As someone who has been in Denver computer repair for more than 15 years, I find this next statistic to be a pretty scary (but true) one. Up to 80 percent of global businesses suffer a major technology failure that costs them billions of dollars every year. And some experts say that the worldwide economy takes up to a $6 trillion hit each year in relation to system failures, breaches and other technology glitches. And trust me, if the heavy-hitters are getting hit hard, so are small to mid-size businesses.
And the cost of IT failure isn’t simply in the nuts and bolts of data recovery, new security and hardware upgrades. Sure these things can cost a chunk of change, but for the most part they pale in comparison to two much larger profit suckers.
Short Term Losses. Recent research conducted and published by software firm Compuware confirmed that short term interruptions in sales revenues caused by delayed or corrupted order fulfilment and shipping accounted for a large portion of profit loss in those companies that experienced a substantial technology meltdown. The study also estimated the average time to get these businesses up and running again at somewhere between 11 – 24 days. Sure, I called this paragraph “short term losses,” but three weeks can feel like a lifetime when your business is broken (and even in a competitive IT market like Denver computer repair and crisis resolutions take time).
Long Term Effects. Now this is scary; as many as 45% of businesses in Compuware’s study said that they suffered losses to market share and brand equity as a result of technology failures. But keep this in mind. The big guys have teams of analysts, crisis mitigation companies and PR firms to help smooth out the lingering effects of data breaches and system downtime, while smaller businesses often suffer for years trying to regain their former pre-tech failure toehold. And many simply don’t survive.
Given the general lack of IT failure financial analytics and the reluctance of many businesses to disclose the true extent of their related losses, it is probably safe to assume the true cost of systems failure globally is substantially higher than any of us can imagine. And that is one big ouch.
While this all may sound pretty dire, it simply underscores the need for businesses to take a proactive approach to the safety of their IT infrastructure and computer systems. An ounce of prevention could just save your business.
Chip Roepke is the Founder & COO of ContactPC, the highly-rated Denver Computer Repair and IT Solutions Company. ContactPC. 720.443.4400.