ERP Migration: Understanding the Basics
An ERP system supports core business functions. As organizations expand, legacy systems often fall short of new demands. In these cases, business leaders recognize their need to migrate to a modern platform.
They also recognize that ERP migrations require methodical execution, from planning and data transfer to system validation and change management. Read on to learn what an ERP migration is, why migrations occur, and the steps that organizations take to ensure a smooth and effective transition.
What is ERP migration?
ERP migration refers to transferring ERP and other business data from one system to another, typically from on-premises systems to a cloud-based ERP solution. The source data does not always come from a single ERP system. In many cases, it originates from multiple legacy systems and in various formats.
When should ERP system migration occur?
Many mid-size businesses implement a new system and migrate their data when their legacy system no longer scales effectively or creates more work than it eliminates. They aim to improve efficiency, as retaining an outdated solution can cause confusion and lead to unnecessary errors.
In some cases, an ERP system implementation and data migration occur out of necessity. This may happen when a software provider discontinues support for the legacy system, goes out of business, or lacks the resources to keep pace with evolving technology, business standards, or industry regulations that require changes to how data is stored and shared.
How are ERP migration and ERP implementations interrelated?
ERP data migration forms a core component of an ERP implementation, enabling the new system to unify all departments—such as manufacturing, accounting, inventory, and customer support—under a single, centralized data source.
A structured migration process includes all required master data and applies validation and deduplication to maintain accuracy. An experienced ERP consultancy designs this process to remove unnecessary, redundant, or unreliable information.
One of the most important decisions involves determining how to handle historical data. Master files—such as customers, vendors, items, bills of materials, and general ledger history—are relatively straightforward to migrate, even with changes to the chart of accounts, customer or vendor IDs, or item numbers. Historical ERP data, however, often proves difficult and costly to migrate because ERP systems differ in how they structure and organize information. Some companies instead set up data warehouses to store their historical data.
Even with a well-planned migration, challenges can arise. Understanding common complications allows organizations to set realistic expectations and take proactive measures to avoid issues.
4 Common Data Migration Complications
Data migration forms a central component of ERP implementations. Organizations must address several common complications that, if unmanaged, can disrupt accuracy, compliance, adoption, and cost control.
Data Redundancy
A primary goal of an implementation is to share information across the organization. In practice, departments often hold the same data in separate systems or different structures. This duplication creates redundancy, erodes data integrity, and slows core processes.
Regulatory Issues
Healthcare, finance, law, investment, and other regulated industries follow strict rules that govern how organizations use, manage, and store data. Federal regulators set many of these requirements and can levy fines for noncompliance. Know the data-transfer rules that apply to your business and communicate them to your ERP vendor. Your vendor should also understand these obligations and align the solution accordingly.
Resistance to Change
Whether the initiative originates from the C-suite or frontline users, ERP implementation requires significant process and system changes. Users may resist adopting a new platform with unfamiliar workflows, interfaces, and ways of managing daily tasks. If adoption proves difficult, many ERP vendors offer change management to build stakeholder buy-in and streamline onboarding.
Cost
Migrating data from multiple legacy systems can raise costs with some ERP providers. Beyond core implementation, your internal team can often handle key migration tasks under the partner’s guidance: extracting, cleansing, and restructuring the data. The ERP implementation partner typically performs the final load into the new platform.
8 ERP Migration Preparation Steps
ERP migration requires careful preparation. The following eight steps outline the key activities that help organizations plan, manage, and execute the process effectively.
Step 1: Vision & Demo
Begin by defining a clear migration vision and associated high-level business goals. Collaborate with your partner to watch a live demo of the new ERP, confirming how its features and terminology align with your requirements.
Step 2: Project Team & Governance
Form a dedicated migration team and governance framework with clear roles and oversight. In doing so, secure executive sponsorship, involve key business and IT stakeholders early, and establish decision-making processes to align objectives and maintain accountability.
Step 3: Budget, Timeline & Risk Management
Define a realistic budget and project timeline, including contingency for common risks. Account for complexity (customizations, integrations, training, etc.) and provide flexibility to absorb unforeseen issues. ERP migrations often span several months — Dynamics 365 migrations typically take 3–8 months on average, influenced by system complexity and scope.
Step 4: Scope & Requirements Definition
Define clear project scope and document detailed requirements. Review current business processes, customizations, and integrations; identify must-have features for the new ERP. Remember to get stakeholder sign-off on the requirements list to prevent scope creep.
Step 5: ISV & Add-In Rationalization
Inventory all third-party add-ons and custom applications (ISVs). Determine which ones the new ERP natively covers, which need upgrading, and which can be retired. Rationalize your solution set by replacing outdated ISVs with built-in features where possible, reducing cost and complexity.
Step 6: Integration Strategy
Develop an integration strategy from the start to connect the new ERP with critical systems (e.g., CRM, eCommerce, EDI). Designing data flows upfront prevents delays later. All ERP migration projects require a sound integration strategy, so planning integrations early makes the entire migration process smoother.
Step 7: Data Cleansing & Migration Planning
Cleanse and prepare data before migration. Map data fields from legacy systems to the new ERP and purge duplicate or obsolete records. Decide which historical data to import versus archive. This streamlines the go-live load and markedly reduces downstream issues.
Step 8: Training, Change Management & Go-Live Support
Empower end users with change management and training. Communicate the benefits clearly and provide hands-on training before go-live. Offer intensive support during the transition. Well-prepared, well-trained teams adapt faster, minimizing disruption and helping ensure the new system meets its intended goals.
Why you should migrate to Microsoft Dynamics 365 Business Central
Businesses can choose from many ERP platforms, but Microsoft Dynamics 365 Business Central offers a clear advantage. As a cloud-based, industry-agnostic solution, it helps organizations improve productivity, efficiency, and decision-making. Companies across sectors rely on Dynamics 365 CRM and Business Central to streamline operations and drive better outcomes.
Organizations that migrate to Microsoft Dynamics strengthen performance and make more informed decisions for several reasons:
Intuitive Interface
Microsoft Dynamics uses a familiar interface to Excel, Outlook, and Explorer—which shortens the learning curve. Deployment, including implementation and data migration, stays straightforward because certified Microsoft partners deliver Dynamics 365 Business Central. The platform also integrates with other Microsoft tools, including Power BI and the Power Apps platform.
Affordable
Implementation and data migration costs vary by organization and process, but a Microsoft Dynamics 365 partner such as The TM Group (TMG) can provide an estimate after discovery with your team. Subscription costs remain standardized and appear on Microsoft’s website.
Microsoft Dynamics 365 Business Central Premium costs $100 per user per month, while the Essentials package costs $70 per user per month. Microsoft’s website provides a full breakdown of pricing and included applications, and TMG offers an eBook that explains licensing costs for Microsoft Dynamics 365 CRM and Business Central.
Comprehensive Business Management
Effective ERP implementation and data migration connect every function across the enterprise. Microsoft Dynamics 365 CRM and Business Central applications unify service, finance, sales, and marketing so all stakeholders work within one centralized solution.
The TM Group: Your Trusted ERP Migration and Implementation Partner
Data migration plays a critical role in every ERP implementation, and organizations cannot leave it to chance. TMG brings decades of experience in data migration, implementation, and cloud migration — having served clients since 1984.
Our team also develops custom applications and has earned multiple Microsoft and industry awards for CRM and ERP expertise.
Considering migrating ERPs? Contact The TM Group today.
Frequently Asked Questions
What Does ERP Migration Mean?
ERP migration means transferring historical data, configurations, and workflows from a legacy ERP system—or multiple legacy systems—into a modern ERP platform. The ERP migration process includes planning to handle data mapping, conducting accurate data transfer, and validating the system to confirm performance and reliability.
What is ERP Transfer?
The term “ERP transfer” isn’t a standard phrase in itself, but depending on context, it usually refers to either transferring usage or data from an old system to a new ERP solution. While ERP migration often refers to moving data from legacy or outdated systems into a new ERP system. ERP transfer can also refer to moving business operations as well a the migrated data from one ERP system to another. It generally occurs as part of a system upgrade or ERP vendor change.
How Long Does an ERP Migration Take?
The timeline for an ERP migration project depends on the size of the organization, the complexity of existing data, and the scope of required customizations. Small businesses with straightforward needs may complete a migration in three to six months. Larger enterprises with multiple legacy systems, complex integration needs, or heavy customization often require 12 to 24 months for a successful ERP data migration.
