Losing $440 million is a harsh hit; losing it in 30 minutes is even worse. In 2012, Knight Capital's new algorithm software was wild, buying high and selling low- the exact opposite of what traders are trained to do. Just before Christmas 2014, Amazon had millions of items dropping to mere pennies for an hour from a glitch in their third-party automated-pricing service. These defects cost millions of dollars to not only reverse the damages, but prevent future, similar costly errors (and these problems were caught relatively soon after release!). Monitoring the performance of your tools allows you to catch travesties such as these early, before they do irreparable damage. Data collected from monitoring provides insight into how the application is working, making it critical not only to software development but also to business operations.
Finding these code-bombs allows you to fix them before they explode all over you and your customers. This also means you can diminish time spent in "war-room meetings per month by 59%" due to a distinct lack of panicking. Catching errors as they occur also translates to reduced downtime and more time doing whatever your widget was made to do. Time formerly spent on patching and fixing problems can be turned to more productive and profitable actions such as new features or a more efficient application.
Protect Your Reputation
Without careful monitoring of your application, your reputation is on the line. Every company lives and grows on reviews and reputation. When a bad product comes out, every customer knows about it and avoids not only the item, but the company whose name is on it. A survey from Delphix shows some astonishing numbers, stating "42% of participants would switch to a competitor if their current provider had issues and 49% would at least consider switching." In 2011, Intel's chip recall was a huge hit to their reputation which has taken years to recover and they lost approximately $700 million from the defect alone. Immediately afterward their stocks decreased in value and fewer customers were buying. Even a third-party glitch will affect an online marketplace's seller retention due to the losses those companies suffered from the price-drop.
While productivity and reputation are essential for businesses, what you really want to see is higher profit and lower costs. Downtime, fixes, and recalls are expensive, racking up man-hours, loss of sales and refunds which are huge detriments to your profit. Removing these setbacks alone allow for revenue. However, the other benefits monitoring brings increase profits even more. Greater innovation yields more sales, as does a good reputation. "Recently a customer in the online travel sector realized a 97% improvement in MTTR following their APM implementation, which increased online bookings by 30% and helped the company recapture an estimated $190,000 of lost business in three months." If customers are talking about your new application, more people hear about you and become customers.
Monitoring is key for continuous improvement of not only your applications, but your business. It reduces the risks for both business and client, and increases the quality of your services. The stress and worry of that one mistake slipping through shrinks and your company improves faster. An increase in productivity and speed yield two additional benefits: a wider customer base and higher profits. Instead of running the risk of losing millions from some small defect or mistake, prevent mistakes and optimize toolsets with monitoring.
Want to learn more about monitoring and bettering your application's performance? Watch our webinar, Running on All Cylinders: Performance Tuning for the Atlassian Toolset by Partner, Christopher Pepe. Then, contact Praecipio Consulting to learn how our expertise in monitoring can elevate your business processes with our technical assessments leveraging tools including those from our technology partner, New Relic.