Is your organization hemorrhaging money due to outdated technology? The answer is probably yes. According to a recent Deloitte survey, a staggering 82% of companies failed to achieve their cost-reduction targets last year, with inefficient technology infrastructure being the primary reason.
The 2024 poll, which included nearly 300 business leaders, highlighted that technology infrastructure challenges are the biggest barrier to improving margins through cost-cutting. This same study found that over 50% of respondents plan to focus on leveraging data and generative AI strategies to improve margins in 2024.
What does this tell us? Organizations are eager to adopt new, automated, AI-powered solutions to save money and enhance efficiency but are hindered by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, typically defined as technology that is at least a decade old, can quickly become costly to maintain. They are slower, require constant updates and patches, and lack the latest features. Consequently, businesses struggle to keep pace with their tech-savvy competitors in areas such as scaling, cloud usage, human resources, and customer service operations.
But that's not the only issue. Outdated technology also increases the risk of cyber-attacks. Older systems generally cannot keep up with the rapidly evolving cybersecurity landscape. As new, more malicious threats emerge, older technology eventually becomes incapable of implementing the latest security updates needed to protect your network.
So, why do business owners delay updating their technology when data clearly shows that it positively impacts productivity and the bottom line? One primary reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. 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 could be even more costly. Another Deloitte study of CIOs in 2023 found that respondents spent an average of 55% of their technology budget on maintaining existing systems.
There's also the cost of switching. What will it cost to bring systems down and transition to a new system? What will the cost be to train employees to use new software? These are questions your IT team can help you answer before you start upgrading your technology. An experienced technician can analyze your system to determine what needs to be updated and when, and develop a plan to upgrade your system in the most efficient way possible. It's easier than most business leaders think and pays off 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 410-535-4332 or click here to schedule
now.
