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Why Observability is a Key Issue for Management's Strategic Decisions

Strategic management issue Strategic management issue

Observability means having a complete overview of your company’s digital channels and effectively managing the digital experiences of your customers and employees. This is no longer just a technical issue – for today’s business leaders, observability is essential for understanding how system performance impacts both business and financial results. Investing in observability is therefore investing in your company’s long-term success, risk management and competitiveness.

“Business leaders drive change, but without the right insights, decisions can be ineffective. With observability, we gain a deeper understanding of the connection between business processes, customer satisfaction and growth. This creates a common ground between the business side and IT, enabling better decisions and new insights,” says Johan Dahlin, responsible for Dynatrace in the Nordics“Observability is today a strategic necessity, not just a technical issue.”

From Traditional Monitoring to Holistic Observability

Traditional IT monitoring is often fragmented, with separate tools to manage different aspects of system availability, performance, and security. This approach limits management’s visibility into the business. To act quickly and effectively, companies need to move to observability, where real-time insights give management a holistic view of the status of systems.

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“The transition to observability requires more than new tools – it requires strong commitment from management. If management is not actively involved, observability will remain at a technical level and never reach the strategic levels needed to drive real change,” adds Johan Dahlin.

Swedish IT Managers Struggle with Huge Amount of Data

A new report shows that 98 percent of Swedish IT managers feel that the complexity of their IT environment has increased over the past year. In addition, 92 percent report that their cloud-based systems generate so much data that it is impossible to manage manually, a figure that is significantly higher than the global average.

“It is an unsustainable situation that clearly demonstrates the importance of to manage complex cloud environments effectively"To interpret and manage this enormous amount of data, advanced AI, analysis and automation are necessary tools," says Johan Dahlin.

Johan Dahlin, Dynatrace
Johan Dahlin, Dynatrace

7 Reasons Why Observability Is Business Critical

Johan Dahlin highlights seven reasons why management should prioritize observability:

  1. Business results – Optimal system performance minimizes downtime, revenue loss, and customer satisfaction issues.
  2. Risk management – Through transparency into the performance of systems, the risk of security incidents and operational disruptions is reduced.
  3. Faster decisions – Real-time insights enable faster and more informed decisions in response to market changes.
  4. Improved customer experience – Early detection of problems in digital customer meetings strengthen the brand and customer loyalty.
  5. Future protection – Through observability, companies can safely scale up and implement digital transformation without interruption.
  6. Efficient use of resources – Insights into system performance help optimize resources and reduce unnecessary costs.
  7. Strengthen the culture of collaboration – Observability promotes insight-driven transparency and creates a culture of continuous improvement.

“Observability must be elevated from being a technical issue to a strategic priority that concerns the entire company,” concludes Johan Dahlin.

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