For most businesses, migrating obsolete ERP applications to a new cloud-based infrastructure has become a market necessity. It may also be the most difficult, complicated, and high-stakes project a CIO works on in their entire career.
Organizations will be well-positioned against their competitors for years to come if cloud ERP migration is done right. According to new research from IDC, organizations that started an ERP cloud migration as part of their digital transformation effort before the COVID-19 pandemic performed far better than the organizations that didn’t.
Here are some tips for a smooth ERP migration to the cloud, to help CIOs escape the traps and pitfalls. Consider these options for ensuring a seamless transition to mission-critical business systems.
Make use of what has been observed from previous cloud migrations
Almost every company has migrated Non-ERP apps to the cloud or to SaaS systems. That experience can guide CIOs about their approach to migrating ERP to the cloud.
CIOs can pull together corporate owners, end-users, and IT staffers from previous ventures early in the process to detect any unanticipated costs or technological roadblocks, as well as any unforeseen protection, data backup, privacy, or networking problems. It is also crucial to recognize any internal groups or people that have been especially resistant to change. Since each organization has its own unique culture, it is important to learn how prior cloud rollouts were communicated, obtained, and implemented.
Have a detailed plan and stick to it
No one will risk embarking on a project of this size without a strategy in place. However, businesses will need more than one strategy: In addition to plans for preparation, protection, networking, and ongoing monitoring and maintenance, they will need an apps migration plan, a data migration plan, and a communication plan. Since a large enterprise’s ERP cloud migration could take three to four years to complete, the overall detailed schedule of operations must include precise milestones. Companies should make a concerted effort to remain on track and stop scope creep. However, in order to meet changing market circumstances, the proposal must be flexible.
Data and applications for inventory management
Sounds simple enough, but after ten to twenty years of customizing commercial software and writing a couple of their own, companies are always shocked at what they discover while performing a systematic survey of the applications portfolio. Companies must know what data they have, what condition it is in, where it is stored, how much of it has to transfer with the applications, and for how long historical data must be archived.
Decide whether to take a one- or two-step approach
When it comes to transferring ERP applications to the cloud, companies have two options. As a first step, companies should “lift and shift” current software to a cloud network, and refactor or redesign specific apps over time to reap the full market advantages of a simplified, integrated cloud-native product. Alternatively, businesses should modernize software when they are already on-premises and then migrate those upgraded systems to the cloud in one phase. In general, the two-step strategy is preferred because it has better results and is less risky.