The Total Economic Impact™ Of Nexis By LexisNexis
Cost Savings And Business Benefits Enabled By Nexis
A Forrester Total Economic Impact™ Study Commissioned By LexisNexis, January 2025
Access to quality information is crucial for organizational decision-making. However, only 26% of global data and analytics decision-makers say their company always uses data and insights to make decisions.1 Among the main reasons this number is so low are lack of trust in data sources and the time and resources spent to get insights.2 Nexis®, a research platform offered by LexisNexis®, provides organizations with access to reliable information in a timely and efficient manner, allowing qualified employees to focus on insights. This helps inform strategic decision-making and reduces the risk of costly mistakes and missed business opportunities.
Nexis is a LexisNexis flagship business product that provides access to an expansive collection of news, company, legal, and regulatory data necessary to make informed business decisions.
LexisNexis commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Nexis.3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Nexis on their organizations.
Return on investment (ROI)
110%
Net present value (NPV)
$1.20M
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives from organizations with experience using Nexis. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization company that’s headquartered in the US with global operations. It has 20,000 employees and revenue of $3 billion per year.
Interviewees said that before using Nexis, their organizations used multiple sources to research information that would inform business decisions, including new business opportunities, risk management, or mergers and acquisitions (M&A). They relied heavily on direct requests for information and financial data from research subjects or outsourced third-party research, which was time-consuming and expensive. Interviewees found it difficult to collect reliable data, especially for non-US and privately held businesses; the necessary information was often scattered and hard to consistently access, and it required significant effort to organize and analyze. These challenges hindered the organizations’ ability to conduct thorough due diligence quickly, which impacted decision-making and risk management efforts.
Interviewees said that after investing in Nexis, their organizations transformed their ability to conduct global research and collect and analyze data from credible sources, and they saw direct positive impacts on decision-making. Key results from investing in Nexis include significantly improving research efficiency and cost-effectiveness, particularly in due diligence and company research, which allowed teams to do more with the FTEs. Additionally, adopting Nexis resulted in significant cost savings by eliminating the need for legacy tools and platforms, streamlining data access and management, and directly reducing expenses.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
- Improved research efficiency worth $986,000 over three years. The adoption of Nexis significantly enhances the efficiency and cost-effectiveness of the composite organization’s due diligence and research processes. By automating and consolidating searches, Nexis reduces the time and manpower the organization previously required for these tasks, allowing existing staff to focus on higher-value projects. This efficiency gain, alongside reduced reliance on outsourced firms, results in substantial time and cost savings across multiple business areas, including marketing, business development, and regulatory compliance. This leads to 30% time savings for the composite.
- Business impact worth $1.1 million over three years. The composite uses Nexis for its comprehensive data and analytics capabilities, and this enables it to make well-informed decisions quickly. By conducting in-depth market research, monitoring industry trends, and assessing risks and opportunities, the composite enhances strategic planning, competitive analysis, and compliance efforts. Example use cases include business development teams effectively targeting prospective customers or business analysts performing due diligence in trying to move quickly into a new market. Overall, Nexis plays a role in supporting the composite’s strategic business decisions.
- Elimination of legacy tools worth $224,000 over three years. After adopting Nexis, the composite experiences significant cost savings by eliminating the need for multiple platforms and subscriptions. This transition not only streamlines data access and management, but it also reduces the direct expenses associated with maintaining various sources. Retiring these tools saves the composite a risk-adjusted total of $90,000 annually over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
- Reduced business risk enabled by proactive data analysis. Interviewees said Nexis has advanced data analytics capabilities that help reduce business risk by enabling proactive decision-making. Interviewees explained that having real-time access to trustworthy data allows their organizations to make timely and informed business decisions. For instance, the chief information officer and head of IT at an insurance firm said their organization uses Nexis data to gather evidence to support changes in rates or product offerings to the Department of Insurance Services, which demonstrates the credibility and value of the information provided. Interviewees said Nexis helps their organizations proactively address potential legal concerns or risks.
- Improved research quality. The chief legal and compliance officer at a manufacturing organization emphasized the importance of Nexis in delivering consistent, high-quality information worldwide, which they said is crucial for the company’s international business operations. The interviewee said the extensive range of sources and country coverage available through Nexis enables users to achieve more thorough and reliable research results.
- Improved employee experience. The same interviewee emphasized the transformative impact of Nexis on their team and said it elevates their roles from data collectors to data analysts. The depth and quality of data and insights available from Nexis transformed researchers’ day-to-day responsibilities from purely searching for information to providing higher-level intelligence to inform business decisions. Interviewees said this shift not only increases job satisfaction by enabling team members to engage in more meaningful work, but that it also serves as an appealing prospect for potential recruits who know they will have access to advanced tools for more complex tasks. Interviewees said Nexis ultimately empowers team members to make more significant contributions to the business, transitioning them toward more analytical and impactful roles.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
- Nexis subscription costs $739,000 over three years. Nexis licensing is based on the number of users and data sets and the features deployed. The composite organization has 50 users in Year 1, 60 users in Year 2, and 70 in Year 3.
- Planning and implementation costs of $310,000 over three years. The deployment of Nexis invites collaboration among the composite’s various teams, including project managers, IT professionals, software engineers, data analysts, security personnel, and business representatives. They work closely with the LexisNexis customer success team to refine user guides, design reports, and set up for effective data integration. The composite’s users spend two to three weeks completing training courses and utilizing online modules provided by LexisNexis, and they become proficient with the tool within approximately three weeks.
- Ongoing management costs of $43,000 over three years. The composite assigns a team of two dedicated FTEs to support the Nexis platform. The team spends 5% of its time overseeing the partnership with Nexis, concentrating on assigning roles, handling license requests, and implementing system improvements.
The representative interviews and financial analysis found that a composite organization experiences benefits of $2.29 million over three years versus costs of $1.09 million, adding up to a net present value (NPV) of $1.20 million and an ROI of 110%.
Key Statistics
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Return on investment (ROI)
110%
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Benefits PV
$2.29M
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Net present value (NPV)
$1.20M
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Payback
7 months
Benefits (Three-Year)
Improved research efficiency Business impact of using Nexis Cost savings from legacy tools [CONTENT] [CONTENT] [CONTENT] [CONTENT] [CONTENT]
TEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Nexis.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Nexis can have on an organization.
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Due Diligence
Interviewed LexisNexis stakeholders and Forrester analysts to gather data relative to Nexis.
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Interviews
Interviewed four representatives at organizations using Nexis to obtain data about costs, benefits, and risks.
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Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Disclosures
Readers should be aware of the following:
This study is commissioned by LexisNexis and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Nexis.
LexisNexis reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
LexisNexis provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Julia Fadzeyeva
Drivers leading to the Nexis investment
Interviews
| Role | Industry | Region | Employees |
|---|---|---|---|
| Chief legal and compliance officer | Manufacturing | Global (HQ in the US) | 8,000 |
| Chief information officer and head of IT | Insurance | US | 500 |
| Chief information officer | Banking/finance | US | 70,000 |
| Director of IT | Healthcare | US | 38,000 |
Key Challenges
Before the adoption of Nexis, interviewees’ companies faced challenges conducting due diligence and economic analysis — particularly for non-US and privately held companies — due to difficulties in obtaining reliable and consistent data. The organizations used a combination of public and private information sources, direct inquiries for financial and business details, and various third-party sources for additional insights. Some companies attempted to outsource this information collection, but the process was inefficient and often failed to deliver timely results. This reliance on disparate sources made the process cumbersome and failed to meet the organizations’ need for swift market analysis. Consequently, this fragmented approach to data collection and analysis led to increased burden on internal research teams and hindered the organizations’ ability to quickly make well-informed decisions based on accurate data.
The interviewees noted how their organizations struggled with common challenges, including:
- Inefficiency from disparate research tools. Interviewees’ organizations struggled with fragmented information tools and sources. The chief information officer from the banking/finance firm said that searching numerous tools and sources slowed their team down. They said, “When you have multiple data sources, you must know precisely where that information might reside and then take the time to organize it into one place.”
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High risk of relying on untrustworthy sources due to difficulty finding information. Before the adoption of Nexis, interviewees’ companies faced significant challenges in conducting due diligence and economic analysis — particularly for non-US and privately held companies — due to difficulties obtaining reliable and consistent data, which introduced business risk.
The chief legal and compliance officer for a manufacturing firm said: “We risk not being able to make fully informed credit decisions. But increasingly, our customers and investors demand that we know our clients and know our supply chain from a sustainability and business-integrity approach. You must have a business intelligence service that lets you dig deeper so you can avoid doing business with somebody indirectly doing business with a sanctioned party or having forced labor issues in their supply chain. Those are the issues where you can’t stick your head in the sand anymore.” -
The high cost and slow speed of the outsourcing research process. Some interviewees reported using outsourced agencies to conduct research projects, but they said their organizations didn’t get the information promptly. In addition, project costs were increasing and difficult to predict.
The director of IT at a healthcare organization said: “The [research agency] was lacking in terms of their time to complete the project. We were moving things more quickly regarding M&A or due diligence activities, and we found that the research arm was taking too long. Secondly, amendments were being made annually in terms of customizations, which were in scope and out of scope services that were driving up the costs.”
Solution Requirements/Investment Objectives
The interviewees’ organizations searched for a solution that could deliver:
- Credibility and professionalism. The organizations needed a solution that could provide deep, credible, and professional insights.
- Trustworthy global information. Interviewees said their firms require comprehensive company and financial data from various sources and countries, and they recognized the critical importance of this information for global business operations.
- Business intelligence capabilities. The organizations looked for an offering that could provide comprehensive business intelligence to analyze market trends, competitor strategies, customer preferences, and supply-chain dynamics to help make informed business decisions.
- Supplier intelligence. Interviewees expressed the need for a tool to address supplier intelligence to help their organizations evaluate and monitor suppliers. They said their companies wanted an intelligence tool to assess risks, understand supplier capabilities, track performance, and ensure compliance with standards and regulations.
- Simplification and speed in research. Interviewees from organizations looking to simplify and accelerate their research processes said speed to decision is essential. They said their companies sought a solution that could streamline data collection, analysis, and reporting to make research tasks more efficient and less time-consuming.
- Future roadmap and scalability. Interviewees said their organizations wanted a research partner that could grow with their needs. They were looking for a tool that would be effective immediately and that could also be developed further to meet future challenges and opportunities.
In summary, interviewees said their companies required a credible and customizable research tool that could provide comprehensive business and supplier intelligence, simplify and expedite the research process, and support the development of internal proprietary information, all while being scalable and adaptable to future needs.
Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a composite organization, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the four interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global organization headquartered in the US that generates $3 billion per year. The organization’s growth strategy includes penetrating new markets and mergers and acquisitions. It works with a robust supply chain and a wide array of customers — so much that it needs to perform research around the globe. The organization’s success depends on timely, quality information.
Deployment characteristics. After a three-month planning and implementation period, the composite organization begins using the solution in Year 1. During the initial rollout, 70% of the professionals involved in research within the organization adopt Nexis. In the following years, the solution expands to all FTEs involved in research, reaching 70 employees in Year 3.
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Improved research efficiency | $330,221 | $400,982 | $471,744 | $1,202,947 | $986,019 |
| Btr | Business impact of using Nexis | $297,000 | $445,500 | $594,000 | $1,336,500 | $1,084,463 |
| Ctr | Cost savings from legacy tools | $90,000 | $90,000 | $90,000 | $270,000 | $223,817 |
| Total benefits (risk-adjusted) | $717,221 | $936,482 | $1,155,744 | $2,809,447 | $2,294,299 | |
Improved Research Efficiency
Evidence and data. Interviewees highlighted how implementing Nexis enhanced efficiency and cost-effectiveness in due diligence and research processes. They said that, previously, their companies might have needed to supplement existing staff and use multiple tools to accomplish what Nexis can do singularly and more efficiently. Nexis automates and consolidates searches, reducing tasks that could take hours or days, and the efficiency extends across various business areas, including marketing, business development, mergers and acquisitions, regulatory compliance, and risk management. Finally, interviewees reported that Nexis reduced reliance on outsourced firms to conduct due diligence or other research projects, resulting in higher quality results delivered faster.
- The chief legal and compliance officer in manufacturing said: “We don’t have to add a team of people to do this due diligence work. The platform is essentially doing that for us. Trying to cobble together many different platforms would have been much more expensive. Now, our team can do a single global search across the entire platform within Nexis, and it’s more automated and efficient. They can [perform research] in half an hour to an hour at most. Whereas, before [Nexis], it would have taken them half a day to a day or even multiple days.”
- The chief information officer and head of IT at an insurance company reported that by leveraging the Nexis toolset, their organization was able to redirect existing team members to higher-value projects. They said, “We reduced the number of tools we had, and if you consider the efficiencies gained, it’s going to be close to 35% cost savings.”
- The chief information officer of the banking/finance firm said: “Before Nexis, researching a good-sized legal case would have meant manually searching, which could take a day to go through and find information. A legal analyst was spending up to a day or two going through and doing research, and [with Nexis,] we could get that down to maybe just a few hours. For the average legal staff, this could be hundreds of dollars, and you could be spending $800 to $1,000 just on one case. So, over time, we’re talking tens of thousands of dollars just on time savings.”
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The director of IT at a healthcare organization said: “One of the biggest benefits we saw was a reduction in our use of third-party consulting. Also, it used to take two weeks to deliver results, and [now] researchers can potentially complete projects in three to four business days.”
The interviewee added that due to the organization’s business needs, the time savings add up across 30 due diligence projects, up to 100 regulatory compliance cases, and hundreds of general legal reviews.
Modeling and assumptions. For the composite organization Forrester assumes:
- There are 70 business FTEs who conduct research annually.
- Each year, those FTEs spend 30% of their time conducting research.
- Before Nexis, FTEs spent 43,680 hours per year conducting research.
- The composite rolls out Nexis and FTEs adopt it over time. In Year 1, 70% adopt Nexis. Adoption then increases to 85% in Year 2 and to 100% by Year 3.
- Nexis saves each FTE 30% of the time they previously spent researching.
- The average hourly salary for a business analyst is $40.
Risks. The efficiencies an organization may gain by deploying Nexis may vary depending on the following:
- The total number of employees who do research.
- The roles and average salaries of the employees involved in research.
- The organization’s rollout plan and adoption rate of employees using Nexis.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $986,000.
Improved Research Efficiency
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| A1 | Business FTEs who do research | Composite | 70 | 70 | 70 |
| A2 | Average percent of business FTE time spent on research | Composite | 30% | 30% | 30% |
| A3 | Total work time for an average business FTE (hours) | Composite | 2,080 | 2,080 | 2,080 |
| A4 | Time spent on research prior to Nexis (hours) | A1*A2*A3 | 43,680 | 43,680 | 43,680 |
| A5 | Nexis adoption across business FTEs involved in research | Composite | 70% | 85% | 100% |
| A6 | Percent of time saved on research with Nexis | Interviews | 30% | 30% | 30% |
| A7 | Time saved on research with Nexis (hours) | A4*A5*A6 | 9,173 | 11,138 | 13,104 |
| A8 | Average hourly rate for a business analyst | Composite | $40 | $40 | $40 |
| At | Improved research efficiency | A7*A8 | $366,920 | $445,520 | $524,160 |
| Risk adjustment | ↓10% | ||||
| Atr | Improved research efficiency (risk-adjusted) | $330,228 | $400,968 | $471,744 | |
| Three-year total: $1,202,940 | Three-year present value: $986,014 | ||||
Business Impact Of Using Nexis
Evidence and data. Interviewees from different industries described many examples of their organizations gaining business value by deploying Nexis. They said that by leveraging the comprehensive data and analytics platform, their businesses have access to critical insights and can make informed decisions swiftly. The organizations used Nexis to conduct thorough market research, monitor industry trends, perform due diligence, and assess potential risks and strategic business opportunities. The interviewees explained that having this level of insight supports strategic planning, competitive analysis, and compliance efforts, which ultimately contributes to a more informed decision-making process.
- The chief legal and compliance officer in manufacturing described how their organization’s business development teams use Nexis to target prospective customers: “It’s a time saver for sales. They are better informed and know more about the company going into meetings, and they can shorten that sales process because they’ve already done so much work by having this data from Nexis. It also allows them to identify suitable types of companies, making them smarter about the buyers they’re approaching. The sales funnel improves in quality, enabling salespeople to focus more on prospects already prequalified because they know what kind of financial standing prospects have. As a result, we don’t waste our time approaching unqualified companies in the first place.”
- The chief information officer and head of IT from the insurance firm gave an example in which research performed with Nexis allowed their firm to move into a new market with a new product several months sooner than expected. This doubled the organization’s customer base and revenue in the region in the first two years. They said, “Even though we spend a few thousand dollars for Nexis, the return on investment is huge because we can precisely understand the underlying data and decide how to proceed.”
- The chief information officer in banking/finance said their organization used Nexis to improve the speed of customer onboarding: “[When] a business team is trying to onboard businesses to become customers, that can take a while. If it takes a long time, there’s a risk that the customer may go somewhere else or get frustrated. I know that’s a big thing that’s improved [with Nexis].” The interviewee said their organization also relied on Nexis to inform lending decisions. They explained, “Using Nexis has reduced the risk profile for bad loans and defaults, which is huge — especially when deciding on large loans.”
- The director of IT from the healthcare firm said: “Spending time performing due diligence or risk audits allows us to understand our competitive advantages, which informs our strategies or the services we want to introduce. The insights that Nexis provides, namely from a market intelligence perspective, give us significantly more value than [our previous tool].”
Modeling and assumptions. For the composite organization Forrester assumes:
- The composite makes $3 billion in annual revenue.
- Based on the improved decision-making Nexis provides, the annual revenue increase attributed to Nexis is 0.1% in Year 1, 0.15% in Year 2, and 0.2% in Year 3.
- The composite’s operating margin is 11%.
Risks. The business impact for organizations deploying Nexis may vary depending on:
- The size of the organization and its reliance on research and market intelligence for decision-making.
- The organization’s operating margin.
- The organization’s adoption of Nexis.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.1 million.
Business Impact Of Using Nexis
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Revenue | Composite | $3,000,000,000 | $3,000,000,000 | $3,000,000,000 | |
| B2 | Revenue increase attributed to Nexis | Interviews | 0.10% | 0.15% | 0.20% | |
| B3 | Incremental revenue attributed to Nexis | B1*B2 | $3,000,000 | $4,500,000 | $6,000,000 | |
| B4 | Profit margin | Research data | 11% | 11% | 11% | |
| Bt | Business impact of using Nexis | B3*B4 | $330,000 | $495,000 | $660,000 | |
| Risk adjustment | ↓10% | |||||
| Btr | Business impact of using Nexis (risk-adjusted) | $297,000 | $445,500 | $594,000 | ||
| Three-year total: $1,336,500 | Three-year present value: $1,084,463 | |||||
Cost Savings From Legacy Tools
Evidence and data. Interviewees described cost savings on third-party tools since adopting Nexis because it effectively eliminated the need for multiple platforms and subscriptions. This shift streamlined data access and management and reduced direct expenses associated with maintaining several sources. Specifically, interviewees said adopting Nexis led to a direct cost reduction of 30% to 35% compared to previous tools. By consolidating data sources into a single platform, interviewees noted a decrease in the administrative and maintenance burden that comes from managing multiple subscriptions, thereby realizing indirect savings in terms of time and internal resources.
Interviewees said the financial impact of switching to Nexis and retiring legacy tools is notable, with some reporting savings of between $100,000 and $160,000 per year. These savings stem from reduced subscription costs, decreased administrative efforts, and eliminating the necessity for additional tools and platforms.
The chief legal and compliance officer in manufacturing said: “We didn’t have some kind of broad tool like this before, but Nexis allowed us to stop looking. We don’t need another platform. We don’t need to develop anything [or] find any other tools or platforms because Nexis handles it all.”
Modeling and assumptions. Forrester assumes the composite saves $100,000 annually in legacy-tool spending with Nexis.
Risks. An organization’s cost savings from consolidating legacy tools may vary with the cost and number of legacy tools or services previously used.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $224,000.
Cost Savings From Legacy Tools
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| C1 | Cost of legacy sources | Composite | $100,000 | $100,000 | $100,000 |
| Ct | Cost savings from legacy tools | C1 | $100,000 | $100,000 | $100,000 |
| Risk adjustment | ↓10% | ||||
| Ctr | Cost savings from legacy tools (risk-adjusted) | $90,000 | $90,000 | $90,000 | |
| Three-year total: $270,000 | Three-year present value: $223,817 | ||||
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
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Reduced business risk enabled by proactive data analysis. Each interviewee described scenarios in which the advanced data analytics capabilities of Nexis allowed their organizations to access data, which allowed for timely, well-informed, and proactive decision-making.
The chief information officer at the banking/finance firm said their organization researched potential loan candidates to make smart investment decisions. The chief legal and compliance officer at the manufacturer said their company monitored the financial health of its customers and supply-chain partners to avoid surprises like bankruptcy filings. The chief information officer and head of IT at the insurance firm said their organization used Nexis to ensure compliance with reporting requirements to regulatory bodies like the Department of Insurance Services (DIS). And the same interviewee also described how their organization used Nexis data to create proof points for DIS approval when it wanted to increase rates or change product offerings. They said: “The information from Nexis is beneficial to show the basis why we are making changes. I believe Nexis has better [credible] data.”
Interviewees said Nexis empowered their organizations to effectively manage risk by enabling them to address potential legal concerns or risks preemptively. - Improved research quality. The chief legal and compliance officer in manufacturing emphasized the importance of consistent, quality information with a global reach: “We do business all over the world, and the number of sources and depth that Nexis has available and the number of countries covered is really critical for us. Our users get consistently deeper results, and they have confidence in the reliability of the research and trust that they can count on those results more than the ‘cobble together’ approach we had before.”
- Improved employee experience. The same interviewee described the impact of what having access to Nexis means to his team and its ability to provide value to the business: “Having the level of data available from Nexis has taken our folks from being administrative collectors of data to being analysts of data who perform the higher-level analyses. Anytime you can move people up the value chain in the work that they do day to day improves their job satisfaction. On the recruiting side, we can entice recruits by saying, ‘Hey, we give you all these great tools so you can spend more time doing higher-level work than you might in another role or at another company.’”
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Nexis and later realize additional uses and business opportunities, including:
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Expanding adoption by the business. Interviewees described plans their organizations have to expand the use of the platform into different business departments. The chief information officer at the banking/finance firm said: “We are looking at ways we could do more consumer research. Marketing must be aware of some privacy-law changes to understand how they can market to particular consumers so that we are growing the adoption to different departments within the organization.”
The director of IT in healthcare said their firm is looking to perform more due diligence about sentiment or reputation tracking. They explained, “It won’t replace social reputation software, but we want to understand what the research tells us about the perception of an organization.” - Further shortening research timelines by adopting APIs. Interviewees said their organizations saw potential for additional efficiency from using Nexis APIs. The director of IT in healthcare noted, “[My organization’s researchers are] pulling some complex search queries or need information packaged up in a specific way for every quarter or every month.” The interviewee also said the organization is planning to use APIs to speed up these queries and make them automatically accessible at researchers’ fingertips. Readers should note that APIs are available with Nexis® Data+, a standalone product that requires additional investment.
- Being able to take advantage of new AI capabilities to further expedite decision-making. At the time of the interviews, the interviewees’ organizations had not had a chance to experience new AI benefits that have since become available with Nexis+AI™. New capabilities could yield faster information retrieval and further streamline complex tasks for researchers, leading to additional productivity gains and enhanced decision-making. Readers should note that Nexis+AI is a standalone product and not an upgrade to Nexis.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | Nexis subscription cost | $0 | $273,000 | $299,250 | $324,450 | $896,700 | $739,260 |
| Etr | Planning and implementation | $219,672 | $35,934 | $35,934 | $35,934 | $327,473 | $309,033 |
| Ftr | Ongoing management | $0 | $17,220 | $17,220 | $17,220 | $51,661 | $42,825 |
| Total costs (risk-adjusted) | $219,672 | $326,154 | $352,404 | $377,604 | $1,275,834 | $1,091,118 | |
Nexis Subscription Cost
Evidence and data. Interviewees said the Nexis platform is customized to their organizations’ needs and that the pricing is reflective of the number of Nexis users.
Pricing will vary. Contact LexisNexis for additional details.
Modeling and assumptions. For the composite, Forrester assumes:
- In Year 1, the composite provides Nexis licenses to 50 FTEs who conduct research. The organization increases the number of seats to 60 in Year 2 and to 70 in Year 3.
- The composite’s datasets include news coverage, company and financial information, and legal data.
Risks. The subscription costs may vary depending on:
- The organization’s number of users.
- The datasets and features included in the contract.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $739,000.
Nexis Subscription Cost
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| D1 | Nexis subscription cost | Composite | $0 | $260,000 | $285,000 | $309,000 | |
| Dt | Nexis subscription cost | D1 | $0 | $260,000 | $285,000 | $309,000 | |
| Risk adjustment | ↑5% | ||||||
| Dtr | Nexis subscription cost (risk-adjusted) | $0 | $273,000 | $299,250 | $324,450 | ||
| Three-year total: $896,700 | Three-year present value: $739,260 | ||||||
Planning And Implementation
Evidence and data. Interviewees said that the implementation, ongoing management, and training related to Nexis required the following:
- Involvement from multiple organizational teams for planning and implementing Nexis. Interviewees said their organizations’ Nexis planning processes and implementations typically involved a project team for up to six months to ensure representation from all relevant business units. The teams were comprised of project managers, IT professionals, software engineers with API experience, data analysts, security personnel, and representatives from the business who each collaborated to ensure the tool would meet the needs of the business. LexisNexis and internal teams worked together closely to refine user guides, design reports, and set up proper APIs to ensure the data flows through appropriately.
- Partnering with the Nexis Customer Success team. Interviewees said that LexisNexis provides support with configuration, data integration, and training during the onboarding process.
- Time spent on training. Users at some organizations required two to three weeks of training courses while users at others leveraged online training modules developed by LexisNexis. Most interviewees said they were competent with the tool after three weeks.
Modeling and assumptions. For the composite, Forrester assumes:
- Teams spend three months in the planning and implementation phase. During the following three years, they continue to roll out the product to different departments and spend one month each year reviewing and improving the existing configuration.
- Three IT and engineering professionals participate in the initial three-month planning and rollout process and as supporting rollouts occur during the next three years.
- In the initial planning period, engineers spend 100% of their time participating in the project. During each of the next three years, they spend approximately two weeks of their time expanding or improving the Nexis configuration.
- The average monthly salary for an engineer is $13,667.
- There are five FTEs from the business dedicated to the project.
- In the initial planning and implementation stage, the five FTEs spend 30% of their time dedicated to the project. They then spend 10% of their time for about one month in each of the following three years working on Nexis expansion and improvement.
- The average monthly salary for a business FTE is $8,333.
- Fifty users require training initially, followed by an additional 10 more each year.
- Each user requires 20 hours of training.
- The average hourly rate for a business analyst is $40.
Risks. The costs of planning and implementing Nexis will vary depending on:
- The size of the organization’s Nexis rollout and the number of IT, engineering, and business professionals who participate in planning and deployment.
- The average annual salaries of the team members who participate in the deployment.
- The number of users who need to be trained and the training duration.
- The effort the organization dedicates to expand Nexis use over time.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $310,000.
Planning And Implementation
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Nexis planning and implementation time (months) | Interviews | 3 | 1 | 1 | 1 |
| E2 | IT and engineering FTEs required for planning and implementation | Interviews | 3 | 3 | 3 | 3 |
| E3 | Percent of engineers’ workload dedicated to planning and implementation | Interviews | 100% | 50% | 50% | 50% |
| E4 | Monthly salary for an engineer | Composite | $13,667 | $13,667 | $13,667 | $13,667 |
| E5 | Cost of engineer labor during implementation and additional rollout | E1*E2*E3*E4 | $123,003 | $20,501 | $20,501 | $20,501 |
| E6 | Business FTEs dedicated to Nexis implementation | Interviews | 5 | 5 | 5 | 5 |
| E7 | Percent of business employees' workload dedicated to Nexis implementation | Interviews | 30% | 10% | 10% | 10% |
| E8 | Monthly salary for a business FTE | Composite | $8,333 | $8,333 | $8,333 | $8,333 |
| E9 | Cost of business FTE labor during implementation and additional rollout | E1*E6*E7*E8 | $37,499 | $4,167 | $4,167 | $4,167 |
| E10 | New users who require training | Interviews | 50 | 10 | 10 | 10 |
| E11 | Training time (hours) | Interviews | 20 | 20 | 20 | 20 |
| E12 | Average hourly rate for a business analyst | Composite | $40 | $40 | $40 | $40 |
| E13 | Training cost | E10*E11*E12 | $40,000 | $8,000 | $8,000 | $8,000 |
| Et | Planning and implementation | E5+E9+E13 | $200,502 | $32,667 | $32,667 | $32,667 |
| Risk adjustment | ↑10% | |||||
| Etr | Planning and implementation (risk-adjusted) | $220,552 | $35,934 | $35,934 | $35,934 | |
| Three-year total: $328,353 | Three-year present value: $309,913 | |||||
Ongoing Management
Evidence and data. Interviewees stated that managing an ongoing relationship with LexisNexis and Nexis platform administration requires little effort. The chief information officer and head of IT in insurance said their firm has one director responsible for reviewing the monthly or quarterly charges and integrations. The chief information officer in banking/finance said their organization has a team of up to two IT FTEs handle Nexis platform admin for a couple of hours per week. And the director of IT in healthcare said their organization has three individuals spend up 25% to 30% of their time managing the relationship with Nexis and focusing on role assignments, license requests, and system enhancements.
Modeling and assumptions. For the composite organization, Forrester assumes:
- Two IT FTEs are tapped to manage Nexis.
- These FTEs spend 5% of their time dedicated to the ongoing support of the Nexis platform.
- The average annual salary for an IT FTE is $164,004.
Risks. The costs of managing ongoing support may vary due to:
- The size and scope of the organization’s rollout.
- The number of FTEs required to maintain the platform.
- The average annual salary for each IT FTE dedicated to supporting Nexis.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $43,000.
Ongoing Management
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | IT FTEs dedicated to managing Nexis | Interviews | 2 | 2 | 2 | |
| F2 | Percent of IT FTEs’ workload dedicated to managing Nexis | Interviews | 5% | 5% | 5% | |
| F3 | Burdened annual salary for an IT FTE | E4*12 | 164,004 | 164,004 | 164,004 | |
| Ft | Ongoing management | F1*F2*F3 | $16,400 | $16,400 | $16,400 | |
| Risk adjustment | ↑5% | |||||
| Ftr | Ongoing management (risk-adjusted) | $0 | $17,220 | $17,220 | $17,220 | |
| Three-year total: $51,661 | Three-year present value: $42,825 | |||||
Consolidated Three-Year Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3-
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Cash Flow Analysis (Risk-Adjusted Estimates)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($220,552) | ($326,154) | ($352,404) | ($377,604) | ($1,276,714) | ($1,091,998) |
| Total benefits | $0 | $717,221 | $936,482 | $1,155,744 | $2,809,447 | $2,294,299 |
| Net benefits | ($220,552) | $391,067 | $584,078 | $778,140 | $1,532,733 | $1,202,301 |
| ROI | 110% | |||||
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Total Economic Impact Approach
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Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
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Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
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Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
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Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Appendix B: Endnotes
1 Source: Forrester’s State Of Data, Analytics, Measurement, And Insights Survey, 2024
2 Source: Connect Data To Decisions To Drive Business Impact, Forrester Research, Inc., October 29, 2024.
3 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
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