Data Conversion and Data Management in an ERP Implementation

An ERP implementation involves many decisions that clients should carefully evaluate. These include the type of ERP system, the associated IT infrastructure, and determining which business processes will take center stage. From data conversion to reporting, every component impacts the project’s success.

The Importance of Quality Data in an ERP Implementatio

Data plays a pivotal role in the success of an ERP implementation. Data migration raises many questions: What data will be transferred? Are updates needed in how data is stored and utilized? Think of elements such as inventory data, open orders, and how teams will interact with this new information. What does this mean for data management, and who will have access?

ERP implementation is about more than just technology. It touches the core of the organization: quality data ensures smooth ERP processes and provides valuable insights for management.

Conversion and Data Management in ERP Implementation

Data Conversion vs. Data Management

In an ERP implementation, it’s crucial to differentiate between data conversion and data management. Although closely related, these serve distinct roles and require tailored approaches.

What is Data Conversion?

Data conversion is a one-time process in which data is transferred into a new system format, following predefined methods and datasets. This process occurs around the go-live phase and is primarily technical, focusing on transferring data seamlessly into the new ERP environment.

What is Data Management?

Data management involves the ongoing organization and administration of data within your company in a sustainable way. It includes developing a data strategy, setting standards, and establishing processes, supported by the right tools. The goal is to keep data consistent, accessible, and reliable. For businesses, this often means reorganizing processes around adding, retrieving, modifying, and deleting data.

Data management requires making critical decisions: Should data be managed centrally or decentrally? Do you need a global overview of specific datasets? Which teams require training to optimize their use of the data?

Data Management as a Business Process

In ERP implementations, a lot of attention is given to data conversion, but data management often doesn’t receive the central focus it deserves within the project organization. While efforts are concentrated on the one-time conversion process, data management is frequently sidelined with the assumption that it will naturally fall into place later.

What Happens When Data Management is Prioritized?

Imagine if data management was recognized as a business process from the very beginning. Why does a key user in procurement have a detailed manual for their process and a testing cycle to validate each step, while similar structures are often lacking for supporting processes like item or customer management?

For example, when that procurement user needs to order a new item or onboard a new supplier, collaboration and alignment are essential. It helps when all project stakeholders—from procurement to item management—better understand and work together. This results in more consistent master data and smoother primary business processes.

A Foundation for Data Quality and Continuity

By treating data management as a core process throughout the project, you establish a solid foundation for data quality and long-term continuity.

In an upcoming blog, we’ll dive deeper into practical steps for conversion management and data management activities.