By Richard Joseph
In boardrooms across industries, a familiar debate plays out: Is IT an investment or just an expense?
For many businesses, technology is a necessary evil—costly, complicated, and constantly evolving. But what happens when companies put off upgrades, delay maintenance, or ignore IT altogether?
The consequences aren’t hypothetical. They’re happening now in businesses that rely on outdated systems, unsupported applications, and technology that has been neglected for years. The cost of ignoring IT isn’t just measured in dollars—it’s measured in downtime, lost customers, security breaches, and business failures.
A Cautionary Tale: The Retail Giant That Ignored IT
Years ago, I worked for a 100-year-old department store chain that, like many legacy businesses, was slow to embrace technology. At first, they saw massive efficiency gains from implementing financial systems, inventory management, and point-of-sale integrations.
But as reliance on technology grew, so did the risks of failing to maintain it.
Repeatedly, IT leadership proposed upgrades, risk mitigation strategies, and security enhancements. The response from executives:
"We don’t have the budget."
"We’ve operated for 100 years without all this technology."
"We’re not in the computer business."
Yet, year after year, marketing and loss-prevention budgets increased without question—while technology investments were seen as expendable.
Then the inevitable happened.
A system update took down store operations for days.
Customer credit data was breached, damaging trust.
Inventory was misrouted, causing revenue loss and chaos.
When disaster struck, leadership didn’t ask, "How did we fail to plan for this?" Instead, they asked, "How did IT let this happen?"
By the time they recognized technology was as critical as loss prevention, it was too late. Competitors with modernized, secure, and scalable systems outpaced them, and this once-iconic retailer faded into history.
The Hidden Costs of Technology Neglect
This isn’t just a retail story. It’s happening across industries today. Companies that defer IT investments to "save money" often lose far more in the long run.
Downtime & Business Disruptions – Outdated systems crash, causing lost revenue and operational chaos.
Security Vulnerabilities – Unsupported software creates gaps hackers exploit to steal data.
Loss of Competitive Edge – Companies that modernize outperform and out-innovate those that don’t.
Damage to Reputation & Customer Trust – A data breach or prolonged outage shakes consumer confidence.
Technology neglect isn’t just about system failures—it’s about business failures.
"A Big Reach" or a Smart Investment? The Cost of Customizing Yourself Into a Corner
Recently, a business leader told me their investment in an enterprise ERP and WMS system felt like "a big reach" for their $50 million operation. It was a bold move—but was it the wrong move?
Absolutely not.
The company saw real value in the new platform—enhanced capabilities, improved automation, and a system built for scalability. But instead of adapting to the modern features and embracing BI and analytics for decision-making, they took another path:
They customized themselves into a corner, becoming dependent on contractors and vendors.
They forced the new system to work like the old one instead of leveraging best practices.
They answered every new question with development, not data insights.
Rather than investing in analytics and reporting, they spent time and money reconfiguring and modifying the system to present data in old, familiar ways. Every adjustment required custom code, contractors, and ongoing development costs—a short-term solution that created long-term complexity and financial strain.
Now, leadership views the platform as costly and inefficient—not because the system itself is flawed, but because their approach to it made it financially unsustainable.
The Real Lesson: ROI Comes From Strategic Use, Not Just Adoption
ROI doesn’t happen by accident—it happens when organizations:
Align technology with business goals (cost savings, efficiency, customer service).
Eliminate inefficiencies (reduce labor costs, streamline workflows).
Adopt a value-driven change approach (every system change must have a measurable benefit).
Technology investments only pay off when organizations evolve with them. Those who actively manage their IT investments—keeping systems updated, scalable, and aligned with business growth—see the long-term gains. Those who customize themselves into a corner only see the costs.
The Leadership Blind Spot: IT is Not Just an Expense
Many executives still see IT as a cost center rather than a business enabler. They approve marketing campaigns, warehouse expansions, and new product lines—but IT spending remains under constant scrutiny.
This short-term thinking is dangerous.
Companies that underfund IT today pay more in emergency fixes, lost revenue, and recovery efforts later.
Legacy systems eventually cost more to maintain than to replace.
Security breaches don’t just cause financial damage—they destroy customer trust.
Questions Every Business Leader Should Ask:
How much would it cost if our systems went down for a day, a week, or a month?
If customer data was breached tomorrow, how would it impact our reputation?
If our competitors modernize while we hold back, what will that cost us in market share?
Shifting from Cost Thinking to Value Thinking
The organizations that thrive in the next decade will be those that:
Adopt a proactive IT strategy rather than waiting for disaster.
Invest in business continuity & cybersecurity as core business functions.
Integrate IT into business planning instead of treating it as an afterthought.
Technology is not just an expense—it’s the foundation that keeps businesses competitive, secure, and scalable.
Those who recognize this will lead their industries. Those who don’t? They’ll repeat the mistakes of the past.
Future-Proof Your Business Now
Businesses that delay technology investments are gambling with their survival. It’s not a question of if an outdated system will fail—it’s when.
Instead of asking, "Can we afford this IT investment?" Leadership should be asking, "Can we afford not to?"
What’s your organization’s biggest challenge in maintaining technology? Let’s discuss.
Richard Joseph is a technology and business strategist focused on supply chains, digital transformation, and the intersection of economic policy and modern enterprise.