Productivity is “the ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labor and capital, are being used in an economy to produce a given level of output.”
The more output volume derived from the same volume of input, the higher the production efficiency.
All types of businesses follow the same productivity formula. Output – whether it’s a product or service – will always be weighed against the cost of input. This delicate balance between input and output determines other important business factors like price, revenue, and profit.
Low-cost-high-yield operations will allow a business to lower the prices of its products and services. Competitive pricing attracts demand, which in turn increases sales and revenue. Low production cost plus high revenue equals bigger profits. Everything learned from business 101 applies to online businesses.
Not all operational costs contribute directly to the production or provision of end services. However, these expenses are nonetheless important to the maintenance and continuation of the business. Compliance cost is one example. It is the expenditure made to conform to government and industry standards. Under compliance is quality control.
Quality control ensures that production output is always consistent with internal standards. Security is another non-productive but necessary operational component that incurs costs to a business. Security measures are taken by a business to protect itself – its people and resources – from outside harm or interference. It adds a means to operate uninterrupted. These factors apply to online businesses as well.
One of the most common but inexpensive non-productive measures an online business can get is uptime monitoring. Uptime monitoring monitors the performance of a website’s hosting services. A website’s online availability is a function of the server hosting it and uptime monitoring detects and reports service malfunctions.
Most web hosting services can provide at least 99.95% uptime performance. At first glance, that seems almost perfect. The question is: is getting uptime monitoring service worth it?
The short answer is yes; uptime monitoring is relatively inexpensive and far worth its cost. To fully appreciate it, the potential cost of website downtime must be known as well as the true likelihood of the occurrence of downtimes.
Although the cost of website downtime varies by company, it largely depends on how much business a company derives from its website. A brick-and-mortar store that uses a website solely for marketing purposes will be impacted less by downtime.
On the other hand, e-commerce businesses and enterprises that rely heavily on online data transactions will suffer the most during outages. If an e-commerce website has average sales of $6,000 per hour, it will stand to lose $10 with every passing minute of downtime. Losses will be significantly more if downtimes happen during peak hours. Large enterprises like banking and financial institutions stand to lose hundreds of thousands of dollars per minute of downtime.
But how likely are downtimes, especially if most web hosting servers perform at 99.95% reliability? A quick work on the number will reveal that a 0.05% probability of downtime in a year’s service translates to 262 minutes. These minutes are not evenly spread out in a year. Service problems manifest themselves as singular events and 262 minutes of commutative downtime might mean a four-and-a-half hour-long outage. These kinds of outages can potentially cripple small and medium-sized enterprises that depend entirely on their websites functioning smoothly.
So, the value of uptime monitoring is how it combines compliance, quality, and security measures to protect business productivity. When it comes to choosing an uptime monitoring service, there’s one provider that’s often recommended by small business owners and entrepreneurs: Pro Uptime Monitor.
Pro Uptime Monitor uses a barrage of tests to do its uptime monitoring. It tests service availability using specialized tests, including server performance tests as well as network tests from several server locations around the world.
Pro Uptime Monitor can provide critical information about the underlying web hosting service issue. It can provide information on inbound traffic volume as well as real-time transactions. Website administrators will need this information to identify and address service issues. Pro Uptime Monitor can help minimize the impact of system maintenance, test for coding issues, and even provide early detection of hacking and cyberattacks.
Pro Uptime Monitor understands its role in early downtime detection and outage prevention and how its monitoring service ensures the continuous operations of online businesses.
Company Name: Insight Concept Pro LLC
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Country: United States