Why data quality is the foundation of successful ERP outcomes

Garbage in, garbage out. No matter how sophisticated your ERP system is, it can only work with the data you feed it. If that data is incomplete or inconsistent, every report, dashboard and decision that flows from it will be compromised.

Many organisations underestimate how much preparation is needed before an ERP implementation. They focus on selecting the right software, configuring modules and training users, which are all vital components, but not as important as looking at existing data. When go-live arrives, they migrate years of messy spreadsheets, duplicate records and outdated information into a new system. But unfortunately, the problems they had hoped to leave behind follow suit.

This article explains why clean data is the foundation of successful ERP outcomes, how to assess your data before implementation, and where to start.

What bad data actually costs you

The impact of poor data quality often shows up in small ways that accumulate over time. An asset appears twice in the system, so maintenance gets scheduled twice. A supplier's address is wrong, so deliveries go astray. Each issue seems minor on its own, but together they drain time, money and trust in the system.

More significantly, poor data undermines decision-making. If your inventory figures are unreliable, you cannot plan procurement with confidence. The whole point of an ERP system is to give you visibility and control. Poor data takes that away.

There is also a human cost. When employees encounter errors and inconsistencies, they lose confidence in the system. They start keeping their own records, double-checking everything manually, or avoiding the ERP software altogether. This results in the adoption suffering, and the organisation being unable to utilise the full value of their investment.

Assessing your data before you migrate

Before moving data into a new ERP system, you need to understand what you are working with. Conduct a thorough data assessment across all the sources that will feed into the system. Spreadsheets, legacy databases, paper records, and information stored in people's heads all need to be accounted for.

Start by identifying your core data categories. For most operations teams, this includes assets and equipment, suppliers and customers, personnel records, inventory and materials, maintenance history, and project or job information. For each category, ask some fundamental questions. Where does this data currently live? How complete is it? How consistent is it across different sources? When was it last updated? Who is responsible for maintaining it?

This assessment will reveal gaps and inconsistencies you may not have been aware of. You might discover that your asset register has not been updated in two years, or that three different departments have their own supplier lists with conflicting contact details. It’s better to clarify these details before migration, rather than after.

Common data quality pitfalls

Certain problems appear again and again when organisations prepare for ERP implementation. Knowing what to look out for can save significant time and effort.

1. Duplicate records

The same customer, supplier or asset appears multiple times, often with slightly different names or reference numbers. This creates confusion and makes reporting unreliable. Identifying and merging duplicates requires careful work, but it is essential.

2. Inconsistent formatting

Phone numbers stored in different formats, dates written as DD/MM/YYYY in one spreadsheet and MM/DD/YYYY in another or even addresses abbreviated in various ways. These inconsistencies cause errors during migration and make it difficult to search and filter data later.

3. Missing fields

Records that lack key information, such as an asset without a location or a supplier without payment terms. These create gaps that someone will need to fill eventually. It is far easier to complete this information before migration than to chase it down afterwards.

4. Outdated data

This could show up in ways such as former employees still listed as active, or equipment that has been decommissioned but never removed from the register. Migrating this stale data pollutes your new system from day one.

Start with the right foundation

An ERP implementation is a significant investment of time and resources. Protect that investment by ensuring your data is ready. The effort you put into cleaning, standardising and validating your data before migrating to a new system will pay off greatly.

Centerpoint works with organisations to ensure their ERP implementation starts on solid ground. Our team can help you assess your data readiness, plan your migration, and establish processes that keep your data clean in the long run. If you are preparing for an ERP implementation, or struggling with data quality in your current system, we would be happy to help.

Speak with an ERP expert.

Learn more about Centerpoint here.

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