In today's digital era, the role of Information Technology (IT) in business operations cannot be overstated. Bakersfield, being no exception, has a dynamic business ecosystem that thrives on the robustness of its IT infrastructure. As such, IT support is not merely an additional service but a necessity. By understanding the implications of neglecting IT services, small businesses in Bakersfield can avoid costly mistakes and enhance operational efficiency.
The Role of IT in Local Businesses: An Overview
Bakersfield's business landscape, from retail and manufacturing to services and consultancy, rapidly incorporates digital solutions. This integration helps local businesses:
- Streamline processes.
- Enhance customer experience.
- Foster growth by leveraging data analytics.
- Secure sensitive data.
While digital solutions amplify business potential, they come with challenges, making IT support indispensable.
According to the U.S. Federal Communications Commission;
The Internet allows businesses of all sizes and from any location to reach new and larger markets and provides opportunities to work more efficiently by using computer-based tools. Whether a company is thinking of adopting cloud computing or just using email and maintaining a website, cybersecurity should be a part of the plan. Theft of digital information has become the most commonly reported fraud, surpassing physical theft. Every business that uses the Internet is responsible for creating a culture of security that will enhance business and consumer confidence.[1]
Consequences of Neglecting IT Support
Downtime & Loss of Revenue
A single IT issue can bring operations to a halt, resulting in significant downtime. For instance, a network failure can disrupt POS systems in retail, causing a loss in sales. Studies have shown that unplanned downtimes cost businesses thousands of dollars per minute.
On average, studies show, unplanned downtime costs 35% more per minute than planned downtime.
The direct costs of unplanned downtime can be staggering: An IBM Global Services study puts the average revenue cost of an unplanned application outage at over $400,000 per hour for large enterprises in any sector. And these outages add up. The same study shows one in three organizations experience unplanned downtime on a monthly basis. Similar research from Dunn & Bradstreet shows that 59% of Fortune 500 companies experience a minimum of 1.6 hours of unplanned downtime per week.[2]
Cybersecurity Threats
Without consistent IT support, businesses expose themselves to cyberattacks. In 2019, cyberattacks on small businesses led to an average loss of $200,000.[3]
According to the Hiscox 2022 Cyber Readiness Report;
The median cost per respondent of all cyber attacks suffered has risen 30% in the past year, to just under $17,000. But that masks a wide range of outcomes – between a low of $9,900 in Belgium and a high of $28,100 in the UK, where costs more than doubled. Costs also doubled in Ireland – to $16,800.
More firms were hit by ransomware – 19% compared with 16% the previous year. Two-thirds (66%) paid up and more than half (53%) paid ransoms on multiple occasions. US and Irish firms were most likely to pay up, German ones least likely. The single largest ransom paid was just under $100,000, marginally up on last year’s $95,000.One strange anomaly: the food and drink sector was the least targeted with ransomware (only 14% of firms reported an attack) but the most likely to pay a ransom – 62% of affected firms gave in.[4]
Bakersfield businesses are not immune to these threats, emphasizing the importance of regular system checks and updates.
Loss of Customer Trust
Data breaches or operational inefficiencies can erode customer trust. A single data breach can result in a significant decrease in brand value. Rebuilding this trust can be time-consuming and expensive.
According to the International Trademark Association;
[...] the consequences of a data breach linger long after the incident. The first year after the incident accounts for only 67 percent of the total cost: 22 percent of costs were incurred in the second year, while 11 percent of the costs occurred more than two years after the data breach.[5]
Inefficient Business Processes
Without adequate IT support, businesses might use outdated or inefficient software, leading to slower operations and decreased productivity.
According to Industry Dive;
[...] a recent survey found that U.S. employers may be losing up to $1.8 trillion in wasted productivity due to aging infrastructure and outdated technology.
The Samanage State of Workplace Survey, which polled nearly 3,000 U.S. working adults in late January, found that workers spend an average of 520 hours a year — more than one full day’s work each week — on repetitive services and tasks that could be easily automated, such as, password reset requests, new employee onboarding, contract review and approval, and office supply requests, to name a few.
Based on a average national hourly wage of $25.39, Samanage found the current situation translates to businesses losing $13,202.80 a year per employee on unproductive tasks. With a U.S. labor force of more than 140 million, this totals a collective loss of $1.8 trillion annually.[6]
Bakersfield's Business Landscape: Why IT Support is a Priority
Bakersfield, with its diverse economy, sees a wide range of IT needs. From the advanced agricultural techniques employed in Kern County to the energy sector, businesses leverage technology for optimization. Thus, having a local IT support that understands Bakersfield's unique business challenges can be a game-changer.
Conclusion
In an age where business is synonymous with technology, IT support becomes not just a requirement but a cornerstone of success. For small businesses in Bakersfield, neglecting IT support is not an option. Embracing it prevents potential losses and positions businesses for growth and success in the competitive market.
References
- Federal Communications Commission. (2011, May 13). Cybersecurity for Small Businesses. Federal Communications Commission. https://www.fcc.gov/communications-business-opportunities/cybersecurity-small-businesses
- The Costs of Planned vs Unplanned Downtime. (2023, May 15). Cockroach Labs. https://www.cockroachlabs.com/blog/planned-vs-unplanned-downtime/
- Steinberg, S. (2019, October 13). Cyberattacks now cost small companies $200,000 on average, putting many out of business. CNBC. https://www.cnbc.com/2019/10/13/cyberattacks-cost-small-companies-200k-putting-many-out-of-business.html
- Cyber Readiness Report 2022. (n.d.). https://www.hiscoxgroup.com/sites/group/files/documents/2022-05/22054%20-%20Hiscox%20Cyber%20Readiness%20Report%202022-EN_0.pdf
- edelman.admin. (2020, March 1). Data Protection Committee Update: The Effect of a Data Breach on Brand Value. International Trademark Association. https://www.inta.org/news-and-press/inta-news/data-protection-committee-update-the-effect-of-a-data-breach-on-brand-value/
- Outdated tech may be costing US employers $1.8T thanks to “repetitive tasks.” (n.d.). HR Dive. https://www.hrdive.com/news/outdated-tech-may-be-costing-us-employers-18t-thanks-to-repetitive-tasks/414819/
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