5 Steps for a successful ERP data migration

08/08/2024

Are you planning to switch to an ERP system, or is it time for an upgrade? Then a data migration is likely on your agenda. Data migration may seem exciting and complex, but with the right steps and tools, it can go smoothly.

Switching from an outdated system, such as Dynamics AX or Dynamics NAV, to a more modern system is a big challenge and requires a strategic approach where every decision matters.

A successful ERP data migration isn’t just about moving data—it’s also about maintaining the integrity, quality, and relevance of the data for your organization. It’s an opportunity for renewal and optimization, offering a fresh start without redundant or outdated information.

In this blog, we’ll delve into five essential steps for an effective data migration. We’ll discuss the importance of selecting only necessary data for migration and using advanced tools like 9A Smart Insights for insights into your old ERP. Additionally, we’ll look at strategically using a data warehouse to create valuable insights for your new system.

With this approach, you’ll minimize migration efforts and maximize the benefits of your new ERP solution.

What is data migration?

Imagine you have a treasure chest full of data, gathered over the years. Every piece of information forms a foundation for the evolution of your company. Now, your business is on the threshold of entering a new digital future with a state-of-the-art ERP system. This is where the art of data migration comes into play—a precisely orchestrated process in which your data isn’t just moved, but transformed, ready to thrive in a new environment.

Data migration is a crucial process where data from old systems is transferred to new ones, with the goal of keeping the most valuable asset of your business—the data—safe and intact during the transition. This process requires accuracy and foresight. Every step, from initial data extraction to final implementation, is vital to ensure the data remains accurate and usable in the new environment.

Bringing your old data to modern platforms offers additional benefits. This allows your organization to take advantage of AI analyses or Copilots that make the data more accessible and deliver valuable insights. Without this historical data, your new platform begins as a blank canvas, which limits the possibilities of AI.

By leveraging AI with your existing data, you can make better-informed decisions and increase the efficiency of your business processes.

ERP data migration in 5 steps

1. Planning & Analysis

Before we start the data migration, it’s important to first create a detailed plan. This plan should cover everything about the migration: which data we will move, which systems are involved, and the timing of the migration. What we certainly can’t overlook is having a backup plan in case something unexpected happens.

Before starting with the migration, take the time to conduct a thorough assessment of the current data. Is all the data still relevant? Are adjustments needed before migration? This is the perfect time to clean up old or redundant data, so only the necessary information gets migrated to the new system. By doing so, you not only reduce the volume of the migration but also streamline the entire process.

It’s crucial to distinguish between different types of data:

Master Data: such as customers, suppliers, and products.
Reference Data: such as customer groups, delivery terms, and payment terms.
Document Data: such as sales, purchase, and production orders, booking journals.
Transactional Data: such as inventory transactions and accounting transactions, linked to master and reference data.

When migrating from an outdated system like Dynamics AX or other legacy ERP systems, you can also use 9A Smart Insights to put your ‘old ERP’ data in a data warehouse. This becomes your database for looking up necessary historical data. It saves you the trouble of importing all the data into your new ERP, minimizes data migration tasks, and gives you a ‘clean start’ with your new ERP, leading to a faster solution.

2. Data extraction and transformation

Data extraction involves pulling the necessary data from the old system. It’s crucial that the data is correctly and fully transferred, which requires accurate mapping and transformation. This process should be carefully validated by key business users, not just technical teams, to ensure the data is correct and usable in the new environment.

When extracting and transforming data, transformations should first be applied to master and reference data. These transformations should then be applied to transactional data, ensuring everything stays consistent.

Before beginning the migration, it’s important to create a backup of all data. This ensures that you always have a recovery point if something goes wrong. During the migration, the process should be closely monitored, and any errors or issues should be addressed immediately. Good communication between all involved parties is essential to monitor progress and address any obstacles in time.

After extraction and transformation, it’s time to conduct thorough testing. This is necessary to verify that the data has been correctly transferred and that the functionalities of the new system work properly. By following these steps carefully, you ensure that the data migration proceeds smoothly and successfully.

3. Data monitoring and iterations

Once the migration is successfully completed, it’s important to closely monitor the new systems and optimize them where necessary. This could mean monitoring system performance and making adjustments to improve efficiency. Iterations play a crucial role here; each iteration includes additional mapping, more validation by key users, and brings you closer to a perfectly functioning system.

Depending on the type of migration, there may be differences in monitoring needs. For a one-time migration, monitoring is mainly focused on the initial phase after migration to ensure everything is functioning correctly. However, when two systems need to be continuously synchronized, monitoring becomes an ongoing process. In this case, it’s essential to ensure that the data remains consistent and up-to-date between the systems.

Additionally, it’s important to take any feedback from users after migration seriously and make adjustments to improve their experience. By conducting regular iterations and feedback rounds, you can continuously improve and refine the data migration, leading to a more efficient and reliable system.

4. Thorough testing

Before the new systems are fully used, it’s crucial to conduct extensive testing. This can include both automated and manual tests to ensure all functionalities are working correctly and that no bugs or errors negatively affect the user experience. The data must be accurate; processes must be correct, but if the data is wrong, the end result will still be wrong. Therefore, test with representative data and validate that the data flows and processes are functioning correctly.

5. User training

New systems and changes can be overwhelming for users. Make sure all users receive the necessary training to use the new systems and processes efficiently. This can include both individual and group training, depending on the user’s needs. Users must feel comfortable with the new system and know how to resolve any issues.

The must-read whitepaper for choosing an ERP solution for your manufacturing company

Download the whitepaper

Essential tips for a successful ERP data migration

At every step, thorough planning and open communication are key. Every migration is unique and can bring unforeseen challenges. Ensure your team has the right skills and expertise to complete the migration successfully. Don’t think of this as just an export of data and an import into the new ERP; it requires strong knowledge of both the old and the new system and a meticulous approach.

Cut-over planning

A critical part of the data migration is the cut-over planning. This involves deciding which data and processes will be fully closed in the old system and which will be transferred to the new system. You must also determine which data will temporarily remain in an intermediate status, such as partially delivered orders or ongoing production processes. The more unfinished items you want to transfer, the more complex the migration becomes.

For example, a purchase order with multiple lines can be migrated in different ways:

Simplest option: Create new purchase orders in the new system.
More common option: Only migrate the lines with open quantities to the new system.
Complex option: Migrate the closed lines as well, which is usually discouraged because it can cause problems, especially if receipt is done in the old system and invoicing in the new system.

The same applies to other business processes such as production, sales, fixed assets, and projects. These choices must be made carefully to ensure a smooth transition and avoid duplication.

Phasing

Think carefully about the phasing of the migration before determining a strategy. For example, it’s a very different approach if you implement the financial module first (“finance first”) compared to a one-time move (“big bang”).

Blueprint workshops

As part of your blueprint workshops, hold a specific session for data migration. In this session, define the strategy and methods (manual, fully automated, or a combination). This ensures all stakeholders have a clear understanding of the migration process and their role in it.

Change management

Successful data migration isn’t just about technology and systems; it’s also about people. Ensure you have an effective change management plan to guide employees through the transition to the new system. This includes training, communication, and addressing any concerns or resistance from employees. Without attention to change management, you risk stagnating the adoption of the new system, which can lead to migration failure and hinder the broader digital transformation of your company. Read more for insights into the importance of change management in digital transformation.

Let us help you!

If this all seems overwhelming or you don’t have the resources to carry out these steps yourself, we are happy to assist you in setting up the data migration. Our team of experts will ensure the migration process runs smoothly and your company is ready for the future.

With a detailed plan, a clear cut-over strategy, and the right expertise, your data migration can be a success. Take the time to carefully consider every aspect and be ready to make adjustments where necessary. In this way, you ensure that your new ERP system has a solid foundation and is ready to support your business processes.

5 Steps for a successful ERP data migration

What is data migration?