For investigators that manage security, compliance, or fraud caseloads, time is a critical resource. Navigating disparate databases that lack current and comprehensive records significantly impedes investigation workflows. Without access to an intelligent analytics platform that provides trusted and accurate data, investigation professionals risk effectively conducting due diligence and closing cases in a productive manner.
Thomson Reuters CLEAR leverages both public and proprietary records to aggregate historical and real-time data in a unified, online dashboard. Government and corporate professionals use CLEAR in their investigation workflows to eliminate information gaps and reduce the search time required to effectively identify data and conduct analyses on persons and agencies of interest.
Thomson Reuters commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying CLEAR. 1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of CLEAR on their organizations.
Return on investment (ROI)
152%
Net present value (NPV)
$272,000
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed the representative of an organization who has experience using CLEAR. Forrester used this experience to project a three-year financial analysis.
Prior to using CLEAR, the interviewee noted how their organization’s previous search methods failed to provide the timeliness and accuracy of information required to carry out proper tax collection investigations. This furthered the delay in collecting delinquent tax payments. Because of this, the previous data management system proved inadequate for the organization as a long-term subscription solution.
After the investment in CLEAR, tax collectors, tax auditors, and special investigators gained efficiencies in their daily investigative tasks. Access to a trusted platform reduced the need to search multiple sources of information. The interviewee emphasized CLEAR’s ease of use, particularly in onboarding new users, and overall platform security.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits include:
- Increased tax collectors’ efficiencies by 20%. The interviewee’s organization experiences time savings after implementing CLEAR given its access to a customizable dashboard of timely and comprehensive lead information. Its tax collectors see 20% efficiency gains, which leads to savings of $399,000 over three years.
- Increased special investigators’ efficiencies by 20%. Special investigators at the interviewee’s organization experience time savings after implementing CLEAR, given the ability to trace listed information back to the original source. This is important for special civil law enforcement cases when searches may require an additional layer of depth and defense. This saves the organization $10,000 over three years.
- Increased tax auditors’ efficiencies by 20%. Similar to the tax collectors, tax auditors gain efficiencies in their investigation due diligence processes with CLEAR’s accurate and easily navigable dataset. This saves the organization $43,000 over three years.
Unquantified benefits. Benefits that are not quantified for this study include:
- Ease of use and onboarding, which facilitates a better user experience. CLEAR provides an intuitive user experience that allows new users to begin investigative searches after only 15 minutes of training once account setup is complete.
- Secure platform. CLEAR is configured to require two-factor authentication for all users and ensures that, during extended idle time, the platform automatically logs users out for an additional layer of security.
Costs. Three-year, risk-adjusted PV costs for the interviewee’s organization include:
- Annual fees total $216,000. The interviewee’s organization pays an annual subscription fee of $72,000 for CLEAR, which includes training and ongoing support. The pricing range tends to be between $60,000 to $100,000; however, for the purposes of the model, we are using an estimate of $72,000.
The interview and financial analysis found that the representative’s organization experiences benefits of $451,000 over three years versus costs of $179,000, adding up to a net present value (NPV) of $272,000 and an ROI of 152%.
Key Statistics
-
Return on investment (ROI)
152%
-
Benefits PV
$451,000
-
Net present value (NPV)
$272,000
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 CLEAR.
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 CLEAR can have on an organization.
-
Due Diligence
Interviewed Thomson Reuters stakeholders and Forrester analysts to gather data relative to CLEAR.
-
Interview
Interviewed the representative of an organization using CLEAR to obtain data with respect to costs, benefits, and risks.
-
Financial Model Framework
Constructed a financial model representative of the interview using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewee.
-
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 Thomson Reuters 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 CLEAR.
Thomson Reuters 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.
Thomson Reuters provided the customer name for the interview but did not participate in the interview.
Consulting Team:
Maria Kulikova
Sarah Lervold
Drivers leading to the CLEAR investment
Interviewee’s Organization
Forrester interviewed a tax collector at a state government agency who has experience using Thomson Reuters CLEAR. The organization has used the CLEAR solution for five years and has the following characteristics:
- State agency.
- 85 users, including 75 tax collectors, eight tax auditors, and two special investigators.
Key Challenges
Prior to using CLEAR, the interviewee noted how their organization’s disparate search methods lacked the timely, accurate, and transparent lead data needed to carry out investigations.
The interviewee noted how the organization struggled with common challenges, including:
- A lack of complete, accurate records. Relying on inaccurate records slows investigator productivity, sometimes resulting in duplicate work. The interviewee noted their organization wasted investigator’s time searching databases with incomplete information, delaying the number of cases investigators were able to address in a particular day.
- Missing readily available data. Effective investigations require both historical and real-time data. The organization struggled to access updated data, impeding productivity and, ultimately, the ability to close delinquent taxpayer cases.
Investment Objectives
The interviewee’s organization searched for a solution that could provide:
- Accurate and real-time data with listed sources.
- General ease of use.
- A streamlined onboarding process for new users.
- A secure platform.
Use Case Description
The interviewee’s organization uses CLEAR to investigate persons and corporations with delinquent state tax collections. CLEAR specifically identifies data including addresses, employment information, and date of death to successfully close cases and collect payment. Tax collectors and tax auditors dedicate, on average, 1 hour to investigative activities while special investigators dedicate, on average, less than 1 hour a day to more complex civil enforcement activities related to tax law. The interviewee’s organization reported using, on average, 15 minutes to set up and introduce a new user to CLEAR. After introduction, the user was able to fully take advantage of the platform. CLEAR platform does not require any IT maintenance by the interviewee’s organization and is fully supported by the Thomson Reuters customer service team.
For this use case, Forrester has modeled benefits and costs over three years.
Quantified benefit data
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Increase in tax collectors’ efficiencies | $160,313 | $160,313 | $160,313 | $480,938 | $398,673 |
| Btr | Increase in special investigators’ efficiencies | $3,960 | $3,960 | $3,960 | $11,880 | $9,848 |
| Ctr | Increase in tax auditors’ efficiencies | $17,100 | $17,100 | $17,100 | $51,300 | $42,525 |
| Total benefits (risk-adjusted) | $181,373 | $181,373 | $181,373 | $544,118 | $451,046 |
Increase In Tax Collectors’ Efficiencies
Evidence and data. The interviewee discussed the time savings their organization’s tax collectors experienced after implementing CLEAR due to the improved timeliness and breadth of information available in a single and customizable dashboard.
- Tax collectors at the interviewee’s organization saw time savings of 20%.
- The tax collector at the state agency shared, “My most important metric is how updated the information is when I attempt to search for a delinquent taxpayer.”
- The tax collector at the state agency elaborated using an example: “I began working on out-of-state accounts and started using CLEAR on a daily basis. I’m trying to tackle that list to be able to get rid of the return-mail indicator, locate the address, send a notice, and proceed with further action upon the taxpayer receiving the notice. It’s resulted in more levy opportunities. It’s resulted in more calls to my line — around 20%.”
Modeling and assumptions. Based on the interview, Forrester assumes the following about the organization:
- It has 75 tax collectors.
- The average fully burdened annual salary of a tax collector is $95,000.
- Tax collectors spend 13% of their day on investigation tasks.
- With CLEAR, tax collectors save 20% of their time.
Risks. The efficiencies by tax collectors may vary depending on the following:
- The number of tax collectors at an organization.
- The salaries of the organization’s tax collectors.
- The percent of time tax collectors dedicate to investigation tasks.
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 $399,000.
Increase In Tax Collectors’ Efficiencies
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Number of tax collectors | Interview | 75 | 75 | 75 | |
| A2 | Average fully burdened annual salary for tax collectors | TEI standard | $95,000 | $95,000 | $95,000 | |
| A3 | Percent of time spent on investigation task | Interview | 13% | 13% | 13% | |
| A4 | Percent of time saved with CLEAR | Interview | 20% | 20% | 20% | |
| At | Increase in tax collectors’ efficiencies | A1*A2*A3*A4 | $178,125 | $178,125 | $178,125 | |
| Risk adjustment | ↓10% | |||||
| Atr | Increase in tax collectors’ efficiencies (risk-adjusted) | $160,313 | $160,313 | $160,313 | ||
| Three-year total: $480,938 | Three-year present value: $398,673 | |||||
Increase In Special Investigators’ Efficiencies
Evidence and data. The interviewee discussed the time savings their organization’s special investigators experienced after implementing CLEAR due to the enhanced ability to trust the data provided and trace the information back to the original source as needed. This is critical for civil enforcement cases that require an additional layer of due diligence.
Modeling and assumptions. Based on the interview, Forrester assumes the following about the organization:
- It has two special investigators.
- The average fully burdened annual salary of a special investigator is $110,000.
- Special investigators spend 10% of their day on investigation tasks.
- With CLEAR, special investigators save 20% of their time.
Risks. The efficiencies by tax collectors may vary depending on the following:
- The number of special investigators at an organization.
- The salaries of the organization’s special investigators.
- The percent of time special investigators dedicate to investigation tasks.
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 $10,000.
Increase In Special Investigators’ Efficiencies
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Number of special investigators | Interview | 2 | 2 | 2 | |
| B2 | Average fully burdened annual salary for special investigators | TEI standard | $110,000 | $110,000 | $110,000 | |
| B3 | Percent of time spent on investigation task | Interview | 10% | 10% | 10% | |
| B4 | Percent of time saved with CLEAR | Assumption | 20% | 20% | 20% | |
| Bt | Increase in special investigators’ efficiencies | B1*B2*B3*B4 | $4,400 | $4,400 | $4,400 | |
| Risk adjustment | ↓10% | |||||
| Btr | Increase in special investigators’ efficiencies (risk-adjusted) | $3,960 | $3,960 | $3,960 | ||
| Three-year total: $11,880 | Three-year present value: $9,848 | |||||
Increase In Tax Auditors’ Efficiencies
Evidence and data. The interviewee discussed the time savings their organization’s tax auditors’ experienced after implementing CLEAR and given access to the accurate and easily navigable platform.
- The tax collector at the state agency explained the importance of time efficiencies: “The sooner we can get accurate contact information, such as the address, the sooner we can send out notices to them. The sooner they get the notice from us, the greater the chance of them paying or work out a payment plan.”
Modeling and assumptions. Based on the interview, Forrester assumes the following about the organization:
- It has eight tax auditors.
- The average fully burdened annual salary of a tax auditor is $95,000.
- Tax auditors spend 13% of their day on investigation tasks.
- With CLEAR, tax auditors save 20% of their time.
Risks. The efficiencies by tax collectors may vary depending on the following:
- The number of tax auditors at an organization.
- The salaries of the organization’s tax auditors.
- The percent of time tax auditors dedicate to investigation tasks.
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 $43,000.
Increase In Tax Auditors’ Efficiencies
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Number of tax auditors | Interview | 8 | 8 | 8 | |
| C2 | Average fully burdened annual salary for tax auditors | TEI standard | $95,000 | $95,000 | $95,000 | |
| C3 | Percent of time spent on investigation task | Interview | 13% | 13% | 13% | |
| C4 | Percent of time saved with CLEAR | Assumption | 20% | 20% | 20% | |
| Ct | Increase in tax auditors’ efficiencies | C1*C2*C3*C4 | $19,000 | $19,000 | $19,000 | |
| Risk adjustment | ↓10% | |||||
| Ctr | Increase in tax auditors’ efficiencies (risk-adjusted) | $1,026,000 | $1,218,375 | $1,425,000 | ||
| Three-year total: $51,300 | Three-year present value: $42,525 | |||||
Unquantified Benefits
The interviewee mentioned the following additional benefits that the interviewee’s organization experienced but was not able to quantify:
- Ease of use and onboarding, which facilitates a better user experience. The tax collector stated, “Within 15 minutes of training a user can log in and start using the system.” A streamlined user experience allows collectors, auditors, and special investigators to reach initial productivity quickly.
- A secure platform. With a trusted, secure platform, collectors, auditors, and special investigators could focus their efforts on conducting investigations. The tax collector stated: “It’s secure. It’s not just a login and password. I receive [two-factor authentication]. If I’m not on throughout the day, it logs me out. In terms of security, I understand the need to have that in place.”
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement CLEAR and later realize additional uses and business opportunities, including:
- Expanding licenses across all tax collectors. To maximize team efficiency, the interviewee’s organization intends to expand license access. The tax collector said: “We plan on increasing the number of licenses. That’s the goal. We want every single collector to have access because their success as a team member depends on their access to CLEAR.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Quantified cost data
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | Annual fees | $72,000 | $72,000 | $72,000 | $216,000 | $179,053 | |
| Total costs (risk adjusted) |
$72,000 | $72,000 | $72,000 | $216,000 | $179,053 |
Annual fees
Evidence and data. The interviewee stated that their organization incurs an annual subscription fee for CLEAR, which included all training and ongoing support to maintain its user base.
Modeling and assumptions. Based on the interview, Forrester assumes the organization pays $72,000 annually. The pricing range tends to be $60,000 to $100,000; however, for the purposes of the model, we use an estimate of $72,000.
Risks. Pricing may vary. Contact Thomson Reuters for additional details.
Results. Forrester estimates this cost to be a three-year total PV of $179,000.
Annual fees
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| D1 | Annual fees | Interview | $72,000 | $72,000 | $72,000 | |
| Dt | Annual fees | D1 | $72,000 | $72,000 | $72,000 | |
| Risk adjustment | 0% | |||||
| Dtr | Annual fees (risk-adjusted) | $0 | $72,000 | $72,000 | $72,000 | |
| Three-year total: $216,000 | Three-year present value: $179,053 | |||||
Consolidated Three-Year Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits-
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the 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)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | $0 | ($72,000) | ($72,000) | ($72,000) | ($216,000) | ($179,053) |
| Total benefits | $0 | $181,373 | $181,373 | $181,373 | $544,118 | $451,046 |
| Net benefits | $0 | $109,373 | $109,373 | $109,373 | $328,118 | $271,993 |
| ROI | 152% |
The pricing range tends to be $60,000 to $100,000; however, for the purposes of the model, we use an estimate of $72,000.
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
-
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.
Appendix B: Supplemental Material
Related Forrester Research
“The Identity Verification (IDV) Landscape, Q3 2022,” Forrester Research, Inc., September 6, 2022.
“The State Of Insurance Fraud And Mitigation Best Practices,” Forrester Research, Inc., July 21, 2023.
“How Security Tools Will Leverage Generative AI,” Forrester Research, Inc., October 20, 2023.
Appendix C: Endnotes
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.
PDF
