Why Data Cleansing is Crucial Before ERP Transformation

For small and medium retailers, moving to an ERP system like SAP S/4HANA can be a game-changer, streamlining processes, improving efficiency, and enabling smarter business decisions. However, one critical step is often overlooked: cleansing your data and establishing a clear data strategy. Without clean data, even the most advanced ERP system can cause inefficiencies, errors, and missed opportunities.

Discover How

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Data Cleansing

Eliminate inaccuracies and redundancies in your data to ensure seamless ERP integration.

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Data Strategy

Develop a comprehensive plan to manage and utilize your data effectively during and after ERP implementation.

The Risks of Dirty Data

Master data—such as product information, inventory records, and customer profiles—is the backbone of your business. If this data is outdated or inaccurate, it can lead to serious issues when migrating to a new system. For example, incorrect stock levels, pricing errors, and unreliable reports can disrupt operations and cost time and money. Studies show that bad data leads to poor decision-making 33% of the time, with businesses losing an average of $15 million annually due to poor data quality (Data Ladder)(WinMan).

Organizations that cleanse their data before migration experience up to 70% fewer errors and shorter go-live timelines (The Data Scientist). By addressing these issues upfront, you can avoid costly delays and operational disruptions during the ERP transition.

Why You Need a Data Strategy

Building a Foundation for ERP Success

Beyond simply cleaning your data, it’s crucial to have a robust data strategy in place before an ERP transformation. A successful strategy includes:

Cleaning Data: Fixing errors, removing duplicates, and standardizing formats.
Data Governance: Establishing rules for how data is entered, updated, and shared across the business.
Data Integration: Ensuring seamless data flow between all systems.
Ongoing Maintenance: Regular checks to keep data accurate and reliable.

Companies with effective data governance report more accurate outcomes and reduce compliance-related risks, which can affect 27% of businesses if not managed properly (LeanDNA).

The Role of Clean Data in ERP Systems

Enhancing Efficiency and Decision-Making

Clean data is essential for the smooth functioning of an ERP system from day one. Accurate information allows you to track inventory, set pricing correctly, and provide better customer service. Additionally, clean customer data enables more personalized marketing, improving customer loyalty and driving sales. Prioritizing high-impact data cleansing, such as customer and inventory information, leads to immediate improvements in efficiency and decision-making (WinMan).

Leveraging SAP S/4HANA with Clean Data

Maximizing ERP Benefits

When clean data is paired with an ERP system like SAP S/4HANA, the benefits are amplified. SAP S/4HANA provides real-time data insights and robust data governance tools to keep your data clean and consistent. However, the system can only deliver these advantages if you start with accurate, well-organized data.

Transform Your Business with Clean Data

For small to medium retailers, cleansing your data and developing a solid data strategy before ERP transformation is critical. Clean data not only ensures a smoother transition but also leads to faster go-live timelines and fewer errors during migration. By taking these steps, you set your business up for long-term success, enabling better decision-making and smoother operations from the start (Data Ladder) (The Data Scientist) (LeanDNA).

Start Your Data Strategy Today

Kurt Ramcharan

Managing Partner and CRO

“Clean data isn’t just a nice-to-have; it’s a must-have for any retailer aiming for a successful ERP transformation. Without it, even the most sophisticated system can’t save you from costly mistakes and missed opportunities.”