Neglecting data migration can jeopardize the entire introduction of modern systems.
Existing systems have been in use for years, have proven themselves and provide all the necessary specialist functions for standard processes. Unfortunately, they very often do not grow with the company, are no longer sustainable from a security perspective, do not scale and offer hardly any opportunities to integrate innovative functionalities or implement new fully digital processes. In addition, software manufacturers are increasingly stopping further development altogether - for good reasons. And now?
Tendering, selection and then introduction of a modern system!
It usually has to happen quickly. The relevant core processes are quickly identified, a specialist team set up and a new service provider selected. This is often done without asking the service provider any questions about the migration. In addition to the technical challenges associated with the introduction of a new core (banking / leasing / factoring) system, the migration of existing data also ends up as a colored bar on the milestone plan at some point.
Prioritize correctly!
Migration is rarely given the right priority in the run-up to a project. However, it is important to clarify business-relevant questions that can determine the success of the entire project. The following factors, among others, play an enormous role when introducing a system for a financial services provider:
- The existing financing contracts must be managed beyond the system changeover.
- Rates and interest are fixed over the term of the contract and must also be mapped to the cent by the new system.
- The business models are as diverse as there are providers.
This raises the most important questions for the migration:
- Can existing payment plans (incl. interest, commission, service, subsidy payments) be transferred without change / recalculation?
- Is it possible to continue to manage the contracts smoothly?
Both questions should be clarified at an early stage of the project or in the tender for a new system. If data migration is seen as an important success factor from the outset, the fear that often exists can be effectively countered.
Migration to a neutral intermediate format has proven successful in many projects. This does not represent either the target or the source system in the data structure. Instead, it refers to the necessary (banking) functionality. This is understandable for both the provider and the customer.
Separating responsibility
The familiar "ETL" formula (extract - transform - load) is extended by a further step: extraction from the source system, transformation into a neutral technical format, transformation into the target format, loading into the target system). By separating the migration into these four steps, the responsibility can be clearly shared between the customer and supplier - according to the expertise of their companies. The project is accelerated, risk is minimized and sources of error are reduced.
The migration of legacy systems is a major challenge that is often overshadowed by specialist wishes and requirements, relegated to late project phases and viewed as a purely technical issue. If you take it seriously at an early stage, clarify the requirements internally and externally correctly and have the right data migration strategy, this bar in the milestone plan can also be completed with a green traffic light.
Are you currently planning to migrate to a new system? We will be happy to support you with our proven expertise and tried-and-tested methods.
