The $2 Million IT Problem You Can’t Ignore
What does it cost IT organizations when they do nothing to reduce the number of incidents they have? About $2 million, according to a Forrester study that reviewed the benefits clients of Numerify saw from reducing incident volume.
The Quantitative Business Case for Analytics-Driven Incident Volume Reduction
There are many common issues that most IT teams are all too familiar with when it comes to incident tickets, including incident misclassification, unnecessary escalations, and recurring issues. These can all be addressed, but only if an analytics strategy is in place to identify them and hold teams accountable for addressing them.
With AI-powered IT Business Analytics, Numerify provides IT leaders with the visibility to identify these issues, increase accountability to organizational goals and streamline incident, problem, and request management processes. Forrester found that Numerify clients were able to reduce incident tickets by 30% over a three-year period — resulting in about $2 million of cost savings.
“Bringing more visibility to the incident-ticket trends across the IT landscape allowed the composite use case to identify and distinguish between repeat informational requests and actual incidents, bringing better resource allocation and prevention of recurring tickets on an ongoing basis,” the report states.
The Qualitative Business Case for Analytics-Driven Incident Management
IT teams realized many benefits beyond the IT cost savings. While it can be hard to quantify some of them, it is important to acknowledge how these benefits improve the overall customer and employee experience. Below are some of the non-quantified benefits the study identified:
- Improved incident, problem, and request management processes. Using the solution created greater organizational accountability for adhering to IT processes, and streamlined incident, problem, and request management processes.
- Identification of employee training opportunities. After establishing a standard set of metrics, IT teams were able to create knowledge articles and training materials that not only put processes in place but ensured they would continue forward.
- Better support for company acquisition integration. Using analytics to anticipate and plan for the volume of new incidents and calls made to the service center helped IT teams get ahead of issues that come up when new systems are integrated.
How Did They Do It? Best Practices for Reducing Incident Volume
A transparent, data-driven culture is key to realizing the IT cost savings mentioned above. Numerify customers have managed to transform their culture with analytics by following these best practices for incident reduction:
- Establish accountability, rewards, and ROI: To be successful, senior management must define and reward the right behaviors. This includes establishing standard metrics, assigning accountability, setting targets, and enabling teams to actually meet these targets. The key to success is making the targets and progress visible to senior leaders and their teams with up-to-date data every day.
- Practice Strategic problem management: Ruthlessly prioritize your scarce experts on problem management areas where they will have the biggest difference from an incident volume and impact perspective. This includes using analytics to identify top Incident Drivers, User Hotspots, Most Critical Applications, Services & Processes, and highest Severity Incidents.
- Mine your data for root cause: Use techniques like Machine Learning and Natural Language Processing to find clusters of related incidents with common root cause. Use these insights to eliminate common root cause or reduce MTTR for new incidents as they come in. These AI techniques were most effective when combining all related datasets for a 360 view.
- Increase incident resolution efficiency: Eliminate unnecessary reassignments and escalations. Identify “shift left” opportunities for incidents to be resolved without escalation. Find opportunities to automate, pushing low complexity incidents to self-service.
Read more about how you can quantify the benefits of reducing incident volume in the Forrester report.
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