August 05, 2024
Is your organization hemorrhaging funds due to outdated technology? The answer is probably yes. A recent Deloitte survey revealed that an alarming 82% of companies failed to meet their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
The 2024 poll, which surveyed nearly 300 business leaders on business margin improvement and technology transformation efforts, identified technological challenges as the biggest barrier to cost-cutting and margin improvement. 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are eager to adopt new, automated, AI-powered solutions to save money and boost efficiency but are hindered by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, generally 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 new features. Consequently, businesses struggle to compete with tech-savvy rivals in areas such as scaling, cloud usage, human resources, and customer service operations.
But that's not the only concern. Outdated technology also increases the risk of cyber-attacks. Older systems typically cannot keep pace with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, outdated technology eventually becomes incapable of handling the latest security updates required to protect your network.
So, why do business owners delay updating their technology when the data clearly shows that it positively impacts productivity and the bottom line? One major reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Savvy 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 even more costly. A separate 2023 Deloitte study of CIOs 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 setup? What will be the expense of training employees to use the new software? These are all questions your IT team can help answer before you start 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 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 Discovery Call. 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 (951) 742-8020 or click here to schedule
now.
