Making a major change to your Business Intelligence (BI) tools is a big decision. Often, it requires a large upfront investment. When companies consider modernizing their legacy IT systems, there is always the question of whether the juice is worth the squeeze. How do companies justify the cost of IT enhancements and demonstrate their value to senior management and stakeholders? What will the return on investment (ROI) really look like and when will it happen? Will the tool continue to effectively serve the company in the long term?
So how do you create a strategic roadmap for BI that adapts to ever-changing demands, choose the right solution, and demonstrate its value to your stakeholders?
Forrester Total Economic Impact Study
Forrester Consulting has developed a Total Economic Impact™ (TEII) study to assist company leaders in identifying a solution that best serves their business with a comprehensive analysis of costs, benefits, ROI, flexibility, and risk. Seeking to fully understand the benefits of its data analytics solution, the Incorta team worked with Forrester to answer these questions for its Direct Data Platform.
The TEI methodology includes interviews with stakeholders from multiple companies alongside Forrester analysts following the implementation and use of new technology platforms for at least six months. A composite organization and risk-adjusted financial model is created from the data collected.
A Snapshot of the TEI Process
1) Identifying drivers: Each company’s initial challenges, solution requirements, and investment objectives are outlined.
2) Benefit analysis: Identifies quantified savings in inventory, productivity, database management, and extract, load, transform (ETL) processes; unquantified savings in maintenance, infrastructure, and insights; future flexibility of the solution.
3) Cost analysis: Includes platform, storage, and administrative costs.
4) Financial summary: Features consolidated three-year risk-adjusted ROI, net present value (NPV), and payback period for the composite organization’s investment.
TEI methodology includes an evaluation of the future potential value (flexibility) of a specific technology investment through its lifecycle based on possible optional steps that may produce more benefits. Its risk assessment accounts for the possibility that costs may exceed original estimates and benefits may not reach their targets. The result is a comprehensive view of the immediate and long-term impact of a technology purchase.
To see Forrester’s Total Economic Impact™ study on the Direct Data Platform™ by Incorta, click here. Or watch this on-demand webinar to get the framework to evaluate the financial impact of Incorta’s Direct Data Platform, covering the benefits, costs, risk and flexibility.