Is your organization hemorrhaging funds due to reliance on outdated technology? The answer is likely affirmative. A recent Deloitte survey disclosed that an overwhelming 82% of companies failed to achieve their cost-reduction targets last year, primarily due to inefficient technology infrastructures.
In a 2024 poll involving nearly 300 business leaders focused on business margin improvement and technology transformation, challenges with technology infrastructure emerged as the most significant barrier to cost-cutting efforts. Additionally, over 50% of respondents indicated that leveraging data and generative AI strategies to enhance margins would be their primary focus for 2024.
What does this signify? Organizations are eager to adopt new, automated, AI-driven methods to save money and boost efficiency but are hindered by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, often defined as technology over a decade old, can quickly become costly to maintain. They are slower, require constant updates and patches, and fail to incorporate new features as they are developed. Consequently, businesses struggle to compete with tech-savvy rivals in various areas, from scaling and cloud usage to human resources and customer service operations.
But that's not the only concern. Outdated technology also heightens the risk of cyber-attacks. Older systems typically cannot keep pace with the rapidly evolving cybersecurity landscape. As new, more malicious threats emerge, older technology becomes incapable of implementing the latest updates needed to secure your network.
So, why do business owners delay technology upgrades when data clearly indicates that it would boost productivity and the bottom line? The primary reason is sticker shock. The cost of updating technology infrastructure can seem overwhelming. Savvy 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 transition to consider. What will it cost to bring systems down and switch to a new one? What will be the expense of training employees to use the new software? These are questions your IT team can help you answer before you start upgrading your technology. An experienced technician can analyze your current system to determine what needs updating and when, and map out a plan to upgrade your system as efficiently as possible. It's easier than most business leaders think and yields significant gains in 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. 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 consultation, call us at 702-970-3472 or click here to schedule
now.
