data for each work unit before confirming the data conversion. Adequate testing ensures that:
- There is no accumulation of redundant data in the later stages of the migration.
- Data is always consistent and is never transient.
Besides, you must ensure that all the necessary testing is complete before the project milestones.
Next, let’s look at some useful ERP tips for the data migration process.
Additional Tips for a Successful ERP Data Migration
Organizations need to plan and execute the entire migration process for a successful ERP data migration. Here are some valuable tips to achieve this objective:
- Before migration, test your data in the early phase.
- Test your new ERP system using small chunks of migrated data in the early phase, then build towards comprehensive testing.
- Do not allocate data cleaning responsibilities to your IT team; assign them to a professional company with data handling expertise.
- Remove any duplicate data before migrating it to the ERP system.
- Avoid migrating all your legacy data to the new ERP system.
- Test your ERP system with a representative sample of customers & purchase orders before expanding it gradually to cover all ERP data and applications.
Also Read: Difference Between Configuration and Customization in ERP Implementation
You can avoid the common pitfalls associated with ERP data migration through these best practices and tips. For additional assistance, you must consider partnering with an experienced ERP solution provider like Praxis Info Solutions.
As an SAP implementation partner, we bring years of experience implementing SAP data migration best practices for our global clientele. We can help in deploying the best ERP solution in your organization. Here is an ultimate guide on ERP software for organizations.
We can assist you in completing your ERP data migration on time. If you are interested, contact us today with your requirements.