One of the biggest decisions when implementing a new ERP system is what to do with your historical data. While it’s tempting to bring everything over, doing so isn’t always practical or necessary. The key is knowing the difference between what you want to migrate and what you truly need in your new system.
The Temptation to Bring Everything
Many organizations feel compelled to migrate all their historical data into their new ERP system. After all, it represents years of transactions, records, and customer interactions. But moving everything can be costly and time-consuming and doesn’t always deliver value. Large volumes of unnecessary data can clutter your new system, slow performance, and complicate day-to-day operations.
This is where the distinction between “want” and “need” becomes crucial.
What You Want vs. What You Need
- What You Want:
- All historical data from the old system, in case it might be useful someday.
- Data from accounts, inventory, or customers that haven’t been active in years.
- Irrelevant or duplicate records that don’t contribute to current operations.
- What You Need:
- Accurate, up-to-date financial and accounting data for compliance and reporting.
- Relevant customer information to maintain relationships and drive sales.
- Inventory records that reflect your current stock and support supply chain management.
Focusing on what you need ensures your new ERP system starts with clean, relevant, and actionable data, making it easier to manage and use effectively.
The Risks of Migrating Too Much
Bringing over unnecessary historical data can lead to several issues:
- Higher Costs: The more data you migrate, the more resources you’ll need for extraction, cleansing, and loading.
- System Overload: Excessive data can slow down your ERP system, reducing efficiency.
- Data Chaos: Outdated or irrelevant records create confusion and make finding the information you need harder.
By carefully evaluating what’s essential, you can streamline the migration process and avoid these common pitfalls.
How to Decide What’s Essential
- Assess Relevance:
Review your data and ask whether it supports current operations or future goals. If not, consider archiving it instead of migrating it. - Prioritize Accuracy:
Ensure all financial data is reconciled and up to date. Migrating outdated or incorrect data will only create more problems. - Archive Historical Data:
Consider a data warehouse or external reporting tool for data you want to keep but don’t need in the new system. This way, you can access it without cluttering your ERP. - Consult Experts:
Working with experienced consultants like BHC Group can help you identify what data is essential and what can be left behind.
The Benefits of Getting It Right
When you focus on what you need instead of what you want, your ERP system becomes:
- More Efficient: Clean, relevant data ensures smooth operations and faster system performance.
- Easier to Use: Simplified data structures make it easier for your team to find and use the needed information.
- Future-Proofed: A streamlined system is better equipped to handle growth and adapt to future business needs
Let BHC Group Help You Decide
Navigating the complexities of data migration can be overwhelming, but you don’t have to do it alone. At BHC Group, we specialize in helping businesses make smart, strategic decisions about their data. We’ll work with you to evaluate your historical data, prioritize what’s essential, and create a migration strategy that sets your ERP system up for success.
Contact us today to get started. Let’s make sure your ERP system has the data it needs—and nothing it doesn’t!
