August 05, 2024
Is your organization losing money because it relies on outdated technology? The answer is probably yes. A recent Deloitte survey found that an astonishing 82% of companies did not achieve their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
In a 2024 poll of nearly 300 business leaders focused on business margin improvement and technology transformation, technology infrastructure challenges emerged as the biggest obstacle for organizations aiming to enhance margins by reducing costs. The same study revealed that over 50% of respondents plan to focus on leveraging data and generative AI strategies to improve margins in 2024.
What does this indicate? Companies are eager to adopt new, automated, AI-driven methods to save money and boost efficiency but are hindered by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, often defined as technology over a decade old, can quickly become costly to maintain. They operate more slowly, require frequent updates and patches, and don't incorporate new features as they become available. Consequently, businesses struggle to compete with tech-savvy rivals across various areas, from scaling and cloud usage to human resources and customer service operations.
But that's not the only concern. Outdated technology also heightens the risk of cyber-attacks. Older systems typically cannot keep pace with the rapidly evolving cybersecurity landscape. As new, more malicious threats arise, older technology becomes increasingly incapable of handling the latest updates necessary to secure your network.
So, why do business owners delay updating technology despite clear data showing its positive impact on productivity and profitability? One major reason is sticker shock. The cost of updating technology infrastructure can seem daunting. Savvy business leaders often ponder risk-related questions like "What if something breaks?" or "What if it doesn't work as promised?" However, data indicates that maintaining old technology may be more expensive. A separate Deloitte study of CIOs in 2023 revealed that respondents spent an average of 55% of their technology budget on maintaining existing systems.
There's also the cost of transitioning. What will it cost to take systems offline and switch to a new system? What about the expense of training employees to use the new software? These are questions your IT team can help answer before you begin upgrading your technology. An experienced technician can analyze your system to identify what needs updating and when, and develop a plan to upgrade your system efficiently. It's simpler than most business leaders anticipate and results in increased productivity and profitability.
If you're looking to upgrade your technology or are just tired of slow, outdated tech and want to see what the next step could look like, we'll do a FREE Consult. Our techs will dig into your system and determine what you need to get technology that helps you run your business better. To book your assessment, call us at 630-320-3723 or click here to schedule now.
