If you don't have CRM 2011 Environment setup you need to first prepare it which is not the scope of this article. There are so many articles over the internet to Prepare CRM 2011 environment
Prerequisite
for CRM 2011
- Windows
Server 2008 R2 64-bits machine
- SQL
Server 2008 / 2008R2 64 bits with SSRS
- Active
Directory
Step 1: Install CRM 2011 if not already installed
Step 2: Get a full backup of your current
Organization SQL Server database on Dynamics CRM 4.0
Step 3: Restore the DB backup on the new SQL Server
instance used for Dynamics CRM 2011
Step 4: Import organization from deployment manager
Within Deployment Manager, go to Organizations->Import Organization

Select the SQL Server instance and the Organization database to import. This corresponds to the restored DB on
the SQL Server 2008/2008R2 instance used for Dynamics CRM 2011
Step 6: identify and Fix JavaScript Customizations
Step 7: identify and Fix Reports Customizations
Step 8 : Migrate Data
There are many techniques to migrate data in CRM some of are mentioned below
Data Migration Techniques
:
1.
Microsoft Dynamics CRM 2011
Import Data Wizard
2.
SQL Server Integration Services
3.
Direct CRM Web Services API
Access
4.
SCRIBE
SCRIBE is most efficient technique requires no code and a medium level developer needed for it.
http://www.scribesoft.com/