How to calculate downtime cost per hour (DCH). The first cost component is productivity loss, which leaders should measure with people blocked and average hourly cost. Estimate by multiplying affected roles by blended rate, for example 40 times $60 to get $2,400 per hour.
To measure the cost of delayed action, identify one or two key decisions that require fresh data. The example cost of this is $1,000 per hour.
To measure lost income, take into account revenue loss during visibility gaps from billing failures, paused ads or undetected fraud. An example cost is $1,500 per hour.
To measure incident response, multiply the number of internal and external responders by their hourly cost, and add any vendor fees. This example excludes vendor fees, but shows 6 people times $90 per hour to equal $540 per hour.
Measure daily work delays with the cost of manual effort to fix data, such as time spent manually synching systems or re-entering data. The example cost is $1,000 per hour.