Southeast Asia has seen a heightened demand for observability within enterprises. As digital infrastructure becomes more complex, various industries now rely on observability tools to get a connected, real-time view of all IT performance data to troubleshoot and resolve...
Southeast Asia has seen a heightened demand for observability within enterprises. As digital infrastructure becomes more complex, various industries now rely on observability tools to get a connected, real-time view of all IT performance data to troubleshoot and resolve problems faster.
However, prevailing economic conditions and constrained IT budgets pose challenges in achieving comprehensive, end-to-end observability across the entire technology stack. C-suite leaders are focused on strategic investments to ensure the best possible business value without sacrificing the customer experience.
The tangible business advantages of technology are often elusive, particularly when communicated to executives who may view it as just another item in the annual budget. In the current climate of cost-cutting pressures, leaders with less technical acumen may not readily understand the merits of observability.
C-suites in favour of observability
The key to making the business case for observability lies in recognising its central role in fueling digital transformation and steering the customer experience.
According to New Relic’s 2023 Observability Forecast, ASEAN organisations record a higher return on investment (ROI) on observability when compared to global peers. Indonesia and Singapore both had the highest median annual ROI of 167 per cent. The median annual ROI in Malaysia was above average at 133 per cent, while Thailand broke even. The median annual ROI across all respondents globally was 100 per cent.
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The study also found that the majority of C-suite leaders are strong proponents of the value of observability – this includes both technical-focused C-suites (82 per cent) and less technical-focused C-suites (74 per cent). The majority of the C-suite respondents (85 per cent) see observability as a key enabler to achieving core business goals to some degree.
However, despite its strong ROI value, more than a third (36 per cent) planned to reduce spending across the board next year.
Unlocking the full business potential of observability
While CTOs and CIOs are inclined to prioritise observability, there’s a need for other C-suite executives to flip the conversation on ROI to fully appreciate the diverse benefits that observability offers.
Observability’s connected overview of data from various sources in a unified platform enables proactive problem-solving. It helps IT teams actively prevent issues, ensure operational efficiency, and facilitate the development of high-quality software to enhance both customer and user experiences.
By providing comprehensive visibility to different teams and functions, observability empowers them to scale systems effectively in response to shifting traffic patterns, all without compromising performance, cost, or end-user satisfaction.
It establishes a singular source of truth grounded in real-time data, bolstering system resilience and optimising performance during peak demand. This, in turn, expedites application modernisation efforts and elevates the overall user experience.
Demonstrating the benefits of observability
Here are key factors to consider when articulating the ROI of observability to the business.
Foster data sharing
Observability encourages teams and business leaders to openly share data and insights. This practice elevates best practices throughout the organisation, enabling the development of benchmarks to compare the relative performance of various units and platforms.
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Superior customer experience
Observability’s dashboards focus on metrics that are crucial to customer experience, enabling teams to pinpoint and address performance issues proactively, preventing any potential impact on customers. A superior customer experience not only enhances the bottom line but also aligns with leadership priorities.
According to research on the Observability Forecast, 54 per cent of respondents noted that observability contributes to improved revenue retention, while 41 per cent highlighted its role in supporting business and revenue growth.
Connect KPIs to business impact
While IT Ops teams traditionally gauge observability performance using metrics like uptime and mean-time-to-repair, it’s crucial for business leaders to witness a direct influence on the company’s overall success, including insights into customer satisfaction and financial metrics. Align users’ key performance indicators (KPIs) with these business-related objectives to ensure the direct link between observability data and the bottom line.
Developer efficiency matters
While organisations typically assess the value of enterprise software based on its impact on operational performance and quality, it’s essential to also consider whether it contributes to more efficient goal achievement by developers. Data indicates that full-stack observability yields positive business outcomes, including enhanced operational efficiency and increased productivity.
Providing a view of the genuine business value of observability demands dedicated time and collaborative efforts across the organisation. By presenting a compelling high-level case that aligns with the language and key performance indicators (KPIs) prioritised by a CFO or CTO, IT teams advocating for observability can not only deliver financial gains but also contribute to the continuous enhancement of the software and services delivered to customers.
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