5 Ways Outdated IR Tech Costs You Money
Digital acceleration in investor relations has always been fast, but it has picked up speed since the start of the pandemic. Now more than three years later, things aren’t letting up. Innovations in IR technology emerge all the time.
You can always count on a top IR firm such as Q4 to release new software that solves problems as they emerge. These IR tools provide better ways to organize CRM information, host webcasts, and analyze digital engagement metrics in an increasingly digital environment.
With each new year that passes and tool that emerges, older software suffers. Here’s what can happen if you hold onto software for too long.
1. Software Rot
Entropy increases with time, even with software. In the tech world, this slow breakdown over time is called software rot.
Software rot describes how the tool in question deteriorates over time due to external factors. These may include unused code revealing bugs that reduce the functionality of the software, or the architecture of the code beginning to degrade as IT fails to perform regular maintenance and updates.
2. The Threat of End of Life
Every product has a lifespan. End of Life (EOL) represents that moment when a software company pulls the plug on an old product. Eventually, this will cross over to its End of Support (EOS) era.
While you may still use it long after these end dates, you will lose all technical support. The software company won’t issue patches for bugs or glitches, which can interfere with its features. More distressingly, these unattended bugs may leave your enterprise vulnerable to security risks after EOS.
3. Data Loss
Software rot, EOL, and EOS can increase the chance you suffer critical IR intelligence loss at the worst possible moment. The deterioration of code and lack of technical support can result in unpredictable outages. Worse yet, you may lose access to backups without support, which could mean you lose this IR intelligence forever.
According to an oft-cited University of Texas paper, “Financial and Functional Impacts of Computer Outages on Businesses,” a whopping 94% of companies that suffer a catastrophic loss of data don’t survive.
4. Drop in Productivity
Outdated IR software can bring the workday to a screeching halt before things get so dire.
Unplanned outages and downtime are the most obvious reasons why older tech can interfere with your day-to-day tasks. But don’t overlook how legacy systems can reduce productivity simply because they’re slow. These slowdowns can prolong or complicate simple tasks, frustrating your team as they go about their day.
The older your software gets, the less likely it will integrate with new platforms. This can leave you in the dark, especially as new innovations in investor relations can unlock ground-breaking functions.
Engagement analytics, for example, is the latest IR tool that aggregates all your IR tools into one end-to-end platform. Not only does it streamline multiple data systems into one place, but it also uses state-of-the-art AI processing to analyze this data and extract actionable insights.
However, even the best-in-class engagement analytics may not be able to sync perfectly with rotted software or EOL and EOS products.
Talk to an Experienced IR Firm for Advice
Old software doesn’t necessarily mean outdated, but it could mean your tools are headed toward obsolescence. Reach out to an experienced IR company to discuss the latest innovations in investor relations technology. With their help, you can bring your IR strategy up to date.