Importing old data into the new ERP system - a double-edged sword
When implementing a (new) ERP software in your company, it is essential that you can trust that system from the very first day of operation!
As a result, it is essential for all data in the new system to be clean, accurate, and validated.
We're talking about data such as products, customers, prices, stocks, etc.
A new system full of erroneous data will instantly create distrust among your colleagues, leading to the failure of the ERP software implementation.
Undoubtedly, importing (or migrating) data from the old system can be a key point.
Today, I aim to present to you the typical situations that can cause problems and how you can avoid these undesirable situations.
- Issues with redundant and inaccurate data
In (most cases), these data - before verification and correction - contain a series of duplicates and inaccurate information.
Some typical problems encountered in real life (in our implementation projects):
- Erroneous product codes, with duplicates
- Inactive product codes and products (removed from the portfolio, but still in the product list)
- The same client entered with or without "S.C." in the client name (S.C. X SRL, SC X SRL, SC X SRL., ... - limitless variations 😊), resulting in a single client appearing multiple times (if the tax code is not a unique identifier)
- Inaccurately entered work locations or delivery and billing addresses
- Errors in price lists
- Significant differences between the recorded and actual inventory, which disrupt inventory management after importing the recorded inventory from the old system (having to deliver something that is not actually in stock...)
Unwanted situations can arise due to importing old data if there is no prior verification.
In short: the main idea is to never import data without prior verification and correction!
You must consider that this requires effort on your part (as the client). It's like moving into a new house without cleaning up at the end of the move.
2. Attention to complying with legal requirements (FIFO, lot, unique series)
Another important recommendation is to strictly consider the current legal regulations when managing data. I refer to the following situations:
- If your field of activity is the food industry, then products must have lot identification. The same goes for the construction industry.
- If you trade or market high-value products with unique series (e.g., boilers, air conditioning units, etc.), then you must consider that unique series during reception, stock transfers, and deliveries (including managing the warranty period correctly).
- If there are provisions in your field for the stock management strategy to be FIFO (first in, first out), then the ERP system must also be set and managed in this way.
- Sometimes less is more!
There is a common ambition among companies to import as much data as possible into the new ERP system.
This is perfectly understandable, at first glance.
You are building a new system where you want everything to be in order and to have a lot of historical data (some even want data for the last 5 years!) to analyze trends and make comparisons.
I propose that you start (perhaps together with the ERP solution provider) by conducting a cold analysis and verifying the accuracy of this data.
I understand that you want to bring this data into the new ERP system, but it is time to see if:
- the data is correct (without duplicates), accurate, and up-to-date
- and if it is not (usually it is not!), then make a plan to verify and correct this data.
The key here is for your plan to be realistic!
Verification, correction, and preparation for importing this data must be done by a person who:
- knows the respective data well (if we are talking about products, then the product owner or sales manager, if we are talking about inventory then the warehouse manager, if we are talking about unpaid invoices then someone from billing or the financial department) and
- works meticulously enough for the final result to be as desired
- has enough responsibility and the final result of their work is adequate.
Preparing data for import cannot be a task for the ERP solution provider because it does not know the "on-the-ground reality", and even if it assumes it, the final result will not be as expected!
The bad news is that this verification and correction activity must be resolved (by the designated colleague) alongside other daily tasks!
That's why I often say that it is better to start using an ERP system with fewer but reliable data, rather than with a pile of inaccurate data (e.g., inactive products, long-lost customers, outdated price lists, incorrect product codes, etc.) from the last 10 years.
Less means more this time!
In short: When implementing an ERP system, don't cling to importing all the data! A more realistic approach will help you have a functional system faster, with less data but at a lower implementation cost!
Do you think implementing an ERP software at your company is due?
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Ernő Jancsó, soft4biz
