August 05, 2024
Is your organization hemorrhaging money due to outdated technology? Chances are, the answer is yes. A recent Deloitte survey found that a staggering 82% of companies failed to meet their cost-reduction goals last year, primarily due to inefficient technology infrastructures.
The 2024 survey, which included nearly 300 business leaders focused on business margin improvement and technology transformation, revealed that outdated technology is the biggest barrier to cost-cutting efforts. Over half of the respondents indicated that leveraging data and generative AI strategies to improve margins would be their primary focus for 2024.
What does this tell us? Organizations are eager to adopt new, automated, AI-powered solutions to save money and enhance efficiency but are hindered by antiquated 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. These systems are slower, require constant updates and patches, and don't incorporate new features as they are developed. Consequently, businesses struggle to compete with tech-savvy rivals in various areas, including scaling, cloud usage, 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 Outdated technology also increases the risk of cyber-attacks.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 can't keep pace with the rapidly evolving landscape of cybersecurity threats. As new, more malicious threats emerge, older technology eventually becomes incapable of implementing the latest security updates.
So, why do business owners hesitate to upgrade technology when the data clearly shows it will boost productivity and profitability? The main reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Smart business leaders often worry about risks like "What if something breaks?" or "What if it doesn't work as promised?" However, maintaining old technology could be even more costly. Another Deloitte study in 2023 found that CIOs spent an average of 55% of their technology budgets on maintaining existing systems.
There's also the cost of transitioning. What will it cost to bring systems down and switch to new ones? What will it cost to train employees on new software? These are questions your IT team can help you answer before you start upgrading. An experienced technician can analyze your current system, identify what needs updating and when, and develop a plan to upgrade your technology efficiently. 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 Consultation. We'll discuss your situation and determine what you need to get technology that helps you run your business better. To book your consultation, call us at 702-605-9998 or click here to schedule now.
