An ERP data migration strategy is often treated like a technical problem. Just move the data from the old system to the new one, and you’re good to go.
But the real challenges are the human error, bad data, unrealistic deadlines, and the overconfidence.
Most companies underestimate how much work goes into ERP data migration. They think it’s just about transferring numbers and records.
But what happens when the data is full of errors?
What if employees don’t know how to use the new system?
What if bad habits from the old system creep into the new one?
The biggest challenge: Bad data = bad ERP system
Everyone assumes that data migration means moving clean, structured data from one system to another. That’s rarely the case.
-Old systems store outdated, duplicate, and incorrect data…but companies don’t always clean it before migrating (dirty data is a huge problem!)
-Custom fields and unique formats from the old system might not fit in the new one.
-Data is often scattered across multiple sources, leading to inconsistencies. For example, many corporations store data in the cloud, which has given rise to the’ analytics as a service’ model, which is expected to reach 69 billion U.S. dollars in market value in 2028.
What happens when bad data moves to a new ERP?
The system doesn’t work as expected. Reporting errors, missing transactions, and mismatched records start appearing.
Employees lose trust in the system. If the numbers seem off, they fall back on spreadsheets instead of the ERP. And cleaning data after migration is a nightmare.
Fixing it beforehand is much easier.
- Audit data before migration. Identify errors, duplicates, and missing records.
- Standardize formats and make sure data fields align with the new ERP system.
- Get input from actual users because they know what’s useful and what’s just… clutter.
Overconfidence in automation
Many companies assume that once they set up an automated migration process, it will do the work flawlessly.
That’s a dangerous assumption!
The problem with automation in an ERP data migration strategy is that
- Automation doesn’t fix bad data—it just moves it faster (Garbage in, garbage out)
- Custom scripts can break and if something unexpected happens, automation might not catch it.
- Human validation is still NECESSARY because you can’t trust a 100% automated migration without checks and balances.
When automation goes wrong data might map incorrectly, leading to wrong financial reports, inventory errors, or compliance issues. Also, critical data fields might be lost or misinterpreted.
The company will have to redo migration efforts (leading to delays and extra costs.)
How to fix this
- Test automation in small batches. Don’t migrate everything at once.
- Have manual checkpoints and let a human verify (critical, not all) data points.
Pro Tip: You can also run apilot migration and see how a portion of the data behaves before committing to a full switch.
The human factor
This is such an important part of an ERP data migration strategy.
A new ERP system only works if people know how to use it and understand it well.
But (unfortunately) companies focus so much on technical migration that they forget the human aspect.
They either assume employees will “figure it out” on their own. Or they don’t give teams enough time to adapt before switching systems.
Some even make the mistake of ignoring feedback from the people who actually use the system daily.
What happens when users don’t know how to use the ERP?
- Employees might use old spreadsheets instead of the ERP.
- If the system is too complex, people resist it. Meaning the morale and productivity will be low.
- And, of course, there will be an increased number of errors. Because misuse of the system leads to incorrect data entry and reporting.
How to fix it?
- Start training early. Before migration, employees should know how the new system works.
- Create guides and cheat sheets (It makes it easy for people to reference key tasks.)
- Get feedback!! If users are struggling, adjust training methods or system configurations.
Budgeting for what you DIDN’T plan
Something we’ve noticed is that most companies underestimate how much ERP migration will actually cost. They fail to account for consultants and IT experts, any delays or setbacks and/or post-migration troubleshooting.
Usually what happens when companies don’t budget properly is that:
- They rush migration to save costs, leading to long-term problems.
- They cut corners on testing, training, and data cleanup.
- They end up spending more later fixing mistakes that could have been avoided.
You need to:
- Plan for extra costs and assume the project will take longer and require more resources than expected.
- Invest in data cleanup because it’s cheaper to fix data before migration than after.
- Don’t ignore training and testing as these AREN’T optional expenses.
The “One-Size-Fits-All” myth
ERP systems come with standard configurations, but no two businesses are exactly alike (shocker!)
Usually what happens is that your business has unique workflows that don’t fit the standard setup. So, the new ERP might force inefficient processes instead of improving them.
And integrating with other business systems (like CRM, HR software) may require customization.
How to fix this?
- Customize ONLY when necessary as too much customization can and will be a headache.
- Test workflows before full migration. See if the ERP can handle day-to-day operations smoothly.
An ERP data migration strategy is more than a technical process
As it’s about people, processes, and business strategy.
What companies get wrong:
- Thinking automation will do everything.
- Underestimating how bad data impacts the system.
- Ignoring training and change management.
- Failing to budget for unexpected costs.
- Assuming one ERP setup works for all businesses.
What they should do instead:
- Audit and clean data before migration.
- Test automation and have manual verification points.
- Train employees before the system goes live.
- Budget for the unexpected.
- Customize wisely…only when it truly benefits the business.
Basically, ERP data migration can be a success if companies plan beyond just “moving the data.” Just make sure the system works for the people who use it. Otherwise, even the best ERP won’t fix a broken process.