Data Conversion: How to Determine What Data Should Be Migrated to a New System

Data conversion is the process of transferring data from one system to another, often involving changes in formats or structures. This task is crucial but also challenging, requiring a clear strategy, business involvement, and attention to data standards, profiling, and governance. In this article, we’ll explore which data should be migrated, how to handle opening balances and summary information, and some best practices to ensure a successful data conversion project.

What Data Should Be Migrated?

Not all data needs to be migrated when implementing a new system. The decision depends on factors like the new system’s purpose, the quality of existing data, and the business requirements. Migrating unnecessary or outdated data can lead to inefficiencies and increased costs. Here are key considerations for determining what data should be moved:

1. Data Type and Format: Consider whether the data is structured or unstructured, numeric or textual, and whether it aligns with the new system’s schema and standards.

2. Data Volume and Complexity: Assess how much data is involved, the number of sources and destinations, and the level of transformations and validations required.

3. Data Value and Usage: Identify how critical the data is for business operations. Frequently accessed data with high business value should take priority.

4. Risk and Compliance: Evaluate the sensitivity of the data. Is it subject to legal or regulatory requirements? What are the consequences of potential data loss?

Based on these factors, businesses can develop a data migration strategy that defines the scope, tools, roles, and timelines for the conversion process.

Handling Opening Balances, Summary Information, and Future Issues

Handling opening balances and summary information during data migration requires precision to ensure accuracy and consistency. Future issues, such as errors that arise post-migration, also need to be anticipated and addressed.

1. Opening Balances: Ensure that opening balances in the new system match the closing balances from the old system. Verify them against trial balances, reports, or queries, and make any necessary adjustments.

2. Summary Information: Ensure that aggregated data reflects the current state of the business and aligns with the reporting standards of the new system. Use visual tools like dashboards to present this information clearly.

3. Future Issues: Proactively mitigate future challenges through testing, validation, monitoring, and contingency planning. If issues do arise, resolve them promptly and document them for future reference.
   

Best Practices for Data Conversion

Data conversion is a complex task that, when not done properly, can lead to costly errors. Here are some best practices to follow for a smooth data conversion process:

1. Back Up the Data: Always create backups before starting the conversion. If something goes wrong, you’ll need to recover the data quickly to avoid major disruptions.

2. Involve the Business Side: Often, business stakeholders don’t fully understand the importance of data conversion. Ensure they are engaged in defining the requirements, validating the results, and supporting change management.

3. Implement Data Standards: Adopting data standards ensures consistency and quality across systems. This includes rules on formatting, naming conventions, and documentation to guarantee smooth data migration.

4. Data Profiling and Cleansing: Analyze the source data to understand its characteristics, and cleanse it by correcting errors, removing duplicates, and filling in missing values. This ensures you migrate only high-quality, accurate data.

5. Data Management and Governance: Establish clear policies and roles for data management and governance. This helps maintain data integrity and ensures compliance with business and regulatory requirements.

Bringing it all together

Data conversion is a critical component of any system upgrade or modernization project. By carefully planning the process, engaging key stakeholders, and following best practices, you can ensure a successful data migration that maximizes efficiency and minimizes risk. Ultimately, proper data conversion strengthens your business’s performance and long-term competitiveness.

Until Next Time…