Years ago, if a hurricane knocked out a
city's power supply, the resulting effects on businesses, while
problematic, were generally surmountable. But these days, if the
power goes out, a virus hits or computers crash, the results can be
catastrophic: Systems go down, crucial data is lost, profits are
stalled and, ultimately, business grinds to a screeching halt.
That is, unless the company has a business continuity plan in
place for such an emergency.
"I think if you go back a few years, the notion of business
continuity is something that wasn't really addressed, certainly not
in a technological way," says Joe Butt, an analyst at Cambridge,
Mass.-based Forrester Research Inc. "Once you introduce the 24-by-7
notion into the world and begin to look at larger and larger
percentages of your sales beginning to occur in that world - as
opposed to the old world, which was more 9 to 5, and you had all
night to deal with issues - then the business continuity and
continuance and disruption issues become far more important."
John Hickey, vice president and chief technology officer at
Nasdaq Stock Market Inc., says he clearly understands the stakes
involved. If Nasdaq's computer systems were to fail, says Hickey,
"it would disrupt the financial markets of the country and the
world."
Nasdaq faced several technical glitches this spring, from a brief
inability to update quotes to capacity-related delays during record
trading.
But because of its business continuity plans, the stock exchange
has managed to avoid any major catastrophes for years, says Butt.
The main reason is that it has a Unisys Corp. mainframe computer
system based at its data center in Trumbull, Conn., and a backup
system in place in Rockville, Md., says Hickey.
"Fortunately, we've only had to invoke (the backup site) once
since I've been here," he says.
On Aug. 1, 1994, Nasdaq's Trumbull site experienced a dip in its
outside power source. The company's uninterrupted power supply
detected the problem and kicked in. But as technicians worked to
connect the generators, the backup system failed, too. Suddenly,
Nasdaq's uninterrupted power supply became, says Hickey, "a
sometimes uninterrupted power supply."
As a result, Nasdaq made key changes when it was building a new
backup system in Rockville in 1998, increasing its uninterrupted
power supply systems from one to four, adding generators and
bringing in a second utility feed from another geographic area.
"We're adding more equipment up here this summer. We're adding an
additional generator," says Hickey.
Nasdaq also has emergency plans in place should a hurricane,
flood or other natural disaster wreak havoc on one particular area.
"If a local office was closed down, there is a procedure whereby
adjoining states or offices would pick up the workload," Hickey
explains. "There's always coverage for the investor. It's a very
comprehensive plan."
Life-or-Death Stakes
Like the stock market, health care is another industry in which
staying ahead of the business continuity planning game is crucial.
In a hospital, a system failure could potentially result in
compromised patient care.
"It's rare that a computer will fail so completely that you
cannot repair it by repairing a part," says Tom Coffey, director of
network engineering at Cambridge Hospital in Cambridge, Mass. "But
we do have a spare server in our data center for each model of the
servers that we use.
"Additionally, if we have a disaster, we have an insurance
program with the vendor of our hardware where they will provide a
replacement within 24 to 48 hours," Coffey says.
The hospital also has an aggressive antivirus program and a
recently completed desktop standardization project, which Coffey
credits as two of the reasons the hospital was able to remain
relatively unaffected by the recent influx of viruses.
Too Often an Afterthought
Business continuity planning isn't just about making sure systems
are up and running.
"The issue is whether I'm up, and it's also how well I'm doing,"
Butt explains.
But analysts still say they see many businesses waiting until
faced with a problem to address the issue.
"It's quite often an event that really prioritizes it," says Stan
Lepeak, a vice president at Stamford, Conn.-based Meta Group Inc.
"You know, key people leave, or there's a trade or patent dispute,
or there's a systems crisis. That's really what spurs people to
accelerate and maybe formalize the effort more."
Once companies do decide to establish business continuity plans,
they would be wise to follow the examples of those companies leading
the charge, says Butt.
"Some of the poster children are companies like Dell, Intel and
Amazon," he says. "Unless the entire Earth is blown up, they'll be
able to continue to operate."
Better Safe Than
Sorry Ian Charters, director of U.K.-based Continuity
Systems Ltd., advises companies to develop a business
continuity plan that documents which organizational functions
are critical, what steps are necessary to survive without them
and what resources are available to help recover lost or
damaged systems.
The following are some smaller steps that companies can
take to minimize risk:
• Store computer systems in a safe, restricted area
• Run virus checks on PCs and firewall connections
• Change locks and passwords when employees leave their
positions
• Remove flammable waste and clean drains
• Route cables to avoid single points of failure
• Negotiate maintenance contracts that guarantee quick
response and replacement
• Get a backup generator
• Use surge suppressors and uninterruptible power
supplies |
Wieder is a Boston-based freelance writer. Contact her at twieder@bigfoot.com.