Migration to a new ERP system: benefits, step-by-step plan & data migration tips
July 25, 2024
ERP migration is the process of moving business functions and enterprise data from an old ERP system to a new one that offers better efficiency, scalability, and cost savings.
Implementing an ERP system helps companies streamline finance, HR, supply chain, order, customer management, and other important day-to-day business processes. However, as time passes, organizations can find themselves in a situation where, despite routine updates and patching, their current ERP system cannot adapt to changing business or industry-specific needs. So, the company needs to migrate to a new ERP platform to evolve.Â
Need help with migrating your ERP solution?
Key drivers for ERP migration
Busy with daily routines, employees rarely question whether the current ERP system they are accustomed to is the most efficient tool to address the company’s needs. Using an ERP system that can no longer support the organization’s business processes often leads to operational inefficiency, high maintenance costs of the ERP solution, poor data management, and possible compliance risks. Among the most common scenarios indicating the need for ERP migration are:
Scalability issues
ERP scalability refers to the software’s capability to handle varying data and transaction volumes as well as the increasing number of users without performance degradation. If scaling your ERP system leads to overall software performance deterioration or requires considerable expense for purchasing additional software licenses or new hardware, it’s time to consider migrating to a new solution that offers better scalability at lower costs.
Functional gap
The requirements for the ERP system’s functionality naturally evolve along with the company’s business growth. Some companies can address the gaps by customizing ERP or integrating third-party tools and software with it. If additional customization and integration are too complex for your case or seem infeasible, migrating to a new ERP system that fully addresses your needs can be the best decision.
Elevating ERP costs
As previously mentioned, when trying to keep ERP systems in line with changing business needs, companies can customize their ERP solutions or integrate them with third-party software and emerging technologies like AI, ML, or IoT. Such an approach can require purchasing additional software licenses and increasing ERP maintenance efforts. If the expenses associated with upgrading and extending the capabilities of your ERP solution are escalating, consider replacing your ERP system with a new one.
Poor integration capabilities
In addition to ERP systems, businesses typically use a variety of applications, including legacy ones, to manage different operations, like customer relationships or supply chains. Interoperability between ERP and these systems is vital for real-time data flow, efficient operations, and informed decision-making. If your current ERP solution cannot ensure seamless integration with external software applications and services, hindering data flows across the organization, it’s time to think about migrating to a new ERP system.
ERP migration roadmap
If you decide to switch to a new enterprise resource planning system, it's important to approach the process strategically. A detailed ERP migration plan is crucial to facilitate a smooth and secure transition from one system to another, as it helps ensure minimized business process disruption, better data consistency, and increased user adoption. Here is an example of a step-by-step ERP migration roadmap, however, be aware that certain steps within the project can be executed simultaneously, rather than sequentially.
1
Analysis & scope determination
Documenting business processes and determining the functional scope of a new ERP solution
Evaluating the strengths and weaknesses of the existing ERP solution
Analyzing the company’s technology environment to outline possible ERP solutions
2
Design & technology selection
Conceptualizing the new ERP solution
Defining the scope of ERP integrations
Selecting an optimal technology
3
Planning
Assembling ERP migration and ERP implementation teamsÂ
Defining ERP migration scope, key milestones, budget, and timelines
ERP data migration planning
Creating a risk management strategy
Planning user onboarding and an old ERP cutover
4
Configuration/Development
Сonfiguring/customizing an out-of-the-box ERP system or developing the front-end and back-end of a custom ERP solution
Integrating ERP with existing internal enterprise systems and external third-party solutions
5
Data migration
Conducting a thorough audit of the current ERP’s transactional, analytical, and master dataÂ
Mapping data and transferring it to the new system
Performing data cleansing activitiesÂ
Validating the accuracy of the migrated data
6
Testing
Testing the ERP solution for functional, security, usability, or performance issues
Resolving bugs and issues
7
ERP deployment & go-live
Deploying ERP to the production environment
Conducting user-acceptance testing (UAT) to ensure ERP functions as intended
Training and onboarding ERP end-users
Discontinuing the legacy system
8
Support & optimization
Supporting ERP platform users
Monitoring the system’s infrastructure to quickly address arising issues
Essential steps to ensure successful ERP data migration
Data is one of the key components of ERP software, which is why a data migration process is an important step during ERP migration. At the same time, data migration can be one of the trickiest and most time-consuming parts of an ERP project. Companies can store large amounts of historical data, corporate databases can have data inconsistencies or redundancies, and there is always a risk of data loss during migration. That is why, in order to migrate your ERP data within the defined timeframes and eliminate all inherent risks, you should make the following activities a part of your data migration strategy.
Careful planning
Thoroughly assess your existing data structure, quality, and dependencies to carefully plan the process and outline timelines, resources, and responsibilities within the migration team.
Data mapping
Perform data mapping to define how data from the old ERP database correlates with data fields and formats in the new system to avoid data loss during migration and ensure the integrity of the transferred data.
Data extraction
Use ETL/ELT tools to automate the data retrieval process and create custom scripts for more complex extractions, monitoring and documenting tools, techniques, configurations, and scripts used.
Data cleansing
Remove duplicate or irrelevant data sets, fix structural errors, and deal with missing data to ensure its accuracy, consistency, and integrity in the new system. After the migration, perform regular data cleansing activities as a part of your data management program to maintain high data quality throughout its lifecycle.
Data validation
After the migration, perform data validation and reconciliation to ensure that all data has been accurately transferred from the old system to the new one without loss or changes since any discrepancies can lead to significant operational and financial issues.
Navigating ERP migration challenges
Migrating one of the main enterprise software systems carries many risks that can jeopardize the project's success. Сompanies can consider partnering with experienced ERP consultants that can guide them through migration complexities and help ensure a smooth transition. Here, we overview the two most common challenges businesses face during ERP migration and suggest possible solutions.
Situation
Solution
Change management & employee onboarding
Migrating to a new ERP solution requires employees to adapt to new workflows and alter the way they perform their everyday activities. Consequently, companies can face employee resistance, which threatens the success of the entire migration project.
When implementing a new ERP solution, companies have to work out a change management strategy. If a company clearly communicates the benefits of a new ERP from the very start of the project as well as invests sufficient resources in ERP training that does not interfere with employees' primary responsibilities, employees are less likely to reject a new system and will adapt faster.
Business continuity
ERP transition can incur system downtimes and business process disruptions, which can impact customer service and relations with partners and suppliers.
To ensure business continuity during ERP migration, companies should take a phased approach to ERP transition. Gradual transfer of business workflows to the new software will help reduce risks associated with downtime and enable more thorough testing. In addition, to minimize disruptions to business processes, organizations can try running both the old and new systems in parallel for a certain period of time.
Real-life examples of successful ERP migration we performed
2x
accelerated work order management
Odoo ERP system implementation and data migration
Itransition implemented an Odoo-based ERP system for a US repair and maintenance services provider, consolidated and successfully migrated data from the customer’s dispersed legacy systems to the new ERP, ensuring data integrity and accuracy.
50%
costs saved on product management
Order and inventory systems migration
Itransition developed an Odoo-based order and inventory management system for a renowned fashion brand and helped the customer cleanse and smoothly migrate data to the new system.
Uplift your business performance with a new ERP
ERP cloud migration
More and more companies transition their ERP systems to the cloud to reduce TCO, accelerate software updates, and ensure better accessibility. If you are planning to migrate your ERP workloads to the cloud and are looking for the most optimal platform to fit your needs, we have outlined cloud ERP providers for service and product-oriented companies that Gartner selected as the best on the market today.
Oracle NetSuite is an all-in-one cloud solution for managing and automating key business processes. The solution helps consolidate all enterprise data and get real-time access to it. Pricing is available upon request and constitutes the core platform, optional modules, and the number of users.
Key features
- Accounting and finance
- Order management
- Planning, budgeting, and forecasting
- Supply chain management
- Inventory management
- Warehouse and procurement management
Deployment options
SaaS
Odoo is an open-source, highly customizable, and user-friendly ERP system for small and mid-sized companies. Odoo comes in two editions: Odoo Community (open-source) and Odoo Enterprise (licensed) with extended capabilities.
Key features
- Finance management
- Project planning and controlling
- Manufacturing and production quality management
- Contact management
- Fleet management
- CRM
- Inventory and procurement management
- Ecommerce and PoS solutions
- HR management
Deployment options
- SaaS
- PaaS
- on-premises
Microsoft Dynamics 365 Business Central is a suite of ERP modules designed specifically to cater to the needs of small and medium-sized companies to help them improve business operations, get financial visibility, and benefit from advanced analytics. Microsoft Dynamics 365 Business Central licensing depends on the number and types of users and the required functionality.
Key features
- Financial Management
- Human Resources Management
- Customer Relationship Management
- Warehouse Management
- Project Management
- Service Management
- Supply Chain Management
- Manufacturing
Deployment options
- On-premises
- Private cloud
- SaaS
Microsoft Dynamics 365 Finance & Operations (now available as separate Finance, SCM, and Human Resources applications) is a feature-rich ERP software market leader for mid-sized businesses and large enterprises across all industries. The pricing for Microsoft Dynamics 365 F&O varies greatly depending on the number of functional modules and users.
Key features
- Finance management
- Transportation management
- Budgeting and accounting
- Sales and marketing
- Supply chain management
- HR and payroll management
- Procurement and sourcing
- Project management
- Warehouse and inventory management
- Analytics and BI
- Asset management
Deployment options
- Cloud
- On-premises
Infor CloudSuite is a highly flexible cloud ERP system suitable for companies from different industries, including construction, distribution, fashion and retail, as well as financial and professional services.
Key features
- Asset and inventory management
- CRM and customer service
- Finance and accounting
- Supply chain management
- Budgeting and forecasting
- Document management
Deployment options
SaaS
Limitations
The complexity of the user interface
Long-term benefits of switching to a new ERP
Optimal functional fit
Migrating to a new ERP system helps you address your new functional requirements and ensure your ERP is well-aligned with your operational and strategic business goals.
Improved scalability & flexibility
New ERP solutions possess the agility to handle varying data amounts or fluctuating numbers of users and requests, ensuring that system performance doesn’t degrade as the business scales.
Better interoperability
Modern ERP systems offer enhanced integration capabilities, ensuring you can connect your ERP with other business systems, like CRM, ecommerce platforms, or BI, AI, ML, and IoT tools more easily and cost-efficiently.
Improved data accuracy
New ERP systems allow for seamless data exchange and help maintain high data integrity. Also, modern ERP systems minimize human errors by automating data entry, validation, and reconciliation.
Better compliance
Modern ERP systems include comprehensive functionality for audit trails, data security, and privacy controls that reduce the risks of data breaches and help you comply with applicable data regulations like GDPR.
Ensure the success of your ERP migration with Itransition
As a part of our ERP services, our team offers ERP migration services to help companies move to a new ERP system safely and enjoy better scalability, performance, and cost-efficiency.
ERP migration consulting
We help businesses plan their ERP migration and assist them throughout the migration project. We also help companies develop and implement custom ERP systems and modernize existing solutions.
ERP migration
Itransition takes on the entire ERP migration project, from technology audit and strategy outline to data transfer, and post-go-live support, ensuring data security and the continuity of your business operations.
About Itransition
In software consulting and development services since 1999
10+ years in ERP systems development
50+ successful ERP projects
Hands-on experience with data analytics and BI, AI, and RPA
Expertise in software development across healthcare, retail, logistics, BFSI, manufacturing, energy, and utilities industries
An Odoo Silver Partner, NetSuite Solution Provider, and Microsoft Solutions Partner
Insights
ERP selection: the definitive guide
Explore the key steps and criteria to select proper ERP software for your business. Get the selection checklist and learn how to overcome common challenges.
Service
ERP integration: types, approaches, key steps & services
We guide you through the ERP integration process by outlining integration types and common approaches, challenges, benefits, and project steps and timeline.
Insights
Odoo for fleet management: a review
Learn how the Odoo fleet management tool proves useful in streamlining demanding workflows and addressing productivity-impeding challenges.
Insights
CRM vs ERP: which one you need?
Learn the difference between CRM and ERP systems and find out whether your business needs a CRM, an ERP, or both.
Insights
ERP for manufacturing: end-to-end solution overview
Explore top manufacturing ERP software on the market, as well as manufacturing ERP functionality, integrations, adoption roadmap, and business value.
Service
Retail ERP: core features, benefits & integrations
Discover retail ERP’s core functionality, integrations, platforms, benefits, and best practices and explore Itransition's ERP service offering for retailers.