Consolidation System Migrations: Best Practices

March 18, 2024

Embarking on the transition from an outdated financial consolidation solution to a new system presents a significant hurdle: data integration and migration. The complexity is heightened when considering the relocation of servers, data, applications, or even the entire system to a new environment. In this article, we delve into the best practices for financial consolidation system migrations, offering insights on crucial do’s and don’ts for a seamless transition.

Best practices in consolidation system migrations

Unquestionably, migrating to a new consolidation system involves risks that may compromise the entire business; nevertheless, certain guidelines can help you to safely navigate the process.

1. Map the migration process

Consider the entire landscape of your company’s processes to prepare what needs to be migrated into the new financial consolidation system. Clearly define the path by approaching each department and process to eliminate discrepancies before the migration.

2. Keep a data-driven approach

Before approaching a Financial consolidation project, streamline your current processes to see what is working and what is not, deleting inaccurate data and removing operational inefficiencies.

3. Keep an objective view of what you need

Think about the functional, technical and operational requirements of your company and assess whether the new consolidation system can meet them.

4. Test your consolidation system migration

Run the old and new systems side-by-side to quickly resolve any issues or inconsistencies. Besides, track your progress by comparing KPIs before and after the financial consolidation system migration, as well as assessing how users are adapting to the new tools and processes.

Common pitfalls in consolidation system migrations

An unsuccessful financial consolidation system migration is detrimental to your business outcomes. Thus, keep away from the following common roadblocks.  

1. Indiscriminately moving all your processes into the new consolidation system

Certain applications and processes will no longer be needed in the new financial consolidation system, which means that you can use migration as an opportunity to distinguish the valuable from the obsolete. 

2. Lack of standardization

This usually results in transferring old problems into a new system, as well as in errors during the consolidation system migration.

3. Neglect user adoption of the new consolidation solution

If users struggle with the new consolidation system, chances are that the migration will fail. Thus, explain the move to both executives and users to prevent resistance and lack of management support.

Choosing consolidation solutions

To finish, here are some factors to consider when embarking on Financial consolidation:

  • Functionality for your specific needs

Ensure that the Financial consolidation solution caters to the unique requirements of your business. Evaluate if it aligns with your industry standards, regulatory compliance and specific operational processes. A tailored-fit solution can significantly enhance overall efficiency.

  • Scalability and flexibility to adapt to future growth

Opt for an CPM system that not only meets your current needs, but also offers scalability to accommodate future growth. This ensures that the consolidation solution evolves with your business, providing the flexibility needed to adapt to changing market dynamics.

  • Degree of customization

Assess the level of customization the Financial consolidation allows. Striking the right balance between out-of-the-box functionalities and the ability to tailor the system to your specific workflows is crucial. A solution that supports necessary customizations can better align with your business processes.

  • Mobility and the advantages of cloud-based vs. on-premises solution

Consider the mobility features of the CPM system, especially if your workforce requires remote access. Additionally, weigh the advantages and disadvantages of cloud-based versus on-premises solutions. Cloud-based systems often provide enhanced accessibility, scalability and reduced infrastructure costs.

  • Cost of implementation, including license or subscription, maintenance, etc.

Evaluate the total cost of implementation, including licensing or subscription fees, maintenance costs and any additional expenses. Ensure that the chosen Financial consolidation solution aligns with your company’s budgetary constraints, providing value for the investment.

  • Availability of customer support and training from the vendor

Check the vendor’s support services and training options. A robust support system ensures that assistance is readily available in case of issues or queries. Adequate training resources empower your team to maximize the benefits of the Financial consolidation system.

As you have seen, you need not settle for obsolete, inefficient consolidation solutions. Talentia can provide you with the resources and knowledge you need to make a seamless transition to a new financial consolidation system. Moreover, when using Talentia’s services, our team will guide you through every step.