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ITIL :: View topic - cost of incident
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cost of incident

 
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Boualem
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Joined: Nov 04, 2006
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Location: France/Brussels

PostPosted: Sat Feb 16, 2008 2:58 am    Post subject: cost of incident Reply with quote

Hello,

I am looking for the avereage cost of an incident and I am not really sure where to start -- is this specific to a company ?

I've been searching the web & found nothing

thanks for the answers
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UKVIKING
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Joined: Sep 16, 2006
Posts: 3296
Location: London, UK

PostPosted: Sat Feb 16, 2008 4:14 am    Post subject: Reply with quote

The short answer is ...

How much money you got

or

It depends

An incident will cost time... and money...

Ultimately There is no answer .

Some incidents cost very little... some cost a lot
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Mark-OLoughlin
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Joined: Oct 12, 2007
Posts: 306
Location: Ireland

PostPosted: Sun Feb 17, 2008 5:54 am    Post subject: Reply with quote

Hi,

yes this will be specific to the company.Having a good Service Manageemtn tool set up with the ability to report from it will help. You need to capture details and timestamps of each incident tied into its Status (provided that you have meaningful status defined) to begin with.

You won't find an easy answer on Google for this one. You have to identify what costs you are looking for and go mine data and information to try and tell you what you want to know.

Best of luck.
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ITIL_Girl
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Joined: Feb 20, 2008
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PostPosted: Wed Feb 20, 2008 7:41 pm    Post subject: Reply with quote

Hi,

I agree, there is only way to measure the "tangible" costs incurred by an Incident. This occurs only if all the instrumentation utilized within the computing environment is syncronized and is collecting the appropriate data. The million dollar questions for you: Is all the instrumentation syncronized in the environment? and is it collecting and reporting the appropriate metrics? There is a whole other "intangible" "dark side" to costs associated with incidents - Loss of consumer confidence or a client all together.

Very Happy
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tektrakker
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PostPosted: Fri Jun 13, 2008 2:17 am    Post subject: Reply with quote

Greetings:

Maybe too late to help you in your project, but here in the US, some of my consulting associates have captured some general costing information.

US - $18 - $20 per incident

Larger users tend to have a lower per-incident cost just because of economies of scale. And everyone has a different concept of what the per incident cost should include.

And the above crudely includes incident tracking software, personnel, some infrastructure. To be more specific we all need to know what areas you believe should be included in the per-incident calculation.

Regards,

Tektrakker [/b]
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Mark-OLoughlin
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Joined: Oct 12, 2007
Posts: 306
Location: Ireland

PostPosted: Fri Jun 13, 2008 5:45 pm    Post subject: Reply with quote

Hi,

just out of curiosity "US - $18 - $20 per incident" how did they calculate that. Can you provide more information?? Is it generalist or relevant to a particular industry sector?
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UrgentJensen
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Joined: Feb 23, 2005
Posts: 458
Location: London

PostPosted: Fri Jun 13, 2008 6:06 pm    Post subject: Reply with quote

Agreed Mark, you have to see the calculation otherwise these numbers appear nominal and approximate only.

UJ
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Diarmid
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Joined: Mar 04, 2008
Posts: 1884
Location: Newcastle-under-Lyme

PostPosted: Fri Jun 13, 2008 6:32 pm    Post subject: Reply with quote

Hi,

Is a per incident cost particularly useful?

For example you can change it radically by changing what you classify as an incident - e.g. make all password fix calls incidents and see the average cost drop - or make all password fix calls service requests and see the average rise.

The cost of incident management should be about value for money and the principle consideration is cost saved to the business by swift and effective resolution compared to the hit and miss of reactive support without management.
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tektrakker
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PostPosted: Fri Jun 13, 2008 10:33 pm    Post subject: Reply with quote

Agreed - per incident costs are probably irrelevant and potentially grossly misleading when the focus is on problem resolution.

However, from the perspective of getting a feel for the scale of costs to an organization, it is helpful. We had a recently example of a client diligently capturing all incidents related to hardware failures on their server farm. Of 4000 presented tickets - fully half could not be associated with a known device. 2000 calls x $20 is $ 40,000 wasted as nothing could be learned from these tickets.

I have attached a link to a New York State Agency website which is offering an "Enterprise Help Desk" service to all government agencies within the state. The description of services provided and costing are included - this is about the most detail I can provide.

oft.state.ny.us/Services/AdditionalServices/SrvAddEHD.htm

Regards,

Tektrakker
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ozz
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Joined: Apr 02, 2006
Posts: 40

PostPosted: Thu Jun 19, 2008 2:35 am    Post subject: Reply with quote

which cost :: the cost to handle the incident
or the cost of loss to the business ?

Search for Gartner stuff on downtime or any corp that sell Disaster Recovery whatever..

oz
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