CIOs are looking for better ways to measure the business value IT brings to the rest of the organization. Because applications underpin most critical business operations and processes, a good starting place is showcasing the business impact of the applications and other services IT already delivers. See why this value measurement system is important for IT leaders, and gain some practical tips for developing your own. To learn more, download our white paper http://rvbd.ly/1Q3zO3q

1. Measuring the Business
Impact of Application
Performance
What Are Your Performance Metrics
Really Telling You?

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Top 10 CIO Concerns for 2016
1. Alignment of IT and the Business
2. Security and Privacy
3. Speed of IT Delivery and Time-to-Market
4. Innovation
5. Business Productivity and Efficiency
6. IT Value Proposition to the Business
7. IT Agility and Flexibility
8. IT Cost Reduction and Controls
9. Business Agility and Flexibility
10. Business Cost Reduction and Controls
Source: 2016 IT Trends Study, Society for Information Management (n=1,218)

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1. Alignment of IT and the Business
2. Security and Privacy
3. Speed of IT Delivery and Time-to-Market
4. Innovation
5. Business Productivity and Efficiency
6. IT Value Proposition to the Business
7. IT Agility and Flexibility
8. IT Cost Reduction and Controls
9. Business Agility and Flexibility
10. Business Cost Reduction and Controls
Top 10 CIO Concerns for 2016
What Underpins a Majority of These?
Source: 2016 IT Trends Study, Society for Information Management (n=1,218)

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Superior performance of
business-critical applications

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Application
Performance
Business
Performance=
In Other Words…

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How so?

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89% 1.6 hours
When Applications Don’t Perform, Business Suffers
Percentage of executives
who say poor enterprise
application performance
negatively impacts their
work1
The average hourly cost of
a critical application failure
for a large organization2
Minimum amount of
business downtime that
59% of the Fortune 500
experience per week3
$500,000 - $1 million
1. Riverbed, “Riverbed Global Application Performance Survey,” November 2015
2. IDC, “DevOps and the Cost of Downtime: Fortune 1000 Best Practice Metrics Quantified,” Dec. 2014
3. Vision Solutions, “Assessing the Financial Impact of Downtime,” 2008

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When Applications Don’t Perform, Business Is Lost
1
1
1 1
2 3
1. Forrester, “Realize Practical Application Management, Feb. 2013
2. Ibid
3. The Aberdeen Group, “The Performance of Web Applications: Customers Are Won or Lost in One Second,” May 2015

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When Applications Don’t Perform, Brands Are Impacted
29%
32%
33%
35%
40%
41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Decreased employee morale
Negative impact on brand
Lost clients or customers
Missed critical deadlines
Contract delays
Dissatisfied clients or customers
Source: Riverbed Global Application Performance Survey, Nov. 2015, Riverbed (n= 900)
PitfallsofPoorAppPerformance

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But When Apps Perform Optimally, Businesses Experience…
31%
33%
43%
47%
50%
51%
0% 10% 20% 30% 40% 50% 60%
Improved employee morale
Faster delivery of products to market
Improved customer satisfaction
Cost savings
Time savings
Improved employee productivity
Source: Riverbed Global Application Performance Survey, Nov. 2015, Riverbed (n= 900)
BenefitsofOptimalAppPerformance

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Being able to quantify this relationship
between application performance and
business performance is important for
IT leaders, but it’s also challenging…

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The Challenges for IT Leaders
 Traditional application SLAs don’t directly
translate to business impact
– How does an increase in response time affect the number of
customer orders or other volume-based transactions?
 64% of organizations still use fragmented
approaches to technology monitoring1
– Data is more difficult to aggregate and translate into
actionable business intelligence
 Pinpointing the most valuable data is difficult
– Digital universe doubles every two years, but only 22% of
this data is useful for analysis2
1. Forrester, “Application Performance Management Is Critical To Business Success,” Feb. 2014
2. IDC, “The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things,” April 2014

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What’s IT to Do, Then?
Start speaking the language of business leaders
Eliminate siloed approaches to technology monitoring
Create dashboards to establish transparency and trust

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Starter tips:
1. Examine how effective the current set of application
metrics are when communicating IT’s performance
2. Meet with executives, review business objectives, and
pinpoint business KPIs that align with those goals
3. Identify 5-10 apps that have the most influence on those
business objectives
4. Create a value mapping between application SLAs and
business KPIs, similar to the image to the right
5. Conduct a gap analysis to see if the right technologies
are in place to collect and report relevant data
6. Review trending data for one quarter’s time to prove
relationships between business KPIs and app SLAs
7. Regularly review reporting strategy to validate metrics,
benchmark performance, and make adjustments
Map the Relationship Between Application SLAs and Business KPIs
Speak the Language of the Business

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What to look for:
1. Network performance management (NPM)
2. Application performance management (APM)
3. A unified console that aggregates all NPM and APM
metrics into role-relevant dashboards.
Converge Performance Metrics into a Single, Unified Platform
Eliminate Siloed Approaches to Technology Monitoring

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Considerations when developing dashboards:
1. Stakeholders need to be able to analyze dashboards at
a quick glance, within a single screen and a few clicks
2. Provide role-based dashboards to present only the
information that is most important to various groups
3. Dashboards should help communicate the value of
various IT solutions
Provide Real-time Information Needed for Agile Decision-Making
Create Dashboards to Establish Transparency and Trust

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 Download our white paper:
http://rvbd.ly/1Q3zO3q
 Review our global app performance survey:
http://rvbd.ly/1XLJcaX
 Contact Riverbed:
http://www.riverbed.com/contact/#form
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