An unsuccessful data migration is one of the main causes of software implementation failures.
ERP software with reliable data can bring many business benefits. However, if you’re migrating 20+ years of data from your legacy systems to your new system, then data reliability may be an elusive goal you never achieve.
Today, we’re sharing the most common data-related problems in ERP implementations and how you can avoid them.
Common Data-Related Problems During ERP Implementations
1. Insufficient Data Cleansing
Unfortunately, many organizations migrate inaccurate or incomplete data when implementing a new ERP system. Data that is riddled with errors, inconsistencies, or missing values can hamper organizational efficiency.
Companies that completely delegate the responsibility of data cleansing to a data migration company or even the system integrator are just asking for this type of result.
For example, if customer records are incomplete or contain incorrect contact information, this can lead to failed communication attempts or erroneous analysis.
In our Software Expert Witness engagements, we often look under the hood and see the same customer/company name in a customer master file multiple times. This can be due to something as simple as sloppy data entry resulting in duplicates or the lack of parent-child relationships for a complex corporate structure.
In these situations, the client is typically the only member of the implementation team with the historical knowledge to accurately cleanse data.
How Reliable is Your Organization’s Data?
Different departments in your organization interact with the same customers, suppliers, and orders. As a result, your ERP data is likely in various formats. In addition, names and addresses may have misspellings, and some information may be outdated, like vendors who went out of business or customers no longer in your service area.
Old transaction data doesn’t add value. If you need historical data for data retention compliance, you can store it offline outside of the ERP.
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We have multiple software expert witnesses available for provision of reports, depositions, and testimonies.
2. Inadequate Data Governance
Data governance is the framework an organization uses to manage data availability, usability, integrity, and security. A data governance plan relies on internal data standards and policies.
The absence of proper data governance practices, such as data standardization, data ownership, and data security measures, can lead to data issues. Without clear guidelines in place, data may become unreliable, inaccessible, or prone to security breaches.
Establishing data governance practices is a step that should be completed in the pre-implementation phase. This is the phase that takes place before the system integrator starts onsite work.
Effective data governance helps organizations accomplish several goals, including:
• Eliminating data silos
• Preventing potential misuse of customer data
• Providing better information for decision-making
Your governance policies should be clearly documented, and employees should understand how and why to follow data governance rules.
3. Integration Issues
When implementing enterprise software that requires data from multiple sources and systems, data integration issues can arise. These include, but aren’t limited to, incompatible data formats, conflicting data structures, and inconsistent data definitions.
When data from different departments isn’t effectively integrated, you won’t have access to the data you need for accurate processing, projections, and reporting.
If you currently have seamless third-party integrations with your ERP system, data migration may not be as much of an issue. However, if you’re using a CRM system, an eCommerce system, or another type of point solution without proper ERP integration, you must determine an integration strategy.
Here are some options to consider:
Point-to-Point Integration
In a point-to-point integration, custom code links each system individually to the ERP system, giving you full control over the integration. Companies choose this method because they can specifically address their business needs. However, the process becomes more complicated as you add more tools and programs.
Native Integrations
A native integration uses the applications’ own APIs. These integrations are often included in your subscription. A possible downside of relying on native integrations is that you probably won’t find one for all the solutions you want to implement.
Integration Platforms as a Service (iPaaS)
An integration platform is a cloud-based, third-party platform. It gives you a centralized way to integrate your systems. iPaaS systems can help you comply with data protection and privacy rules.
iPaaS doesn’t require installing or managing hardware, but building all the integrations you want can take time.
Avoid ERP Failure With the Right ERP Software Consultant
ERP data challenges can cause your implementation to fail, but you can reduce this risk with the right guidance. An experienced ERP consultant can review your project by looking at everything from your data migration plan, to support tickets from end-users, to your system testing procedures.
Panorama recognizes the importance of having a data strategy that aligns with your business goals. We can guide you through all phases of your enterprise software project.
If your ERP project has already failed, schedule a consultation below to find out if litigation is necessary, and if so, we’ll match you with a computer software expert.
