ERP systems will accumulate a LOT of data, and a main reason organizations implement ERP systems is to get data out, not just to put data in. Getting the data out, and making the most of that data, requires a data strategy. Building a data strategy alongside implementing an ERP system is crucial for ensuring the organization’s effective management, utilization, and governance of data. There are important steps to help you define your data strategy during an ERP system implementation:
Define Data Objectives
Start by clearly defining your data objectives. Identify what you aim to achieve with data management and how it aligns with your overall business goals. For example, you might aim to improve data accuracy, enhance data accessibility, enable better reporting and analytics, or ensure regulatory compliance.
Assess Data Needs and Requirements
Conduct a thorough assessment of your data needs and requirements. Identify the types of data your ERP system will generate, store, and utilize. Consider the data entities, attributes, relationships, and data flow across different modules and processes. Determine the criticality and sensitivity of the data, data integration requirements, and data quality standards.
Establish Data Governance Framework
Develop a data governance framework that outlines the policies, processes, and roles and responsibilities for managing data within the organization. Define data ownership, data stewardship, data quality standards, data security measures, and data access and authorization protocols. Establish data governance committees or teams to oversee and enforce the governance framework.
Plan Data Integration
Determine how data will flow between the ERP system and other existing systems or databases. Assess the integration requirements and develop an integration plan. Identify the data integration points, data mapping, data transformation rules, and data synchronization processes. Consider using standard integration methods and tools provided by the ERP system or explore integration middleware if needed.
Ensure Data Accuracy and Cleansing
Data accuracy is critical for the success of an ERP system. Define data validation rules, data cleansing processes, and data entry standards. Establish procedures to identify and rectify data discrepancies, duplicates, and errors. Consider conducting data cleansing activities before migrating data to the new ERP system.
Plan Data Migration
Develop a data migration strategy to ensure a smooth transition of data from existing systems to the new ERP system. Assess the data migration requirements, data mapping, data extraction, transformation, and loading processes. Consider the volume of data, data migration timeline, and data verification and validation steps to ensure data integrity in the new system.
Establish Data Security Measures
Define data security protocols to protect sensitive and confidential data within the ERP system. Implement access controls, user roles and permissions, data encryption, and data backup and recovery mechanisms. Comply with relevant data privacy regulations and implement necessary security measures to safeguard data.
Implement Data Analytics and Reporting
Leverage the data captured in the ERP system to gain insights and support decision-making. Implement data analytics and reporting capabilities to extract meaningful information from the data. Develop relevant reports, dashboards, and analytics tools to enable data-driven decision-making at various levels within the organization.
Monitor and Evolve
Continuously monitor the effectiveness of your data strategy and make necessary adjustments. Regularly review data quality, data governance adherence, and data utilization. Seek feedback from users and stakeholders to identify areas for improvement and address any emerging data management challenges.
Building a data strategy alongside ERP system implementation requires a comprehensive understanding of your organization’s data landscape and objectives. It should be a collaborative effort involving key stakeholders, including IT, data governance teams, business users, and management.
Get in touch with us! At Ascendex, “Collaboration” is one of our core values, and we would be honored to collaborate with you to define your data strategy and generate valuable insights from your data.