Is your organization losing money because it relies on outdated technology? The likely answer is yes. According to a recent Deloitte survey, a remarkable 82% of companies failed to achieve their cost-reduction targets last year, largely due to inefficient technology infrastructures.
In 2024, nearly 300 business leaders participated in a poll focused on business margin improvement and technology transformation efforts. The results revealed that outdated technology infrastructure is the most significant barrier for organizations aiming to improve margins through cost-cutting measures. This same study found that more than 50% of the respondents reported that leveraging data and generative AI strategies for improving margins would be their focus for 2024.
What does this tell us? Organizations are looking to adopt new, automated, AI-powered ways of doing business to save money and improve efficiency but are held back by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, generally defined as technology that is at least ten years old, can quickly become costly to maintain. These systems are slower, require constant updates and patches, and don’t leverage new features as they are developed. As a result, businesses struggle to keep up with their more technologically advanced competitors in every area of the organization, from scaling and cloud usage to human resources and customer service operations.
But that’s not the only concern. Outdated technology also increases the risk of cyber-attacks. Old systems typically can’t keep up with the rapidly evolving world of cybersecurity. As new and more malicious threats emerge, older technology eventually becomes incapable of keeping up with the latest updates required to keep your network secure.
Why, then, do business owners delay upgrading their technology, even when data clearly shows it would boost productivity and profitability? There are a couple of reasons, the main one being sticker shock. Seeing the price of updating technology infrastructure can feel overwhelming. Smart business leaders run through risk-related questions like “What if something breaks?” or “What if it doesn’t work as expected?” However, the data indicates that maintaining old technology could be more costly. A separate Deloitte study of CIOs in 2023 found that respondents spent an average of 55% of their technology budget on maintaining their existing systems.
There’s also the cost of switching. What will it cost to bring current systems down and transition to a new one? How much will it cost 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 see what needs updating and when and develop a strategic plan to upgrade your system in the most efficient way possible. This process is easier than most business leaders imagine and pays off in increased productivity and profitability.
If you’re considering a technology upgrade or are just frustrated with slow, outdated systems and want to see what the next step could be like, we’ll do a FREE Network Assessment. Our technicians will dig into your system and determine the necessary steps to get technology that enhances your business operations. To schedule your assessment, call us at 847-906-5005 or
