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1996 Cost of Downtime Study
Financial Impact Estimations
Click to download "1996 Cost of Downtime" Chart |
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The following data represents the results of
annual disaster impact research conducted |
by Contingency Planning Research (CPR). The findings present the potential financial |
impact resulting from an outage lasting for one
hour or more. |
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Business |
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Hourly Financial |
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Average Hourly |
Operation |
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Industry |
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Impact (Range) |
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Financial Impact |
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900
Number |
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Retail |
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$54,000 - $70,000 |
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$54,000 |
Services |
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Range attributed to |
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promotions. |
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Airline Reservation |
Transportation |
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$67,000 - $112,000 |
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$89,500 |
Centers |
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Range attributed to |
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peak travel/ |
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promotional months |
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ATM Service Fees |
Financial |
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$12,000 - $17,000 |
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$14,500 |
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Range attributed to |
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network and service |
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fee percentage. |
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Brokerage (Retail) |
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Financial |
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$5.6 - $7.3 million |
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$6.45 million |
Operations |
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Range attributed to |
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market conditions |
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Catalog Sales |
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Retail |
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$60,000 - $120,000 |
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$90,000 |
Centers (Large |
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Range attributed to |
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Retailers) |
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catalog deliveries. |
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Cellular (new) |
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Communications |
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$38,000 - $44,000 |
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$41,000 |
Service Activation |
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Range attributed to |
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peak activation |
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periods. |
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Credit Card Sales |
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Financial |
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$2.2 - $3.1 million |
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$2.6 million |
Authorization |
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Range attributed to |
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seasonal shopping. |
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Home Shopping |
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Retail |
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$87,500 - $140,000 |
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$113,750 |
Channels |
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Range attributed to |
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seasonal/promotional |
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programming. |
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Infomercial |
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Retail |
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$175,000 - $224,000 |
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$199,500 |
800
Number |
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Range attributed to |
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Promotions |
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seasonal/promotional |
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programming. |
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On-Line Network |
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Service |
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$23,500 - $27,000 |
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$25,250 |
Connect Fees |
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Range attributed to |
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cost of connect fees. |
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Package Shipping |
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Transportation |
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$24,500 - $32,000 |
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$28,250 |
Service Requests |
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Range attributed to |
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peak shipping times. |
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Pay Per View |
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Entertainment |
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$67,500 - $233,000 |
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$150,250 |
Services |
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Range attributed to |
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(Note: Most events |
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popularity of event. |
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ordered in 3-hour |
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window prior to |
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show). |
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Telephone Ticket |
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Entertainment |
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$56,000 - $82,000 |
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$69,000 |
Sales |
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Range attributed to |
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popularity and |
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quantity of events. |
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Source: Contingency
Planning Research* |
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*Contingency Planning
Research (CPR), is a division of Eagle Rock Alliance, Ltd.,
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a management consulting firm specializing in
Business Reliability Planning, |
Technology Consulting,
and Research. More information regarding our
company and |
services can be
accessed via our website at www.eaglerockalliance.com or call |
(973) 325-9900. |
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Copyright © 2001. All rights reserved. Reproduction in whole or in part in any form or medium
without the express written permission of Eagle Rock Alliance, Ltd. is prohibited.
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