In today’s fast-paced world of ERP consolidations, particularly in private equity (PE) environments, the allure of creating powerful data lakes can be overshadowed by the reality of navigating data swamps. More often than not, ERP consolidations grind to a halt not because of the lack of sophisticated data models, but due to confusion, redundancy, and lack of clarity around existing data.

A common pitfall in mergers and acquisitions is the disparate understanding of data models across systems. Imagine trying to merge five different databases, each shaped by unique company cultures and processes. The result is often a “data swamp” where even defining basic data points can become an overwhelming task, let alone integrating them smoothly into a unified ERP.

To avoid this, strong leadership is required to ensure clear communication and understanding of legacy data structures. This involves not just relying on a third-party consultant but engaging a cross-functional team that includes database administrators, super-users, and those with deep business process knowledge. Additionally, prioritizing key data early, such as critical items and assemblies, can prevent 80% of the issues that tend to emerge post-go-live.

In short, rapid ERP consolidations are fraught with the risk of data swamps. Focused leadership, a thorough understanding of legacy data, and early identification of potential problem areas are essential to turning murky waters into manageable streams of information.

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