CENTRAL ASIAN JOURNAL OF MATHEMATICAL THEORY AND

COMPUTER SCIENCES
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Volume: 04 Issue: 9 | Sep 2023 ISSN: 2660-5309

DATA CONVERSION STRATEGIES FOR ERP IMPLEMENTATION

PROJECTS
Arjun Reddy Kunduru
Independent Researcher, Orlando, FL

Abstract ARTICLEINFO
Enterprise resource planning (ERP) systems integrate various
Article history:
business processes and functions into a unified system. A Received 3 Jul 2023
critical step in any ERP implementation is data conversion, Revised form 5 Aug 2023
Accepted 5 Sep 2023
which involves migrating data from legacy systems into the
new ERP system. This research paper examines different data
Keywords: ERP, Data Conversion,
conversion strategies and best practices for ERP Business Data, Data Cleansing.
implementations. The key data conversion strategies analyzed
include direct data conversion, phased data conversion,
parallel data conversion, and automated data conversion
tools. The paper outlines the pros and cons of each approach
and provides recommendations for selecting the optimal data
conversion methodology based on factors like project scope,
data complexity, resource availability, and time constraints.
The research finds that using automated tools and a phased
conversion approach is generally the least disruptive and
most efficient method for most ERP data migration initiatives.
Following best practices like data cleansing, testing, and
cutover planning is also essential for minimizing risks and
ensuring a smooth transition to the new system. This research
provides guidance for organizations undertaking ERP
implementations on how to choose and execute data
conversion in a way that maximizes benefits and minimizes
costs and risks.

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Introduction
Enterprise Resource Planning (ERP) systems are integrated software packages that manage and automate
business processes across finance, human resources, procurement, operations, and other core functions.
Adopting an ERP system can provide organizations with numerous benefits, including streamlined
operations, enhanced efficiency, greater data visibility, and improved reporting and analytics. However,
implementing an ERP solution also entails significant challenges. One of the most complex aspects of any

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CENTRAL ASIAN JOURNAL OF MATHEMATICAL THEORY AND COMPUTER SCIENCES Vol: 04 Issue: 09 | Sep 2023

ERP implementation is migrating data from existing legacy systems into the new ERP platform. This data
conversion process is fraught with risks if not managed properly. Legacy systems contain vast amounts of
critical business data built up over many years. Converting this data successfully into the new ERP is
essential for a smooth transition that minimizes business disruption. However, data conversion tasks are
often underestimated or poorly executed, leading to budget and timeline overruns, data errors, and
operational issues after go-live.
This research aims to provide guidance to organizations undertaking ERP implementations on proven data
conversion strategies and best practices. The objective is to synthesize key academic and industry knowledge
on the optimal approaches for migrating legacy data into ERP solutions. The study will analyze the
advantages and limitations of various data conversion methodologies, including direct "big bang"
conversions, phased conversions, parallel conversions, and automated conversion tools. It will also outline
recommended techniques and planning considerations for minimizing data migration risks based on ERP
project scope, complexity, time constraints, and other factors. Recommendations will be provided on
choosing the appropriate conversion methodology and executing data migration in a way that accelerates
implementation, reduces disruption, and achieves the expected return on investment from ERP adoption. The
insights from this research will be valuable for project teams planning data migration initiatives as part of
ERP deployments.
Background on ERP Systems
ERP systems first emerged in the 1990s as integrated, modular software suites designed to centralize
management of key business functions within a single database. By replacing fragmented legacy systems
built for specialized departmental tasks, ERP platforms enable new levels of operational visibility, data
sharing, coordination, and performance optimization across organizations (Davenport, 1998). Leading ERP
vendors like SAP, Oracle, Microsoft, and Infor now provide solutions encompassing a wide spectrum of
processes, including finance, accounting, supply chain, manufacturing, inventory, human capital
management, customer relationship management, and more.
As a mission-critical backbone for key organizational functions, successful ERP adoption can drive
substantial performance improvements in productivity, cycle times, and cost control (Shang and Seddon,
2002). However, ERP systems also entail major tradeoffs. The total cost of ownership can run into the
millions for large global deployments spanning years. Disruptions to operations are likely during complex
rollouts if not managed carefully. Resistance from staff can also hinder adoption if they are not sufficiently
trained or engaged in the change process.
While ERP implementation poses various technology and organizational challenges, data migration has been
identified as one of the most high-risk activities according to multiple studies (Brooks, 2006; Nah et al.,
2001; Shanks et al., 2000). This highlights the need for specialized strategies to plan and execute the data
conversion process in a way that accelerates implementation while averting pitfalls.
Importance of Data Conversion in ERP Projects
Data conversion involves migrating information from the legacy transactional and reporting systems to the
new ERP platform. This includes migrating both master data, such as customer and material records, as well
as transactional data, including accounts payable and receivable, purchase orders, work orders, sales orders,
and financial transactions. Some organizations may have decades worth of historical records within disparate
systems that need to be carefully extracted, transformed, cleansed, and loaded into the ERP database
modules.
Without effective data conversion, the new ERP system will lack the valid, accurate, and complete
information required for business operations. Poor data migration can cripple ERP performance, leading to
incorrect reporting figures, processing failures, order and shipment issues, inventory discrepancies, invoicing
errors, and gaps in compliance controls. Productivity may be severely impacted as staff struggle to manage
bad data, preventing the business benefits of ERP from being realized. Operational disruptions and financial

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CENTRAL ASIAN JOURNAL OF MATHEMATICAL THEORY AND COMPUTER SCIENCES Vol: 04 Issue: 09 | Sep 2023

losses due to flawed data conversion can erode stakeholder confidence and support for the entire ERP
program. Since organizations aim to retire legacy systems after ERP adoption, any data left behind is likely
lost forever.
While the rationale for diligent data migration planning is compelling, surveys indicate most organizations
still underestimate its importance (Panorama Consulting Group, 2018). Data conversion is often left as an
afterthought or carried out hastily near the project's end once configuration is complete. Lack of executive
sponsorship, unclear requirements, piecemeal planning, and inadequate testing are common data migration
pitfalls. However, studies show that when properly executed, data conversion can significantly improve ERP
implementation success rates and end-user adoption (Brooks, 2006). With data constituting ERP’s lifeblood,
a well-defined conversion strategy and rigorous execution are fundamental to any implementation program.
Key Data Conversion Strategies
Various approaches have been developed for migrating legacy system data into ERP environments. Each has
distinct pros and cons that must be assessed against project objectives, data characteristics, resources, and
timelines. The major data conversion methodologies include:
Direct "Big Bang" Data Conversion
The direct cutover approach converts all legacy data together in a single step across multiple functions,
facilities, countries, or business units. It is referred to as a "big bang" because it represents a wholesale, one-
time switch from old to new systems. All end users begin transacting in the ERP on the same day after the
data is migrated.
Direct cutover advantages include simplicity, speed, and lower costs by avoiding ongoing dual processing. It
also forces a hard break from old systems, encouraging the adoption of new ERP processes. However, the
risks are high, with no margin for error. Trying to convert large data volumes in one shot makes
comprehensive validation nearly impossible. Even minor glitches can cause widespread operational
disruptions with no recovery options. Big bang implementations have consistently shown much lower
success rates versus phased approaches .
However, organizations must ensure adequate testing, fallbacks, and post-go-live support to avoid serious
business disruption from any undetected data defects. If issues emerge, the only recourse is painful manual
data correction in the new system.
Phased Data Conversion
With phased conversion, data migration occurs incrementally in stages aligned with how the ERP system is
rolled out. For example, finance may go first, followed by inventory, procurement, production, sales, etc.
Alternatively, the system can be deployed site by site or country by country via phased implementation.
Phased data migration provides multiple advantages. Breaking conversion into smaller chunks makes the
work more manageable, with less risk of overload or failure at each stage. Testing is easier with smaller data
sets, leading to higher data quality. Users can be gradually transitioned to the new system with time to adjust
between phases. A rollback to old systems is possible if major issues arise. Data cleansing can also be
completed systematically for different functional areas or sites.
On the downside, phasing out implementation timelines and costs Legacy systems must be maintained
longer until the final phase is complete, requiring more analysis. Interfaces may be needed for cross-module
data sharing until full integration. Close coordination is essential to align conversion with configuration and
testing activities across phases.
Nevertheless, research indicates most organizations prefer phasing ERP deployments to limit disruption and
enable smoother adaptation (Gargeya and Brady, 2005). It provides a modular transition path that is
especially crucial for large global enterprises or complex data environments. Phasing is advantageous when:

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CENTRAL ASIAN JOURNAL OF MATHEMATICAL THEORY AND COMPUTER SCIENCES Vol: 04 Issue: 09 | Sep 2023

Parallel Data Conversion

With parallel running, also known as parallel adoption, the ERP system operates concurrently with legacy
systems for a period of time. Data continues to be entered and processed in the old systems. Selected data is
periodically migrated to the new ERP, where it is validated.
The main advantage of parallel conversion is reduced risk since the legacy systems remain fully operational
as backups. Data mapping and migration can be executed gradually, allowing errors to be captured. Running
the old and new systems simultaneously also enables transaction reconciliation to identify data gaps or
inconsistencies.
On the downside, business processes may be duplicated across systems, leading to added costs and
complexity. Tight integration is needed between the ERP and external applications to synchronize migrated
data. The duration of parallel running must be predefined to avoid scope creep and cost overruns.
Automated Data Conversion Tools
Automating data migration can accelerate extraction, transformation, cleansing, and loading activities
through optimized software tools. Examples include ETL (extract, transform, and load) utilities, data
mapping wizards, de-duplication engines, and custom conversion scripts tailored for specific ERP platforms.
Automated conversion tools offer multiple advantages. Software can migrate large volumes of data faster
with less manual overhead. Many repetitive tasks are eliminated or simplified through automation. Tools can
encapsulate complex business logic for transforming legacy data to the required ERP format. Seamless
integration of converted data into the ERP database is enabled using prebuilt connectors. Data quality is
enhanced through automated validation checks. The standardized software approach also minimizes
inconsistencies from manual data manipulation.
Despite its benefits, automated software also has limitations. Suitable conversion tools must be selected,
customized, and integrated with the target ERP system. Upfront investment is required for acquisition,
configuration, and training. Manual software coding is still needed for complex data transformations. Some
data defects may only be fixed manually, requiring supplemental data scrubbing. If requirements are unclear,
tool output can exacerbate data quality issues despite automation. For greatest effectiveness, automated data
migration should therefore combine both software capabilities and manual oversight and validation
processes.
Best Practices for Data Conversion:
Implementing an ERP (Enterprise Resource Planning) system involves migrating all relevant data from
existing legacy systems into the new integrated platform. Data conversion is the most complex and risk-
prone aspect of ERP implementations. With proper planning and execution, organizations can effectively
migrate legacy data while minimizing disruption and costs. Below are some key best practices for managing
ERP data conversion projects:
Plan extensively - Data conversion requires meticulous planning around source systems, data cleansing
needs, conversion tools, and testing. Develop a comprehensive data migration strategy identifying scope,
timelines, resource requirements, costs and risks.
Involve users early - Business teams must validate requirements and test converted data. User input helps
ensure the ERP contains necessary and accurate information.
Cleanse data thoroughly - Scrub data by removing duplicates, inconsistencies and outdated records.
Standardize customer, material and supplier master data elements across legacy systems.
Leverage conversion tools - Automated tools accelerate data extraction, transformation and loading into
ERP. But manual review is still needed to catch exceptions.

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CENTRAL ASIAN JOURNAL OF MATHEMATICAL THEORY AND COMPUTER SCIENCES Vol: 04 Issue: 09 | Sep 2023

Validate continuously - Conduct validation at every stage, including verifying extracted data against sources,
transformed data against business rules, and loaded data against expected results.
Test iteratively - Perform multiple rounds of testing on copies of real data at increasing volumes. Tests
should cover typical and edge case scenarios to catch errors.
Manage cutovers cautiously - Define freeze periods and cutover checkpoints. Verify successful loading of all
datasets after migration. Retire legacy systems only after user signoffs.
Document everything - Keep detailed records of data mapping logic, cleansing decisions, validation checks,
testing results and cutover tasks.
Plan fallback procedures - Despite best efforts, unforeseen data issues may still occur requiring rollback
plans and data reconciliation procedures.
Maintain legacy access - Even after migration, keep source systems intact with migrated data archived. This
provides insurance against discovering missing or corrupt converted data later.
Conversion is not just an IT exercise but requires close business partnership. Allocating sufficient time and
resources to execute data migration systematically and collaboratively will pay off through ERP adoption
with minimal disruption. Taking the right data conversion precautions upfront enables organizations to
maximize the value from new ERP investments.
Conclusion:
The findings from this research highlight that data conversion is a foundational component of any ERP
implementation program that requires rigorous planning and execution. For most organizations, phased data
migration utilizing automated software tools combined with manual verification provides the optimal
approach. This balances the need to migrate large legacy system datasets with minimizing business
disruption and data loss risks. While data conversion entails a major upfront effort, companies that skimp on
this critical ERP activity are much more likely to see their ERP initiatives fail or underperform expectations.
By following the strategies and best practices outlined in this paper, enterprises can develop an effective data
migration blueprint tailored to their specific environment and project parameters. With proper conversion
planning and governance, organizations can confidently transition from fragmented legacy systems to
integrated ERP platforms that drive operational excellence.
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