Your company may be delaying software upgrades for a variety of reasons, including:
- Lack of bandwidth
- Budgeting issues
- Change management challenges
- Impact on hardware and personnel
- And other
This happens frequently in organizations, and it’s understandable: Technology upgrades can be demanding in terms of staff time, budget resources and more.
But did you know that delaying technology also has a significant cost associated with it?
In a recent study by Chainlink Research, the average company may see costs of $300K-$1.7M in sales and $200K-$900K in profit by delaying a technology upgrade decision. The study also found that putting off a technology upgrade delays freeing up between $5M-$10M in working capital and accelerating the cash-to-cash cycle time.
By contrast, the study detailed the financial benefits of implementing a SaaS ERP system in the table below:
Financial Benefits of Implementing a SaaS ERP System
The longer the delay, the more cumulative benefits lost, according to the report. Conversely, the earlier the decision is made, the greater the benefits. The report details real-world examples of cost savings and improvements realized from implementing NetSuite.
In addition, the study found that the cost of technology delays is not limited to missed savings and cost reduction. Companies’ growth is also constrained due to the lack of systems and processes that can scale with their businesses, along with their inability to provide excellent customer service.
Is your company delaying technology without considering the impact on growth, the competitive advantage, and the lost opportunities?
If so, be sure to review this useful, detailed report to find out how delay could cost your company:
- Real-world cost savings and productivity improvements
- Sales growth
- Profitability improvements
- Missed revenue opportunities
- And more
Take a look and see how you should assess the cost of delay for your company and keep your organization competitive.