Be warned; outdated software systems or business applications will be the death of your business. Running a business on obsolete business applications is not a wise choice. They are slow, time-consuming, need repair, and are generally known as money-sucking black holes. Don’t get me wrong, outdated software will get the job done, but it will be well past the deadline by then, as outdated software is painstakingly slow and can be a home to multiple viruses and defenseless against malware and spambots. These obsolete software may even cause you a client, resulting in a financial setback.
A study conducted by Zen Business has reported that more than 50% of the offices are using moderately or completely outdated software. Outdated software applications can cause some severe damage to your company’s health resulting in a security breach and lack of productivity from your employees. From incompatibility to a financial setback, we have concocted a list of reasons why obsolete software is a hazard to your 21st century business.
What is outdated software?
Outdated software is defined as an obsolete software program that the vendor no longer supports. This means that any new-found bugs in the system won’t be addressed and fixed by the company meaning the company won’t be taking any responsibility or extra measures to protect your data from a security breach or similar issues because the company is no longer upgrading and maintaining that software.
Using outdated applications such as word and document processing applications, email clients and business applications for internal projects and financial management can disrupt your work because the creators no longer support these applications. They won’t be responsible for fixing any bugs and disruptions you encounter while using these products.
A large number of businesses don’t invest in upgrading to the newer version of the applications they use as it can be time and money-consuming and let me enlighten you, that is a bad decision!
The modern world is moving at a neck-break speed, and outdated software is not sufficient to sustain your business anymore.
Why Are Some Companies Still Using Outdated Software
If outdated software is the hindrance people claim it to be, the question arises, why are some companies still using outdated software programs? Numerous companies do not observe the practice of upgrading and updating their systems because of the belief that those new software systems will cost them a pretty penny and change the way they work. Change resistance may be the biggest reason why companies are reluctant to upgrade their systems, followed by money. Just like software, some companies even neglect upgrading their hardware, under the impression that updating hardware and software would cost a fortune.
This isn’t true at all. Research conducted by Cetan Corp has revealed that PCs more than four years old experience an average of 21 hours of downtime per year and cost 50% more to repair than the cost of purchasing a new one. Software industries tend to spend a fortune on these mechanical repairs but it is the productivity of employees that suffers a severe blow. A 2016 survey found that the U.S loses $1.8 billion each year due to wasted productivity adhering to obsolete technology.
However, most companies are prone to ignore these statistics and prefer using outdated software because they believe buying new software systems will be more expensive. I would ask you to reconsider those decisions because of the numerous risks involved in using outdated software.
Risks Of Using Outdated Software
1. Security Breach:
Cybercrime is one of the fastest-growing transgressions against businesses and individuals alike. According to some estimates, nearly 10,000 new malware threats are discovered daily. When you fail to update your system, it leaves an opening for all the eagle-eyed hackers to squeeze in and steal or corrupt your data. Leakage of sensitive data, loss of strategic files, loss of integrity and credibility as well of trust from your clients are just some of the few things that you may suffer as a consequence of not having up-to-date security measures in place. It is a known fact that customers are hesitant to trust a company with their personal data once they realize that the company has suffered through a security breach in recent times.
The easiest way to solve your security problem is to update your system. The newer software programs provide the most up-to-date security against hackers, spambots, malware and viruses. The advanced security system of the updated software prevents hackers from accessing your system and leaking information. Newer applications also come with built-in features to immediately notify if there is a security breach or virus.
As the saying goes, no pain, no gain! Advanced software systems are more expensive but also provide top-notch security, which is more than you can say for outdated applications.
2. Loss Of Productivity:
Productivity of the employees is affected the most because of outdated software. Obsolete software is more prone to malfunctioning every few months and has an overall slower interface. The lack of speed and constant repairing of the system results in frustration and annoyance in the employees. Sometimes, malfunctioning can even cause data loss, and you will lose clients because of it.
According to a survey conducted, about 16% of employees commented that using outdated software has a significant impact on their productivity.
These minor glitches can make you pay a lot, especially due to the increase in employee unhappiness. Employee dissatisfaction would inevitably result in a high turnover rate. The best way to deal with it would be to accommodate your employees and understand their needs. Equip them with the most recent and fastest technology so they can work without interruptions and let their creativity flow. Statistics show that about 57% of the employees feel more satisfied with their job in a workplace equipped with the newer version of the software.
As an employer, it is your job to try and increase your employees’ productivity because it is impossible to achieve your goals without a proficient team backing you up.
3. Growth In Incompatibility
Businesses are like the Hunger Games; they are cut-throat and merciless. To compete in today’s business world is to try and stay ten steps ahead of your competitors, but you cannot do that if you’re still using outdated software systems just because you’re stingy. Outdated software systems render you incompetent from going head to head with other leading companies.
The ideal way to beat your competitors would be to update your software systems. Using up-to-date software gives you an advantage over your opponent and helps grow your business. 49% of the business owners have said that advanced technology allowed them to compete with some of the industry’s tech giants. Don’t you think it’s time you became one too?
4. Loss Of Data Due To System Failure
Software systems aren’t meant to last forever, and to expect those systems to remain diligent and faultless forever might just be asking too much. Outdated applications need constant repairing. A single piece of your obsolete system failure may result in the loss of countless data files, and it can cost a lot to replace the failed part of the system.
As a result, your employee has lost hours sitting idle when they could have been doing some productive work, and there’s a chance of your clients getting cross too when they realize that their deadline is pushed back because you have an outdated system. Every few months buying and restoring a single part of some obsolete software will cost more than buying a new advanced software system. The better option would be to use an updated software system, it will save time and won’t cause you a fortune every few months.
5. Financial Setback
The constant need for repairing required by the outdated software systems will cost you more money in the longer run than getting something up-to-date. The use of outdated technology would also result in losing deals with clients when you cannot accommodate their requests because you do not use advanced software systems. Another more damaging financial setback would be losing clients. Your clients and customers are the primary source of your income and are the necessary ladder that can take you to the heights of unparalleled success. But that won’t be happening if you keep losing clients due to outdated applications that keep failing you. Therefore splurge some money to buy the required applications and watch your business thrive.
Obsolete software systems or business applications will prove to be an ultimate hindrance to the growth of your business. Update and upgrade your systems regularly, resulting in top-notch security and productive employees. Our company Genetech Solutions, a firm believer in keeping their software updated, provides all kinds of IT-related services and free consultation to help businesses and entrepreneurs alike.
If you have any questions about business process automation and business process management, reach out, our experts will be happy to help you with your questions.
We hope this article was helpful and informative. See you in the next one!