Business Continuity and Disaster Recovery isn’t something that is on the forefront of every business. You’re generally occupied with focusing on how your business will run on a day to day basis, but taking the time to focus on how your business will stay running if any possible business disruptions occur is equally important.
Companies spent a minimum cost of $926 per minute on unplanned outage, with the total average costs for data center downtime being $740,357.
Below we will discuss the importance of developing a Business Continuity Plan and explain how Altek Business Systems can help create, implement, adjust, and test your Business Continuity Plan.
What does not having a Business Continuity Plan Look Like?
Poor Business Continuity Planning could cause a disaster when it comes to your business. According to the United States Small Business Administration found that over 90 percent of companies fail within two years of being struck by a disaster.
There are two main types of Outages when looking at the studies in Business Continuity. These two types have very different costs but a complete Business Cotniuity Plan will prevent both from happening.
With the mean average cost of $8,851 per minute of downtime, and the average downtime being 64 minutes a Partial Downtime can hit your business hard, halting any current business. Partial Downtime means not all the users were affected and parts of the system went down. Partial Downtime’s are affected by how much the parts of the systems or the users are related to productivity and profit, or prevention of access to services.
Total Unplanned Outage
Total Unplanned Outages have been increasing every year. The Emerson Study showed that, in 2016, there was a 9% increase in duration of unplanned outages, and a 5% increase in total cost.
The Real Cost of Downtime
The maximum cost of downtime has more than doubled over six years from just over $1 million to $2.4 million. This accounts for a 34% increase in just three years. The leading cost from downtime is Business disruption, with the average customer seeing a $255,963 loss due to their business disruption. Lost Revenue had an average loss of $208,599, and End-user productivity averaged a $138,193 loss.
How to Prioritize a Business Continuity Plan
To prioritize what your Business Continuity Plan will be, your company must first focus on what the causes may be. The primary root cause of unplanned outage in 2016 were UPS system failure, followed closely by both Cyber Crime and Accidental/Human Error. As organizations grow and focus more on Cloud Based Solutions, data centers are developing much more rapidly. Companies are exploring new approaches to data center design and management to both increase agility and reduce the cost of downtime. What this means for businesses is that the infrastructure that was designed years ago need to adapt to the newest Internet of Things, which will play a crucial role in supporting a Business Continuity Plan.
To create a complete Business Continuity Plan, there are many items to focus on, but our Continuity Specialists are able to walk you through each step to ensure you have a complete plan The first need to is to establish a Disaster Recovery Plan and build a complete Business Continuity Plan from there.
Disaster Recovery Plan
The first step before any action is taken is collecting the initial data. This is followed by the revision, purpose and scope, and guidelines of how the plan will be initiated. Step-by-Step procedures are created, with a checklist and diagram formed. Finally, scheduling for reviewing, testing, and updating the plan.
To do this, we ask questions like “What single points of failure exist?” We initiate a project and scope of work, develop a plan, and test as we go, performing maintenance and updates continually.
The goal is to find the best ways to deal with risks and threats and how to minimize any damage from an event. A successful business continuity plan defines step-by-step procedures for response. The Disaster Recovery Plan is the initial steps in the Business Continuity Plan. This should not be a manual, but more of an outline for a plan with all the necessary details. These details include the minimum resources needed for business continuity, location of items, and personnel needs as well as potential costs.
Growing Your Business Continuity Plan
Establishing a complete Business Continuity Plan is not something that can sit in a glass case and be broken in case of emergency. It is a growing and constantly adapting plan that needs to continually improve and audited to ensure the effectiveness remains.
Why a Business Continuity Plan from Altek is the Best Choice
As a medium to small business, the amount of time needed to invest in researching, developing, creating, testing, auditing, and maintaining a business continuity plan is enough to cause downtime on its own. If this is the first time you have sat down to review and create a plan, there may be questions you don’t know to ask, or problems you don’t know how to best solve. Altek Business Systems has worked with businesses to build these plans and create a relationship to implement and ensure that a Business Continuity Plan is ready for whenever it is needed. Altek works as your partner, asking questions about how your business runs and researching potential issues that may arise to create a completely custom Business Continuity Plan for you.
What is the First Step in Your Business Continuity Plan?
The first step is to simply talk about someone. A Business Continuity Plan is not something that can be implemented in a day. Taking the time to discuss what a Business Continuity Plan can do for you will help allow you to start the process in protecting yourself from any outages in the future.