CONSEQUENCE OF SUBSTANDARD TECHNOLOGY

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CONSEQUENCE OF SUBSTANDARD TECHNOLOGY
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THINK ABOUT YOUR BUSINESS!

• THE OBJECTIVE FROM THIS SLIDE PRESENTATION IS TO
  DEMONSTRATE HOW SUBSTANDARD TECHNOLOGY CAN AFFECT
  THE DAILY OPERATIONAL ACTIVITIES OF YOUR BUISNESS
  (BUSINESS CONTINUITY).
• IN THIS PRESENTATION YOU WILL FIND THE TOOLS TO
  MATHEMATICALLY ANALYSE YOUR CURRENT BUSINESS
  SITUATION.
• TAKE YOUR TIME TO READ THROUGH THE PRESENATION.
  WE HOPE IT WILL STIMULATE YOUR THOUGHT PROCESSES.
  

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SOURCES FOR THIS PRESENTATION
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WHAT IS BUSINESS CONTINUTITY?

• BUSINESS CONTINUITY IS THE ACTIVITY PERFORMED BY
  AN ORGANISATION TO ENSURE CRITICAL BUSINESS
  FUNCTIONS WILL BE AVAILABLE TO CUSTOMERS,
  SUPPLIERS, REGULATORS AND OTHER ENTITIES THAT
  MUST HAVE ACCESS TO THOSE FUNCTIONS

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WHAT IS OPERATIONAL CONTINUITY?

• OPERATIONAL CONTINUITY, OFTEN CALLED BUSINESS
  CONTINUITY, BUSINESS RECOVERY, OR DISASTER
  RECOVERY, IS THE PROCESS BY WHICH AN
  ORGANISATION MAKES PLANS TO ENSURE ITS ABILITY TO
  CONTINUE TO FUNCTION DURING AN EMERGENY OR
  DISASTER. IT INCLUDES PLANNING HOW TO CONTINUE
  PROVIDING SERVICES AND TO RECOVER LOST RESOURCES.
• THE GOAL IS TO REDUCE THE TIME THAT FUNTIONS
  WILL BE INTERUPTED AND TO DECREASE THE TIME
  NEEDED TO RETURN TO NORMAL.

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WHAT IS UNIFIED COMMUNICATIONS?

• COMMUNICATIONS INTEGRATED TO OPTIMISE BUSINESS
  PROCESSES.

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GLOBAL SPENDING ON IT( MILLIONS )
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HARDWARE EXPENDITURE
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GLOBAL IT SPEND (ENTERPRISE)
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TELECOMMUNICATIONS SPEND
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PROFESSIONAL SERVICES
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13.4 SHIFT
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IT SPENDING BY INDUSTRY VERTICAL MARKETS
WORLDWIDE (MILLIONS OF )
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Doing more with less
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BPI TOPS THE LIST
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BUSINESS PRIORITIES CONTIND
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BUSINESS CONTINUITY TRENDS IN 2010

• ORGANISATIONS ARE PRESSING AHEAD IN 2010 WITH
  UNFINISHED PROJECTS AND INVESTING IN HARDWARE AND
  SOFTWARE TO REINVIGORATE INFRASTRUCTURE WITH AN
  EYE TOWARD LONG TERM STRATEGIC IT REQUIREMENTS
  ACCORDING TO A SURVEY OF 650 IT PROFESSIONALS.
• UPGRADING SERVER HARDWARE (48)
• DISASTER RECOVERY (47)
• SERVER UTILISATION (47)
• SOURCEGARTNER GROUP

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COST OF ONE HOUR DOWNTIME

• CONTINUITY INFLUENCE
• TRAVEL DISRUTION
• PERSONNAL CHALLENGES
• PANDEMIC
• TERRORISM

• EFFECT ON CONTINUITY
• FROM INDUSTRIAL ACTION THAT AFFECTS STAFF
  REACHING HQ OR ATTENDING MEETINGS. AT WORSE
  STOPPING STAFF CARRYING OUT THEIR DAILY DUTIES
• UNEXPECTED ILLNESS, A SICK CHILD, A BROKEN DOWN
  CAR. ALL OF THESE THINGS IMPACT ON STAFF
  PRODUCTIVITY AND THEREFORE CONTINUITY OF BUSINESS
• RECENTLY THE WORLD SUFFERED WITH BIRD FLU,
  AFFECTING TRAVEL ESPECIALLY WITHIN DENSELY
  POPULATED CITIES. BUSINESSES WERE ULTIMATELY
  EFFECTED.
• 7/7 TRAIN BOMBINGS IN LONDON ARE AN EXAMPLE OF
  THE PSYCHOLOGICAL ASPECTS KEEPING SOME EMPLOYEES
  FROM TRAVELLING
• RECENT SNOW FALL IN THE UK CLOSED MANY
  BUSINESSES FOR DAYS. ORDERS WERE NOT FULFILLED
  AND CUSTOMERS LOST TO COMPETITORS

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FACTS FROM THE UK

• TRAVEL DISRUPTION FACTS
• THE LONDON TUBE STRIKE AFFECTED 6 OUT OF 10
  BUSINESSES COSTING APPROXIMATELY 100 MILLION TO
  LONDON BUSINESSES (SOURCE LONDON CHAMBER OF
  COMMERCE)
• CONGESTION IN THE SOUTH EAST OF THE UK WILL COST
  THE UK 2 BILLION PA BY 2021 (SOURCE SOUTH EAST
  ENGLAND DEVELOPMENT AGENCY)
• 20 OF THE UK WORKFORCE WERE UNABLE TO REACH THE
  OFFICE DUE TO EXTREME WEATHER CONDITIONS IN
  FEBRUARY 2009 (SOURCE BBC NEWS)
• THE JULY 7TH BOMBINGS IN LONDON COST AN ESTIMATED
  300 MILLION IN LOST BUSINESS AND EMPLOYEE
  ABSENCE (SOURCE NEW SCOTSMAN)
• SWINE FLU COULD COST THE UK ECONOMY 1.5 BILLION
  PER DAY (SOURCE FEDERATION OF SMALL BUSINESSES)
• IN 2006 UNPLANNED ABSENCE COST UK BUSINESS 13
  BILLION AND A 175 MILLION WORKING DAYS WERE LOST
  (SOURCE CBI/AXA LABOUR ABSENCE AND TURNOVER
  SURVEY 2007)

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COST OF ONE HOUR DOWNTIME
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HOW LONG TO WAIT?
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MEASURE YOUR RISK
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OUT OF OUR CONTROL?
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TAKE THE TEST- LOOK AT THE MODEL BELOW AND USE
THE METRICS TO ANALYSE YOUR BUSINESS
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NEW TECHNOLOGY SOLUTIONS SHOW POSITIVE IMPACTS ON
THESE KEY AREAS. TRY IT.

• BC Risk Modeling
• Frequency of Downtime
• X
• Time Down in hours
• X
• Revenue per Hour
• Risk Measured

• Activity Based Costing
• Volume of Transactions
• X
• Time to Transact
• X
• Cost per Minute
• Cost Reduction/Increase

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USE THE METRICS TO GIVE AN IMPRESSION OF YOUR
CURRENT BUSINESS STATUS

• Investment Hurdle
• Impact of each Failure
• X
• Probability of Failure
• -
• Cost of Solution
• Break Even Point

• Take Rate Modeling
• Number of Opportunities
• X
• Take/Conversion Rate
• X
• Value per Conversion
• Revenue Improvement/Loss

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EXAMPLE DOWNTIME COSTS TAKEN FROM 400 OF THE
FORTUNE 1000 COMPANIES

• CATEGORY COST
• ONE HOUR DOWNTIME 78,000.00
• X
• AVERAGE HOURS PER INCIDENT 4.2
• X
• AVERAGE OF INCIDENTS PER YEAR 9
• TOTAL DOWNTIME COSTS PER YEAR 2,948,400.00
• HOURLY IMPACT BY INDUSTRY
• AIRLINE RESERVATIONS 41,000.00
• CREDIT CARD AUTHORISATION 2,600,000.00
• ONLINE NETWORK FEES 25,250.00
• CATALOGUE SALES 90,00.00