CONSEQUENCECONSEQUENCE OF OF SUBSTANDARD TECHNOLOGYSUBSTANDARD TECHNOLOGY

THINK ABOUT YOUR BUSINESS!THINK ABOUT YOUR BUSINESS!

THE OBJECTIVE FROM THIS SLIDE PRESENTATION IS TO THE OBJECTIVE FROM THIS SLIDE PRESENTATION IS TO DEMONSTRATE HOW SUBSTANDARD TECHNOLOGY CAN AFFECT DEMONSTRATE HOW SUBSTANDARD TECHNOLOGY CAN AFFECT THE DAILY OPERATIONAL ACTIVITIES OF YOUR BUISNESS THE DAILY OPERATIONAL ACTIVITIES OF YOUR BUISNESS (BUSINESS CONTINUITY).(BUSINESS CONTINUITY).

IN THIS PRESENTATION YOU WILL FIND THE TOOLS TO IN THIS PRESENTATION YOU WILL FIND THE TOOLS TO MATHEMATICALLY ANALYSE YOUR CURRENT BUSINESS MATHEMATICALLY ANALYSE YOUR CURRENT BUSINESS SITUATION.SITUATION.

TAKE YOUR TIME TO READ THROUGH THE PRESENATION. WE TAKE YOUR TIME TO READ THROUGH THE PRESENATION. WE HOPE IT WILL STIMULATE YOUR THOUGHT PROCESSES. HOPE IT WILL STIMULATE YOUR THOUGHT PROCESSES.

SOURCES FOR THIS PRESENTATIONSOURCES FOR THIS PRESENTATION

WHAT IS BUSINESS CONTINUTITY?WHAT IS BUSINESS CONTINUTITY?

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

WHAT IS OPERATIONAL CONTINUITY?WHAT IS OPERATIONAL CONTINUITY?

OPERATIONAL CONTINUITY, OFTEN CALLED “BUSINESS OPERATIONAL CONTINUITY, OFTEN CALLED “BUSINESS CONTINUITY”, “BUSINESS RECOVERY”, OR “DISASTER CONTINUITY”, “BUSINESS RECOVERY”, OR “DISASTER RECOVERY”, IS THE PROCESS BY WHICH AN ORGANISATION RECOVERY”, IS THE PROCESS BY WHICH AN ORGANISATION MAKES PLANS TO ENSURE ITS ABILITY TO CONTINUE TO FUNCTION MAKES PLANS TO ENSURE ITS ABILITY TO CONTINUE TO FUNCTION DURING AN EMERGENY OR DISASTER. IT INCLUDES PLANNING DURING AN EMERGENY OR DISASTER. IT INCLUDES PLANNING HOW TO CONTINUE PROVIDING SERVICES AND TO RECOVER LOST HOW TO CONTINUE PROVIDING SERVICES AND TO RECOVER LOST RESOURCES.RESOURCES.

THE GOAL IS TO REDUCE THE TIME THAT FUNTIONS WILL BE THE GOAL IS TO REDUCE THE TIME THAT FUNTIONS WILL BE INTERUPTED AND TO DECREASE THE TIME NEEDED TO RETURN TO INTERUPTED AND TO DECREASE THE TIME NEEDED TO RETURN TO NORMAL.NORMAL.

WHAT IS UNIFIED COMMUNICATIONS?WHAT IS UNIFIED COMMUNICATIONS?

““COMMUNICATIONS INTEGRATED TO OPTIMISE COMMUNICATIONS INTEGRATED TO OPTIMISE BUSINESS PROCESSES”.BUSINESS PROCESSES”.

GLOBAL SPENDING ON IT( MILLIONS $)GLOBAL SPENDING ON IT( MILLIONS $)

HARDWARE EXPENDITUREHARDWARE EXPENDITURE

GLOBAL IT SPEND (ENTERPRISE)GLOBAL IT SPEND (ENTERPRISE)

TELECOMMUNICATIONS SPENDTELECOMMUNICATIONS SPEND

PROFESSIONAL SERVICESPROFESSIONAL SERVICES

13.4% SHIFT13.4% SHIFT

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

Doing more with lessDoing more with less

BPI TOPS THE LISTBPI TOPS THE LIST

BUSINESS PRIORITIES CONTIN`DBUSINESS PRIORITIES CONTIN`D

BUSINESS CONTINUITY TRENDS IN 2010BUSINESS CONTINUITY TRENDS IN 2010

ORGANISATIONS ARE PRESSING AHEAD IN 2010 WITH UNFINISHED ORGANISATIONS ARE PRESSING AHEAD IN 2010 WITH UNFINISHED PROJECTS AND INVESTING IN HARDWARE AND SOFTWARE TO PROJECTS AND INVESTING IN HARDWARE AND SOFTWARE TO REINVIGORATE INFRASTRUCTURE WITH AN EYE TOWARD LONG REINVIGORATE INFRASTRUCTURE WITH AN EYE TOWARD LONG TERM STRATEGIC IT REQUIREMENTS ACCORDING TO A SURVEY OF TERM STRATEGIC IT REQUIREMENTS ACCORDING TO A SURVEY OF 650 IT PROFESSIONALS.650 IT PROFESSIONALS.

o UPGRADING SERVER HARDWARE (48%)UPGRADING SERVER HARDWARE (48%)o DISASTER RECOVERY (47%)DISASTER RECOVERY (47%)o SERVER UTILISATION (47%)SERVER UTILISATION (47%)

SOURCE:GARTNER SOURCE:GARTNER GROUPGROUP

COST OF ONE HOUR DOWNTIMECOST OF ONE HOUR DOWNTIMECONTINUITY INFLUENCECONTINUITY INFLUENCE

TRAVEL DISRUTIONTRAVEL DISRUTION

PERSONNAL CHALLENGESPERSONNAL CHALLENGES

PANDEMICPANDEMIC

TERRORISMTERRORISM

EXTREME WEATHEREXTREME WEATHER

EFFECT ON CONTINUITYEFFECT ON CONTINUITY FROM INDUSTRIAL ACTION THAT AFFECTS FROM INDUSTRIAL ACTION THAT AFFECTS STAFF REACHING HQ OR ATTENDING STAFF REACHING HQ OR ATTENDING MEETINGS. AT WORSE STOPPING STAFF MEETINGS. AT WORSE STOPPING STAFF CARRYING OUT THEIR DAILY DUTIESCARRYING OUT THEIR DAILY DUTIES

UNEXPECTED ILLNESS, A SICK CHILD, A UNEXPECTED ILLNESS, A SICK CHILD, A BROKEN DOWN CAR. ALL OF THESE THINGS BROKEN DOWN CAR. ALL OF THESE THINGS IMPACT ON STAFF PRODUCTIVITY AND IMPACT ON STAFF PRODUCTIVITY AND THEREFORE CONTINUITY OF BUSINESSTHEREFORE CONTINUITY OF BUSINESS

RECENTLY THE WORLD SUFFERED WITH BIRD RECENTLY THE WORLD SUFFERED WITH BIRD FLU, AFFECTING TRAVEL ESPECIALLY WITHIN FLU, AFFECTING TRAVEL ESPECIALLY WITHIN DENSELY POPULATED CITIES. BUSINESSES DENSELY POPULATED CITIES. BUSINESSES WERE ULTIMATELY EFFECTED.WERE ULTIMATELY EFFECTED.

7/7 TRAIN BOMBINGS IN LONDON ARE AN 7/7 TRAIN BOMBINGS IN LONDON ARE AN EXAMPLE OF THE PSYCHOLOGICAL ASPECTS EXAMPLE OF THE PSYCHOLOGICAL ASPECTS KEEPING SOME EMPLOYEES FROM KEEPING SOME EMPLOYEES FROM TRAVELLINGTRAVELLING

RECENT SNOW FALL IN THE UK CLOSED RECENT SNOW FALL IN THE UK CLOSED MANY BUSINESSES FOR DAYS. ORDERS MANY BUSINESSES FOR DAYS. ORDERS WERE NOT FULFILLED AND CUSTOMERS WERE NOT FULFILLED AND CUSTOMERS LOST TO COMPETITORSLOST TO COMPETITORS

FACTS FROM THE UKFACTS FROM THE UK

TRAVEL DISRUPTION FACTSTRAVEL DISRUPTION FACTS

o THE LONDON TUBE STRIKE AFFECTED 6 OUT OF 10 BUSINESSES COSTING THE LONDON TUBE STRIKE AFFECTED 6 OUT OF 10 BUSINESSES COSTING APPROXIMATELY £100 MILLION TO LONDON BUSINESSES (APPROXIMATELY £100 MILLION TO LONDON BUSINESSES (SOURCE – LONDON CHAMBER OF SOURCE – LONDON CHAMBER OF

COMMERCE)COMMERCE)

o CONGESTION IN THE SOUTH EAST OF THE UK WILL COST THE UK £2 BILLION PA CONGESTION IN THE SOUTH EAST OF THE UK WILL COST THE UK £2 BILLION PA BY 2021 (BY 2021 (SOURCE – SOUTH EAST ENGLAND DEVELOPMENT AGENCY)SOURCE – SOUTH EAST ENGLAND DEVELOPMENT AGENCY)

o 20% OF THE UK WORKFORCE WERE UNABLE TO REACH THE OFFICE DUE TO 20% OF THE UK WORKFORCE WERE UNABLE TO REACH THE OFFICE DUE TO EXTREME WEATHER CONDITIONS IN FEBRUARY 2009 (EXTREME WEATHER CONDITIONS IN FEBRUARY 2009 (SOURCE – BBC NEWS)SOURCE – BBC NEWS)

o THE JULY 7THE JULY 7THTH BOMBINGS IN LONDON COST AN ESTIMATED £300 MILLION IN LOST BOMBINGS IN LONDON COST AN ESTIMATED £300 MILLION IN LOST BUSINESS AND EMPLOYEE ABSENCE (BUSINESS AND EMPLOYEE ABSENCE (SOURCE – NEW SCOTSMAN)SOURCE – NEW SCOTSMAN)

o SWINE FLU COULD COST THE UK ECONOMY £1.5 BILLION PER DAY (SWINE FLU COULD COST THE UK ECONOMY £1.5 BILLION PER DAY (SOURCE – FEDERATION SOURCE – FEDERATION

OF SMALL BUSINESSES)OF SMALL BUSINESSES)

o IN 2006 UNPLANNED ABSENCE COST UK BUSINESS £13 BILLION AND A 175 IN 2006 UNPLANNED ABSENCE COST UK BUSINESS £13 BILLION AND A 175 MILLION WORKING DAYS WERE LOST (MILLION WORKING DAYS WERE LOST (SOURCE – CBI/AXA LABOUR ABSENCE AND TURNOVER SURVEY 2007)SOURCE – CBI/AXA LABOUR ABSENCE AND TURNOVER SURVEY 2007)

COST OF ONE HOUR DOWNTIMECOST OF ONE HOUR DOWNTIME

HOW LONG TO WAIT?HOW LONG TO WAIT?

MEASURE YOUR RISKMEASURE YOUR RISK

OUT OF OUR CONTROL?OUT OF OUR CONTROL?

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

NEW TECHNOLOGY SOLUTIONS SHOW POSITIVE NEW TECHNOLOGY SOLUTIONS SHOW POSITIVE IMPACTS ON THESE KEY AREAS. TRY IT.IMPACTS ON THESE KEY AREAS. TRY IT.

• Activity Based CostingActivity Based Costing

• Volume of TransactionsVolume of Transactions• XX• Time to TransactTime to Transact• XX• Cost per MinuteCost per Minute

• = Cost Reduction/Increase= Cost Reduction/Increase

• BC Risk ModelingBC Risk Modeling

• Frequency of DowntimeFrequency of Downtime• XX• Time “Down” in hoursTime “Down” in hours• XX• Revenue per HourRevenue per Hour

• = Risk Measured= Risk Measured

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

• Investment Hurdle Investment Hurdle

• Impact of each FailureImpact of each Failure• XX• Probability of FailureProbability of Failure• --• Cost of SolutionCost of Solution

• = Break Even Point= Break Even Point

• Take Rate ModelingTake Rate Modeling

• Number of OpportunitiesNumber of Opportunities• XX• Take/Conversion RateTake/Conversion Rate• XX• Value per ConversionValue per Conversion

• = Revenue Improvement/Loss= Revenue Improvement/Loss

EXAMPLEEXAMPLE DOWNTIME COSTS TAKEN FROM DOWNTIME COSTS TAKEN FROM 400 OF THE FORTUNE 1000 COMPANIES400 OF THE FORTUNE 1000 COMPANIES

CATEGORYCATEGORY COSTCOST

ONE HOUR DOWNTIMEONE HOUR DOWNTIME $78,000.00$78,000.00

XX

AVERAGE # HOURS PER INCIDENTAVERAGE # HOURS PER INCIDENT 4.24.2

XX

AVERAGE # OF INCIDENTS PER YEARAVERAGE # OF INCIDENTS PER YEAR 99

==

TOTAL DOWNTIME COSTS PER YEARTOTAL DOWNTIME COSTS PER YEAR $2,948,400.00$2,948,400.00

HOURLY IMPACT BY INDUSTRYHOURLY IMPACT BY INDUSTRY

AIRLINE RESERVATIONSAIRLINE RESERVATIONS $41,000.00$41,000.00

CREDIT CARD AUTHORISATIONCREDIT CARD AUTHORISATION $2,600,000.00$2,600,000.00

ONLINE NETWORK FEESONLINE NETWORK FEES $25,250.00$25,250.00

CATALOGUE SALESCATALOGUE SALES $90,00.00$90,00.00