Editor’s note: This is a guest post by Anica Oaks, a freelance writer living in San Francisco.
Technological advances have revolutionized how people do business and have allowed monumental strides in productivity on many levels. However, technological changes are swift and frequent. When your technology falls behind, it can have an immediate and profound impact on how well your business functions. Here are four ways your outdated technology can hold your startup back from bigger market share and greater profit margins.
1. Reduced Productivity
Technology allows businesses to make better use of data, employees, inventory, and helps to coordinate efforts in a variety of daily tasks. If your technology has fallen behind, you are no longer able to compete head-to-head with similar companies in your field. Utilizing the latest in technological advances helps companies deal efficiently with vendors and associated businesses, as well as with clients and inter-company communications.
2. Undermining Customer Confidence
Updated technology makes clients feel that the company is energetic and innovative, with a deep interest in the convenience and security of its customer base. They are less fearful of providing their personal information online when they know the company has taken pains to acquire the most current software and security measures available. In the age of internet hacking and computer malware, this confidence in a company’s ability to protect personal data is critical to acquire new customers and maintaining repeat customers.
3. Vulnerability to Security Issues
Neglecting to update technology can lead to serious breaches in security and vulnerability to cyber-attack. Companies can lose their own internal data and customers’ personal information, as well as leaving their computer systems open to viruses and ransomware. Using the latest in cyber-security software can help to prevent loss of data and damage to equipment that frequently occurs. Having staff on hand to prevent these breaches can help maintain a company’s competitive edge.
4. Failure to Retain Skilled Employees
Today’s employees are often millennials who have grown up with technology and have a profound appreciation of the benefits it can provide. If they work for a company that has failed to update its technology, they may feel that their ability to stay abreast of new developments is impeded, and they may move on to a more forward-looking company.
If you are trying to hire an applicant with an online master’s degree in information security but your company has a feeble technical infrastructure, the applicant may not take your company seriously or not want to deal with the headache of entirely outdated systems. When a startup updates its technology regularly, employees are given new challenges on a regular basis and know their skills are keeping up with the general economy.
Failure to update your technology can create a measurable effect on these four cases of your business. The investment in new tech developments can help you to stay ahead of the competition and provide a dynamic environment for your staff.
Anica Oaks is a freelance writer, living in San Francisco.