In a recent study, reports showed that companies were only able to utilize about 50% of their collected data. If that percentage were to increase, greater return on investment (ROI) could be attained and better profits achieved. So why is this number so low? The study revealed that 80% of companies surveyed were held back by old technology. The question is why? Why are these companies using old technology? What holds them back from utilizing new technology and seeing a greater ROI on gathered data?
Reports show that the majority of the time old technology is still being utilized because the IT “decision maker” is not necessarily the IT specialist. Or there is a mentality that, “This is the way we’ve always done things.”
In the case of the decision maker not being an IT specialist, education and pricing will be the main determinants to making the sale. Education, in this case, comes down to educating the decision maker on new technology and how new technology will increase their ROI. Showing the decision maker how the updated technology utilizes data in an efficient way and how it will help management and production, rather than delay it in the learning stage, is crucial. This means eliminating or reducing the risk of bringing in new technology and increasing the value of its outcome.
Another hurdle associated with outdated technology is the outdated mentality of, “This is the way we’ve always done things.” This mentality is often hard, but necessary, to overcome. Innovation, especially in technology, is crucial in order for a company to move forward and remain profitable. Overcoming this hurdle requires the easing of fears and apprehensions of updating to new technology and showing the value and ROI of updating current systems.
The key points and takeaways of this study are that data is a powerful tool that can be greatly utilized to help boost ROI, but outdated data collection can also harm that ROI. Mismanaged data is one thing, but incorrectly gained data by old and outdated technology is another, and one that can be fixed by updating technology. Clients and customers by themselves most likely will not always be able to detect when their technology is outdated and potentially harmful, so it is the technical company’s job to show them the benefits of staying on the cutting edge with new technology.
It is also key to note that while you should remain on the cutting edge of technology and not lag behind into outdated technology and practices, the “bleeding edge” of technology can also be harmful. If technology is too new, it falls into the category of bleeding edge. When this happens, you should maintain and hold onto existing technology until the industry is better suited for a change. That can often be hard to decipher as, with the fast-paced industry of technology, that change can sometimes happen overnight.
Overall, technology should be an aid and a support to a company, not a hindrance. Data often drives the industry, but, with so much available and accessible, data needs to be filtered and used wisely. Outdated technology that is not properly collecting efficient data and helping its user needs to be adapted, updated, or changed completely. Don’t let your company be part of the 80% reported. Instead, take charge and invest wisely in technological advancements.