Is your organization hemorrhaging money due to outdated technology? The answer is probably yes. A recent Deloitte survey revealed that a staggering 82% of companies failed to meet their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
In a 2024 survey of nearly 300 business leaders focused on business margin improvement and technology transformation, it was found that challenges with their technology infrastructure are the biggest barrier to organizations seeking to enhance margins by cutting costs. Additionally, over 50% of respondents indicated that their focus for 2024 would be on leveraging data and generative AI strategies to improve margins.
What does this indicate? Organizations are eager to adopt new, automated, AI-powered methods to save money and boost efficiency but are hindered by outdated technology.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 that is at least a decade old, can quickly become costly to maintain. They are slower, require constant updates and patches, and don't take advantage of new features as they are developed. Consequently, businesses struggle to keep pace with their tech-savvy competitors across various areas, from scaling and cloud usage to human resources and customer service operations.
But that's not the only problem. Outdated technology also heightens the risk of cyber-attacks. Older technology often cannot keep up with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, outdated systems become increasingly incapable of handling the latest updates needed to secure your network.
So, why do business owners delay updating their technology when the data clearly shows it will positively impact productivity and the bottom line? One major reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Smart business leaders consider risk-related questions like "What if something breaks?" or "What if it doesn't work as promised?" However, data shows that 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. What will it cost to bring systems down and transition to a new one? 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 current system, determine 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 703-281-1017 or click here to schedule
now.
