CONSEQUENCE OF SUBSTANDARD TECHNOLOGY

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.

SOURCES FOR THIS PRESENTATION

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

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.

WHAT IS UNIFIED COMMUNICATIONS? “COMMUNICATIONS INTEGRATED TO OPTIMISE BUSINESS PROCESSES”.

GLOBAL SPENDING ON IT( MILLIONS $)

HARDWARE EXPENDITURE

GLOBAL IT SPEND (ENTERPRISE)

TELECOMMUNICATIONS SPEND

PROFESSIONAL SERVICES

13.4% SHIFT

IT SPENDING BY INDUSTRY VERTICAL MARKETS WORLDWIDE (MILLIONS OF $)

Doing more with less

BPI TOPS THE LIST

BUSINESS PRIORITIES CONTIN`D

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. oUPGRADING SERVER HARDWARE (48%) oDISASTER RECOVERY (47%) oSERVER UTILISATION (47%) SOURCE:GARTNER GROUP

COST OF ONE HOUR DOWNTIME CONTINUITY INFLUENCE TRAVEL DISRUTION PERSONNAL CHALLENGES PANDEMICTERRORISM EXTREME WEATHER 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

FACTS FROM THE UK TRAVEL DISRUPTION FACTS oTHE LONDON TUBE STRIKE AFFECTED 6 OUT OF 10 BUSINESSES COSTING APPROXIMATELY £100 MILLION TO LONDON BUSINESSES ( SOURCE – LONDON CHAMBER OF COMMERCE) oCONGESTION IN THE SOUTH EAST OF THE UK WILL COST THE UK £2 BILLION PA BY 2021 ( SOURCE – SOUTH EAST ENGLAND DEVELOPMENT AGENCY) o20% OF THE UK WORKFORCE WERE UNABLE TO REACH THE OFFICE DUE TO EXTREME WEATHER CONDITIONS IN FEBRUARY 2009 ( SOURCE – BBC NEWS) oTHE JULY 7 TH BOMBINGS IN LONDON COST AN ESTIMATED £300 MILLION IN LOST BUSINESS AND EMPLOYEE ABSENCE ( SOURCE – NEW SCOTSMAN) oSWINE FLU COULD COST THE UK ECONOMY £1.5 BILLION PER DAY ( SOURCE – FEDERATION OF SMALL BUSINESSES) oIN 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)

COST OF ONE HOUR DOWNTIME

HOW LONG TO WAIT?

MEASURE YOUR RISK

OUT OF OUR CONTROL?

TAKE THE TEST- LOOK AT THE MODEL BELOW AND USE THE METRICS TO ANALYSE YOUR BUSINESS

NEW TECHNOLOGY SOLUTIONS SHOW POSITIVE IMPACTS ON THESE KEY AREAS. TRY IT. Activity Based Costing Activity Based Costing Volume of Transactions Volume of Transactions X Time to Transact Time to Transact X Cost per Minute Cost per Minute = Cost Reduction/Increase = Cost Reduction/Increase BC Risk Modeling BC Risk Modeling Frequency of Downtime Frequency of Downtime X Time “Down” in hours Time “Down” in hours X Revenue per Hour Revenue per Hour = Risk Measured = Risk Measured

USE THE METRICS TO GIVE AN IMPRESSION OF YOUR CURRENT BUSINESS STATUS Investment Hurdle Investment Hurdle Impact of each Failure Impact of each Failure X Probability of Failure Probability of Failure - Cost of Solution Cost of Solution = Break Even Point = Break Even Point Take Rate Modeling Take Rate Modeling Number of Opportunities Number of Opportunities X Take/Conversion Rate Take/Conversion Rate X Value per Conversion Value per Conversion = Revenue Improvement/Loss = Revenue Improvement/Loss

EXAMPLE DOWNTIME COSTS TAKEN FROM 400 OF THE FORTUNE 1000 COMPANIES CATEGORYCOST ONE HOUR DOWNTIME$78, X AVERAGE # HOURS PER INCIDENT4.2 X AVERAGE # OF INCIDENTS PER YEAR9 = TOTAL DOWNTIME COSTS PER YEAR$2,948, HOURLY IMPACT BY INDUSTRY AIRLINE RESERVATIONS$41, CREDIT CARD AUTHORISATION$2,600, ONLINE NETWORK FEES$25, CATALOGUE SALES$90,00.00