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Is your small business losing money because of outdated technology? The answer is likely yes. According to a recent survey by Deloitte, 82% of companies failed to meet their cost-reduction targets last year, primarily due to inefficient technology infrastructure.
In a 2024 survey of nearly 300 business leaders focused on improving margins and technology transformation, the biggest barrier to cost-cutting was outdated technology. Over 50% of respondents reported that leveraging data and generative AI strategies to improve margins would be their focus for 2024.
What does this mean for small businesses? It’s clear that businesses are eager to adopt new, automated, AI-powered methods to save money and boost efficiency but are held back by old technology.
Legacy systems—typically technology that’s at least a decade old—can become costly to maintain. They are slower, require constant updates and patches, and lack new features as they develop. Consequently, small businesses struggle to compete with tech-savvy counterparts in areas such as scaling, cloud usage, human resources, and customer service operations.
But that’s not the only issue. Outdated technology increases your risk of cyber attacks. Old systems can’t keep pace with the rapidly evolving world of cybersecurity. As new, more malicious threats emerge, older technology becomes incapable of keeping up with the latest security updates, leaving your business vulnerable.
So, why do business owners delay upgrading technology when the data clearly shows that it boosts productivity and the bottom line? There are a couple of reasons, with sticker shock being the main one. The cost of updating technology infrastructure can feel overwhelming. Smart business leaders consider risks like “What if something breaks?” or “What if it doesn’t work as expected?” However, 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 existing systems.
There’s also the cost of switching. What will bringing systems down and transitioning to a new system cost? What 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 firm will help you analyze your system, determine what needs to be updated, and map out a plan to upgrade your system efficiently. 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 tired of slow, outdated tech and want to see what the next step could look like, we offer a FREE Network Assessment to qualified companies. Our techs will examine your system and determine what you need to get technology that helps you run your business more efficiently. To book your assessment, call us at 505-792-2375 or click here to schedule now.