August 05, 2024
Is your organization hemorrhaging money due to outdated technology? The likely answer is yes. A recent Deloitte survey revealed that an astounding 82% of companies failed to meet their cost-reduction targets last year, with inefficient technology infrastructure being the primary culprit.
In a 2024 poll of nearly 300 business leaders focused on business margin improvement and technology transformation, challenges with technology infrastructure emerged as the biggest barrier to improving margins through cost-cutting. The same study found that over 50% of respondents plan to focus on leveraging data and generative AI strategies to enhance margins in 2024.
What does this indicate? Organizations are eager to adopt new, automated, AI-powered methods to save money and improve efficiency but are hindered by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, typically defined as technology that's at least a decade old, can quickly become expensive to maintain. They are slower, require constant updates and patches, and lack the new features continually being developed. Consequently, businesses struggle to keep up with tech-savvy competitors in various areas, from scaling and cloud usage to human resources and customer service operations.
But that's not the only issue. Outdated technology increases the risk of cyber-attacks. Older systems often can't keep pace with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, older technology eventually becomes incapable of handling the latest updates needed to keep your network secure.
So, why do business owners delay updating technology when the data clearly shows it will enhance productivity and the bottom line? The primary reason is often sticker shock. The cost of updating technology infrastructure can seem overwhelming. Smart business leaders weigh 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. A separate 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 it cost to train employees to use the new software? These are questions your IT team can help you answer before you start upgrading your technology. An experienced technician can help you analyze your system to identify what needs to be updated and when, and map out a plan to upgrade your system as efficiently as 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 Call With Our Owners. To book your assessment, call us at (610) 433-1000 or click here to schedule now.
