Modernization of enterprise resource planning systems (ERP) bring significant benefits, but also pose significant challenges and risks. So how can you leverage your data management efforts in the context of ERP modernization in other areas?
Spending time and resources on data management when modernizing your ERP can improve processes and reduce risk. However, if we go a step further and use the lessons learned in data management to model other business initiatives, we can achieve even greater benefits. However, there is one condition - the data management methods you choose must be flexible enough to support a variety of use cases beyond ERP modernization.
Investing in a data management platform to reduce risk and streamline ERP modernization will require the creation of multiple data management resources. To understand the state of data in a legacy environment before modernization, you must develop resources such as end-to-end data directory organization and a set of rules improving data quality. A comprehensive catalog will help you understand what data is available, where it is located, and whether similar data exists elsewhere. This directory should contain data that may be named differently but is semantically duplicate, such as a supplier, vendor, or distributor.
Creating a comprehensive data catalog may seem overwhelming, but it will make your job much easier if you use AI-powered data management features that automatically catalog your data. Similarly, when creating rules to improve data quality, AI can significantly reduce the effort needed. The use of such technologies can significantly simplify and speed up the entire process.
When modernizing systems, you can create data management resources such as duplication models and integrations to extract data from legacy systems and transfer it to new ones. Duplication models should be flexible enough to support different data models and different methods of recording information. For example, during migration to the SAP S/4 system, supplier and customer data can be combined into one business partner.
Most companies pursue various business initiatives beyond ERP modernization that require advanced data management. Examples include improving customer experience, know-your-customer initiatives, supply chain optimization, and meeting regulatory requirements such as ESG and other industry standards. Companies also need advanced data management capabilities to effectively use artificial intelligence and machine learning to streamline operations and increase efficiency. Additionally, companies going through mergers and acquisitions can greatly benefit from data management platforms that accelerate the integration of newly acquired entities.
To achieve this, it is worth taking a different approach to choosing a data management platform in the context of ERP modernization. You should consider not only its ability to support ERP modernization, but also whether the platform is comprehensive and robust enough to support other business initiatives. By investing in data management when modernizing your ERP system, you can create a solid foundation that will support a variety of business initiatives such as cost savings, business improvement and innovation.
Many data management tools are designed to support ERP modernization and can benefit from features dedicated to this process. However, their disadvantage is that once the modernization is completed, data management resources may become unusable as their functionality is limited only to supporting the modernization.
Unlike this Informatica Intelligent Data Management Cloud (IDMC) allows for sustainable use of the effort put into data management. With flexibility and AI-powered data management features, IDMC offers long-term benefits and allows for significant savings in business expenses.
