The Total Economic Impact™ Of Esko WebCenter

Cost Savings And Business Benefits Enabled By Esko WebCenter

A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY ESKO, OCTOBER 2024

Speed to market while maintaining compliance requirements for packaging is a crucial standard that CPG and life sciences organizations must meet to stay ahead in a competitive landscape. Without a standardized, transparent, governed workflow supporting artwork management and packaging development processes, optimal quality control can fall through the gaps, and CPG and life sciences organizations can waste time and money.  

Esko WebCenter is a packaging and artwork management solution that allows organizations to control the quality and accuracy of packaging and label assets from a single source throughout the lifecycle of the artwork creation and distribution — from briefing to print-ready file.

Esko commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying WebCenter.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of WebCenter on their organizations.

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Return on investment (ROI)

240%240%

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Net present value (NPV)

$3.6M$3.6M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives of four organizations with experience using Esko WebCenter. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a $10 billion CPG organization focused on selling household goods and personal care items. It operates globally with 60,000 employees, of which 250 employees are involved globally in product packaging and artwork processes. On average, the organization runs 2,000 product packaging development projects annually.

has an annual revenue of . employees are involved globally in product packaging and artwork processes. Custom results are based on user inputs and the TEI case study.

Interviewees said that prior to using WebCenter, their organizations’ packaging development and artwork management processes were manual and fragmented with loose governance in place. Projects were susceptible to a loss of momentum with a lack of workflow visibility and limited root cause identification heavily contributing to delays and bottlenecks.

Typically, the organizations lacked control over the packaging development process due to the involvement of multiple external suppliers and the siloed contributions of internal stakeholders, all of which was underpinned by the use of different solutions that further exacerbated fragmentation. These limitations not only engendered packaging development processes without a central asset repository and common KPIs, but they also led to environments without the data needed to help optimize the process to circumvent common delays.

Interviewees said that after the investment in WebCenter, their organizations achieved unparalleled understanding of the packaging workflow and artwork management process. They explained that WebCenter enabled the introduction of a visible accountability framework that subsequently provided governance and transparency into the packaging process.

Key results from the investment include efficiency gains in the product development process underpinned by stakeholder productivity gains that contributed to increased speed to market. Interviewees’ organizations were also able to consolidate their vendor footprints as they relate to packaging, which led to financial savings. Overall, the organizations benefitted from avoiding delays and reducing the probability of recalls.

Key Findings

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Productivity gains of 30% for core team members of the packaging process worth $2.5 million. The composite organization’s graphic designers and project managers become 30% more productive, leading to increased speed of delivering projects. Over three years, the shorter development cycle is worth more than $2.5 million to the composite organization.

For , this benefit might be worth over three years.

  • Productivity gains of 40% for supporting team members of packaging process worth $506,000. Stakeholders involved in the composite’s packaging development process (e.g., regulatory specialists, marketers, lawyers) make productivity gains of 40% through using WebCenter. Over three years, the shorter development cycle is worth more than $506,000 to the composite organization.

For , this benefit might be worth over three years.

  • Revenue gains of $1.8 million due to increased speed to market. Because Esko WebCenter streamlines the packaging development process, the composite organization increases its speed to market. This gives the composite the opportunity to make more sales, contributing to $1.8 million in revenue gains across three years.

For , this benefit might be worth over three years.

  • Cost savings of nearly $289,000 through vendor consolidation. Deploying Esko WebCenter globally enables the composite organization to remove software and consolidate its vendor footprint. This saves the composite nearly $289,000 across 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:

  • Elevated execution of packaging development and artwork management process. Esko WebCenter increases the visibility and governance of the packaging development process, which improves the composite organization’s ability to manage volume and scale. As a result, those responsible for the process create consistency in quality because the solution becomes the single source of truth due to its centralized documentation, information, and asset management repository. This improved execution of the packaging development process contributes to fewer errors and delays.
  • Reduced risk of recalls and quality incidents. Having increased visibility and governance over the packaging workflow gives those responsible for the process the confidence that outputs are right first time (RFT). Having fewer errors reduces the risk of recalls and quality incidents which pre-emptively saves the organization time and money.
  • Improved ability to manage volume and scale. Interviewees said WebCenter offers a standardization of process and workflow visibility specific to packaging that has enabled their organizations to better manage higher workloads. An interviewee from the CPG industry gave an example that their organization was able to accommodate a request to change 300 SKUs within four weeks rather than a much longer period of time without the solution. They said this not only saved the organization time, but also money.
  • Improved analytics, insights, and reporting. The dashboard functionality in Esko WebCenter gives responsible stakeholders at the composite organization the ability to follow workflows and subsequently identify sources of delays. They are also empowered to deploy better resource allocation across projects, enabling them to move employees to different product categories when needed.
  • Integration capabilities. The composite can integrate Esko WebCenter with other solutions’ APIs, which can help improve the reliability of data and information.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Licensing costs. The composite organization purchases 70 concurrent licenses, leading to present value costs of nearly $986,000 over three years.

For , these costs could represent over three years.

  • Implementation costs. The composite organization’s implementation costs consist of an implementation fee and the internal effort for the deployment of the solution. Implementing Esko WebCenter over six months costs the composite a total of $419,000.

For , these costs could represent over three years.

  • Onboarding costs. The composite organization pays $20,000 over three years in onboarding costs that represent the cost of training people on the WebCenter solution.

For , these costs could represent over three years.

  • Ongoing costs. The composite pays ongoing costs of $92,000 over three years to remove redundant software, hardware, and services.

For , these costs could represent over three years.

The representative interviews and financial analysis found that a composite organization experiences benefits of $5.15 million over three years versus costs of $1.52 million, adding up to a net present value (NPV) of $3.64 million and an ROI of 240%.

might experience benefits of over three years versus costs of , adding up to an NPV of and an ROI of 0%.

“Esko has a monopoly in the market as [WebCenter] goes beyond other workflow tools and is software specific to the packaging industry. There is nothing else out there like it.”

Commodities category manager, CPG

Key Statistics

  • icon icon

    Return on investment (ROI)

    240%240%
  • icon icon

    Benefits PV

    $5.2M$5.2M
  • icon icon

    Net present value (NPV)

    $3.64M$3.64M
  • icon icon

    Payback

    <6 months<6 months
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Benefits (Three-Year)

Productivity gains for core team members for packaging process Productivity gains for supporting team members for packaging process Opportunity for revenue gain due to increased speed to market Cost savings through removal of processes and and vendor consolidation

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 Esko WebCenter.

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 Esko WebCenter can have on an organization.

  1. Due Diligence

    Interviewed Esko stakeholders and Forrester analysts to gather data relative to WebCenter.

  2. Interviews

    Interviewed five representatives at four organizations using WebCenter to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. 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.

  5. Case Study

    Employed four fundamental elements of TEI in modelling 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 Esko 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 WebCenter. 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 WebCenter based on the inputs provided and any assumptions made. Forrester does not endorse Esko or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Esko 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 Esko make no warranties of any kind.

Esko 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.

Esko provided the customer names for the interviews but did not participate in the interviews.

Consulting Team:

Ashleigh Cohen

Salma Hamdani

M
K

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