If your critical business applications go down, or even run below peak level, your business pays a tremendous price. When a major IT incident occurs, engaging the right people quickly to restore service and manage communications is crucial. No big news flash there.
However I have to admit I was pretty alarmed when a new survey by Dimensional Research revealed an almost cavalier approach toward the handling of major IT incidents. Security and business incidents occur so regularly that we aren't even surprised anymore when they happen. They come in the form of data breaches, malware attacks, power outages, intermittent service availability and performance degradation to name a few.
Click here to see infographic below
In fact, according to the survey, 68 percent of companies surveyed experienced a major incident at least several times a year. For larger organizations with at least 5,000 employees, that figure rises to more than 90 percent.
The Consequences of Slow Response
Rapid, effective response can limit the damage. In a separate survey performed by Dimensional Research in April, 60 percent said finding and engaging the right person takes more than 15 minutes. But before 15 minutes have elapsed, almost half (45 percent) said the business has already started to suffer.
And the suffering is real, according to the most recent survey. A large majority (82 percent) says application downtime affects revenue. According to a 2014 study by industry analyst firm IDC, the average cost of a critical application failure per hour is $500,000 to $1 million.
Given how quickly, seriously and frequently a major incident affects businesses, why aren't they making critical investments in major incident management?
Money and Resources
First, a best-in-class intelligent communication platform is not cheap. So organizations that still view major incidents as unlikely events could be put off just by the cost.
Another factor is resources. Barely half of companies in the new survey (52 percent) have a major incident team. Only 44 percent of those companies have team members who are dedicated solely to major incident management.
Finally, maybe the word hasn't gotten out to all companies just how important rapid and effective major incident management is.
Is the Status Quo Working?
The effectiveness of current practices is not entirely clear because only 68 percent of companies even specify target times for resolving major incidents. But among those that are, the results are not good.
More than three-quarters of respondents, 76 percent, miss their target times sometimes or often. Most companies in the survey (58 percent) have target times between 30-90 minutes. Remember the IDC figure of up to $1 million per hour of application downtime? Do the math.
So What Have We Learned?
Regardless of why more companies haven't created processes and implemented solutions for resolving major incidents, the current state of affairs is troubling. And this article has only touched on the financial implications of major incidents. Business also suffer from reputational damage, loss of customer loyalty and trust, and sanctions from regulatory bodies.
Major incidents happen frequently, and every business should assume that sooner or later it will experience one. The ability to quickly, efficiently and effectively respond could save the business, its shareholders, its customers and partners.
Are you prepared?
The Latest
On average, only 48% of digital initiatives enterprise-wide meet or exceed their business outcome targets according to Gartner's annual global survey of CIOs and technology executives ...
Artificial intelligence (AI) is rapidly reshaping industries around the world. From optimizing business processes to unlocking new levels of innovation, AI is a critical driver of success for modern enterprises. As a result, business leaders — from DevOps engineers to CTOs — are under pressure to incorporate AI into their workflows to stay competitive. But the question isn't whether AI should be adopted — it's how ...
The mobile app industry continues to grow in size, complexity, and competition. Also not slowing down? Consumer expectations are rising exponentially along with the use of mobile apps. To meet these expectations, mobile teams need to take a comprehensive, holistic approach to their app experience ...
Users have become digital hoarders, saving everything they handle, including outdated reports, duplicate files and irrelevant documents that make it difficult to find critical information, slowing down systems and productivity. In digital terms, they have simply shoved the mess off their desks and into the virtual storage bins ...
Today we could be witnessing the dawn of a new age in software development, transformed by Artificial Intelligence (AI). But is AI a gateway or a precipice? Is AI in software development transformative, just the latest helpful tool, or a bunch of hype? To help with this assessment, DEVOPSdigest invited experts across the industry to comment on how AI can support the SDLC. In this epic multi-part series to be posted over the next several weeks, DEVOPSdigest will explore the advantages and disadvantages; the current state of maturity and adoption; and how AI will impact the processes, the developers, and the future of software development ...
Half of all employees are using Shadow AI (i.e. non-company issued AI tools), according to a new report by Software AG ...
On their digital transformation journey, companies are migrating more workloads to the cloud, which can incur higher costs during the process due to the higher volume of cloud resources needed ... Here are four critical components of a cloud governance framework that can help keep cloud costs under control ...
Operational resilience is an organization's ability to predict, respond to, and prevent unplanned work to drive reliable customer experiences and protect revenue. This doesn't just apply to downtime; it also covers service degradation due to latency or other factors. But make no mistake — when things go sideways, the bottom line and the customer are impacted ...
Organizations continue to struggle to generate business value with AI. Despite increased investments in AI, only 34% of AI professionals feel fully equipped with the tools necessary to meet their organization's AI goals, according to The Unmet AI Needs Surveywas conducted by DataRobot ...
High-business-impact outages are costly, and a fast MTTx (mean-time-to-detect (MTTD) and mean-time-to-resolve (MTTR)) is crucial, with 62% of businesses reporting a loss of at least $1 million per hour of downtime ...