Learn how to avoid common ERP integration mistakes with legacy systems, such as poor data quality, unrealistic scope, and change resistance.

A few years ago, I was involved in a master data project that unfortunately didn't succeed. Why? The primary culprit was the organization's insistence on retaining and integrating an antiquated system, which had been housing their master data for years. The decision to maintain a 'co-existence' approach meant that we had to create numerous interfaces for this outdated system. The effort drained valuable time and financial resources, ultimately derailing the project. The lesson here is straightforward: it's crucial to have a well-defined strategy for integration and to assess the feasibility and costs of such integrations early in the planning stages.

How can you avoid ERP integration mistakes with legacy systems?

Enterprise resource planning (ERP) systems are powerful tools for managing business processes and data across various functions and departments. However, integrating them with legacy systems, which are outdated or incompatible software or hardware, can pose significant challenges and risks. In this article, we will discuss some common ERP integration mistakes with legacy systems and how you can avoid them.

1 Assess your legacy systems

Before you embark on any ERP integration project, you need to have a clear understanding of your existing legacy systems, their functionalities, limitations, dependencies, and data quality. You should conduct a thorough audit and inventory of your legacy systems, identify the ones that are critical for your business operations and goals, and evaluate their compatibility and interoperability with the ERP system. This will help you avoid unnecessary integration costs, data errors, performance issues, and security breaches.

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Rahul Narain Saxena

SAP SD Solution Architect | Simplifying SAP for Career Growth | Mentor & Guide
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To better understand how the old systems affect daily work, it's important to talk to people who use them and know them well. They may know about hidden features or ways of doing things that are important. Also, ask them what problems they have with the old systems. This will help make the new system better. You might also need help from experts who know how to move from the old system to the new one. They can help you make sure that you don't lose any important features when you switch.

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Asad Mahmood

SAP® Technology Architect ✅ Seasoned Project Management Consultant ✅ Strategic Business Analysis Expert ✅ SAP® Consulting Projects, Trainings, and Digital Transformations ✅ Integrity-Driven ✅ Embracing Diverse Solutions
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In the integration space, the data type plays an integral part within the information systems playbook. Its part of lesson 101 to understand precisely the data type available and data type to be migrated. To make sure a successful transition takes place, we have to be very much focused on which techniques in data migration make the change management process less cumbersome.

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2 Define your integration strategy and scope

Once you have assessed your legacy systems, you need to define your integration strategy and scope. You should consider the following questions: What are the objectives and benefits of the integration? What are the data and process flows between the ERP and legacy systems? What are the integration methods and tools available? How will you test and monitor the integration? How will you handle change management and training? By answering these questions, you can avoid unrealistic expectations, scope creep, misalignment, and confusion.

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Laeeq Siddique

SAP Technical Consultant | Solution Architect | Driving Enterprise Success through Expert Solution Design & Development | Passionate about Consulting and Empowering People in SAP & Consulting Careers.
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A few years ago, I was involved in a master data project that unfortunately didn't succeed. Why? The primary culprit was the organization's insistence on retaining and integrating an antiquated system, which had been housing their master data for years. The decision to maintain a 'co-existence' approach meant that we had to create numerous interfaces for this outdated system. The effort drained valuable time and financial resources, ultimately derailing the project. The lesson here is straightforward: it's crucial to have a well-defined strategy for integration and to assess the feasibility and costs of such integrations early in the planning stages.

Like
Asad Mahmood

SAP® Technology Architect ✅ Seasoned Project Management Consultant ✅ Strategic Business Analysis Expert ✅ SAP® Consulting Projects, Trainings, and Digital Transformations ✅ Integrity-Driven ✅ Embracing Diverse Solutions
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Within the scope of an erp implementation, we need to understand the tangibility in scoping the landscape. What matters is the information flow and timeliness. A few instances arise, as observed within the industry sometimes, the misinterpretation in the scoping documentation leads to repercussions for the organizations future. Integration not so needed is well spent on, while the most needed is realised as least important item within the scope of implementation.

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3 Choose the right integration approach

When determining your integration strategy and scope, you may opt for different integration approaches for your ERP and legacy systems. Point-to-point integration involves connecting two systems directly through a custom code or a third-party tool; however, this can become complex and difficult to maintain as the number of systems expands. Alternatively, middleware integration uses a software layer that acts as a bridge between the ERP and legacy systems, which is more flexible and scalable but requires more investment and expertise. Lastly, data warehouse integration consolidates data from the ERP and legacy systems into a central repository for analysis and reporting, which is useful for business intelligence but does not support real-time data exchange or process automation. Ultimately, you should choose the approach that best suits your business needs, budget, and resources.

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Asad Mahmood

SAP® Technology Architect ✅ Seasoned Project Management Consultant ✅ Strategic Business Analysis Expert ✅ SAP® Consulting Projects, Trainings, and Digital Transformations ✅ Integrity-Driven ✅ Embracing Diverse Solutions
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Approaching a project with a well-defined integration strategy, is very important. SAP recently introduced the RISE with SAP; Implementation Methodology (based on Activate Methodology) to address this sophisticated space quite amazingly managing the criterion within this area. Great care is to be taken, while considering how it will change the modular aspects within each area of the organisation, concerned with the SBUs in question of the platform, to be introduced in the business processes.

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4 Ensure data quality and consistency

One of the biggest challenges of ERP integration with legacy systems is ensuring data quality and consistency. Data quality is the accuracy, completeness, validity, and timeliness of the data, while data consistency is the uniformity and compatibility of the data formats, standards, and definitions across the systems. Poor data quality and consistency can cause errors, duplication, conflicts, and inefficiencies. To prevent this from happening, you should cleanse and standardize your data before the integration. Additionally, you should define and enforce data governance rules and policies, implement data validation and transformation mechanisms, and monitor and resolve data issues and anomalies.

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5 Manage change and communication

ERP integration with legacy systems can have a significant impact on your organization, culture, and people, potentially changing the way you work, communicate, and collaborate. To manage this change and communication, it is essential to involve stakeholders from the beginning and throughout the integration project. Clearly communicate the vision, goals, benefits, and expectations of the integration and provide adequate training and support for users. Additionally, it is important to solicit and address feedback and concerns while celebrating and rewarding achievements and successes. ERP integration with legacy systems can be a complex endeavor, but by avoiding these common mistakes, you can ensure a smooth and successful integration that enhances your business performance and value.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Akhilesh Botcha

SAP Certified BTP Integration Suite Consultant and SAP BPA Consultant at CGI
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In my experience we need to align with the business as first priority, then we have to analyse the complications. Need to deep dive into each of the complication and derive a solution out of it with out Integration strategy,

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How can you avoid ERP integration mistakes with legacy systems?

1

2

3

4

5

6

1 Assess your legacy systems

2 Define your integration strategy and scope

3 Choose the right integration approach

4 Ensure data quality and consistency

5 Manage change and communication

6 Here’s what else to consider

Enterprise Resource Planning (ERP)

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How can you avoid ERP integration mistakes with legacy systems?

1

2

3

4

5

6

1 Assess your legacy systems

2 Define your integration strategy and scope

3 Choose the right integration approach

4 Ensure data quality and consistency

5 Manage change and communication

6 Here’s what else to consider

Enterprise Resource Planning (ERP)

Rate this article

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