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
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+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
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Measuring IT performance and its impact on business is a complex activity.
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Measuring IT performance and its impact on business is a complex activity. As a result,
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MOST COMPANIES DON’T FULLY UNDERSTAND THE COST OF A TECHNOLOGY PERFORMANCE ISSUE. Paul Czarnik, CTO Compuware
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To give you a head start … WE MEASURED IT FOR YOU.
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THE AVERAGE COST OF A MAJORTECHNOLOGYFAILURE?6
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Says Who?
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304CORPORATEEXECUTIVESFROM GLOBAL COMPANIES
We surveyed
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74% from companies with an annual revenue of
$5 billionor more.
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And … e-commerce was excluded to keep the focus on operational impact.
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We asked a lot of critical questions but …
HERE ARE THE HIGHLIGHTS.
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94% of executives reporteda major technology performance issue within the past 3 years.
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The average short-term costs of reported technology failures were
SIGNIFICANT.
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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
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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
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We hate to be the bearer of bad news …
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We hate to be the bearer of bad news … But the deeper you dig,
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We hate to be the bearer of bad news … But the deeper you dig,
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THE LARGER THE RAMIFICATIONSOF TECH PERFORMANCE ISSUES.
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80%MORE THAN
#TECHFAIL
said this identical failure happened before, with half reporting it occurred at least one to two times prior.
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Technology performance failures are not easily resolved…
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THE CHALLENGE: IT Departments are treating symptoms, not finding solutions for tech failures.
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A thriving company must have a thriving, respected and LoB- integrated IT department.
Paul Czarnik, CTO Compuware
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And your company’s IT department is missing the REAL IMPACT on your business …
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IT Executives said it took just
11 DAYSto recover from a failure.
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IT Executives said it took just
11 DAYSto recover from a failure.
LoB Executives …
24 DAYS
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75% of executives report the frequency of IT failures are
increasing or staying the same.
#TECHFAIL
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This lack of integration is compounding the negative effects of technology failures, causing
SIGNIFICANTLONG-TERM IMPACT.
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45% of executives say tech failures result in aloss of market share or brand equity.
#TECHFAIL
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+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
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SO HOW DO YOU
SOLVE THE PROBLEM?
+TECH ISSUECOST
x FREQUENCY RECOVERYTIME =?
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YOU NEED AN INTEGRATED
TECHNOLOGY PERFORMANCE STRATEGY.
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YOU NEED AN INTEGRATED
TECHNOLOGY PERFORMANCE STRATEGY.
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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
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Technology Performance can make or break your business. Read the full study at compuware.com/techfail
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