A Forrester Total Economic Impact™ Study Commissioned By SymphonyAI, December 2024
In today’s rapidly evolving digital landscape, decision-makers face increasing pressure to optimize their organization’s IT operations and enhance service delivery. SymphonyAI aims to address this critical need by providing an AI-powered IT management solution that aims to simplify processes, reduce costs, and improve overall efficiency.
SymphonyAI ITSM is an integrated IT and enterprise workflow automation platform that unifies service management, asset management, and operations management into a single, user-friendly solution. It leverages advanced AI capabilities such as predictive analytics, machine learning, and natural language processing (NLP) to automate workflows, enhance employee productivity, and reduce the complexity and cost of IT operations. SymphonyAI’s goal is to enable the IT-led transformation of enterprises by providing robust security, comprehensive reporting, and seamless integration with other applications, to enable them to streamline their IT processes and improve service delivery.
SymphonyAI commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying their ITSM platform.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of SymphonyAI ITSM on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using SymphonyAI ITSM. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is an organization with 25,000 employees who generate a total of 240,000 IT tickets annually.
has employees who generate IT tickets annually. Custom results are based on user inputs and the TEI case study.
Interviewees noted that prior to using SymphonyAI ITSM, their organizations utilized a combination of alternative vendor solutions and some internally built processes. However, these attempts yielded diminishing success as they moved from simple catch-and-dispatch ticketing to more complex workflows, leaving them with an ever-increasing level of customization required to ensure their previous ITSM solution remained fit for purpose. These limitations led to security vulnerabilities, vendor reliance, and frequent bug fixes until there was no feasible upgrade path moving forward.
After the investment in SymphonyAI ITSM, the interviewees enjoyed efficiency gains due to the integration of emerging technologies such as AI and automation, greater visibility and control over the ITSM solution, and enhanced employee experience (EX) due to the platform’s intuitive, user-friendly interface for self-service, as well as ease of use via out-of-the-box low-code/no-code features. Key results from the investment include easing the burden on service desk agents and IT technicians by leveraging AI to handle ticket routing and service automation.
The interviewees that Forrester spoke with had deployed a previous version of SymphonyAI’s ITSM solution named Summit. Readers should note that SymphonyAI’s sole ITSM solution moving forward is the new Apex IT Platform, which aims to help enterprises roll out services even faster and boost productivity further. Apex offers the flexibility to adapt and expand applications as needed, potentially reducing the frequency of redevelopment, and ultimately driving increased time and cost savings.
The case study as presented can still serve as a starting point for anyone seeking to understand the potential benefits and costs associated with investment in Apex, the latest version of SymphonyAI’s ITSM solution.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
For , these costs could represent over three years.
For , these costs could represent over three years.
The representative interviews and financial analysis found that a composite organization experiences benefits of $4.7 million over three years versus costs of $1.6 million, adding up to a net present value (NPV) of $3.2 million and an ROI of 204%.
might experience benefits of over three years versus costs of , adding up to an NPV of and an ROI of .
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in SymphonyAI ITSM.
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 SymphonyAI ITSM can have on an organization.
Interviewed SymphonyAI stakeholders and Forrester analysts to gather data relative to SymphonyAI ITSM.
Interviewed four representatives at organizations using the previous version of SymphonyAI ITSM, Summit, to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
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.
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.
Readers should be aware of the following:
This study is commissioned by SymphonyAI 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 SymphonyAI ITSM. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with SymphonyAI ITSM based on the inputs provided and any assumptions made. Forrester does not endorse SymphonyAI or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, SymphonyAI and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and SymphonyAI make no warranties of any kind.
SymphonyAI 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.
SymphonyAI provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Jamie Macaulay
Amelia Lau
Sruti Pegatraju
Role | Industry | Region | Employees |
---|---|---|---|
Head of service management and ITSM center of excellence (COE) | Conglomerate (automotive, financial services, real estate, retail, healthcare) | United Arab Emirates (UAE) | 33,000 |
Associate vice president of information technology | IT services and IT consulting | India | 5,000 |
Director of global IT operations and service management | Electronics | USA | 30,000 |
Manager of IT operations | Travel and hospitality | USA | 1,500 |
Prior to implementing SymphonyAI ITSM, interviewees noted their organizations had typically been using alternative ITSM solutions for several years, in addition to some internally-built processes for specific use cases like approvals.
The interviewees noted how their organizations struggled with common challenges, including:
The interviewees’ organizations searched for a solution that could:
Based on the interviews, Forrester constructed a TEI framework, a composite company, 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 conglomerate with business lines in the financial services, manufacturing, and automotive industries. It is headquartered in the US and operates globally. The organization generates approximately US$7.5 billion in revenue annually and has an employee headcount of 25,000 FTEs.
has employees who generate IT tickets annually.
Deployment characteristics. The composite organization deploys SymphonyAI ITSM to help manage the 240,000 IT tickets that are raised by its employees annually. Five employees from the composite organization are required to support initial deployment, with two continuing to be dedicated to ongoing solution maintenance. Another 25 employees across the business are involved in UAT upon roll out.
The following table shows custom results for .
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Improved service agent Productivity | $1,230,120 $1,230,120 | $1,230,120 $1,230,120 | $1,230,120 $1,230,120 | $3,690,360 $3,690,360 | $3,059,126 $3,059,126 |
Btr | Improved incident resolution | $120,960 $120,960 | $181,440 $181,440 | $241,920 $241,920 | $544,320 $544,320 | $441,672 $441,672 |
Ctr | Reduced effort for IT workflow configuration | $162,000 $162,000 | $162,000 $162,000 | $162,000 $162,000 | $486,000 $486,000 | $402,870 $402,870 |
Dtr | Cost savings from retiring legacy solution | $331,500 $331,500 | $331,500 $331,500 | $331,500 $331,500 | $994,500 $994,500 | $824,391 $824,391 |
Total benefits (risk-adjusted) | $1,844,580 $1,844,580 | $1,905,060 $1,905,060 | $1,965,540 $1,965,540 | $5,715,180 $5,715,180 | $4,728,059 $4,728,059 | |
Evidence and data. Interviewees reported that their legacy ITSM solution was a source of frustration to users attempting to log IT tickets for service requests and simple incident reports. Trying to navigate their way through an overwhelming service catalogue using an unintuitive interface led many employees to simply defer to the service desk with calls and emails for assistance.
Using these unofficial channels meant that service agents had to devote time to gathering all required information from scratch to confirm the correct request category and route the ticket appropriately. Even then, a lack of visibility on ticket status could lead to subsequent calls and emails as employees sought to follow up on progress. This thus resulted in operational inefficiencies for both the end user and service agent, on top of extending the AHT.
SymphonyAI ITSM has a unified service portal, enhanced by AI and automation to enable self-service. Additionally, the SymphonyAI Digital Agent provides 24/7 access to support and utilizes machine learning to solve or escalate problems effectively.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $3.1 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
A1 | Annual tickets | CompositeComposite | 240,000240,000 | 240,000240,000 | 240,000240,000 |
A2 | Percentage of annual service request and simple incidents of total tickets | CompositeTEI case study | 90%90% | 90%90% | 90%90% |
A3 | Annual service request and simple incidents | A1*A2 | 216,000216,000 | 216,000216,000 | 216,000216,000 |
A4 | Average handling time prior to SymphonyAI ITSM implementation (minutes) | Interviews | 2020 | 2020 | 2020 |
A5 | Ticket deflection due to self-service capabilities after SymphonyAI ITSM implementation | Interviews | 35%35% | 35%35% | 35%35% |
A6 | Reduction in handling time after SymphonyAI ITSM implementation | Interviews | 75%75% | 75%75% | 75%75% |
A7 | Subtotal: Annual reduction in handling time (hours) | A3*A4*(A5+A6-A5*A6)/60 | 60,30060,300 | 60,30060,300 | 60,30060,300 |
A8 | Productivity recapture | CompositeTEI case study | 80%80% | 80%80% | 80%80% |
A9 | Fully burdened hourly rate for IT service desk agent | CompositeTEI case study | $30 $30 | $30 $30 | $30 $30 |
At | Improved service agent productivity | A7*A8*A9 | $1,447,200 $1,447,200 | $1,447,200 $1,447,200 | $1,447,200 $1,447,200 |
Risk adjustment | ↓15% | ||||
Atr | Improved service agent productivity (risk-adjusted) | $1,230,120 $1,230,120 | $1,230,120 $1,230,120 | $1,230,120 $1,230,120 | |
Three-year total: $3,690,360 $3,690,360 | Three-year present value: $3,059,126 $3,059,126 |
Evidence and data. Not all IT tickets are open to being deflected via self-service and digital agents. There are still advanced incidents such as system outages that require human intervention by IT technicians.
Interviewees mentioned that workflows relying on approval stages in particular were vulnerable to being stuck in limbo. Requiring manual effort to progress, such processes contributed greatly to the AHT. Another risk of having a human in the loop was the possibility of introducing user errors.
SymphonyAI’s Service Automation seeks to mitigate these downsides with faster responses coupled with scheduled or event-based automation to reduce manual effort and eliminate error-prone tasks.
Unquantified in the model, the head of service management and ITSM COE at the conglomerate reported a notable improvement in SLA adherence, from an achievement of 80% to greater than 90% — indicating demonstrable KPI outcomes for IT departments after they implement SymphonyAI ITSM.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $442,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
B1 | Volume of annual advanced incidents that require human intervention | A1-A3 | 24,00024,000 | 24,00024,000 | 24,00024,000 |
B2 | Automation rate prior to SymphonyAI ITSM implementation | InterviewsInterviews | 50%50% | 50%50% | 50%50% |
B3 | Automation rate after SymphonyAI ITSM implementation | Interviews | 60%60% | 65%65% | 70%70% |
B4 | Uplift in workflow automation capability | B3-B2 | 10%10% | 15%15% | 20%20% |
B5 | Marginal gain in advanced incidents for which automation can be applied to workflows | B1*B4 | 2,4002,400 | 3,6003,600 | 4,8004,800 |
B6 | Average time savings due to service automation (hours) | Interviews | 22 | 22 | 22 |
B7 | Subtotal: Annual time savings in advanced incidents resolution (hours) | B5*B6 | 4,8004,800 | 7,2007,200 | 9,6009,600 |
B8 | Productivity recapture | CompositeTEI case study | 80%80% | 80%80% | 80%80% |
B9 | Fully burdened hourly rate for IT service technician | CompositeTEI case study | $35 $35 | $35 $35 | $35 $35 |
Bt | Improved incident resolution | B7*B8*B9 | $134,400 $134,400 | $201,600 $201,600 | $268,800 $268,800 |
Risk adjustment | ↓10% | ||||
Btr | Improved incident resolution (risk-adjusted) | $120,960 $120,960 | $181,440 $181,440 | $241,920 $241,920 | |
Three-year total: $544,320 $544,320 | Three-year present value: $441,672 $441,672 |
Evidence and data. Workflows must be configured to facilitate the automation of IT tickets. Interviewees reported that this was previously a significant undertaking, requiring two to three weeks for planning, configuration, testing, and rollout; this was dependent on complexity of automation.
SymphonyAI’s Design Studio is a low-code/no-code environment that includes an extensive library of pre-defined templates and more than 50 built-in controls. Around 80% of these controls are drag-and-drop, making workflow configuration accessible even to non-specialist personnel.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $403,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
C1 | Annual IT workflows configurations | CompositeComposite | 100100 | 100100 | 100100 |
C2 | Time spent per FTE to configure each workflow prior to SymphonyAI ITSM implementation (hours) | Interviews | 8080 | 8080 | 8080 |
C3 | Time savings from configuring workflows (hours) | Interviews | 90%90% | 90%90% | 90%90% |
C4 | Subtotal: Annual time savings from configuring IT workflows (hours) | C1*C2*C3 | 7,2007,200 | 7,2007,200 | 7,2007,200 |
C5 | Productivity recapture | CompositeTEI case study | 50%50% | 50%50% | 50%50% |
C6 | Average fully burdened hourly rate of each FTE | CompositeTEI case study | $50 $50 | $50 $50 | $50 $50 |
Ct | Reduced effort for IT workflow configuration | C4*C5*C6 | $180,000 $180,000 | $180,000 $180,000 | $180,000 $180,000 |
Risk adjustment | ↓10% | ||||
Ctr | Reduced effort for IT workflow configuration (risk-adjusted) | $162,000 $162,000 | $162,000 $162,000 | $162,000 $162,000 | |
Three-year total: $486,000 $486,000 | Three-year present value: $402,870 $402,870 |
Evidence and data. Interviewees mentioned that there were additional costs involved in leveraging previous solutions. This largely stemmed from vendor reliance, such as requiring an additional third party to serve as a managed service provider (MSP) or ad hoc support through the year for which extra charges were levied on.
SymphonyAI follows a flexible, transparent licensing structure and hands greater control to their clients by providing training and certification at no additional cost.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $824,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
D1 | Average cost premium of legacy solution licenses | CompositeTEI case study | 125%125% | 125%125% | 125%125% |
D2 | Annual cost per license | CompositeScaled for | $530 $530 | $530 $530 | $530 $530 |
D3 | Average cost savings per license after SymphonyAI ITSM implementation | D1*D2 (rounded) | $663 $663 | $663 $663 | $663 $663 |
D4 | Licenses required | CompositeComposite | 625625 | 625625 | 625625 |
Dt | Cost savings from retiring legacy solution | D3*D4 | $414,375 $414,375 | $414,375 $414,375 | $414,375 $414,375 |
Risk adjustment | ↓20% | ||||
Dtr | Cost savings from retiring legacy solution (risk-adjusted) | $331,500 $331,500 | $331,500 $331,500 | $331,500 $331,500 | |
Three-year total: $994,500 $994,500 | Three-year present value: $824,391 $824,391 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Summit and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
The following table shows custom results for .
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Etr | Internal solution implementation and ongoing maintenance costs | $110,250 $110,250 | $218,400 $218,400 | $218,400 $218,400 | $218,400 $218,400 | $765,450 $765,450 | $653,378 $653,378 |
Ftr | Onetime professional and annual licensing fees | $36,750 $36,750 | $347,813 $347,813 | $347,813 $347,813 | $347,813 $347,813 | $1,080,189 $1,080,189 | $901,709 $901,709 |
Total costs (risk-adjusted) | $147,000 $147,000 | $566,213 $566,213 | $566,213 $566,213 | $566,213 $566,213 | $1,845,639 $1,845,639 | $1,555,087 $1,555,087 | |
Evidence and data. The typical live goal to deploy SymphonyAI ITSM is 90 days, though this may vary depending on the complexity of requirements for any given organization. Throughout this time, there is some effort involved on the composite organization’s part.
Interviewees revealed that SymphonyAI’s support throughout solution implementation helped their organization to define workflows properly, facilitating a smooth transition from their legacy systems.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $653,000.
For , these costs may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
E1 | FTEs required for solution implementation | CompositeScaled for | 55 | |||
E2 | Time devoted by each FTE to solution implementation (hours) | CompositeTEI case study | 120120 | |||
E3 | FTEs involved in UAT | CompositeScaled for | 2525 | |||
E4 | Time devoted by each FTE to UAT | CompositeTEI case study | 6060 | |||
E5 | Fully burdened hourly rate of each FTE | CompositeTEI case study | $50 $50 | |||
E6 | Subtotal: Implementation costs | (E1*E2+E3*E4)*E5 | $105,000 $105,000 | |||
E7 | FTEs for ongoing management of SymphonyAI ITSM | CompositeScaled for | 2.02.0 | 2.02.0 | 2.02.0 | |
E8 | Fully burdened annual salary of each FTE | CompositeTEI case study | $104,000 $104,000 | $104,000 $104,000 | $104,000 $104,000 | |
E9 | Subtotal: Management costs | E7*E8 | $208,000 $208,000 | $208,000 $208,000 | $208,000 $208,000 | |
Et | Internal costs for solution implementation and maintenance | E6+E9 | $105,000 $105,000 | $208,000 $208,000 | $208,000 $208,000 | $208,000 $208,000 |
Risk adjustment | ↑5% | |||||
Etr | Internal costs for solution implementation and maintenance (risk-adjusted) | $110,250 $110,250 | $218,400 $218,400 | $218,400 $218,400 | $218,400 $218,400 | |
Three-year total: $765,450 $765,450 | Three-year present value: $653,378 $653,378 |
Evidence and data. These are the only costs that are charged directly by SymphonyAI.
Customers can club licenses with a mix of named and concurrent licenses, providing both flexibility and cost optimization. This helps businesses manage different types of user needs while maintaining an efficient cost structure.
SymphonyAI’s ITSM solution is available in varying pricing tiers depending on factors such as the number of licenses required, the balance of named licenses in comparison to concurrent licenses.
Readers are advised to contact SymphonyAI directly for additional details and accurate pricing information.
Modeling and assumptions. For the composite organization, Forrester assumes:
Risks. Organizations may realize results that differ from those presented in the financial model due to:
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 $902,000.
For , these costs may have a three-year, risk-adjusted total PV of . Please note that these licensing costs are based on high-level estimates and do not constitute a quote.
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
F1 | Professional services fee for integration | CompositeTEI case study | $35,000 $35,000 | |||
F2 | Licenses required | D4 | 625625 | 625625 | 625625 | |
F3 | Annual cost per license | CompositeScaled for | $530 $530 | $530 $530 | $530 $530 | |
F4 | Annual licensing fees | F2*F3 | $331,250 $331,250 | $331,250 $331,250 | $331,250 $331,250 | |
Ft | Onetime professional and annual licensing fees | F1+F4 | $35,000 $35,000 | $331,250 $331,250 | $331,250 $331,250 | $331,250 $331,250 |
Risk adjustment | ↑5% | |||||
Ftr | Onetime professional and annual licensing fees (risk-adjusted) | $36,750 $36,750 | $347,813 $347,813 | $347,813 $347,813 | $347,813 $347,813 | |
Three-year total: $1,080,189 $1,080,189 | Three-year present value: $901,709 $901,709 |
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.
The following table shows custom results for .
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($147,000)($147,000) | ($566,213)($566,213) | ($566,213)($566,213) | ($566,213)($566,213) | ($1,845,639)($1,845,639) | ($1,555,087)($1,555,087) |
Total benefits | $0 $0 | $1,844,580 $1,844,580 | $1,905,060 $1,905,060 | $1,965,540 $1,965,540 | $5,715,180 $5,715,180 | $4,728,059 $4,728,059 |
Net benefits | ($147,000)($147,000) | $1,278,367 $1,278,367 | $1,338,847 $1,338,847 | $1,399,327 $1,399,327 | $3,869,541 $3,869,541 | $3,172,972 $3,172,972 |
ROI | 204%204% | |||||
Payback | <6 months<6 months | |||||
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.
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.
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.
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.
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.
Related Forrester Research
2024 Service Desk Benchmarks, Global, Forrester Research, Inc., September 3, 2024.
1 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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