Can service level management reduce the staggering cost of it failure?
✍ Scribed by Ken Thompson
- Publisher
- Elsevier Science
- Year
- 1994
- Weight
- 356 KB
- Volume
- 1994
- Category
- Article
- ISSN
- 0960-2593
No coin nor oath required. For personal study only.
✦ Synopsis
A major study, sponsored by the DTI a few years back, estimated that organizations in the UK were wasting around 20% of their annual revenues in 'IT failure costs'. Thus the typical Times Top 1000 blue-chip organization in the UK could be burning the staggering amount of over £200 million per annum due to inadequacies in its IT/IS provision.
IT failure costs can be split into two types -those which result in additional costs to the internal IS/IT function, such as a higher level of maintenance spend than planned, and those which directly cost the business money. The latter are, of course, much harder to quantify than the internal IS/IT losses, but also dwarf the former in their sheer scale. For example, if a new application, cost-justified on the basis of saving the business £1 million per annum, has its implementation delayed six months due to failures in the software development service, then the business has lost half a million pounds. If poor system response times on the same organization's Order Processing system, caused by inadequate capacity planning, delay by a year