How Important Is Data Cleansing When Implementing Manufacturing ERP Software?

Posted in Cloud ERP on July 31, 2013

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Do you understand how your ERP system works? Many companies don’t, and they’re overlooking the importance of data.

“ERP search and reporting functionalities thrive on quality data in order to provide accurate, real-time statistics and data visibility,” notes a recent post on the Panorama Consulting Solutions blog.

Regardless, priority around manufacturing ERP software is off. Some companies are aware of data issues but don’t understand the value, while others believe new manufacturing ERP software will answer their problems.

The decisions you make about your business are only as good as the information you’re using to make those decisions. You need quality and accurate information.

With Big Data and business intelligence tools, there are more ways than ever to mine data and ask meaningful questions about what’s happening in your business. Of course, if you have the wrong information, it doesn’t matter what you ask; you won’t get the right answer.

When companies consider implementing or investing in new manufacturing ERP software, they too often assume the system is the answer. The key is to start by getting your data cleansed, standardized and in order. That’s where any ERP initiative should start.

First, look at the data and system you currently use, and then look at a new system; it will make the implementation go so much smoother. The more structured your data is, the more efficient you’ll be on the back end. Too many companies save this for the last step rather than making it the first step, and it’s one of the most critical steps in the entire effort.

Data cleansing, the blog post notes, helps standardize and enhance data to client-specific standards. A data-cleansing project is the best place to start when migrating legacy data to a new ERP system. Money should not be a reason to hold back here.

Your manufacturing ERP software is “only as good as the data flowing through it,” the blog post continues. Yes, a data cleansing project will make implementation more expensive. However, the project will pay for itself by improving your processes, eliminating duplicate inventory, improving maintenance efficiency and reducing equipment downtime.

Source: Panorama Consulting Solutions, June 2013

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