Is your organization hemorrhaging funds due to outdated technology? The probability is high. A recent Deloitte survey highlighted that an astounding 82% of companies did not achieve their cost-reduction goals last year, with inefficient technology infrastructure being the main reason.
A 2024 poll of nearly 300 business leaders focusing on business margin improvement and technology transformation efforts revealed that challenges with technology infrastructure are the most significant barrier for organizations aiming to improve margins by cutting costs. This 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are eager to adopt new, automated, AI-driven methods to save money and boost efficiency but are hampered by outdated technology.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 fail to leverage new features as they are developed. Consequently, businesses struggle to keep pace with their tech-savvy competitors across all areas, from scaling and cloud usage to human resources and customer service operations.
But that's not the only concern. Outdated technology also increases the risk of cyber-attacks. Older technology often cannot keep up with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, older systems become incapable of handling the latest updates needed to keep your network secure.
So, why do business owners delay upgrading their technology when data clearly shows it would positively impact productivity and the bottom line? The primary reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Savvy business leaders consider risk-related questions such as "What if something breaks?" or "What if it doesn't work as promised?" However, maintaining old technology could be 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 to consider. What will it cost to bring systems down and transition to a new system? What will the cost be to train employees to use the new software? These are all 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 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 916-884-0400 or click here to schedule
now.