Data Conversion in an ERP Implementation
Converting data from legacy system to ERP(Enterprise Resource Planning) system is one of the main reasons for ERP implementation to exceed its budget and missing its go-live objective. In this article we look into its process and the ways to prevent the above issues by complying some rules. Planning and Execution is critical in this conversion phase.
First the ERP implementation group has to identify which data should be converted. It can be done by reviewing both processes and data. The team has to decide what they really want. Somehow this ERP implementation is a great opportunity to eliminate inefficiency.
There are three types of data.
1. Master data (Static files) — Customer, Vendor and Item data
2. Transaction data (Dynamic files) — Customer orders, Manufacturer orders, Purchase orders
3. Historical data (Transaction history files) — Sales analysis
When it comes to data preparation phase, it is also a critical step in conversion strategy. Process owners need to take ownership and responsibility for the data. This phase is an opportunity to identify and purge inactive customers, vendors, items, etc.
Converting the files to live too soon will generate a lot of extra work since it is required to maintain files on both systems until go-live and if it is too late, it compromises the go-live schedule. Therefore it is very important to set a realistic timeline for this whole process. This can be achieved through these tips.
1. Benchmarking to other organizations similar to ours
2. Understanding the variables that drives the conversion duration up and down
3. Developing a process plan
Almost any system contains some “dirty” data. It is required to cleanse them and Conversion is the best time to rectify this. This may involve manual data cleansing and automated data cleansing. The data that becomes meaningless in new ERP environment, the data no longer uses for the business, the data which contains some human errors are that kind of data which needs to be cleansed.
When it comes to the testing phase, it is another crucial step because without proper ERP testing, the risk of implementation failure increases. If there are any issues at “go-live”, almost all the time spent resolving the issues and reconverting is “downtime”. Converting all the data to “conference room pilot” sandbox is the best way to handle this.
Then in the change management process, the human factor and the communication are the most important elements. The scope, purpose and progress of the ERP project should be well communicated across the organization. It can be done through workshops, face-to-face meetings and teleconferences. Human factor is a critical element of any successful technology initiative. Resistance to change is usually encountered from employees because they are concerned about being replaced by the new system. Recognizing such behavioral issues and developing a plan is one of the main responsibilities of the change agent.
Another important function of the change management process is training. The training sessions should make sure the user understanding of the new system. Training should be done via workshops, streaming videos.
So, this concludes the whole process of data conversion in ERP implementation. I hope you could get some idea about the ERP data conversion.
Thank You!
