Why outdated IT systems pose a serious risk for SMEs
The indispensable nature of digitizing core business processes should have long since sunk in with decision-makers in small and medium-sized enterprises. In reality, however, there is still a significant need to catch up. The shortcomings lie not only in online marketing—so often discussed in this context—but sometimes much further back at the business's foundations!
The status quo in Swiss SMEs
Optimizing core workflows, such as accounting, using specialized IT systems is relatively common even in the smallest companies. According to a study conducted by the Institute for Quality Management and Applied Business Administration (IQB-FHS) in cooperation with Comitas AG, 83 percent of all small businesses in German-speaking Switzerland with up to 50 employees use at least a standard accounting program. However, many also still use Excel and Access databases, which makes integration and adaptation to changing business processes difficult. The optimal solution—a customized software solution precisely tailored to the specific business processes—is used by less than 20 percent of these companies.
Many solutions that enable a company to operate efficiently are either scalable or insufficiently integrated. And when more extensive, perhaps even customized, systems are used—which is primarily the case for medium-sized businesses with 50 to 100 employees (36 percent) or those with more than 100 employees (59 percent)—these systems are often outdated. This poses significant risks to the respective company. What these risks are, how to determine whether switching to a new IT system or upgrading your existing one is urgently needed, and how to proceed most efficiently are explained below.
You can also view the full study right here:
Comitas Market Study on Digitalization
What are the main dangers lurking in outdated IT systems?
Many existing IT systems are inadequate for meeting today's digital requirements. Media breaks, manual intermediate steps, and a lack of integration between applications lead to wasted time and unnecessary costs. Some of the surveyed companies explicitly desire more seamless interaction between their systems.
Furthermore, digital sales – regardless of whether B2B or B2C – continue to gain importance. Systems that do not support automated processes are increasingly becoming an obstacle to growth.
The situation becomes critical when deployed technologies no longer receive updates or support. In such cases, outages, security risks, and lengthy recovery times are almost unavoidable. Infrastructure risks, such as servers failing to start after updates, can also completely paralyze business operations.
Equally problematic is the lack of connectivity to partners and customers. Expected interfaces cannot be provided, leading to media breaks, additional work, and in the worst case, business losses. Furthermore, the lack of traceability of changes during audits or reviews can have significant legal consequences.
What factors indicate that your IT system needs to be renewed or replaced?
Once one of the scenarios described above has occurred, the resulting damage can be difficult or, in the worst case, impossible to repair. To prevent this from happening in the first place, you should ask yourself the following questions about the state of your IT and, if necessary, react with a corresponding realignment:
- Are you happy every morning when your server, and therefore your application, is still working properly and your employees can continue to complete their work on time for your customers and partners?
- Are new processes impossible to implement, or only possible with great difficulty? Are there no flexible interfaces available, or are important functions for external partners or customers not accessible online?
- How do you feel about the security of your application — are you perhaps afraid of the loss or theft of confidential, business-critical information?
- Does your software offer the ability to see in detail who changed what and when? Is it therefore sufficiently informative in the event of an audit?
- Can you use your IT system on the go, perhaps without a connection to your office network? Is a version optimized for tablets or smartphones available?
- Is your system generally future-proof, and do you always receive fast and reliable support in the event of an acute problem, so that you can quickly get back to working optimally?
According to a study by the Institute for Quality Management and Applied Business Administration (IQB-FHS) and Comitas AG, this will no longer be the case for around 30 percent (!) of currently running systems within the next three years. Furthermore, the study uses additional figures to illustrate that a significant proportion of SMEs in German-speaking Switzerland are only partially satisfied with their current applications. And that is undoubtedly one of the strongest arguments for a new IT system!
Procedure for modernizing or replacing existing systems
Many companies cannot manage a comprehensive modernization on their own. Partnering with an external IT provider opens the door to modern technologies, proven methods, and scalable architectures.
Modern web technologies allow existing applications to be rebuilt gradually or from scratch. Cloud solutions offer high security, flexible scalability, and transparent cost models. Resources can be adjusted as needed without the need to operate your own infrastructure.
Successful modernization focuses not only on technology but also on employees. Intuitive user interfaces, clear processes, and short training periods ensure acceptance and efficiency. Flexible interfaces enable seamless integration with internal and external systems, while clean data migrations minimize downtime and eliminate legacy systems.
Conclusion
Outdated IT systems are not merely a technical problem, but a business risk. Companies that modernize their systems in a timely manner secure their efficiency, competitiveness, and future viability in the long term.
If you are considering modernizing or replacing your existing IT infrastructure, Comitas will support you from analysis to implementation. We would be happy to show you, without obligation, what a modern, future-proof solution could look like.
