According to a recent Deloitte survey, a staggering 82% of companies failed to meet their cost-reduction targets last year, primarily due to inefficient technology infrastructures.
In a 2024 poll of nearly 300 business leaders focused on business margin improvement and technology transformation, challenges with outdated technology infrastructures were identified as the biggest barrier to cost-cutting and margin improvement. Over 50% of respondents indicated that leveraging data and generative AI strategies would be their focus for 2024.
What Does This Indicate?
Organizations are eager to adopt new, automated, AI-powered solutions to save money and enhance efficiency but are being held back by antiquated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems, often defined as technology that's at least a decade old, can become prohibitively expensive to maintain. They are slower, require constant updates and patches, and lack the ability to leverage new features as they are developed. Consequently, businesses struggle to keep up with their more technologically advanced competitors in various areas, including scaling, cloud usage, human resources, and customer service operations.
But the issues don't stop there. Outdated technology also elevates the risk of cyber-attacks. Older systems typically cannot keep pace with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, outdated technology becomes increasingly incapable of keeping your network secure.
Why Do Business Owners Hesitate to Update Technology?
Despite clear data showing that updating technology positively impacts productivity and the bottom line, many business owners hesitate due to several reasons, primarily sticker shock. The initial cost of updating technology infrastructure can be overwhelming. Smart business leaders often worry about potential risks like "What if something breaks?" or "What if it doesn't work as promised?" However, maintaining old technology could prove to be more costly. A separate Deloitte study of CIOs in 2023 found that respondents spent an average of 55% of their technology budgets on maintaining existing systems.
There's also the cost of switching to consider. What will bringing systems down and transitioning to a new system cost? 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 help you analyze your current system to determine what needs to be updated and when, and map out a plan to upgrade your system efficiently.
Upgrading is 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 consult. 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 337-547-2193 or click here to schedule
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