The Business Significance of Performance

The Business Significance of Performance

by | Communication, EN, Performance, Stategy

Why is it not enough for a system to simply work?
Slow Systems, Fast Customer Loss – Business Lessons from Performance Failures

A Familiar Story

A customer walks into a bank to update their address. After taking a number, they wait a long time. Finally, it’s their turn but the clerk looks tense. The system is slow. Every action takes several seconds. The clerk apologizes repeatedly:

“Sorry, the system is a bit slow today…”

Eventually, the address is updated but the customer leaves frustrated. The issue wasn’t with the clerk, but with the experience. Behind the scenes, it’s a classic problem: poor application performance and lack of observability.

The World of Invisible Errors

In the digital world, “it works” isn’t enough. The real question is: how well does it work – and can we prove it?

Two key concepts help us answer that: application performance and observability. (For simplicity, we will refer to application performance as performance.)

Let’s see what performance is.

What Does Performance Mean in Business Terms?

Performance refers to a system’s speed, stability, and scalability. A slow or unstable system:

  • Reduces conversion rates
  • Increases customer churn
  • Damages brand perception

In the banking example, the slow system prevents the clerk from working efficiently, and the customer loses trust.

How Can We Measure System Performance?

System performance shouldn’t be judged by gut feeling alone—it can and should be measured with concrete data. That’s where performance testing KPIs come into play.”
(Learn more about these KPIs)

KPI What it Measures Why it Matters
Availability System uptime Critical for meeting SLAs (Service Level Agreement)
Response Time Time taken to respond to a request Slow response = poor UX = lower conversion
Throughput Number of users served in a given time frame Indicates scalability and load capacity
Error Rate Percentage of failed responses Reflects reliability and quality

 

Working vs. High-Performing Systems

Aspect Working System High-Performing System
Load Time Acceptable but inconsistent Fast and consistent
Error Handling Reactive – fixes after the fact Proactive – early detection and prevention
User Experience Mixed feedback High satisfaction
Business Impact Complaints, churn, reputational damage Higher conversion, customer retention
Decision-Making Basis Incomplete or delayed data Real-time, reliable insights

 

💡 What Can You Do as a Business Stakeholder?

Not a developer? You can still influence system performance and transparency:

  • Ask about performance: Don’t just ask “Does it work?”—ask “How fast is it?”, “Under what load?”
  • Request access to metrics: A good dashboard should serve both IT and business teams.
  • Support observability initiatives: These aren’t “extra costs”—they’re long-term investments.
  • Use a shared language: Bridge the gap between technical and business teams with common goals and terminology.
  • Learn to read the signs: Rising response times or error rates often signal bigger issues ahead.

The Takeaway

Had the bank in our story failed to act, the consequences would have extended far beyond a few frustrated customers:

  • Revenue Decline: When systems are slow and transactions are abandoned, customers disengage—leading to direct financial losses and missed opportunities.
  • Eroding Customer Trust: Dissatisfaction breeds negative feedback. As frustration grows, loyalty fades, and the brand’s reputation suffers lasting damage.
  • Mounting Employee Stress: Constantly dealing with system issues drains morale. Over time, this leads to burnout, reduced productivity, and higher staff turnover.
  • Strategic Setbacks: Poor performance undermines data-driven decision-making and weakens the company’s ability to compete in a fast-moving market.

 

In today’s digital landscape, competitive edge isn’t just about launching new features—it’s about how reliably and efficiently your systems perform. And just as importantly, whether you can demonstrate that performance with confidence.

This isn’t solely the responsibility of IT. It’s a shared commitment—one that involves every stakeholder working toward sustainable business success.

The Business Significance of Observability

The Business Significance of Observability

by | Business mindset, EN, Observability, Stategy

Observability: The X-Ray Vision of Digital Systems

In our previous article, “The Business Impact of Performance,” we explored how a system that is technically “working” can still pose a business risk if it’s not fast or stable enough. A real-world example involving a bank customer’s address change illustrated how performance directly affects user experience.

But what happens when a system is not only slow—but we don’t even know why?

What Is Observability and Why Does It Matter for Business?

Observability is the ability to understand the internal state of a system. It’s not just a technical concern—it’s a critical component of business risk management.

Without proper observability:

  • Errors are only discovered late—often by end users.
  • Troubleshooting becomes slow and expensive.
  • Business decisions are made on uncertain foundations.

And when we don’t know why a system is slow or malfunctioning, we end up in late-night “war rooms,” where even with multiple experts from different teams, the best strategy is still guesswork.

In our banking example, the customer service agent repeatedly apologizes for the slow system, but no one behind the scenes can see what’s causing the issue. The system is “green,” but the experience is “red.”

What Does It Take to Not Just Operate a System, But Understand It?

While observability is often introduced after a system is already live, it should ideally be considered during business requirements gathering and system design.

Observability has foundational pillars and is often seen as a tool—but it’s also a cultural mindset. Without it, root cause analysis and rapid response are nearly impossible.

Modern observability platforms—like Dynatrace, Datadog, New Relic, or Elastic—help by correlating metrics, logs, and traces to provide business-relevant insights into system behavior. But for these tools to be effective, full organizational support is essential.

How Can Observability Platforms Support the Business Side?

Modern observability tools aren’t just for developers and operations teams. A well-configured platform can answer key business questions, such as:

  • Why is the company receiving so many negative reviews?
  • Why are customers complaining about slow service?
  • Which feature is causing the most errors?
  • When is system load at its peak?
  • Why is conversion dropping on a specific page?
  • How does a new feature impact system stability?

How to Use These Tools Effectively

  • Dashboards: Visualizations that translate technical data into business insights (e.g., customer journeys, response times, error rates).
  • Alerting: Get notified immediately when a KPI degrades—before customers notice.
  • Reports: Weekly or monthly summaries that include both technical and business metrics.

A well-implemented observability platform acts like a real-time business X-ray: it shows not just whether the system is working, but how its performance impacts customer experience and business outcomes.

What Can You Do as a Business Stakeholder?

You don’t need to be a developer, install software, write code, or know programming languages. By asking the right questions, you can get closer to the root of problems—and their solutions.

Key questions to ask:

  • If something isn’t working, do we know exactly why?
  • Can we see where and when customers are getting stuck?
  • Do we understand the impact of a new feature on the entire system?
  • Can we detect issues before they become business problems?
  • Are we getting data that helps us make better decisions—not just reactively, but proactively?

These aren’t technical questions—they’re about business awareness. If you can’t answer them clearly, improving observability isn’t just helpful—it’s urgent.

Concrete Steps to Take:

  1. Support observability initiatives—they’re not extra costs, but business insurance.
  2. Use business dashboards—with real-time data that matters to you.
  3. Speak a common language—between technical and business teams.
  4. Integrate observability into project planning—from the start.
  5. Make it part of your culture—shared goals lead to faster success.

What’s the Key Takeaway?

Performance shows how fast and efficiently a system runs.

Observability reveals what’s happening beneath the surface—and why.

Neither is a goal in itself. They are tools to help you make better decisions, respond faster, and ultimately deliver a better customer experience.

The lesson is simple, yet often overlooked:

It’s not enough for a system to work—we must understand how it works.

If we can’t see into our systems, we’re just guessing. And business decisions can’t be based on guesswork.

Observability isn’t just IT’s job.
It’s a shared responsibility—and a shared opportunity—to build more transparent, reliable, and customer-centric digital services.