Upgrade to a new Enterprise Resource Planning (ERP) system is equally as exciting as it is daunting for manufacturers. On one hand, you know you’re about to launch your business into a new era of technology and, ultimately, profit. On the other, you’ll be walking a tight rope every step of the way, from managing employees’ attitudes toward change to ensuring your data is clean.
ERP data migration is arguably the most important step to get right. This process, if not done with precision, can lead to costly downtime, lost data, and extended implementation times. Fortunately, it doesn’t have to be this way. With the right approach, you can navigate ERP data migration smoothly and minimize disruptions.
In this article, we’ll explain how to know you need help with ERP data migration, how to find a vendor, and offer eight ERP data migration best practices for manufacturers.
When Do I Need ERP Data Migration?
There are key moments in a manufacturing business when ERP data migration becomes necessary. Here are a few:
1. You’re Upgrading Your ERP Software
The most common type of ERP migration is an ERP system upgrade. Upgrading your ERP system involves moving from an older version of your ERP system to a newer one. Businesses upgrade their systems to take advantage of new features, improve performance, or enhance security.
2. You’re Migrating Your ERP Platform or Software
A platform migration involves moving the ERP system from one platform to another. For example, many businesses are now migrating from an on-premises ERP system to a cloud-based ERP solution.
A software migration means moving from one ERP system to another. For example, some businesses chose a tier-one ERP system when they were small. They found that their chosen ERP software couldn’t scale with them. In that case, they select a more robust ERP system and migrate their data from their legacy system to their new system.
3. You’re Migrating Your Customizations and Configurations
One of the most beautiful aspects of ERP systems is their ability to be customized and configured to your business’s unique needs. If you’re upgrading your system or changing platforms or software, you can migrate your customizations and configurations or create new ones.
No matter the reason, ERP data migration is inevitable if you’re changing the way your system works or stores data. Knowing when you need ERP data migration is half the battle; the other half is making sure it’s done correctly.
How to Choose an ERP Data Migration Vendor Checklist
The success of your ERP data migration often comes down to the vendor you choose. With so many vendors claiming to be experts, it can be hard to determine which one is right for your business. Here are a few things to keep in mind when evaluating vendors:
- Experience in Manufacturing: You want a vendor who understands the complexities of manufacturing data. They should be familiar with the different types of data (inventory, bills of materials, production schedules, etc.) and know how to move it without disrupting your operations.
- Proven Track Record: Ask for case studies or testimonials from other manufacturing clients. If a vendor has successfully completed ERP data migrations for similar companies, they’re more likely to be a good fit for you.
- Comprehensive Services: Look for a vendor who offers end-to-end migration services, from initial data mapping to testing and go-live support. The more comprehensive their services, the fewer issues you’ll have to deal with on your end.
- Scalability: Your vendor should be able to scale their services to match the complexity of your data and your operations. If they’re only equipped to handle small migrations, you could run into problems if your business expands or the scope of the project increases.
- Post-Migration Support: Data migration doesn’t end when your new ERP goes live. Make sure the vendor offers post-migration support to address any data inconsistencies, missing information, or other issues that arise during the early stages of ERP use.
8 ERP Data Migration Best Practices
Migrating ERP data is a complex task. These proven tips will help reduce errors, save time, and promote a seamless transition for your workforce. Below are eight ERP data migration best practices to guide your transition.
1. Start With a Comprehensive Data Audit
Before migrating any data, perform a thorough audit of your existing information. In this step, identify critical data that needs to be migrated, clean up outdated or duplicate records, and remove any irrelevant data. An organized audit ensures that only valuable, accurate information gets transferred into your new ERP system, reducing clutter and improving overall system efficiency.
Consult with key stakeholders across departments so that no data gets left behind. For manufacturers, this could include production schedules, raw material orders, vendor details, and customer purchase histories.
2. Plan for Downtime and Set Realistic Expectations
One of the most overlooked aspects of ERP data migration is the potential for downtime. No matter how smooth the migration process, some degree of system inaccessibility is often unavoidable. Work closely with your ERP vendor to set a realistic timeline for the migration. This should include buffer time for unexpected delays.
Manufacturers need to account for production schedules, which can’t afford extended interruptions. Plan the migration during a slower period to reduce the impact on operations. Communicating this upfront with stakeholders and employees will help set realistic expectations and avoid unnecessary disruptions.
3. Prioritize Data Security Throughout the Process
Data security is non-negotiable, especially for manufacturers who deal with sensitive data like intellectual property, customer contracts, government contracts, and medical information.
Throughout the migration, use secure data transfer methods like encryption and virtual private networks (VPNs) to protect your information. Make sure that your team is practicing strong internal security protocols as well, like limiting access to data during the migration and performing regular backups.
For manufacturers operating in regulated industries, it’s also essential to ensure that the migration complies with any industry-specific regulations, such as ISO standards or GDPR if applicable.
4. Test Early and Often
Testing isn’t just a final step; it’s something that should happen continuously throughout the migration process. We recommend starting with a pilot migration, where a small subset of data is transferred and tested. This will give you an early glimpse into how the new system will upload and store your data.
After testing the pilot, expand your testing process. You’ll want to validate each stage before progressing to the next. Migrating data incrementally reduces the chance of issues arising when the full migration is executed. Finally, post-migration testing must be performed to make sure that all data transferred correctly and the new ERP system is functioning as desired. Validate production, inventory, and financial data to confirm accuracy.
5. Document Every Step of the Migration Process
Don’t skip this step! Create detailed documentation for each step of your ERP data migration. This not only helps as a reference during the process, but also informs IT staff who will work with and maintain your ERP system in the future. Document the process as well as the data audit and note any transformations or adjustments made during migration.
Documentation also is an invaluable resource for post-migration troubleshooting and even future migrations. Plus, companies in regulated industries often need documentation as a legal requirement.
6. Involve Key Stakeholders from the Start
Involving key stakeholders across your organization early on can dramatically improve the success of your ERP data migration. Manufacturing companies often have complex operations that span multiple departments, including production, inventory management, procurement, finance, and more. Each of these departments will have data that needs to be migrated.
Include stakeholders from each department in planning meetings. Ask for feedback. Learn their most pressing concerns and address them. If you’re able to create buy-in around the migration, you’ll earn cheerleaders as the process rolls out. They’ll also be able to help identify potential issues with data structures or workflows that need to be adjusted for the new ERP system.
7. Create an ERP Data Migration Roadmap
An ERP data migration roadmap is similar to an ERP implementation roadmap. Your roadmap should outline each stage of the process, from initial planning and data audit to testing, migration, and post-migration validation. Each phase should have specific timelines, resource allocations, and milestones to track progress.
A roadmap helps keep everyone aligned and the project on schedule. It’s also useful for identifying potential risks and areas where delays might occur so you can plan accordingly. You can use the roadmap to communicate the migration plan with your stakeholders and set clear expectations about downtime, testing windows, and go-live dates.
For manufacturers, the roadmap should also account for production schedules to minimize disruption during rollout.
8. Train Your Team on the New System Early
One of the biggest mistakes manufacturers make during ERP data migrations is failing to train their teams early enough. Waiting until after the migration to introduce your employees to the new system can lead to delays, errors, and frustration. Instead, start training your team as soon as possible, ideally while the migration is still in its early stages.
This training should cover the basics of the new ERP system as well as any specific workflows or data input processes that will change.
Additionally, early training gives you a chance to address any usability concerns before the system goes live. If employees find certain aspects of the system confusing or inefficient, you’ll have time to make adjustments or provide additional support.
Need ERP Data Migration Done Right?
Migrating your ERP data doesn’t have to be a nightmare. By following these ERP data migration best practices, you can reduce the risk of data loss, minimize downtime, and ensure a successful switch to your new ERP system. But, it’s always helpful to have a trusted partner to guide you through the process.
At Godlan, we specialize in helping manufacturers like you migrate their ERP data efficiently and securely. Our team has over 40 years of experience and expertise to make your data migration as smooth as possible, with a proven track record of success in manufacturing.
If you’re ready to get started or have any questions about ERP data migration, reach out to us today. We’re here to help you every step of the way.
