The quality of your IT infrastructure affects the revenue of your business. Your business relies on technology to operate, and if its performance is compromised, you’re in danger of losing customers. This article will go over some ways that the quality of your IT infrastructure can affect your revenue-from downtime to security breaches to compliance violations.
1) Downtime
Technology often fails when it’s needed most. After consultation with ECMSP you might learn just how important IT is for productivity and creating a stress-free environment for employees and customers to thrive in. A single lost customer means a lot more than just one sale gone bad; it could mean a loss of goodwill for an entire brand or company, not to mention the cost incurred by hiring someone else while waiting for repairs on malfunctioning equipment. But what does downtime really cost? In 2016 alone, major data center outages caused at least $7.6 billion in losses for US businesses, according to the Aberdeen Group.
2) Security Breaches
Security breaches are another major source of revenue loss. Cybersecurity is an increasingly significant concern for organizations large and small, with ransomware attacks making headlines all over the world. As more organized criminals turn to hacking as a money-making scheme, companies’ data suffers; eMarketer estimated that global damages from cybercrime would total $6 trillion annually by 2021. You can recover some of these costs by investing in cybersecurity, but it’s unlikely you’ll ever fully recoup them.
A data breach can be incredibly costly for a business. Not only does the company have to spend money on forensic investigations and fixing the issue, but it also has to deal with the PR nightmare that typically accompanies a data breach. In addition, companies can face fines from government organizations for violating data security regulations. The Ponemon Institute’s 2017 Cost of Data Breach Study found that the average cost of a data breach was $3.86 million.
3) Compliance Violations
Regulatory compliance has become mandatory for countless business types these days-and not just financial services or healthcare companies. You may be under heavy scrutiny from regulators if your industry isn’t, but you could still be at risk for costly fines or even lawsuits if you jeopardize consumer privacy or leave other vulnerabilities unaddressed. Some examples of compliance violations include not encrypting sensitive information properly, allowing unauthorized access to personal data, and sharing passwords without proper safeguards.
Many businesses must adhere to specific compliance regulations in order to operate legally. Failing to comply with these regulations can result in hefty fines, as well as damage to a company’s reputation. For example, the Health Insurance Portability and Accountability Act (HIPAA) requires that healthcare organizations safeguard their patients’ personal health information. If a breach occurs, the organization could face more than $1.5 million in fines.
4) Additional Costs
Technology downtime can lead to other problems, too-and they’re costly ones. For example, customers who are unable to connect with customer service representatives because issues go unresolved will often opt for switching providers rather than enduring further headaches. Because many customers won’t hesitate to post complaints online about poor service experiences on review sites like Yelp, Social Media, and Google Reviews, potential revenue losses can mount up quickly. Lost productivity is another cost of poor IT infrastructure quality, as employees waste time troubleshooting or waiting for systems to become available again.
5) Lost Opportunities
Technological limitations may prevent your business from making the most out of a situation, which negatively impacts revenue. For example, if you rely on a network connection to provide in-store services but there’s a problem with it, customers will leave and your sales will plummet. The same goes for digital in-person interactions; let’s say you set up a kiosk at the mall, but your wireless service is spotty or not available. You won’t be able to offer customers the full range of services you’d designed for them to enjoy.
Finding additional revenue streams is crucial in today’s competitive business environment. Fortunately, organizations that have prioritized data storage are better positioned to take advantage of new opportunities as they arise. However, if your IT infrastructure is lacking, you may find it difficult to capitalize on new market trends and innovations.
6) Employee Morale and Productivity
Employees who are forced to work with outdated or malfunctioning technology often become frustrated. This can lead to decreased productivity and even job dissatisfaction. In fact, a recent study by Robert Half Technology found that 43 percent of CIOs surveyed said that poor employee morale was the biggest challenge their department faced.
On the other hand, happy employees are more likely to be productive. When your employees have the tools they need to do their jobs well, they’re less likely to become frustrated and more likely to feel satisfied with their work. This can lead to decreased turnover rates and a more positive company culture.
7) Your Customers’ Opinions
Above and beyond the direct impact of any revenue losses, your customers’ opinions about your business matter. If they’re unhappy with IT services or customer service for any reason, you can bet that they’ll be vocal about it and not just to you. They may complain online in reviews, comment on social media posts, or even take their grievances directly to regulators (which can lead to fines). Because many customers make purchasing decisions based on how companies treat their employees and customers, the closer your relationship is with your clients, the more likely they are to remain loyal.
8) Competition
Being proactive about investing in technology and talent pays dividends when it comes to company reputation and competitive advantage: satisfied customers tend to stick with a provider, and potential customers often research a company’s capabilities before doing business. If your competition is offering better-quality services, then you’re at a disadvantage. Worse yet, if they’re using your poor infrastructure against you, it’s time to make some serious changes.
Poorly performing IT systems can have a significant impact on revenue. In some cases, businesses may be fined for outages or other technology-related issues. Additionally, there are a variety of other costs that can add up quickly, including lost productivity, missed opportunities, and low employee morale. Furthermore, your customers’ opinions about your company matter-and if they’re unhappy with IT services or customer service, they’ll be vocal about it. Finally, you’re at a disadvantage if your competition is offering better-quality services than you are.
