the technology performance impact equation
DESCRIPTION
What’s the true impact of technology performance issues? After surveying 304 executive from global organizations, we found that despite a growing dependence on technology, few businesses give performance or #techfail(s) the attention and investment it requires. The full study can be found at http://www.compuware.com/techfailTRANSCRIPT
+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
2
Measuring IT performance and its impact on business is a complex activity.
3
Measuring IT performance and its impact on business is a complex activity. As a result,
4
MOST COMPANIES DON’T FULLY UNDERSTAND THE COST OF A TECHNOLOGY PERFORMANCE ISSUE. Paul Czarnik, CTO Compuware
To give you a head start … WE MEASURED IT FOR YOU.
5
THE AVERAGE COST OF A MAJORTECHNOLOGYFAILURE?6
Says Who?
8
9
304CORPORATEEXECUTIVESFROM GLOBAL COMPANIES
We surveyed
10
74% from companies with an annual revenue of
$5 billionor more.
11
And … e-commerce was excluded to keep the focus on operational impact.
12
We asked a lot of critical questions but …
HERE ARE THE HIGHLIGHTS.
13
94% of executives reporteda major technology performance issue within the past 3 years.
15
The average short-term costs of reported technology failures were
SIGNIFICANT.
16
Total Short-term Cost
Recalled/wasted Products $4MSales and Marketing $13M
$17M*
*Average cost among those that reported a short term cost in these areas
17
When our distribution inventory databases went down, we couldn’t ship our product. Plus, we lost awareness of stock levels, causing us to resort to a manual count. The bottom line was a big loss in sales, plus some very upset customers.
— U.S. based Manufacturing Executive
We hate to be the bearer of bad news …
18
We hate to be the bearer of bad news … But the deeper you dig,
19
We hate to be the bearer of bad news … But the deeper you dig,
20
THE LARGER THE RAMIFICATIONSOF TECH PERFORMANCE ISSUES.
21
80%MORE THAN
#TECHFAIL
said this identical failure happened before, with half reporting it occurred at least one to two times prior.
Technology performance failures are not easily resolved…
22
THE CHALLENGE: IT Departments are treating symptoms, not finding solutions for tech failures.
23
25
A thriving company must have a thriving, respected and LoB- integrated IT department.
Paul Czarnik, CTO Compuware
26
And your company’s IT department is missing the REAL IMPACT on your business …
27
IT Executives said it took just
11 DAYSto recover from a failure.
28
IT Executives said it took just
11 DAYSto recover from a failure.
LoB Executives …
24 DAYS
29
75% of executives report the frequency of IT failures are
increasing or staying the same.
#TECHFAIL
30
This lack of integration is compounding the negative effects of technology failures, causing
SIGNIFICANTLONG-TERM IMPACT.
31
45% of executives say tech failures result in aloss of market share or brand equity.
#TECHFAIL
32
+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
33
SO HOW DO YOU
SOLVE THE PROBLEM?
+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
YOU NEED AN INTEGRATED
TECHNOLOGY PERFORMANCE STRATEGY.
34
YOU NEED AN INTEGRATED
TECHNOLOGY PERFORMANCE STRATEGY.
35
36
No company can roll back IT complexity. And that is a major cause of costly and repetitive technology issues.
An end-to-end technology performance strategy is critical to business success.
Paul Czarnik, CTO Compuware
Technology Performance can make or break your business. Read the full study at compuware.com/techfail
37