Is your company currently losing money due to its use of outdated technology? The answer is likely yes. According to a recent Deloitte survey, a whopping 82% of companies didn't meet their cost-reduction goals last year, and the main reason was their outdated technology infrastructure.
A 2024 survey of nearly 300 business leaders found that outdated technology is the biggest obstacle for companies trying to cut costs and improve profit margins. This same study found that over half of the respondents reported that they plan to focus on using data and AI strategies to improve margins in 2024.
What does this mean?It means that organizations want to adopt new, automated, AI-powered ways of doing business to save money and improve efficiency but are held back by their old technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, typically technology that’s at least a decade old, can quickly become expensive to maintain. They are slower, need constant updates and patches, and don’t leverage new features as they’re developed. As a result, businesses struggle to keep up with their tech-savvy competitors in every area, from scaling and cloud usage to human resources and customer service operations.
But that’s not the only issue. Outdated technology also increases your risk of cyber-attacks. Old technology typically cannot keep up with the rapidly changing world of cyber security. As new threats emerge, older technology eventually becomes unable to keep up with the latest updates required to secure your network.
So, why do business owners put off updating technology when the data clearly shows that it will improve productivity and profits? There are a couple of reasons, the main one being sticker shock. Seeing the price of updating technology can feel overwhelming. Smart business leaders run through risk-related questions like “What if something breaks?” or “What if it doesn’t work like they say it will?” However, the data shows that maintaining old technology can be more costly. A Deloitte study of CIOs in 2023 found that they spent an average of 55% of their technology budget on maintaining their existing systems.
There’s also the cost of switching. What will bringing systems down and transitioning to a new system cost? What will the cost be to train employees to use the software? These are all questions your IT team can help you answer BEFORE you start upgrading your technology. An experienced technician will help you analyze your system to see what needs to be updated and when, then map out a plan to upgrade your system in the most efficient way possible. It is easier than most business leaders think and pays off in increased productivity and profits.
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 Network Assessment. 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 502-632-3481 or click here to schedule now.
