In the data-driven marketplace, information is your company’s most valuable asset. As we have shown previously, employees can be replaced, but data is much harder to recover. Which is why data backup and disaster recovery provisions are essential.
Why don't you protect your data?
It is human nature to protect the things we value – our homes are protected by locked doors for instance. So too are our offices.
So why don’t small businesses take every precaution to protect their most valuable asset – their data?
Modern IT is extremely reliable, so it may be several years between physical hardware failures. Which explains why some SMEs assume (incorrectly) that their data is safe. The reality is that no item of hardware is completely fail-safe – believing otherwise is foolish and irresponsible.
It’s not just poor backup provisions either. SMEs continue to cut corners and ignore best practice, expert advice when it comes to antivirus, security systems and general IT training for their employees. Willful ignorance could actually be the biggest threat to your business.
Perhaps if managers could place a monetary value on the cost of data loss they would take the issue more seriously.
How to calculate the value of your data now
Every piece of information you own has a value, often dependent on how the file is used. But there is a way to put a relatively accurate pound value on every single one – time.
From our observations, it takes an hour to craft a decent document – particularly one that will be sent to your clients. This means the basic value of each file is the pro rata hourly wage of the person producing it, say £20 per hour. You can then multiply the number of files you hold by that hourly rate to see how much your entire data store is worth – potentially hundreds of thousands of pounds.
But this is just a baseline figure – the value of your data now.
The eye-watering cost of recreating data
If your data is lost, the cost of each file actually triples:
- The hour spent creating the document the first time.
- The hour spent futilely trying to recover data after it is lost.
- The hour spent recreating the document from scratch once you realise the original is lost forever.
Instead of £20 per file, you’re now looking at £60. That’s a 200% increase in the cost of your data.
One “fact” that is often quoted online (incorrectly attributed to The White House Press Office or PriceWaterhouse Coopers) suggests that 93% of small businesses experiencing a data loss event go out of business within a year. Although this statistic is unverifiable, few SMEs could afford the outlay to recreate all their documents from scratch.
There is a very real possibility that losing all their data could send many small businesses to the wall. But rather than pay a few extra pounds per month to properly protect their data against loss, many persist in the mistaken belief that “it won’t happen to us”.
Are you ready to see the light (and save yourself a small fortune)? Fill in the form below and we’ll help protect your business against costly data loss.