Best Practices for MRO Data Optimization: Defining the Data Migration Strategy

In ERP projects, the focus often lies on implementation, overshadowing the critical task of data migration. However, migrating data effectively is essential for supporting ERP installation, conversion, or migration, typically as part of a larger project deliverable. Managing multiple systems requires data normalization, which involves cleansing and organizing data entries according to a standard format. Proper attention to data content is crucial as it can significantly impact project costs.

Neglecting data accuracy can make it challenging to find necessary information, delaying the ERP go-live date. An ERP project provides an excellent opportunity to cleanse and restore confidence in the data, ensuring its accuracy and reliability.

Adopt Taxonomies and Attributes

Achieving optimized data requires a robust master data taxonomy. Clear rules and patterns should govern master data, including a data dictionary, manufacturer and supplier details, and unit of measure normalization. Building descriptive data through dictionary templates specific to materials or services is essential. These templates provide structure, consistency, and completeness to data content.

Translate Data for Your Global Enterprise

To support global governance, language translation should be part of the migration strategy. Each target language should have a data taxonomy that matches the master language taxonomy, ensuring consistency across all regions.

Standardize Data

Once the data taxonomy is defined, the source data intended for migration should be validated to ensure it is:

• Accurate, consistent, and easy to understand.
• Complete with all required information.
• Within the accepted parameters for the business.
• Easily accessible and integrable into the target application.
• Compliant with regulatory standards.

Gain Visibility and Control

Efficient data management strategies and process improvements can significantly impact MRO (Maintenance, Repair, and Operations), as highlighted in a 2023 article on MRO strategy in Supply Chain Management Review. Benefits include:

Analyze and De-duplicate Data

Relevant stakeholders should collaborate to identify data sources and where data cleansing and de-duplication are needed. Data sources requiring cleansing might include:

• Duplicate supplier accounts, manufacturers, part numbers, and item descriptions.
• Old product codes no longer in use.
• Obsolete and superseded materials, manufacturers, and suppliers.
• Inconsistent use of standard/non-standard taxonomies.
• Fit-form-function duplicates.

Data cleansing and de-duplication during rollout, implementation, and migration projects lead to:

• Reduced incorrect and inconsistent material and vendor master reporting.
• Lower time and resources needed to manually identify duplicates later.
• Improved reliability of material and vendor reports and analysis.
• Enhanced industry 4.0 innovation and growth due to consolidated, consistent, harmonized, and standardized data.

Enable Governance and Controls

Predefined processes and workflows should enforce correct taxonomies and data structures throughout the creation and deletion of new items. This ensures:

• Effective performance of the target system.
• Absence of workarounds.
• User acceptance and engagement.
• Management's confidence in the system.

Leverage Data to Make Better Business Decisions

Improved data provides organizations with increased visibility. Forward-thinking companies leverage enhanced data analysis processes to gain key business insights. Master data management solutions have evolved to support operational risk management profoundly.

Industry leaders reduce operational risk impacts with a unified, consistent view of critical data, enabling the development of policies that keep assets safe and productive. For example, organizations should correlate MRO category spend with the duplication and fragmentation rate of MRO master data across the organization. This information helps improve procurement processes, manage supply chain relationships, and ensure that maintenance teams have the spare parts they need for safe and efficient operations.

At Verdantis, we understand that effective data migration is crucial for the success of ERP projects. By prioritizing data normalization, adopting robust taxonomies, ensuring global data translation, and maintaining strict data standards, we help organizations enhance their ERP systems' performance. Proper data management leads to cost savings, increased efficiency, and improved asset uptime. Our well-executed data strategies provide the visibility and control needed to make informed decisions, drive innovation, and achieve long-term success.

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Author: Anbarasu Reddy