Data migration is often overlooked but is a critical part of ERP (Enterprise Resource Planning) implementations. Moving data from old systems into a new ERP platform so you can start with accurate and actionable insights. But this process comes with its own set of challenges—and costs. Here’s how data migration affects ERP pricing and why you need to plan for it.

In short, data migration is the process of moving information—whether from old systems, spreadsheets or multiple disconnected sources—into a new ERP system. This isn’t just copying and pasting. The data needs to be cleaned, transformed and tested to fit the ERP’s framework and work seamlessly in its new home.

How Data Migration Affects ERP Pricing

Data migration is one of the most time-consuming parts of ERP implementation, and businesses are often surprised by its complexity. The following will impact the cost:

1. Your Data

Size: The more data you have, the more it will cost. Large data sets take more time and resources to process and move.
Data Quality: If your data is full of errors, duplicates or inconsistencies, it will require more cleansing, which will increase the cost.
Multiple Sources: Migrating data from multiple systems adds complexity, especially if those systems use different formats or structures.

2. Additional Licensing Fees

Some ERP providers include basic data migration in their pricing. However, migrating large amounts of data or highly customised data will come with extra fees or require the purchase of additional tools and modules.

3. Consulting and Professional Services

ERP vendors and third-party consultants will charge for migration as part of the implementation package. Whether you pay a fixed rate or an hourly fee the cost will depend on the complexity of the migration and the number of hours it will take to complete.

4. Infrastructure Upgrades

For cloud-based ERP systems, the migration process may require temporary storage or increased computing capacity, which will add to the subscription cost during the implementation phase.

5. Testing and Validation Costs

Testing is required to get your data working in the new ERP system. This is critical to avoid disruption but adds to the overall cost.

How to Manage the Costs

While data migration can be expensive, businesses can manage the costs and simplify the process:

Audit Your Data First: Before you migrate anything, review your data for quality and relevance. Clean up the inaccuracies and only migrate what’s needed for operations and compliance.
Use Automated Tools: Many ERP vendors offer migration tools to make the process easier. Use them when you can to reduce manual effort.
Phase the Migration: If migrating everything at once is too much to handle, consider phasing it. This reduces the risk and spreads the cost over time.
Train Your Team: Educate your staff on how to prepare and validate data so you don’t have to rely on expensive consultants.

Data migration is more than an IT task; it’s a business decision with financial implications. Businesses must include migration costs in their ERP budget from the start to avoid surprises.

When looking for ERP systems, ask the vendors to break down the migration cost. Compare their offerings and make sure they fit your data complexity and your business goals. With proper planning, you can make data migration a smooth and cost effective step to transform your business.

Would you like insights into top ERP providers or best practices for managing implementation projects? Reach out for expert advice.