Is your organization hemorrhaging money due to outdated technology?
The unfortunate answer for many businesses is yes. Upgrading your business technology to save money and improve efficiency is crucial. A recent Deloitte survey revealed that 82% of companies failed to meet their cost-reduction goals last year, largely due to inefficient technology infrastructures. “source”
In 2024, nearly 300 business leaders participated in a survey on margin improvement and technology transformation. They identified outdated technology as the main barrier to improving margins. Over 50% of these leaders plan to leverage data and generative AI strategies to enhance margins in the coming year.
What does this tell us? Businesses are eager to adopt new, automated, AI-powered solutions to save money and boost efficiency but are held back by antiquated technology.
Why Upgrading Your Technology Is Crucial
Legacy systems, typically defined as technology over a decade old, quickly become financial drains. They are slower, demand constant updates and patches, and miss out on new features that drive efficiency. This leaves businesses lagging behind tech-savvy competitors in crucial areas like scaling operations, cloud utilization, human resources, and customer service.
Moreover, outdated technology significantly raises the risk of cyber-attacks. Older systems struggle to keep up with the rapid evolution of cybersecurity threats, making them vulnerable to breaches and data theft. As new, more sophisticated threats emerge, older technology becomes increasingly incapable of providing the necessary protection.
Despite the clear benefits, why do business owners delay updating their technology?
The main reason is often sticker shock. The price of overhauling technology infrastructure can seem daunting. Business leaders worry about potential risks such as “What if something breaks?” or “What if the new system doesn’t perform as expected?” However, data shows that maintaining old technology can be more costly. A separate Deloitte study of CIOs in 2023 revealed that respondents spent an average of 55% of their technology budget on maintaining existing systems.
Then there’s the cost of transitioning. What will it cost to take systems offline and switch to new ones? What about training employees to use the new software? These are valid concerns, but they can be addressed with the help of an experienced IT team. A skilled technician will analyze your current system, determine what needs to be updated, and create an efficient upgrade plan. Upgrading technology is often easier than business leaders expect and leads to significant gains in productivity and profitability.
The Value of a Five-Year Lifecycle Plan
One effective strategy to manage technology upgrades is adopting a five-year lifecycle plan. This involves considering your entire infrastructure and replacing 20% of your hardware yearly. By focusing on the oldest hardware, this approach keeps businesses on a continuous improvement cycle. It’s challenging to notice inefficiencies creeping in over five years, especially when systems still seem to work well. However, around this time, technology often becomes misaligned with business needs. It can be outdated, ineffective, and no longer supported by manufacturers. Replacing 20% annually ensures your technology stays aligned with your business’s growth and health.
Business leaders who commit to this plan find it manageable and beneficial. With the IT company’s support, they develop a roadmap for system replacements, agreeing that technology doesn’t last forever. This proactive approach prevents the shock of suddenly finding outdated systems and holding the business back every five to ten years.
Entech’s Comprehensive Solution
Upgrading your technology is essential, but it’s just one piece of the puzzle for achieving business success. At Entech, we recognize that true efficiency and productivity stem from a holistic approach to technology management. This means updating systems, developing a proactive technology strategy, conducting regular technology assessments, and aligning technology with your business goals.
Every client is assigned a dedicated team of experts to develop and implement a customized technology strategy. One specialist thoroughly assesses your current systems, another crafts tailored recommendations and a collaborative team refines these insights into a strategic roadmap. While AI aids our process, your systems, initiatives, and goals are not simply plugged into a bot. This personalized approach ensures your business needs are met with precision and care, giving you a clear, actionable plan for success.
We provide a FREE Network Assessment—really! You call or fill out a form, and we’ll visit you on-site! Our experts will evaluate your current system and recommend the necessary upgrades to improve your business operations. To book your assessment, call us at 334-350-3355 or fill out the contact form.
At Entech, we’re not just your IT provider; we’re your IT partner. We work closely with you to ensure your technology serves your business effectively, helping you achieve your goals. Let us make IT work for you. We’re in IT together, committed to your success every step of the way.