we are looking to set the threshold value for Failure Rate, Traffic Drops and Response time and slow request for Applications, Services and Database.
Any of you could advise to get to know the industry standard for this?
I believe this should be decided by your technical / business teams and the thresholds can be vary from application to application e.g. frontend/backend/databases etc...
Dynatrace uses the Apdex (Application Performance Index as defined by the Apdex Alliance) which is an open, standard way to depict the performance of User Actions. Apdex is a ratio of slow and fast requests. It is application independent and represents performance as a single value between 0 and 1. Everything lower than .5 is unacceptable everything higher than .93 is excellent. Use this value to compare the performance of different applications and to understand long-term performance trends.
Review the below link to understand the formula behind this: