How to Control Application Risk with Quality Measures
How CIO's can quantify application risk and use the information to make management decisions.
Wed, October 06, 2010
CIO — With IT becoming the virtual bricks and mortar of modern enterprises, is it any wonder that most CIO's believe IT failures are their greatest risks? A recent report from the Economic Intelligence Unit found that business executives ranked the threat of IT failures ahead of such headline grabbers as terrorism, natural disaster and regulatory constraints¹. Historically, neither the business nor IT could measure application risk because they lacked useful measures of the underlying weaknesses in the software. Today, CIO's can quantify application risk and use this information to make management decisions.
(¹Coming to grips with IT risks — A report from Economic Intelligence Unit, 2007)
Four converging challenges elevate the importance of measuring application risk:
• Application malfunctions: Although many inconvenience only a few customers, some threaten the business. Inoperable corporate Websites, corrupt financial data, personal data breached and account statements miscalculated are only a few of the fiascos.
• Business agility: Directly linked to the internal quality of its critical applications, this declines unless the quality of each application is sustained throughout its useful life. As software quality erodes with age, the ability to rapidly implement new functionality declines just as the demand for this functionality accelerates.
• Supplier dependence: Critical application software is increasingly supplied by external sources such as contractors, vendors, and outsourcers. The quality of externally supplied software presents a business risk that is difficult to control proactively, since service-level agreements usually focus on post-delivery performance.
• Application ownership costs: Without constant attention to software quality, today's state-of-the-art application quickly devolves into tomorrow's legacy monstrosity. As low quality applications age, the percentage of time devoted to understanding their construction and fixing their defects increases relative to the percentage of time spent implementing new business functionality, severely diluting their ROI.
Why Is Application Risk Harder to Measure and Control Today?
Controlling the risk of a business critical application is therefore a multi-technology challenge where many quality problems occur at the interface between technologies. The technical complexity of such polyglot applications exceeds the expertise of any single developer or project team because of the multiple languages, technologies, and platforms involved. For this reason, the quality of an application is more than the sum of the qualities of its component features. Application quality should be treated as an additional level of quality that presents unique risks to the business.