This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Photo Release -- Short-term Price Tag Per IT Failure Averages $10.8M, According To Global Executive Survey

DETROIT, July 18, 2013 (GLOBE NEWSWIRE) -- Compuware Corporation, (Nasdaq:CPWR), the technology performance company, today announced the results of a global survey measuring the financial impact on businesses when technology fails. The results quantify the significant long- and short-term costs to businesses when an IT failure occurs and identify secondary costs in productivity, production waste, customer satisfaction and more.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=19926 "Measuring IT performance, and in particular its impact on business in real financial terms, is a complicated activity and as a result, most companies fail to do so in a uniform and comprehensive manner," said Paul Czarnik, Compuware CTO. "When we distilled this study to its most basic level, we arrived at a simple formula to help IT departments and business leaders to get on the same page, both in assessing the impact and more importantly, prioritizing and resourcing the path to recovery: Cost of the failure is equal to an individual incident's financial impact – short and long term – multiplied by the frequency of that incident plus the time spent to return to normal operations."

Got a Tech Performance Failure? That'll be $10.8M, Please

Averaged across all respondents, the short-term costs to operations, sales and marketing for a single major technology issue was $10.8 million.

When examining the costs exclusively for those respondents that reported an impact in product recall, wasted product and sales and marketing specifically, the numbers increase dramatically:

  • Recalled and wasted product costs: $4M
  • Sales and marketing costs: $13M
  • Total short-term cost impact: $17M

One U.S.-based executive in the manufacturing industry summed up his company's technology performance failure story this way: "When our distribution inventory databases went down, we couldn't ship our product. Plus, we lost awareness of stock levels, causing us to resort to a manual count. The bottom line was a big loss in sales, plus some very upset customers."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs