More often than not, technological advancements are justified. For example, if a specific type of software is upgraded to improve performance and increase functionality, the changes should be considered positive additions to an existing system. However, given today's economic uncertainty, some organizations may wish to procure legacy systems at a discounted rate, all in an effort to reduce overall spending. That could be a fatal mistake.

There are obvious risks that stem from buying an older system, just as there are rewards for going with a new solution. Staying in front of technological innovation can help a company experience operational benefits that can set them apart from their competition. Moreover, organizations could run into a major problem if their provider moves on from a specific solution.

For example, by foregoing a number of generational upgrades and purchasing an aging system, companies run the risk of their respective vendors stopping all forms of support and service. That means maintenance, customer service and any other pertinent actions from the provider may cease altogether. 

Typically, these decisions are made fairly well in advance so customers and resellers will be warned ahead of time, but a business that just invested huge sums of money into a soon-to-be retired system may not have the financial capability to simply buy another system. If a business continues to use an unsupported system, they could suffer serious consequences if they should run into any problems with their software.

It should be noted, however, that it's still important for organizations to maintain their cognizance of system costs and try to strengthen the return on their investment. Working with a business systems and ERP provider will help organizations properly evaluate potential systems and find the most cost-effective solution without compromising innovative ambition.