Modernizing Business Operations: The Case for Upgrading Legacy Oracle Applications
Business operations are the backbone of organizational growth and long-term success. However, many companies still rely on outdated versions of Oracle applications, such E-Business Suite (EBS), JD Edwards (JDE), and PeopleSoft, to manage these critical functions.
Why do so many organizations continue to place their trust in legacy applications to run their businesses? The primary reasons for hesitating to upgrade typically boil down to two factors: cost and business disruption. When systems seem to be “working fine,” complacency often takes over, and companies opt to maintain the status quo. However, this short-sighted approach can have serious consequences.
Why the Status Quo is No Longer an Option
Organizations running on outdated platforms will reach a critical tipping point where the risks associated with legacy applications far outweigh the perceived benefits of avoiding an upgrade. Delaying modernization increases operational vulnerabilities, inflates costs, and creates significant roadblocks to future growth.
Here are five specific reasons why holding on to outdated legacy systems may have a detrimental business impact:
- Heightened Security Risks – Legacy applications are a favorite target for malicious actors. Older versions often lack robust security features and may not support the latest patches or updates, leaving businesses vulnerable.
- Mounting Technical Debt – While upgrades may initially seem like an unnecessary expense, the reality is that legacy applications are costly to maintain. IT teams spend significant time and resources managing them, which diverts attention from strategic initiatives. Over time, these maintenance costs far exceed the upfront investment required for modernization.
- Stifled Business Productivity – Outdated systems can’t keep pace with the demands of modern business operations. Legacy applications hinder scalability, limit process efficiency, and reduce employee productivity. These inefficiencies ultimately impact a company’s ability to compete in a rapidly evolving marketplace.
- Innovation Bottlenecks – Legacy applications are inflexible when it comes to adopting new features or integrating with emerging technologies. This lack of adaptability stymies innovation, leaving businesses unable to deploy and adopt advancements like artificial intelligence (AI), machine learning (ML), or advanced, integrated analytics.
- Diminishing Support – Certain outdated application versions are no longer supported, leaving paying customers without assistance—even during critical times when issues arise.
The Benefits of Upgrading Oracle Applications
Our Oracle experts deliver transformative advantages that go far beyond the perceived cost savings of staying on outdated, legacy versions of your mission critical applications. Beyond adapting to evolving business demands, here are the top three benefits our clients experience when current:
Enhanced Security
By upgrading Oracle applications to the latest versions, organizations can take advantage of timely patches and enhanced security features to significantly improve their security posture. Organizations that continue to rely on outdated technology face significant risks to their enterprise data and overall business operations. Older applications are inherently less secure, lacking advanced security features. Additionally, legacy applications may have vulnerabilities that cannot be patched—potentially leaving an open door for cybercriminals.
Consider a scenario where Oracle releases a critical security patch to address a newly discovered vulnerability. The patch, however, is only compatible with version 3 or higher of the application. If an organization is running an older version, the patch cannot be applied, leaving not just the application but the entire supporting infrastructure—database, operating system, and other dependent technologies—vulnerable.
New Features, Functionality, and Integration Opportunities
Upgrading Oracle applications can significantly improve integrations. Many organizations rely on third-party solutions to fill gaps in their enterprise resource planning (ERP) systems. However, upgrading to the latest versions of Oracle applications—whether EBS, JDE, or PeopleSoft—can provide native features and functionalities that replace these third-party tools. By consolidating functionality, businesses can reduce software licensing costs, simplify their technology stack, and save money.
Modern Oracle applications also address one of the most significant challenges organizations face: managing customizations. Historically, businesses have had to modify base applications with custom code to meet their unique requirements. This approach introduces complexity and cost, particularly during upgrades, as customizations must be reimplemented or adjusted to remain compatible.
Upgrading to the latest Oracle applications simplifies this complexity with built-in, low-code/no-code tools that empower power users—such as business analysts or operations managers— to quickly and cost-effectively customize applications using attribution-driven frameworks. These tools enable users to address niche requirements without relying on developer intervention, reducing costs, saving time, and streamlining operations.
AI Adoption
AI is revolutionizing day-to-day businesses operations. From infrastructure management to customer support and beyond, AI offers real-world opportunities for efficiency and innovation.
Modern versions of Oracle applications, such as JDE and EBS, include built-in integration points with AI-powered Oracle Digital Assistant. However, older versions of these applications lack the necessary “hooks” to connect with Oracle’s advanced AI features, creating a significant barrier to adoption.
Organizations relying on legacy applications miss out on the significant advantages that AI integration provides, while businesses that invest in the latest upgrades gain access to cutting-edge AI capabilities, empowering efficiency. data-driven decisions, and innovation.
The Path to Modernization
It’s important to note that some Oracle applications, such as JDE, require an upgrade at both the technical and functional levels. These two aspects focus on distinct areas of the upgrade process, and understanding their differences can help streamline planning and execution.
Technical components pertain to the underlying infrastructure and system-level changes required for the application upgrade. They focus on ensuring that the system can support the upgraded application effectively and typically include things like platform upgrades, performance improvements, security updates, and code refactoring. Functional components relate to features, functionality, workflows, and business processes—things like new features, user interface changes, and process updates.
Determining which Oracle applications require upgrades and distinguishing whether they need updates at the technical level, functional level, or both, and then figuring out how to plan and carry out the upgrades—including the steps, resources, and timelines involved—can be a challenging and overwhelming process. But it’s a process you don’t have to do alone.
Navisite, Part of Accenture, is an Oracle Principal Partner with a global team of experts averaging more than a decade of experience helping organizations with Oracle migrations and managed services. Whether you’re looking to upgrade your EBS, JDE, PeopleSoft, or Hyperion applications, require comprehensive lifecycle management, or need expert assistance transitioning these critical systems to the cloud, we’ll provide the expertise, guidance, and services you need to succeed.
Modernization isn’t just a technical upgrade—it’s a strategic transformation that empowers your organization to thrive in today’s competitive landscape. Don’t let outdated systems limit business, or team, potential. Take the first step toward innovation and growth. Contact us today to map out a path to modernization and ensure long-term success for your business.