Technology trends are an important consideration for any modern business that wants to be competitive. This is a well-known fact, yet many companies stick to their outdated systems stubbornly. Often, they don’t realise just how harmful this is for their performance and finances.
Obsolete technology is slow and it hampers innovation. What’s more, it can reduce employee morale and even expose your business to security threats. Rapidly advancing technology is a fact of life, and businesses should try to embrace new systems for their benefits to:
- Ability to compete.
Of course, it takes an initial investment to upgrade technology, but it always pays off in the long-term if you make wise choices. Benefits like boosting productivity, enhancing customer satisfaction and reducing your operating costs are all worth the initial effort and investment. Let’s explore the issues of outdated technology and upgrading in more detail.
What are the hidden costs of outdated technology?
Sticking with obsolete technology can have hidden costs that you might not initially notice. These can mount up and start to hinder your ability to grow, reducing efficiency and more. Let’s look at the ways using outdated technology can cost you as a business.
Loss of Productivity
Older technology is frequently associated with issues like:
- Slow processing speeds.
- Manual tasks.
These things can increase the time it takes to get things done. Consequently, employee productivity suffers.
Outdated technology is less likely to have the most recent patches against cyberattacks. If your systems no longer receive security updates, you are extremely vulnerable to a data breach. These can be incredibly costly, damaging customer trust, disrupting business and resulting in regulatory fines that have been known to cripple smaller businesses.
The technology ecosystem is important to businesses, and it is always evolving. Legacy systems will grow increasingly incompatible with newer software, platforms and devices. This results in increasing maintenance costs and inability to access innovative tools and features that could be of real benefit to you.
Higher Energy Consumption
Older systems and infrastructure tend to use more energy than newer technology, leading to higher utility bills. When you invest in newer technology, you often access more energy-efficient tools that reduce your costs as well as your environmental footprint.
Outdated technology hampers innovation and the adoption of new market trends and business models. Consequently, you miss revenue opportunities and your ability to compete diminishes. You may also be less able to upscale and adapt, held back by the limitations of your legacy systems that cannot accommodate:
- New workloads.
- Evolved business functions.
- Innovative tools and technologies.
This can cause your business to struggle with growth of any kind.
Escalating Maintenance Costs
The amount of maintenance, support and repairs needed to keep outdated systems running can increase exponentially. Over time, these costs can really mount up and outweigh any money you may think you have saved by not investing in new systems.
What are the benefits of scrapping outdated technology and upgrading?
With the ever-changing physical capabilities of new technology, you need to remain in touch with what’s available to stay competitive. It is tempting to stick with the familiar, but we have just looked at all the hidden costs of refusing to move forward with the times. Now let’s see what the benefits are of updating your business tech.
A Greater Competitive Edge
Customers demand seamless, efficient services. Outdated technology is an obstacle to this, but the latest tools and systems can make you stand out from your competitors. Deliver innovative solutions and give your customers exceptional experiences whilst accessing tools to:
- Optimise pricing strategies.
- Analyse market trends.
- Respond dynamically to customer needs.
It’s a great way to gain a substantial competitive edge.
We have discussed how outdated technology can be slow. Newer systems offer many opportunities to streamline business processes for greater efficiency and agility. The technological advancements in modern software and hardware bring greater speed, accuracy and automation functions, reducing issues like slow, error-prone manual efforts.
Security vulnerabilities are one of the most significant risks of outdated technology. Older systems simply don’t have the latest security features, so they are susceptible to cyberattacks and data breaches. With a more current tech stack, your security infrastructure becomes more robust so you can comply with data privacy regulations effectively.
Boosted Employee Retention
Employees find outdated technology just as frustrating as customers do. This can lead to reduced job satisfaction and high staff turnover. With modern technology, you can enhance collaboration and make communication happen instantly. You can even start to accommodate flexible and remote working more effectively, creating an engaging and efficient work environment for your people.
A growing business needs technology that can evolve with it. With outdated technology, you are less able to adapt to new market demands. With modern technology, you have greater:
- Customisation potential.
Upgrading your technology ensures you have the systems to accommodate future growth by adjusting to increased workloads in incorporating new business functions.
The hidden costs associated with outdated technology will start to rear their ugly faces. As this happens, it may be time to face the prospect of investing in upgrades. While this may seem like an unwelcome expense, it is actually a strategic decision that can make your business more efficient, secure, competitive and scalable through digital transformation.
Determining the right time to make the upgrades is important. They must align with business goals and customer needs, as well as the knowledge that your current systems are getting old. Consider the following then evaluating whether it’s time for an upgrade:
- Maintenance costs.
- Performance issues.
- Security concerns.
- Emerging market opportunities.
- Changing business needs.
- Industry compliance concerns.
Businesses can’t afford the costs of outdated technology. These costs can hamper your ability to succeed as a business. By investing in modern technology, you can access its numerous benefits and remove the detrimental effects that outdated technology has been causing. Embracing modern solutions is a necessity, rather than an option, for any businesses that wants to thrive in the digital world.
Why choose Eventura to digitally transform your business?
Eventura have been helping businesses in their digital transformation journey for two decades. From the implementation of industry-leading ERP solutions such as Sage 200 and NetSuite, to helping them move their entire operations to the cloud and away from costly and restrictive on-premise solutions.
As well as being NetSuite Solution Providers, Sage 200 Partners and Microsoft Gold Partners, we also offer a wide range of managed IT services, meaning we can take your business as a whole and help it achieve digital transformation.
If you would like to speak to one of our experts, you can request a free call back here.