Speed-To-Answer Efficiency Savings

Evidence and data. One of the biggest benefits of DeepSights is its enhanced ability to confidently and reliably provide answers to questions in a more rapid, efficient, and comprehensive way, based on the most up-to-date intelligence. Interviewees reported drastic reductions in time spent on answering insights questions coming from different departments and regions.

• The global VP, insight, at the consumer goods organization said: “Before [our investment into Market Logic], a request on market trends would require one or two people working on it for a full day to be answered. Now it takes 15 minutes.”

• Being able to more quickly and comprehensively respond has not only led to efficiencies but also improved the insights team’s reputation, as the project leader, customer analytics, at the retail organization noted: “The reputation of the insights team has dramatically increased because of the speed and the depth of knowledge we can send to the rest of our organization. If we didn’t have Market Logic right now, we would not be able to deliver in a normal time frame all the questions we receive. We would have to pick what to focus on and leave the rest untouched.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The insights team receives 10,800 requests annually.

• Fifty percent of the requests are easy to answer: These took an average of 10 minutes to answer previously. Another 20% are medium-complexity insights requests that took 30 minutes to answer; 20% are complex insights requests that took 120 minutes to answer; and 10% are board-level insights requests that took two working days to answer.

• The percentage of time saved in answering insights requests overall is estimated to be 78% in Year 1, 87% in Year 2, and 97% in Year 3, as the composite becomes more familiar with Market Logic and optimizes its use.

• The average fully burdened annual salary of a business insights and analytics manager is $147,313.

• A productivity recapture rate of 70% is applied, as it can be assumed that only part of the time saved is reallocated by users to productive work. 

Risks. This benefit may vary for organizations based on:

• The amount and type of requests an insight team receives.

• The average effort dedicated to each type of request.

• The size of the insights team.

• The average fully burdened salary of a business insights and analytics manager.

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 $2.3 million.

Market Research Cost Savings

Evidence and data. Interviewees explained that they have been able to significantly reduce market research costs following their investment with Market Logic. Organizations can use DeepSights to more precisely query and scan through the information that is already present, thus avoiding the need to commission additional market research. As the director of business operations at the pharmaceuticals company said: “We use DeepSights instead of going out and just commissioning another piece of market research. The process is probably the biggest contributing factor, as we established a business process to get the stakeholders to check Market Logic beforehand.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The baseline research spend, $37.5 million, is based on interview data and adapted to the composite organization’s characteristics.

• Forrester assumes that 50% of the total market research spend is governed by the insights team.

• The average duplication savings is 27%.

• Twenty percent of the duplication savings can be attributed to DeepSights, in conjunction with organizational behavioral changes and governance efforts.

Risks. This benefit may vary for organizations based on:

• The total market research spend and the portion of it governed by the insights team.

• The efforts an organization is willing to make to change the culture within the organization and convince users to look into Market Logic first, rather than commissioning extra market research.

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 $2.3 million.

Legacy Solutions Cost Avoidance

Evidence and data. By using Market Logic, interviewees have been able to realize noteworthy savings by eliminating legacy software and closing down content management systems that were redundant or no longer useful. In many cases, their organizations were able to make significant cost savings, even if they were not able to completely eliminate legacy tools. This can not only reduce the direct vendor fees for these solutions but also the associated operational and maintenance costs. The director of business operations at the pharmaceuticals organization explained, “We could eliminate some half-baked repositories — things that weren’t managed well and taking up people’s time — and shift to Market Logic.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• It had spent $3.5 million annually on various legacy solutions.

• The savings on legacy solutions that is attributed to Market Logic grows from 15% in Year 1 to 30% in Year 2 and 50% in Year 3. This is due to the composite rolling out the platform to more users and their increasing familiarity with it.

Risks. This benefit may vary for organizations based on:

• The proportion of legacy solutions investments that an organization can substitute.

• Legacy solutions’ contract terms.

Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.1 million.

Business Growth

Evidence and data. Interviewees shared that their organizations were able to grow faster because of their DeepSights investment. While it was not straightforward for the interviewees to quantify the impact of DeepSights on business growth, they agreed that with earlier access to better information, their organizations could make better and more timely decisions, in turn enabling business growth. In one case, it was possible to more quickly validate a new competitive threat and react faster. In another, a team in a developing market was better able to tap into knowledge of how various product categories have grown, gauge the suitability of their offers for consumers and merchandisers, and tailor the marketing campaign.

• The global digital commerce and shopper insights lead at the retail and pet care organization said: “Knowledge is not used once but reused globally. Double usage means double ROI for us.”

• The global VP of insight at the consumer goods organization reinforced the impact of Market Logic on business growth by mentioning how time to market has decreased. They said, “Overall time-to-market for projects is definitely decreasing over the last couple of years.”

Modeling and assumptions. Dispersed teams across various geographies within the composite organization have been able to drive regional growth thanks to Market Logic. This is particularly beneficial for regions without a local insights team, as they can access the platform’s resources from other markets and tap into knowledge that is available across the entire organization.

• The total revenue generated in markets where Market Logic is leveraged is specific to some regions only. In this case, it is equivalent to around 1% of global revenue, growing at 10%.

• Market Logic is directly linked to a revenue uplift of 2% in Year 1, 2.5% in Year 2, and 3% in Year 3 of the total revenue generated in these markets.

• An operating profit margin of 12% is applied.

Risks. This benefit may vary for organizations based on:

• An organization’s overall revenue and the portion generated in various markets in which Market Logic can be leveraged.

• The degree of impact on the revenue affected.

• The operating profit margin. 

Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.3 million.

Time-To-Insight Efficiency Savings

Evidence and data. Users of the DeepSights platform benefit from it as a powerful tool to look for insight and information. These users, who come from a variety of different departments and have different use cases, save significant time in coming to these insights.

• The time and effort needed to be invested in research activities is drastically reduced with DeepSights, as mentioned by the director of business operations at the pharmaceuticals organization: “In one use case, our overall project effort has been reduced from three months to three weeks. Our users can now combine information that they already have, use DeepSights, get complicated synthesis across different sources, and then put together an answer. They could basically do supercharged desk research rather than having to do fieldwork.”

• The global digital commerce and shopper insights lead at the retail and pet care organization further underscored, “In terms of innovation, development, advertising, [and] market review projects, we went from taking, on average, six months to taking half the time.”

• The global VP of insight at the consumer goods organization explained: “During innovation projects, we can save time with Market Logic in some initial stages. This time can then be reinvested at later stages of the project.”

Modeling and assumptions. The composite’s active users sit within the marketing, branding, strategy, innovation, and R&D teams and use DeepSights mostly for innovation and market review projects. By leveraging DeepSights, they can save time in the research, discovery, and due diligence phases of such projects, as well as in sharing research and creating “knowledge zones.”

• Thirty percent of the total active user base in DeepSights is actively involved in innovation and market review activities. The remaining DeepSights active users sit in teams such as insights and sales.

• Innovation and market review projects take, on average, 4.5 months, 15% of which is dedicated to due diligence/discovery activities (equivalent to 15 working days).

• The percentage of time saved to get the right insight is 35% in Year 1, 45% in Year 2, and 55% in Year 3. This is due to more users becoming more familiar with Market Logic and optimizing its use to find the right insights.

• The average fully burdened annual salary of a business analyst is $92,692, which is equivalent to a $357 daily rate (rounded). : It is assumed

• A productivity recapture rate of 60% is applied, as it is assumed that not all of the time saved is reallocated to productive work. 

Risks. The impact of this benefit may vary for different organizations due to differences in:

• The average length of innovation and market review projects, as well as the portion of time dedicated to initial due diligence/discovery activities.

• The impact of the tool.

• The average fully burdened salary of a business analyst.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $916,000.

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

• Faster onboarding for new hires. The Market Logic platform, with its strategic focus on critical content, robust governance, and comprehensive change management, enhances the onboarding process for new employees. By providing only essential, strategic knowledge and ensuring that content is relevant, up-to-date, and compliant, new employees can quickly understand and trust the information they access. As a result, they can more quickly get up to speed, benefiting from a structured and trustworthy knowledge environment. The director of business operations at the pharmaceuticals organization mentioned, “The Market Logic platform is optimized for relevancy and trustworthiness, enabling new joiners to get up to speed with what they need to know faster (e.g., via querying or browsing in a more structured experience through knowledge zones).”

• Knowledge loss prevention. Market Logic plays an important role in preventing knowledge loss within organizations. By centralizing and structuring valuable information, it ensures that critical knowledge is preserved and easily accessible. This is particularly important when employees leave the company, as the platform’s robust governance, which ensures that content is continuously updated and compliant, means that their expertise and insights remain within the organization. The director of business operations at the pharmaceuticals company said: “Let’s say I work in my company for 15 years and I have $4 million worth of research on my desktop, and then I leave. The knowledge I had may be wiped away, so this poses a challenge in the organizational environment around flow and loss of knowledge.”

• Reduced innovation effort. Interviewees have mentioned how, by working with Market Logic, they can safely reduce their innovation effort in market intelligence because they can rely on Market Logic as an innovative player in the industry. The global VP of insight at the consumer goods organization stated: “We don’t have to basically always think about building our own innovation [or] our own product roadmap because we know Market Logic will do a lot of R&D, and therefore if they come up with something, that’s most likely also something that we want.”

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement DeepSights and later realize additional uses and business opportunities, including:

• Enhanced ability to take more informed decisions. Market Logic improves organizations’ ability to make more informed decisions by providing access to accurate, up-to-date, and comprehensive market insights. With reliable information at their fingertips, users can assess market trends, competitive landscapes, and customer preferences with greater confidence. This informed approach leads to better decisions, ultimately driving improved outcomes and success for the organization. By empowering users with the right insights, Market Logic fosters a culture of data-driven decision-making. The global VP of insight at the consumer goods company noted: “Market Logic is also helping [the insights team] to be an eye-level partner and a trusted consultant to the rest of the business because now everyone gets smarter in meetings and uses insight.”

• Ongoing innovation and AI capabilities. As Market Logic continues to innovate and leverage AI capabilities, its customers can expect to enjoy additional benefits as and when these are made available.

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).