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Is your organization hemorrhaging funds due to outdated technology?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 missed their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
In a 2024 poll of nearly 300 business leaders focused on business margin improvement and technology transformation, the biggest barrier identified was challenges with technology infrastructure. More than 50% of respondents indicated that leveraging data and generative AI strategies to improve margins would be their primary focus for 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 antiquated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems—typically classified as technology that is at least a decade old—can quickly become costly to maintain. These systems are slower, require constant updates and patches, and fail to leverage new features as they are developed. Consequently, businesses struggle to compete with tech-savvy rivals in areas ranging from scaling and cloud usage to human resources and customer service operations.
But that's not the only issue. Outdated technology significantly increases the risk of cyber-attacks. Older systems often cannot keep up with the rapidly evolving landscape of cybersecurity. As new, more malicious threats emerge, these systems become incapable of implementing the latest updates needed to keep networks secure.
So, why do business owners delay updating technology when data clearly shows it will boost productivity and the bottom line? The primary reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Smart business leaders often ponder risk-related questions like "What if something breaks?" or "What if it doesn't work as promised?" However, maintaining old technology could be more costly. A separate 2023 Deloitte study of CIOs revealed 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 be the expense of bringing systems down and transitioning to a new one? What will it cost to train employees to use the new software? These are questions your IT team can help answer before you start upgrading your technology. An experienced technician can analyze your system to determine what needs updating and when, mapping out a plan to upgrade efficiently. It's easier than most business leaders think and results 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 802-331-1900 or click here to schedule now.
