What Is Data Migration?

26
March

For Implementation Team

What Is Data Migration? 5 Steps to Migrate Data into an ERP System

Data Migration is one of the most critical steps in an ERP implementation project. If the data in the new system is incorrect, every transaction that references it will also be wrong. This article explains the data types, steps, risks, and a real case study.

Quick Summary: Data Migration is the process of transferring data from an old system (e.g., Excel, Access, Dynamics AX) to a new ERP system. It covers Master Data (reference data), Opening Balance (carry-forward balances), and Transaction History (historical records). The data must be cleansed, validated, and confirmed before going live.

Data Migration is the process of extracting data from the old system (Source System), preparing and transforming it, cleansing errors, then importing it into the new ERP system (Target System). The data to be migrated includes Master Data used as references throughout the system and Opening Balance used as the starting point for the new system.

Types of Data to Migrate

Data Type	Examples	Importance
Master Data	Chart of Accounts (COA), Vendor data, Material/Inventory data, Employee data, Fixed Asset data	Foundation for all transactions. If incorrect, the entire system is affected. Must be migrated first.
Opening Balance	Outstanding AP/AR, Inventory on hand, Bank deposits, Net fixed asset values, New year budget	Starting point for the new system. Must match 100% with the closing balance of the old system.
Transaction History	Purchase order history, Payment history, Material disbursement history	Not always required. Some organizations keep history in the old system for reference. Only migrate if historical lookup in the new system is needed.

5 Steps of Data Migration

Step	Name	Details
1	Data Analysis	Survey the data in the old system — what exists, in what format, and what issues are present (e.g., duplicates, missing fields, inconsistent formats).
2	Data Cleansing	Remove duplicates, correct errors, fill in missing data, and standardize formats to match the new system (e.g., convert account codes, fix misspelled vendor names).
3	Data Mapping & Transformation	Map fields from the old system to the new system, then transform formats (e.g., old 4-digit account codes to new 6-digit codes).
4	Data Import	Import data into the new ERP system, starting with Master Data first, then Opening Balance. Verify that record counts are complete and balances are correct.
5	Validation & Reconciliation	Compare every line item between the old and new systems. Have actual users verify and sign-off confirming data accuracy.

Common Risks in Data Migration

Duplicate Data — The old system has multiple records for the same vendor. Importing without cleansing causes confusion in the new system.
Format Mismatch — For example, dates in the old system use DD/MM/YYYY while the new system requires YYYY-MM-DD. Without conversion, the import fails or produces incorrect data.
Balance Mismatch — The Opening Balance imported into the new system doesn't match the closing balance of the old system. Must reconcile to the last cent.
Missing Data — The old system lacks certain fields required by the new system (e.g., vendor tax ID numbers). The missing data must be sourced and populated.
Skipping Test Import — Going live without testing the import first leads to problems discovered during Go-Live that are difficult to fix.

Case Study: TMF Successfully Migrated from Dynamics AX

Thai Media Fund (TMF) previously used Microsoft Dynamics AX. When they decided to switch to Saeree ERP, the implementation team conducted Data Migration as follows:

Master Data: Migrated the Chart of Accounts, vendor data, inventory data, and fixed asset data from Dynamics AX, transforming codes to match Saeree ERP's structure.
Opening Balance: Extracted carry-forward balances from Dynamics AX as of the fiscal year-end (September 30), then imported them into Saeree ERP as the starting balance for October 1.
Reconciliation: Compared every account balance between Dynamics AX and Saeree ERP to ensure they matched to the last baht before signing off.

The result: TMF successfully launched Saeree ERP on schedule on October 1, with all data accurate and complete.

What Is Data Migration in ERP?