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ERP Migration from One to Another: How to Safely Migrate

Enterprise Resource Planning (ERP) systems are vital to the success of many organizations, streamlining operations and business processes. However, as the IT landscape evolves and business needs change, companies often need to migrate from one ERP system to another. The success rate is rather dismal, with records showing that up to 75% of ERP implementation projects encounter disruptions. The good news is that with a bit of planning and help, you can have a smooth and seamless transition.

In this article, we’ll explore best practices for migrating between ERP systems to ensure minimal disruptions and maximum benefits for your organization.

When Is ERP Migration Inevitable?

The decision to move from one ERP system to another is not an easy one, but it has to be made. These points below underline some key reasons for moving, whether on-prem to on-prem or on-prem to the cloud.

End of Support for Current ERP System

It’s time to think about migrating when your ERP vendor announces the end of support (EOS). EOS means no security upgrades, patches, or continuous support. This leaves your system vulnerable to security risks and non-compliance with industry regulations.

For example, by 2027, SAP will no longer support its on-premise ERP system (ECC 6.0). Customers are left with two choices: move to the S/4HANA platform or go with a different ERP vendor.

Business Growth and Expansion

Businesses evolve, and so do their ERP needs. What works for a smaller organization will struggle to keep up as the business grows larger and more complex. In fact, 30% of organizations cited “business growth” as a key reason for upgrading their ERP systems. Upgrading to a more sophisticated, scalable ERP system—ideally cloud-based—guarantees you will have the resources necessary to serve your growing company efficiently.

Technological Advancements

Older ERP systems lack the newest advances in technology, such as cloud computing, AI, and advanced analytics. Migrating will help businesses make use of these technologies in order to stay competitive. This same reason, technical advancement or enhancing IT agility, is why 32% of companies are updating their ERP systems.

High Maintenance Costs

Legacy ERP systems are usually expensive to maintain because they rely on outdated technology and often lack vendor support. In fact, organizations spend up to 80% of their IT budget maintaining these old apps. Moving to a new ERP system powered by cutting-edge tech, however, can cut down on these costs.

User Dissatisfaction

If your employees struggle with an ERP platform, it can lower productivity and morale. Switching to a more user-friendly and feature-rich ERP system can significantly improve both user experience and productivity.

Is your organization ready for an ERP system upgrade? ModLogix can help. Get in touch to discuss your requirements.

Challenges with Legacy Data Migration

Now that we’ve identified when ERP migration is inevitable; let’s look into some of the main challenges linked to this process.

Data Redundancy and Integrity

Data integrity and duplicate information are two major challenges in ERP implementation. Departments often have different versions of data. Importing these records into the ERP system at once may cause erroneous or duplicate customer lists. To prevent this, be sure to implement robust data validation and data cleansing processes. They minimize redundancy and ensure the integrity of migrated data.

Project Cost

Data migration in ERP systems can be costly. Even simple upgrades typically add 10-15% to the total expenses of implementing a new system. Not many businesses can make this financial commitment.

Stakeholder Buy-In

Securing stakeholder buy-in is essential for the project’s success. However, getting it can be difficult. These individuals may worry about data security, ERP implementation accuracy, and workflow disruptions. Resistance to change is also a concern with ERP migration meaning that stakeholders who are used to their present systems may be hesitant to adopt a new one.

Regulatory Issues

Compliance can be an issue during ERP implementation, particularly for businesses in regulated sectors. Regulatory bodies may require detailed migration procedures, data integrity maintenance, and ensuring no compromise of sensitive data during the process. To stay out of legal trouble, you must abide by these rules.

Choosing an ERP Migration Vendor

Choosing the right migration vendor is key to ensuring a smooth and successful ERP implementation. Here’s how to evaluate your options effectively:

  1. Assess Your Needs. Start with a thorough assessment of your current ERP system’s limitations and defining your goals for the new system.
  2. Vendor Selection. Research ERP implementation vendors with experience in your industry and a proven track record.
  3. Evaluate Capabilities. Consider each vendor’s expertise in handling migrations of similar scale, their technological proficiency, integration capabilities, and adherence to security and compliance standards.
  4. Check References. Seek client references and read online reviews to gauge satisfaction levels and reliability.
  5. Cost Comparison. Compare pricing structures, including setup, customization, ongoing support, and maintenance fees.
  6. Project Management. Understand the vendor’s project management approach to ensure they have a structured process with clear timelines and effective communication channels.

For a seamless ERP implementation, choose ModLogix. Contact us today to begin your transition!

Building an Effective ERP Migration Strategy

One of the most important factors for success is your ERP data migration strategy. Here’s what it should include:

  1. Identify and Analyze Data. First, catalog all your existing data. Understand its structure, dependencies, and relevance. This gives you a comprehensive overview of your data landscape.
  2. Evaluate Data Value and Position. Next, assess the importance of each data set. Identify what’s crucial for your operations and what’s not. This helps prioritize what to migrate and what to discard.
  3. Extract and Clean Data. Extract the relevant data from your existing systems. Clean things up by removing unnecessary, outdated, or incorrect details. This ensures only high-quality, accurate data is migrated.
  4. Map Data to the New System. Map the cleaned legacy data to its new locations in the new ERP software. Define how each data piece fits into the new structure. Proper mapping maintains data integrity and accessibility.
  5. Migrate the Data. Finally, transfer the mapped data to the new system. Monitor the ERP implementation process to address any issues and ensure the data is correctly imported and fully functional.

While the above steps appear simple enough, ERP implementation is a specialized field that requires specialized expertise. It is important to leave it for the experts to handle.

ModLogix can help with ERP data migration with minimal downtime and maximum success. Get help here. 

ERP Data Migration Best Practices

Let’s explore some best practices for migration. These steps can greatly improve your chances for ERP implementation success:

  1. Define Priorities Clearly. Outline critical data needs for the business and ensure all stakeholders understand them. This focus helps allocate resources effectively.
  2. Align With Business Objectives. Ensure the ERP implementation supports broader organizational goals to maximize its value.
  3. Data Mapping. Understand how data will be used in the new system. Map current data to ensure consistency and usability.
  4. Be Selective. Avoid migrating unnecessary data to prevent complications. Focus on essential data for operations and decision-making.
  5. Data Governance. Define ownership and roles for maintaining data integrity during and after migration.
  6. Phased Approach. Break the migration into manageable stages for smoother implementation, testing, and adjustments.
  7. Avoid Last-Minute Issues. Prepare your ERP implementation project plan well in advance, allowing time for system testing, validation, and user training to minimize disruptions.

Following these practices enhances the efficiency of your ERP implementation, ensuring a successful transition to the new system.

ERP Migration Plan: Steps to Follow

Wondering how to get started? Let’s outline a strategic ERP implementation plan for your successful project.

Develop, Plan, and Assemble a Team

Firstly, define the direction and objectives of your ERP implementation. This covers evaluating your present ERP, determining migration requirements, and establishing goals for the new system. Assembling a robust team from IT, finance, operations, and project management is essential. These individuals will contribute their expertise to the ERP implementation plan.

Data Analysis and Migration 

Once your ERP project team is ready, the focus shifts to analyzing existing data. This step includes mapping out data for ERP implementation, ensuring its quality, and preparing it for transfer to the new system. Migration itself requires a meticulous ERP project plan to ensure seamless integration and accuracy.

Evaluating the New System

After migration, evaluating the new ERP system’s performance is critical. This involves user acceptance testing, verifying data integrity, and confirming alignment with business needs. Any functional gaps or data issues can be addressed during this phase, ensuring ERP implementation success.

Training, Testing, and Deployment

Training users on the new system is essential for adoption. Testing identifies and resolves deployment issues, preparing for a successful rollout. Coordinating with stakeholders and providing support during deployment ensures seamless ERP implementation.

Post-Migration Support

Continued support after ERP implementation is crucial for long-term success. This involves ongoing monitoring, performance evaluation, and maintenance of the new ERP system to ensure it meets the organization’s needs.

For expert guidance on your ERP system migration, contact the ModLogix team today.

ERP Data Migration Checklist

To ensure a proper data migration, take note of the following checklist:

  • Comply with industry regulations like GDPR and HIPAA. This is necessary to prevent legal issues and safeguard sensitive information.
  • Define key metrics (e.g., system uptime, data accuracy). This will help evaluate the effectiveness of the new system.
  • Provide training to employees to enhance proficiency and reduce disruptions after the ERP implementation process.
  • Convert existing data into formats compatible with the new ERP system for seamless integration and functionality.
  • If possible, conduct trial migrations in a controlled environment to identify and address potential issues before full ERP implementation.
  • Put robust data backup procedures and contingency measures in place to prevent data loss should problems occur.

These steps ensure a structured and effective data migration process, facilitating a smooth ERP implementation while maintaining operational continuity.

ERP Migration Tips

ERP implementation is no simple task — it’s complex and requires careful consideration. Here are some tips to help:

  • Create a thorough ERP migration project plan and schedule for moving your data.
  • Start testing your data early to catch and fix issues quickly.
  • Consult with your team on whether to move to a cloud ERP or an on-premise system.
  • Employ software designed for automating data cleaning to lighten your team’s workload.
  • Choose a dependable partner with a strong track record in ERP migration. Their experience will be pivotal for a smooth migration.
  • Begin testing with smaller sets of customer data and orders before scaling up.
  • Rigorously test the features people use in their daily tasks on the new system to catch any problems early in the migration.

ModLogix Expertise in ERP Migration

While it may seem convenient to manage ERP implementation and upgrades internally, it may not always be the wisest choice. Data migration demands specialized expertise that your in-house team may lack. Partnering with a trusted migration specialist like ModLogix is often the best solution.

As an experienced IT modernization partner, ModLogix ensures successful ERP project implementation with minimal disruption to your business. With extensive expertise and years of industry experience, whether you’re considering an upgrade to Oracle, Microsoft, or Sage ERP, we can provide the support you need.

Conclusion

Moving from one ERP system to another is a significant step in an organization’s digital transformation, leading to smoother business operations, improved customer interactions, and growth.

However, as we have already established, the migration process can be complex. But with a sound ERP implementation plan and by partnering with the ModLogix team, you can ensure a successful transition, reduce disruptions, and make the most of your new ERP system.

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