Oil and gas software – we all use it, we all know that it can be just as complicated as the industry itself. But the software you use is critical to doing your day-to-day and ensuring that your operations run smoothly and you avoid any dreaded audits down the road.
But what happens when you outgrow your current software? Then you have to start the process of a conversion. Seems scary, right? It doesn’t have to be.
Choosing the Right Software Solution
The right Enterprise Resource Planning (ERP) software can save you a lot of time and money by minimizing errors, streamlining processes, and giving you the reports you need to make solid decisions for your business – but they are not a “one size fits all” deal.
Some software is great if you only have a couple of dozen wells or fewer, but once you start acquiring more assets, it’s common that you also need to upgrade what platform you are using. That doesn’t mean that the ERP that can handle a thousand wells is the right fit for you, though. It’s all about balance. No doubt there are some great solutions out there that will grow with you as your endeavors grow, and those are great. But no doubt, you will face a complete data conversion one of these days as you grow or shrink to meet market demands.
Conversions 101
One of the first decisions you’ll need to make is determining how much data should be converted. The two main types of conversion are Full Detail and Master File. A Master File conversion typically includes the well master and associated hierarchy, business associates such as owners, vendors, purchasers, operators, and the division of interest, without any of the historical data included. This helps when you have a smaller company and don’t need the historical data, or it’s messy and irrelevant – we like to think of this as a “clean slate” conversion. Full Detail conversions included all of the data from the Master File and the historical data as well. With so much more data, these typically take longer since it is transfer over things like sales transactions, GL information, and much more.
Once you know the data you want converted, you need to prioritize data integrity. No one wants to go through all of this work and have incomplete and missing files at the end. You’ll want to know what you had in your previous system and compare that to the data now showing up in your new software.
From there, timing is everything. You want to do the conversion in a way that minimizes disruption to your current operations, ensuring a quick and smooth transition. This means scheduling your conversion with the time it will take to train your team and implement the new software needs to be top of mind.
Of course, we can’t forget the budget. Before you embark on the conversion journey, it is essential to take into account all of the costs associated – not just the cost of the new software launch and the conversion, but also the cost of training, new personnel to run the programs, and any potential customization or consultancy needed.
It Will Pay Off In The Long Run
ERP data conversions for the oil and gas industry are a tricky job riddled with pitfalls and potential problems. But it is also a necessary job. Clients need their data migrated, and no one is going to sit down and manually enter in months or years of historical data.
There is a sense of satisfaction that comes from completing a difficult and complex job with precision and expertise. But you need the right team members working the conversion, and to be the leader, they need to get everyone through it to see the end result.
Have questions about ERP Data Conversions? Check out our White Paper for a more in-depth look or reach out to one of our professionals.
related articles
