By now you might have heard a bunch of CEOs or CTOs talk about the cloud with a lot of vigor. As more businesses embrace digital transformation, Cloud feels like the next best thing since sliced bread. Organizations are turning to enterprise resource planning (ERP) systems like Oracle ERP Cloud to manage their data and streamline operations. Cloud spells freedom, speed, agility, and affordability.
According to Gartner, by 2025, 51% of IT spending in these four categories will have shifted from traditional solutions to the public cloud, compared to 41% in 2022. Almost two-thirds (65.9%) of spending on application software will be directed toward cloud technologies in 2025, up from 57.7% in 2022.
But the journey to the cloud is not that straightforward. Implementing an ERP system can be a complex and time-consuming process, especially when it comes to migrating existing data into the new system.
Although extremely critical for the success of any ERP implementation project, Data Migration is often left deprived of the attention it deserves until it's either too late or the project is already pressed on time. This results in rushed data migration leading to suboptimal system performance and it is not long before users begin to lose faith in the new application.
Note – This article assumes that the reader understands Data Migration as a concept. If not, we recommend going through our blog post ‘Data Migration for Dummies’ before reading this article
In this blog, we will explore the key components of an effective data migration strategy to be followed in a Cloud ERP implementation. Given our extensive experience in Oracle cloud, we will illustrate our point using Oracle Cloud ERP.
Understanding Oracle ERP systems
Oracle ERP systems are a comprehensive suite of enterprise resource planning (ERP) software that helps organizations manage various business processes, including financials, human resources, procurement, and supply chain management. Oracle ERP Cloud was recently named a top industry leader by Gartner. The different components of Oracle ERP systems include the Oracle Database, Oracle Applications Framework (OAF), Oracle Application Object Library (AOL), and Oracle Self-Service Web Applications (SSWA).
These components interact with each other to provide a unified system for managing business processes. The Oracle Database serves as the backbone of the system and stores all the data, while the OAF and AOL provide the framework and library for building and customizing the applications. The SSWA allows users to access the system through web browsers. Together, these components work in harmony to provide a robust and flexible ERP system that can be tailored to meet the unique needs of different organizations.
The Oracle ERP data migration strategy consists of the following:
Identifying data migration needs
To ensure a successful data migration project, it is crucial to understand the organization's specific data migration needs. This starts with analyzing the current data architecture, including the source systems, data structures, and relationships. Next, identifying which data is critical, unnecessary, or needs to be transformed before migration. Finally, understanding the data structures, relationships, and integration points in the target ERP application.
Here, if we talk about Oracle ERP Cloud there are various kinds of data buckets that one needs to consider, such as
· Metadata/Configuration Related Data
· Master Data
· Transaction Data and Balances
By identifying the organization's data migration needs, a clear plan can be developed for a smooth and successful migration to an Oracle ERP system.
Planning the data migration
The planning phase of data migration planning includes several key elements to guarantee a smooth migration process. One of the most vital elements is data mapping, which entails identifying the correlation between the data in the source system and the target system and deciding how it will be converted into the new system.
Data validation is another essential element, it verifies if the data being migrated is precise and complies with the target system's standards. Finally, data cleansing is performed, which involves eliminating any unnecessary or duplicate data from the source system before it is migrated to the target system. These elements together create a solid data migration plan.
Following data migration best practices
Wherever possible, the data migration strategy should adhere to recommended best practices such as managing the quality of the data being migrated, securing sensitive information, and thoroughly testing the migration. This further includes cleaning up any duplicates or inaccurate data to ensure reliability, encrypting data and implementing proper access controls during the migration, and testing the migration process, target data, and the final system before going live.
If considering migration into a cloud ERP, it is also very important that vendor-specific guidelines and restrictions have been factored into the overall strategy. Sometimes things that look straightforward with one application provider might not be the same with another.
Identifying data migration tools and techniques
Although every tier 1 ERP provider has out-of-the-box options to facilitate data import these days, not all the options are user-friendly and efficient especially when it comes to a large volume of data. For example – Oracle Cloud provides options such as predefined spreadsheets, rest APIs, etc to import different data objects.
Market these days is also flooded with various third-party tools developed by independent vendors to assist with specific data migration needs; however, the performance of a particular tool depends on multiple factors such as the quality of data in the source system, volume of data, transformation needed before upload, target application, the underlying technology used by the tool, etc. Ultimately, the choice of tool or technique will depend on the specific needs of the organization and the complexity of the migration project.
As part of the data migration strategy, it is imperative that the team has assessed the feasibility of the tool/option that they are going to use to upload every data object in scope. If possible, the preference should always be given to the out-of-the-box solution to import data as they are in general well tested and do not attempt to force fit any data.
Finalizing migration-related setup
More often than not there will always be some configuration needed in the target application to accommodate and segregate migrated data. The project team must assess the impact of these additional configuration items on the BAU processes go-live such as disabling the data sources used to import data from the source system after migration is completed.
Other examples could include creating new account codes, such as Payables Open Intake Account, Receivables Open Intake account, and Assets Open Intake Accounts. These accounts will help balance out the sub-modules and General Ledger (GL) trial balance.
Choosing a cloud migration partner
Choosing the right migration partner is a critical decision in any data migration project, and it can make all the difference between a successful migration and a costly failure. It's important to look for a partner with experience in Oracle ERP systems, a proven track record of successful migrations, and a deep understanding of the specific needs of your organization.
Additionally, it's important to consider factors such as cost, timelines, and level of support offered by the migration partner. Careful consideration of these factors will help ensure that the migration process is smooth, efficient, and successful.
Begin your data migration journey with us!
A well-planned data migration strategy in Oracle ERP cloud systems is crucial for a successful transition. At Projects Expert, we're all about making sure your data migration to Oracle ERP cloud systems goes as smoothly as possible. Our team of experts will work closely with you to come up with the best plan for your specific needs.
We've got a lot of experience under our belt and know all the ins and outs of different migration approaches. We'll carve a migration strategy that works best for your business and ensures your new system is set up for optimal performance.
At Projects Expert, we take pride in being focused on project-driven business and our subject matter expertise in project-centric ERP solutions. Ready to migrate to the cloud? Contact us today.
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About Projects Expert
Projects Expert is the first-of-its-kind Oracle partner that specializes in Project Centric Enterprise Solutions. We aim to deliver sustainable, robust, and business-friendly Oracle solutions for Project driven organizations.
To know more about what we can do for you, visit our website at www.projectsexpert.com.
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