August 05, 2024
Is your organization hemorrhaging funds due to outdated technology? Chances are, the answer is 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.
The 2024 poll, which surveyed nearly 300 business leaders about business margin improvement and technology transformation efforts, identified technological infrastructure challenges as the biggest barrier to improving margins by cutting costs. 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 indicate? Organizations are eager to adopt new, automated, AI-powered methods to save money and enhance efficiency but are hindered by outdated technology.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 expensive 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 up with tech-savvy competitors in all areas—from scaling and cloud usage to human resources and customer service operations.
But that's not the only issue. Outdated technology also increases the risk of cyber-attacks. Older systems often cannot keep pace with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, older technology becomes incapable of handling the latest security updates, leaving your network vulnerable.
So why do business owners delay updating their technology when data clearly shows it will boost productivity and the bottom line? The main reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Smart business leaders ponder 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 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 the new software? These are all 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 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 952-941-7333 or click here to schedule now.
