August 05, 2024
Is your organization hemorrhaging funds due to outdated technology? The odds are high. A recent Deloitte survey revealed that an astounding 82% of companies failed to meet their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
In the 2024 poll, nearly 300 business leaders were surveyed about business margin improvement and technology transformation efforts. The results showed that challenges with technology infrastructure are the most significant barrier for organizations aiming to improve margins by cutting costs. Moreover, over 50% of respondents indicated that leveraging data and generative AI strategies for margin improvement would be their focus for 2024.
What can we infer from this? 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are eager to adopt new, automated, AI-powered methods to save money and enhance efficiency but are hindered by outdated technology.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 become costly to maintain. They are slower, require constant updates and patches, and do not incorporate new features as they are developed. Consequently, businesses struggle to keep pace with their tech-savvy competitors in areas ranging from scaling and cloud usage to human resources and customer service operations.
But that's not the only issue. Outdated technology increases the risk of cyber-attacks. Older systems often cannot keep up with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, outdated technology becomes incapable of handling the latest updates required to secure your network.
So, why do business owners delay updating technology when data clearly shows it positively impacts productivity and the bottom line? The main reason is often sticker shock. The price of updating technology infrastructure can feel overwhelming. Smart business leaders consider risk-related questions like "What if something breaks?" or "What if it doesn't work as promised?" However, the data indicates that maintaining old technology could be more expensive. 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 identify 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 Call with our CEO. We will dig into your system and determine what you need to get technology
that helps you run your business better. To book, call us at 201-719-7000 or click here to schedule
now.
