Legacy ERP systems such as SAP, JD Edwards, and on-premise EBS have been the backbone of businesses for decades. However, with the emergence of new business models and digital technologies, legacy systems are becoming increasingly outdated and unable to meet the demands of modern enterprises. This article provides insights into the challenges faced by companies running on legacy ERP systems and highlights the factors that have prompted some of them to move to Oracle ERP Cloud.
Research shows that businesses are reconsidering their enterprise applications as they need to contend with newer business aspects, such as identifying and growing new revenue streams in a global market, managing a diverse, globally scattered workforce, building an improved customer experience for the digital-first generation, balancing a volatile supply and demand situation, and improving process efficiency to increase productivity.
Automated workflows through self-service kiosks for quicker approvals and feedback improve the employee journey.
CIOs, CTOs, CFOs, and other decision-makers understand that the existing on-prem or other installed ERP systems such as older versions of on-premise systems EBS, JDE, SAP, etc. cannot deliver on the newer requirements, especially those that require smarter technologies such as those needed for self-service reporting, ad-hoc analysis, collaborative platforms, direct integrations to payment platforms, etc.
Based on our interactions with many large and mid-market businesses, we have identified some of the top reasons why companies are contemplating a switch from their existing legacy ERP systems to Oracle ERP Cloud:
Absence of integration between modules such as Recruiting, Expenses, and Timecards, etc. These are individually effective but, in some instances, lack integration with core ERP modules. Customers must build self-integrations leading to customizations, which in turn make upgrades difficult, complex, and risky. Customization also decreases compatibility with cloud infrastructure.
Multiple data models result in silos, different data sources, and restrict unified views.
Lack of complete automation necessitates resource and time-intensive manual intervention.
Less than optimal user experience and lack of reporting functionality.
The disparate nature of legacy systems means multiple SLAs for various modules.
Lack of Support
For example, 11i EBS is out of support, and SAP Business Suite and ECC 6 run out of support in 2027.
All these factors result in higher IT expenditure with moderate returns.
Oracle ERP Cloud offers a single umbrella solution that integrates various departments leading to better productivity and efficiency. With simplified and standardized processes and a single source of truth, companies can close their books faster and more accurately. Automated workflows through self-service kiosks for quicker approvals and feedback improve the employee journey. Moving from legacy ERP to Oracle Cloud reduces the total cost of ownership by almost 50%. Moreover, data-driven scenario planning and financial planning, as opposed to intuitive planning, are now possible.
In conclusion, businesses that run on legacy ERP systems face numerous challenges that can affect their productivity and efficiency. By switching to Oracle ERP Cloud, companies can overcome these challenges and enjoy significant benefits such as better integration, reduced costs, improved productivity, and a more automated and data-driven approach to planning and decision-making.