When you choose to go with cloud ERP implementation, the data migration process is a big and sometimes complex process that requires planning and organization. However, when done correctly, you will quickly find that the challenge was worth it.
What Is Data Migration?
Data migration is the process involved in transferring data from an original source to the ERP system database. You must move data from various systems within your organization, including data in different formats and different storage types. You are migrating it all into a single structure or platform where each department can easily access it.
To ensure a successful data migration process, you have to take on a much more systematic approach which means you need to take the time to inspect, extract, cleanse, and transform the data coming from these multiple sources before it lands in the database.
What Is Involved?
When you follow through with data migration for cloud ERP implementation, you need to map out a clear and understandable data migration strategy. Start the process early and understand the challenges regarding time, costs, data redundancy, and even issues with the integrity of the data and your process.
Importance of Data Migration
The data migration process is important because it ensures that the data being transferred into the new ERP system is accurate and complete. Many people in your business rely on historical data, so you want to make sure everything is successfully migrated. This is why planning is so important as well. It keeps everything on task, organized, and within budget, which is especially important if you migrate from an older system.
The Challenges of Data Migration
Now that you understand how important the data migration process is and why you need to plan ahead, let’s look at some of the challenges you may face with data migration.
Data Redundancy
When multiple departments in your business have their own information copies, it doesn’t necessarily mean that all the data is the same. Each department often categorizes information differently, so you want to make sure that these different formats are migrated without duplicating inaccurate information.
The Costs
The costs involved with extracting data, cleaning, and restructuring that data may add up, which is why you need to have a data migration budget in place. The simple migration of data from an old system to a new ERP system can easily add up to 15% to the cost of the new system.
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Regulatory Issues
There are many regional and industry-specific regulations that businesses must adhere to when it comes to storing and using their data. You must comply with all regulations during your data migration.
Building Your Data Migration Plan
Now, let’s move onto building a successful data migration plan. Organization is key.
Migration Team
A migration team is good to have and can decide what data to migrate and how to clean everything up. The data migration team is also usually part of your ERP implementation team. It can include people from different departments that can offer their own insight into how the data is used in those departments.
Map the Data
The next step is examining the data in each system and watch for any inconsistencies. The data migration team can then be responsible for resolving any issues there are before importing any of the data into the new ERP system.
What to Migrate
When deciding what data to migrate, you may come across outdated information in your older system that holds no value. You can store this kind of data offline if you don’t want to migrate it. However, keep in mind the data retention policies before storing anything offline or in a separate system.
Data Migration Best Practices
When you choose to follow data migration best practices, you will find that the organization and planning can help you avoid and overcome any challenges or obstacles there may be.
Prioritize
Data migration needs to be prioritized, and you should never underestimate the amount of work that is involved. Start early, plan carefully, and make sure to allocate enough resources to the data migration process.
Understand the Business Use of Data
Before you start the data migration process, analyze your existing data and decide how it can be used in the new ERP system. You can then map it out and structure your database accordingly. It also provides you with more insight into the new structure and how it will be used in future business decisions.
Be Selective
While you may want to migrate as much data as possible, it is best to be selective. Remember, not all of your historical data needs to move or be immediately accessible. Migrating every piece of data can turn out to be counter-productive and can make it harder to find the information you actually need in the future.
As you can see, the data migration process can be complicated if you don’t have proper planning and resources in place. Once done, you will find that it was definitely worth the time and effort when implementing a new Cloud ERP.
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