Executive Summary
Organizations face mounting pressure to work faster, and lack of visibility, constant handoffs and fragmented multitool workflows delay progress in achieving this. They can make work that requires cross-functional coordination (e.g., engineering, support, operations) more difficult and slower than it needs to be. Solutions must accommodate flexible working styles, incorporate multiple systems of record, and help bridge silos.
By centralizing communication and work execution in Slack as a work operating system, enterprises can reduce coordination latency and help accelerate sales cycles and feature launches while improving incident response and alignment across functions and time zones. Slack as a work operating system can provide organizations with a real-time operating layer that connects people, systems, workflows, and data.
Slack commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Slack as a work operating system.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Slack on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed six decision-makers and surveyed 670 respondents with experience using Slack as a work operating system (i.e., using the platform as a central system for coordinating, conducting, and automating work). For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization, which is a global enterprise with 25,000 employees and revenue of $10 billion per year.
Interviewees said that prior to using Slack as a work operating system, their organizations relied on fragmented communication channels and collaboration tools, including email, ad‑hoc messaging apps, spreadsheets, siloed project systems, and inconsistent integrations. Disparate tools created delays, duplication of effort, and difficulty coordinating work across functions and time zones.
Prior attempts to streamline collaboration through legacy tools or partial adoption of platform features yielded limited success, leaving their organizations with slow response times, manual knowledge-sharing processes, difficulty accessing or sharing context, and a lack of unified visibility into projects, customers, incidents, and/or sales cycles. These limitations led to inefficiencies across operations, services, technology and development, and go-to-market teams.
Interviewees reported that after the investment in Slack as a work operating system, their organizations gained a centralized, real‑time operating environment that connected people, systems, workflows, and data. They also said the Slack Connect feature and native integrations accelerated communication both internally and with customers and partners, while Slack AI, huddles, workflows, and unified search reduced time spent switching tools and gathering information.
End User Collaboration And Agility
Base: 336 cross-industry global Slack end users
Source: A commissioned study conducted by Forrester Consulting on behalf of Slack, February 2025
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
-
Improved collaboration and efficiency across departments. The composite organization centralizes work in Slack channels, huddles, AI-assisted search tools, and automations integrated with Salesforce, project management, and workflow systems. Its teams reduce tool-switching, shorten decision cycles, and replace meetings with real-time or asynchronous coordination across services, operations, technology, and sales. This is worth $50 million to the composite over three years.
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Increased profit due to sales acceleration. The composite organization’s sales teams accelerate revenue by using Slack as a collaboration layer on top of Salesforce, where real-time pipeline data and deal updates are surfaced directly with partners, customers, and prospects. As a result, the composite shortens sales cycles, improves lift conversion, and launches product features at a higher velocity using Slack, due to real-time alignment and candid conversations with customers. This is worth $685,000 to the composite over three years.
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Reduced costs due to consolidated tech stack savings. The composite organization replaces overlapping collaboration tools and adjacent point solutions by adopting Slack’s enterprise features and native integrations—retiring redundant platforms, cutting recurring licenses, and avoiding new purchases where Slack as a work operating system provides required functionality. This is worth $392,000 to the composite over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
-
More fluid, higher velocity communication with customers and external partners. Slack Connect enables the composite organization to have continuous, conversational exchanges that replace ticketing and email threads, resulting in faster replies, stronger rapport, and more productive customer interactions.
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Stronger cross-functional coordination. Using shared channels brings the composite organization’s cross-functional teams together in real time, reducing confusion around ownership, improving alignment, and eliminating delays caused by siloed tools or email bottlenecks.
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Greater visibility into work, updates, and system activity. Automated notifications from integrated platforms surface key information directly in Slack, allowing teams to monitor changes, status, and KPIs without toggling between systems.
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Faster problem-solving and incident collaboration. Real-time threads and shared context enable the composite organization to troubleshoot incidents across teams and external partners, removing friction and improving response times for technical or operational issues.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
-
Licenses subscription. The composite organization incurs annual subscription costs based on the number of active users. With between 11,000 and 11,444 users between Years 1 and 3, it pays a total of $12.3 million.
-
Ongoing maintenance and integration management costs. The composite organization requires internal IT effort to maintain Slack configurations, manage integrations, and support incremental feature adoption. This costs the organization $95,000 over three years.
The financial analysis that is based on the interviews and survey found that a composite organization experiences benefits of $51 million over three years versus costs of $12.4 million, adding up to a net present value (NPV) of $38.6 million and an ROI of 312%.
Key Statistics
312%
Return on investment (ROI)
$51M
Benefits PV
$12.4M
Net present value (NPV)
<6 months
Payback
Benefits (Three-Year)
Analysis Of Benefits
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Collaboration and efficiencies | $13,370,500 | $20,456,865 | $27,821,336 | $61,648,701 | $49,964,082 |
| Btr | Increased profit | $275,400 | $275,400 | $275,400 | $826,200 | $684,879 |
| Ctr | Consolidated tech stack savings | $120,000 | $160,000 | $200,000 | $480,000 | $391,585 |
| Total benefits (risk-adjusted) | $13,765,900 | $20,892,265 | $28,296,736 | $62,954,901 | $51,040,546 |
Collaboration And Efficiencies
Evidence and data. Interviewees said they experienced improvements in collaboration and efficiency with Slack as their organization’s work operating system and that there were measurable differences across services, operations, technology, and sales teams. These gains emerged as Slack consolidated communication, eliminated tool switching, and enabled real-time alignment internally and externally. Interviewees across departments and roles reported fewer meetings and faster decision cycles, replacing many scheduled touchpoints with quick discussions in channels, threads, or huddles. Using Slack enabled teams to resolve issues asynchronously while maintaining shared understanding.
Services
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Interviewees experienced faster issue resolution and clearer collaboration across teams as support, engineering, and product teams worked together in shared Slack threads rather than through escalations or ticketing alone. This made troubleshooting more efficient and prevented information loss across handoffs.
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Interviewees said using Slack as a work operating system increased customer responsiveness, with customers replying faster within Slack channels than via email. This accelerated troubleshooting, increased transparency in service workflows, and improved customer alignment without adding headcount.
Operations
-
Interviewees experienced more efficient cross functional coordination, especially across finance, legal, marketing, engineering, and supply chain operations. Using Slack channels brought all stakeholders into a single shared workspace, reducing bottlenecks and improving the speed and clarity of complex workflows.
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Interviewees stated they missed fewer tasks due to more reliable processes, as automated reminders, renewal alerts, and system-triggered notifications helped operations teams maintain cadence and avoid last‑minute “emergency” tasks.
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Interviewees also reported that Slack provided centralized visibility into progress and reduced time spent in status meetings.
Technology And Development
-
Interviewees said using Slack as a work operating system led to more efficient problem-solving because developers, project managers, and support teams quickly “swarmed” incidents in Slack channels. Automated alerts from tools like Jira, GitHub, and ServiceNow provided real-time visibility, helping teams coordinate without toggling between systems.
-
Interviewees reported Slack’s persistent channel history gave new engineers access to past decisions, context, and technical discussions, which led to faster onboarding and better knowledge retention. This reduced reliance on senior developers and improved the overall efficiency of engineering teams.
Sales
Interviewees said sales teams more efficiently collaborated externally with prospects because Slack enabled real-time communication that replaced email chains.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
-
In Year 1, 44% of the composite organization’s 25,000 employees (11,000) adopt Slack as a work operating system. This number increases to 11,220 in Year 2 and 11,444 in Year 3.
-
The fully burdened hourly rate for an employee is $55.
Risks. Collaboration and efficiency gains from using Slack as a work operating system may vary based on:
-
The level of Slack adoption across teams and the cultural shift to move department operations into Slack.
-
The level of AI feature adoption.
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 $50 million.
Time Savings With Slack AI Features
Base: 440 cross-industry global Slack decision-makers and end users
Note: Individual percentage values may not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of Slack, February 2025
Collaboration And Efficiencies
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Employees who use Slack as a work operating system | Survey | 11,000 | 11,220 | 11,444 | |
| A2 | Weekly time saved using Slack as a work operating system (hours) | Survey | 1.0 | 1.5 | 2.0 | |
| A3 | Fully burdened blended hourly rate for an employee | Composite | $55 | $55 | $55 | |
| A4 | Productivity recapture rate | TEI methodology | 50% | 50% | 50% | |
| At | Collaboration and efficiencies (rounded) | A1*A2*A3*A4*52 weeks | $15,730,000 | $24,066,900 | $32,730,984 | |
| Risk adjustment | ↓15% | |||||
| Atr | Collaboration and efficiencies (risk-adjusted) | $13,370,500 | $20,456,865 | $27,821,336 | ||
| Three-year total: $61,648,701 | Three-year present value: $49,964,082 | |||||
Increased Profit
Evidence and data. Interviewees said using Slack helped accelerate revenue-generating work and strengthen customer relationships, increasing sales team profits. When used as an operating system, Slack enabled faster deal cycles, improved customer retention, and reduced operational drag — all of which contributed to stronger financial performance.
-
Interviewees experienced faster collaboration on active deals, with sales teams coordinating in real-time with solutions engineers, customer success, and leadership through dedicated deal channels. This eliminated delays caused by email and improved cross-functional visibility into deal blockers and next steps. Sales teams noted that Slack dramatically sped up deal cycles by centralizing context and enabling rapid decision-making.
-
When integrated with Salesforce, AI‑powered agents within Slack summarized call transcripts, identified win/loss themes, and surfaced next‑best action recommendations in the context of Salesforce workflows.
-
Interviewees’ said using Slack enabled real-time communication that replaced email chains, making collaboration with prospects more efficient. Sales leaders shared that prospects responded more quickly and more openly in Slack than email, which improved momentum and reduced friction across the buying process.
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Interviewees stated that deals moved more quickly and were more likely to close when customers joined Slack channels. One interviewee reported that deals conducted via Slack have an 84% close rate.
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Additionally, interviewees said Slack directly supported sales-driving innovation by enabling rapid release of new features. One interviewee explained that using Slack as a work operating system allows their company to launch up to 100 features per year due to Slack’s ability to coordinate stakeholders, accelerate decisions, and streamline launch workflows across global teams.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
-
The composite organization closes 60 deals per calendar year.
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The composite organization’s average order value of a deal is $300,000.
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Prior to using Slack as a work operating system, the composite organization had an average win rate of 30%.
Risks. Increased profit may vary based on:
-
Sales team adoption and use of Slack channels
-
Partner and customer adoption and use of Slack channels.
-
CRM integration and visibility.
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 $685,000.
Increased Profit
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Deals | Composite | 60 | 60 | 60 | |
| B2 | Average order value of a deal | Interviews | $300,000 | $300,000 | $300,000 | |
| B3 | Baseline win rate before Slack as a work operating system | Composite | 30% | 30% | 30% | |
| B4 | Win rate with Slack as a work operating system | Interviews | 45% | 45% | 45% | |
| B5 | Incremental win-rate uplift | B4-B3 | 15% | 15% | 15% | |
| B6 | Operating margin | Composite | 12% | 12% | 12% | |
| Bt | Increased profit | B1*B2*B5*B6 | $324,000 | $324,000 | $324,000 | |
| Risk adjustment | ↓15% | |||||
| Btr | Increased profit (risk-adjusted) | $275,400 | $275,400 | $275,400 | ||
| Three-year total: $826,200 | Three-year present value: $684,879 | |||||
Interview Spotlight
Greenbox
Sales Team Spotlight: Accelerating Deal Execution With Salesforce-Connected AI Agents In Slack
One interviewee described how their organization’s sales team uses Slack deal channels integrated with Salesforce to centralize deal context and collaborate in real time. They said AI‑powered agents within Slack surface prior deal summaries, call transcript insights, and win‑loss themes directly in the flow of work, reducing the need for manual CRM navigation or follow‑up with sales operations.
The interviewee explained that by bringing intelligence, approvals, and cross‑functional input together in a single workspace, the sales team improved alignment across sales, marketing, and leadership, enabling faster decision‑making and more consistent next‑best‑action guidance during active opportunities. As a result, the sales team focuses more time on customer engagement while deals progress with fewer delays and escalations.
Consolidated Tech Stack Savings
Evidence and data. Interviewees and survey respondents said their organizations reduced overlapping software, avoided new purchases, and lowered administrative effort by consolidating functions into Slack and its native integrations.
-
Among surveyed decision-makers who said their organization reduced technology spend from retiring other collaboration tools, 61% indicated cost reductions of between more than $100,000 to $1 million.
-
Interviewees reported actively challenging technology contract renewals when Slack AI and Salesforce integration covered core sales needs.
-
One interviewee reported their organization spends $300,000 per year on an external win/loss vendor and stated that it could replace this solution with Slack AI and native integrations that summarize transcripts and produce win/loss themes, with savings realized at contract renewal.
-
Interviewees reported their organizations avoid new technology purchases or unnecessary spend by using Slack’s native capabilities, particularly Slack Enterprise features, native integrations, search, automations, org chart functionality, and translation tools. These avoided costs stemmed from not needing to buy additional third-party tools or services because Slack already fulfilled the required use case.
Modeling and assumptions. Based on the interviews, Forrester assumes the composite organization retires one collaboration solution annually.
Risks. Consolidated tech stack savings may vary based on:
-
Success of user migration from tools replaced by Slack.
-
Timing of technology vendor contract renewals.
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 $392,000.
Annual Reduction In Technology Spend
Base: 395 cross-industry global Slack decision-makers and end-users
Source: A commissioned study conducted by Forrester Consulting on behalf of Slack, February 2025
Consolidated Tech Stack Savings
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Avoided legacy tool cost | Survey | $150,000 | $200,000 | $250,000 | |
| Ct | Consolidated tech stack savings | C1 | $150,000 | $200,000 | $250,000 | |
| Risk adjustment | ↓20% | |||||
| Ctr | Consolidated tech stack savings (risk-adjusted) | $120,000 | $160,000 | $200,000 | ||
| Three-year total: $480,000 | Three-year present value: $391,585 | |||||
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
-
More relationship-driven customer communication and responsiveness. Slack Connect feature enables continuous, informal conversations with customers that can replace ticketing workflows, which helps foster trust and build partnerships. Interviewees also said customers reply more frequently and more promptly in Slack channels than in email, improving service quality and speed.
-
Real-time alignment across distributed teams and improved situational awareness. Slack creates a shared workspace where all organizational stakeholders (e.g. finance, sourcing, legal, product, sales, engineering) can coordinate, it reduces delays caused by email bottlenecks or tool switching. Interviewees said their organizations experience fewer surprises and miss fewer notifications because workflows, reminders, and automated notifications help bring visibility to contract renewals, approvals, and status updates. They also said automated updates from systems like Salesforce, Jira, ServiceNow, Google Drive, Workday, and Looker centralize critical information in Slack channels, allowing teams to monitor progress, staffing, and operational KPIs without logging into multiple systems.
-
Better real-time insight into technical changes and faster collaborative troubleshooting. Developers and project managers rely on automated alerts about deployments, code changes, bugs, and platform events flowing into Slack channels, increasing shared awareness of system activity. Interviewees also said Slack threads enable engineers, project managers, customer success specialists, and external partners to resolve issues together in real-time, which removes friction and speeds up incident collaboration.
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Slack as a work operating system and later realize additional uses and business opportunities, including:
-
Expanding automation and workflow orchestration. Interviewees said their organizations use Slack to automate increasingly complex workflows across standups, reminders, approvals, contract renewals, system notifications, and cross-team processes. They explained that as adoption of AI in Slack increases for generating workflows and summarizing information, they expect their organizations to continue extending automation into new operational domains.
-
Scaling integrations to reduce system fragmentation. Interviewees reported that Slack’s integration ecosystem enables their organizations to connect systems including ServiceNow, Google Workspace, Microsoft 365, Workday, Looker, Amplitude, HubSpot, Asana, and others. This reduces tool-switching, centralizes work activity, and supports long-term tool consolidation as the organizations move more into Slack as a work operating system.
-
Creating cross-functional, operational hubs. Interviewees explained their organizations create new Slack channels as operational hubs for engineering updates, product launches, incident response, vendor collaboration, deal rooms, and leadership visibility. They noted that as business needs evolve, Slack’s flexibility enables their organizations to stand up new spaces in real time without deploying new tools or training users.
-
Supporting organizational scale. Interviewees said Slack scales as their organizations grow, change, or shift to hybrid and global models. New hires onboard by searching channel history, and teams adapt Slack to new channels and structures without additional training programs.
-
Enabling future opportunities for cost avoidance. Interviewees said using Slack as a work operating system allows their organizations to avoid purchasing additional point solutions and continue to consolidate their technology stacks. They believe this will increase opportunities for consolidation as their organizations leverage AI in Slack as an enterprise intelligence layer and as Slack continues to add new features.
-
Enhanced analytics, insights, and intelligence. Interviewees said that as Slack continues to expand its AI and agent capabilities, they expect their organizations will move toward more agentic orchestration and gain additional flexibility to automate analytics, surface insights across systems, and embed intelligence directly into existing Salesforce‑centric workflows. Over time, these capabilities could enable the organizations to further streamline decision‑making, reduce reliance on specialized point tools, and adapt sales and operational processes without redesigning core systems.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
Analysis Of Costs
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | Enterprise license subscription costs | $0 | $4,857,600 | $4,954,752 | $5,053,847 | $14,866,199 | $12,307,866 |
| Etr | Maintenance and integration costs | $27,370 | $27,370 | $27,370 | $27,370 | $109,480 | $95,435 |
| Total costs (risk-adjusted) | $27,370 | $4,884,970 | $4,982,122 | $5,081,217 | $14,975,679 | $12,403,301 |
Enterprise License Subscription Costs
Evidence and data. Interviewees reported their organizations pay subscription fees for Slack as a work operating system. Pricing may vary. Contact Slack for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes that in Year 1, 44% of the composite organization’s 25,000 employees (11,000) adopt Slack as a work operating system. This number increases to 11,220 in Year 2 and 11,444 in Year 3.
Risks. Enterprise license subscription costs may vary based on:
-
The size of the organization.
-
The number of users.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $12.3 million.
Enterprise License Subscription Costs
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| D1 | Enterprise license cost | Composite | $0 | $384 | $384 | $384 |
| D2 | Licenses | Composite | 0 | 11,000 | 11,220 | 11,444 |
| Dt | Enterprise license subscription costs | D1*D2 | $0 | $4,224,000 | $4,308,480 | $4,394,496 |
| Risk adjustment | ↑15% | |||||
| Dtr | Enterprise license subscription costs (risk-adjusted) | $0 | $4,857,600 | $4,954,752 | $5,053,670 | |
| Three-year total: $14,866,022 | Three-year present value: $12,307,866 | |||||
Maintenance And Integration Costs
Evidence and data. Surveyed decision-makers reported that their organizations’ IT resources spend an average of 28 hours per month on Slack maintenance and integration and that integrations consume most of the effort.
Modeling and assumptions. Based on the interviews, Forrester assumes the composite organization adopts additional features and builds integrations over time.
Risks. Maintenance and integration costs may vary based on the level and complexity of the adoption of Slack as a work operating system.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $95,000.
Maintenance And Integration Costs
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Time spent on maintenance and integration (hours) | Survey | 340 | 340 | 340 | 340 |
| E2 | Fully burdened hourly rate for an engineer | Composite | $70 | $70 | $70 | $70 |
| Et | Maintenance and integration costs | E1*E2 | $23,800 | $23,800 | $23,800 | $23,800 |
| Risk adjustment | ↑15% | |||||
| Etr | Maintenance and integration costs (risk-adjusted) | $27,370 | $27,370 | $27,370 | $27,370 | |
| Three-year total: $109,480 | Three-year present value: $95,435 | |||||
Financial Summary
Consolidated Three-Year, Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Cash Flow Analysis (Risk-Adjusted)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($27,370) | ($4,884,970) | ($4,982,122) | ($5,081,217) | ($14,975,679) | ($12,403,301) |
| Total benefits | $0 | $13,765,900 | $20,892,265 | $28,296,736 | $62,954,901 | $51,040,546 |
| Net benefits | ($27,370) | $8,880,930 | $15,910,143 | $23,215,519 | $47,979,222 | $38,637,245 |
| ROI | 312% | |||||
| Payback | <6 months |
Please Note
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 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.
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Slack as a work operating system.
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 Slack as a work operating system can have on an organization.
Due Diligence
Interviewed Slack stakeholders and Forrester analysts to gather data relative to Slack as a work operating system.
Interviews and Survey
Interviewed six decision-makers and surveyed 670 respondents at organizations using Slack as a work operating system to obtain data about costs, benefits, and risks.
Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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.
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.
Total Economic Impact Approach
Benefits
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks
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.”
Financial Terminology
Present value (PV)
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows.
Net present value (NPV)
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
Return on investment (ROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
Discount rate
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
Payback
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
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 solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Appendix B
Survey Demographics
[CONTENT]
| ROLE | |
|---|---|
| Manager | 33% |
| Director | 21% |
| Project manager | 19% |
| Full-time practitioner | 15% |
| Vice president | 12% |
[CONTENT]
| INDUSTRY | |
|---|---|
| Retail | 11% |
| Manufacturing and materials | 10% |
| Healthcare and life sciences | 8% |
| Technology and/or technology services | 8% |
| Transportation and logistics | 7% |
| Financial services and/or insurance | 7% |
| Business or professional services | 6% |
| Energy, utilities, and/or waste management |
6% |
| Travel and hospitality | 6% |
| Media and/or leisure | 6% |
| Advertising and/or marketing | 6% |
| Consumer product goods and/or manufacturing | 6% |
| Consumer services | 5% |
| Telecommunications services | 5% |
| Legal services | 5% |
[CONTENT]
| GEOGRAPHY | |
|---|---|
| North America | 33% |
| EMEA | 29% |
| APAC | 25% |
| LATAM | 13% |
[CONTENT]
| SIZE | |
|---|---|
| 2 to 499 employees | 31% |
| 500 to 4,999 employees | 35% |
| 5,000 or more employees | 33% |
[CONTENT]
| ANNUAL REVENUE | |
|---|---|
| Less than $299M | 32% |
| $300M to $999M | 36% |
| $1B or more | 32% |
Note: Percentages may not total 100 because of rounding.
Disclosures
Readers should be aware of the following:
This study is commissioned by Slack 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 Slack as a work operating system. For any interactive functionality, 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 Slack as a work operating system based on the inputs provided and any assumptions made. Forrester does not endorse Slack or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Slack 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 Slack make no warranties of any kind.
Slack 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.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Nina Lund
Published
June 2026