A Forrester Total Economic Impact™ Study Commissioned By Writer, April 2025
Enterprises struggle to build, scale, and supervise AI agents. The need for high-quality outputs and reliable performance requires a purpose-built foundation to reshape workflows, foster collaboration between business and IT, and establish a coherent strategy for enterprisewide deployment. Across the business, employees are plagued with mundane, repetitive tasks. The most productive use cases for agentic AI are human-centric, dynamic, and embedded in mission-critical processes.1 These go beyond content generation and knowledge retrieval to automate work and decisions and to enable enterprises to reinvent core operations.
Writer is a full-stack platform for enterprises to reinvent core operations with agentic AI, providing a complete set of integrated capabilities to build, activate, and supervise AI agents. Writer’s suite of development tools includes Palmyra — Writer’s family of large language models (LLMs) — alongside its graph-based retrieval-augmented generation (RAG) and customizable AI guardrails.
Writer commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying its AI platform.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Writer on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed six decision-makers with experience using Writer. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Interviewees said that prior to using Writer, their organizations struggled with clumsy processes for publishing content, executing campaigns, and launching products. Style and brand standards were difficult to uphold across various assets, which necessitated multiple rounds of review and caused delays. Manual, repetitive tasks like updating or retiring out-of-date content, migrating blogs, and transcribing audio or video files consumed valuable time and resources, leading to high labor costs associated with content creation and management. The need for meticulous fact-checking, especially in highly regulated industries, further consumed resources. Many organizations found themselves relying on external agencies, which increased expenses. Additionally, the development of AI tools with prior, alternative solutions required substantial investment in developer resources and posed security risks, creating a challenging environment for any of the interviewees striving to maintain a competitive edge.
After the investment in Writer, the interviewees experienced easy setup and quick time to value, which allowed interviewees to respond swiftly to market demands. Writer empowered their teams to rapidly produce content aligned to brand identity, as well as build and scale as their organizations grew and objectives evolved. Interviewees noted that the strong product and engineering teams at Writer provided confidence in the solution's long-term reliability and continuous improvement.
Key results from the investment include labor efficiencies from improved time to market, agency cost avoidance, improved compliance and brand standards, faster onboarding, and legacy environment savings.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
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:
The representative interviews and financial analysis found that a composite organization experiences benefits of $15.63 million over three years versus costs of $3.61 million, adding up to a net present value (NPV) of $12.02 million and an ROI of 333%.
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 Writer.
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 Writer can have on an organization.
Interviewed Writer stakeholders and Forrester analysts to gather data relative to Writer.
Interviewed six people at organizations using Writer 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 Writer 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 Writer.
Writer 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.
Writer provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Nahida Nisa
| Role | Industry | Employees | Revenue |
|---|---|---|---|
| Vice president of digital content strategy and operations | Financial services | 8,400 | $43 million |
| Staff writer | Financial services | 3,700 | $1 billion |
| Senior manager of artificial intelligence | Software | 72,000 | $35 billion |
| Brand marketing director | Professional services | 40,000 employees and partners | $36 billion |
| Senior marketing writer and team lead | Software | 6,000 | $1 billion |
| Senior vice president of product management and innovation | Healthcare | 200 | Private |
Prior to Writer, interviewees faced myriad challenges that hindered efficiency, including time-consuming review processes to maintain a coherent brand voice. The complexity of managing large volumes of content across multiple channels exacerbated this endeavor. Limited resources and high costs further strained their organizations’ ability to implement effective solutions.
Time-consuming content creation and manual review processes. Before adopting Writer, interviewees faced lengthy and repetitive content creation and review processes, which slowed their time to market.
The vice president of digital content strategy and operations in the financial services industry mentioned that their content creation process involved multiple rounds of review, which was time-consuming: “We suffered from multiple-rounds-of-review syndrome. So content gets written, and then it must go back to brand for review, and then once it’s changed, it has to go back to the subject matter expert to make sure the brand changes were OK. Then it goes to marketing review and compliance, and you might have to change and do all of that over again.”
Managing and updating large volumes of content was time-consuming. The same vice president discussed the challenge of overseeing content across multiple channels: “Content managers were having to update and get approvals on the same thing across multiple channels. It’s like you fix it in one place, and maybe there’s a 24-hour lag before you fix it somewhere else.”
The senior vice president of product management and innovation in the healthcare industry noted that the manual processes used to manage content prior to Writer were not scalable and that their organization needed to automate tasks to improve efficiency.
Inconsistent brand voice and issues with compliance. Each interviewee described the difficult and error-prone endeavor of maintaining a consistent brand voice and compliance across all content, but this was particularly emphasized by interviewees in financial services and healthcare — both highly regulated industries.
The vice president of digital content strategy and operations in the financial services industry highlighted the importance of maintaining a consistent brand voice and compliance: “We could get fined if we use the word ‘advisor’ incorrectly versus ‘financial professional.’ We needed to be able to help reduce risk on that and also reduce brand and compliance review time, so we could really speed up time to market.”
The staff writer in financial services also remarked on the level of sensitivity in the industry. They said, “We have to be very careful with what we say.”
The senior vice president of product management and innovation in the healthcare industry highlighted that their organization faced issues with tools that lacked medical domain expertise, which led to concerns about the accuracy and appropriateness of the content generated. The interviewee stated: “There was also some concern about [other AI tools] not having great medical domain expertise, and so the tools that we were building around were trained on all of the internet. That’s okay for some use cases, but we’re in medicine.”
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 interviewees’ organizations, 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 $35 billion organization is headquartered in the United States and has 25,000 employees and 250 licenses to use Writer across marketing, legal, and human resources.
Deployment characteristics. The composite organization launches a total of six products and custom agents in the initial period, followed by 10 additional use cases and custom agents per year as the adoption of Writer expands.
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Labor efficiencies from improved time to market | $1,530,000 | $3,442,500 | $7,650,000 | $12,622,500 | $9,983,509 |
| Btr | Agency cost avoidance | $1,800,000 | $2,025,000 | $2,250,000 | $6,075,000 | $5,000,376 |
| Ctr | Improved compliance and brand standards | $16,380 | $39,926 | $69,615 | $125,921 | $100,191 |
| Dtr | Faster onboarding | $10,614 | $25,209 | $34,496 | $70,319 | $56,401 |
| Etr | Legacy environment savings | $198,000 | $198,000 | $198,000 | $594,000 | $492,397 |
| Total benefits (risk-adjusted) | $3,554,994 | $5,730,635 | $10,202,111 | $19,487,741 | $15,632,874 | |
Evidence and data. Depending on deployment, users of Writer could see pockets of high ROI, particularly with labor efficiencies. Interviewees described that the most notable benefits with Writer included reduced time for content creation, expedited task completion, and enhanced overall performance. This compressed timeline allowed teams to allocate more attention to strategic initiatives.
The staff writer in the financial services industry described how the task of transcribing quotes, which took the team 3 hours before Writer, now takes 10 minutes with Writer. Producing captions, which took the team an hour prior to Writer, now takes 20 minutes with Writer.
The interviewee added: “The biggest savings would be using Writer on the content team. What previously took us 22 hours has been cut down to 6 hours. That’s among all of us, about 90 times a month, and might be even more now.” The team also expedited the migration and updating of older data and content, a project that had been stalled for two years, significantly reducing the time required.
Several interviewees described potential financial impacts to producing high-quality content more quickly. The vice president of digital content strategy and operations in the financial services industry noted, “The faster you get marketing campaign content to market, the faster you can get leads.” They added, “If we had an editor who reviewed 10,000 words a day and charged $35 an hour at 8 hours per day, this would have cost our organization about $290,696 and would have taken the editor 1,039 days to complete.”
One notable benefit was the ability to compose content conveying the same information in different, interesting ways to communicate the message. The same vice president asked: “How many ways can you say the same thing? Well, Writer can say it a hundred ways in 3 seconds without compromising quality.” Previously, content writers strained to achieve this result.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 nearly $10.0 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Marketing team members using Writer for creative content development; corporate communications; social media posts; blog posts; content auditing; and other marketing, sales, market education, and campaign-related projects | Composite | 20 | 30 | 50 | |
| A2 | Improved efficiency in marketing team with Writer | Interviews | 100% | 150% | 200% | |
| A3 | Average annual burdened salary | Composite | $85,000 | $85,000 | $85,000 | |
| At | Labor efficiencies from improved time to market | A1*A2*A3 | $1,700,000 | $3,825,000 | $8,500,000 | |
| Risk adjustment | ↓10% | |||||
| Atr | Labor efficiencies from improved time to market (risk-adjusted) | $1,530,000 | $3,442,500 | $7,650,000 | ||
| Three-year total: $12,622,500 | Three-year present value: $9,983,509 | |||||
Evidence and data. In addition to internal labor efficiencies, interviewees noted reduced reliance on external agencies following the adoption of Writer.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 just over $5.0 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Average agency cost per project without Writer | Interviews | $1,000,000 | $1,000,000 | $1,000,000 | |
| B2 | Projects per year | Composite | 5 | 5 | 5 | |
| B3 | Reduced agency scope with Writer | Interviews | 40% | 45% | 50% | |
| Bt | Agency cost avoidance | B1*B2*B3 | $2,000,000 | $2,250,000 | $2,500,000 | |
| Risk adjustment | ↓10% | |||||
| Btr | Agency cost avoidance (risk-adjusted) | $1,800,000 | $2,025,000 | $2,250,000 | ||
| Three-year total: $6,075,000 | Three-year present value: $5,000,376 | |||||
Evidence and data. Interviewees described that the adoption of Writer significantly optimized workflows by incorporating additional steps to ensure adherence to brand standards and quality, while still increasing the speed of output. These steps were previously unattainable due to time and resource constraints. The enhanced processes not only streamlined content production but also fostered a culture of continuous learning, enabling teams to refine their writing in real time and align with the company’s strategic objectives. Writer flags noncompliant terms and provides suggestions for corrections. Interviewees also described building compliance checks into the tool, reducing the risk of noncompliant content being published. This has streamlined the review process and reduced the number of compliance flags.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 more than $100,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Legal, HR, and other subject matter expert FTEs using Writer | Composite | 2 | 3 | 4 | |
| C2 | Percentage of time reviewing content to approve or flag | Composite | 35% | 35% | 35% | |
| C3 | Reduction in review time as teams use Writer for content | Interviews | 40% | 65% | 85% | |
| C4 | Average fully burdened annual salary for a subject matter expert | Composite | $130,000 | $130,000 | $130,000 | |
| C5 | Productivity recapture | TEI methodology | 50% | 50% | 50% | |
| Ct | Improved compliance and brand standards | C1*C2*C3*C4*C5 | $18,200 | $44,363 | $77,350 | |
| Risk adjustment | ↓10% | |||||
| Ctr | Improved compliance and brand standards (risk-adjusted) | $16,380 | $39,926 | $69,615 | ||
| Three-year total: $125,921 | Three-year present value: $100,191 | |||||
Evidence and data. Interviewees described how providing a central tool like Writer to learn about brand, style, content, and projects significantly reduced the time required for new hires to become productive, allowing them to focus on more strategic tasks and build relationships during their first weeks at the company.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 more than $56,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Writer users | Composite | 40 | 95 | 130 | |
| D2 | Percentage of users interacting with Writer daily (marketing, financial advisors, and other subject matter experts) | Composite | 75% | 75% | 75% | |
| D3 | Percentage of Writer users who are new hires | Composite | 18% | 18% | 18% | |
| D4 | New hires onboarding onto team | D1*D3 | 7 | 17 | 23 | |
| D5 | Days to onboard prior to Writer | Interviews | 21 | 21 | 21 | |
| D6 | Acceleration in onboarding of new hires | Interviews | 65% | 65% | 65% | |
| D7 | Days saved per new employee onboarded | D5*D6 | 14 | 14 | 14 | |
| D8 | Fully burdened hourly rate for a new employee | Composite | $40 | $40 | $40 | |
| D9 | Productivity of new hire during ramp | TEI standard | 50% | 50% | 50% | |
| Dt | Faster onboarding | D2*D4*D7*D8*D9*8 | $11,794 | $28,010 | $38,329 | |
| Risk adjustment | ↓10% | |||||
| Dtr | Faster onboarding (risk-adjusted) | $10,614 | $25,209 | $34,496 | ||
| Three-year total: $70,319 | Three-year present value: $56,401 | |||||
Evidence and data. Interviewees noted that Writer reduced the need for multiple AI tools and limited the number of licenses for those tools. Adopting Writer also freed hours for the IT team to focus on higher-priority tasks.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 more than $492,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| E1 | Licensing from decommissioned or consolidated legacy tools | Interviews | $90,000 | $90,000 | $90,000 | |
| E2 | FTEs saved per year from legacy system management | Composite | 1 | 1 | 1 | |
| E3 | Average fully burdened annual salary for FTE user of Writer | Composite | $130,000 | $130,000 | $130,000 | |
| Et | Legacy environment savings | E1+E2*E3 | $220,000 | $220,000 | $220,000 | |
| Risk adjustment | ↓10% | |||||
| Etr | Legacy environment savings (risk-adjusted) | $198,000 | $198,000 | $198,000 | ||
| Three-year total: $594,000 | Three-year present value: $492,397 | |||||
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 Writer 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).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ftr | Subscription costs | $303,600 | $552,200 | $570,350 | $581,900 | $2,008,050 | $1,714,154 |
| Gtr | Implementation costs | $295,838 | $614,963 | $614,963 | $614,963 | $2,140,725 | $1,825,158 |
| Htr | Training and discovery | $1,380 | $19,780 | $34,385 | $26,335 | $81,880 | $67,565 |
| Total costs (risk-adjusted) | $600,818 | $1,188,323 | $1,219,123 | $1,225,613 | $4,233,875 | $3,609,471 | |
Evidence and data. Interviewees incurred subscription costs based on the number of Writer users, professional services involved, and custom agents. Pricing may vary. Contact Writer for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.7 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| F1 | Licensing and professional services costs | Composite | $120,000 | $240,000 | $240,000 | $240,000 | |
| F2 | User costs | Composite | $6,000 | $12,000 | $28,500 | $39,000 | |
| F3 | Custom agents | Composite | $150,000 | $250,000 | $250,000 | $250,000 | |
| Ft | Subscription costs | F1+F2+F3 | $276,000 | $502,000 | $518,500 | $529,000 | |
| Risk adjustment | ↑10% | ||||||
| Ftr | Subscription costs (risk-adjusted) | $303,600 | $552,200 | $570,350 | $581,900 | ||
| Three-year total: $2,008,050 | Three-year present value: $1,714,154 | ||||||
Evidence and data. Interviewees described the integration of Writer as relatively easy, requiring little technical effort or involvement. Across interviewees, the implementation process took about one to three months per new use case or customization, with the Writer team providing continuous support and updates. Several interviewees launched an initial pilot phase ranging from three to 10 months, with continuous expansion and building of the program.
Interviewees described a consultative approach with Writer’s customer success and implementation team, realizing value quickly. On the customer side, a small core team of a project manager, AI strategy lead or senior change management team member, subject matter experts, and typically one IT FTE were involved per custom app.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 $1.8 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| G1 | Months spent on initial implementation and ongoing use cases and customizations (average one month per use case or customization) | Interviews | 6 | 10 | 10 | 10 | |
| G2 | AI strategy lead FTEs involved | Interviews | 1 | 0.25 | 0.25 | 0.25 | |
| G3 | Fully burdened monthly salary for an AI strategy lead | Composite | $15,000 | $15,000 | $15,000 | $15,000 | |
| G4 | Percentage of time spent | Interviews | 25% | 10% | 10% | 10% | |
| G5 | Subtotal: AI strategy lead cost | G1*G2*G3*G4 | $22,500 | $3,750 | $3,750 | $3,750 | |
| G6 | Project managers involved | Composite | 1 | 2 | 2 | 2 | |
| G7 | Fully burdened monthly salary for a project manager | Interviews | $8,500 | $8,500 | $8,500 | $8,500 | |
| G8 | Percentage of time spent | Composite | 25% | 10% | 10% | 10% | |
| G9 | Subtotal: Project manager cost | G1*G6*G7*G8 | $12,750 | $17,000 | $17,000 | $17,000 | |
| G10 | Subject matter experts and department heads involved | G1*4 | 24 | 40 | 40 | 40 | |
| G11 | Fully burdened monthly salary for a subject matter expert or department head | Composite | $12,500 | $12,500 | $12,500 | $12,500 | |
| G12 | Average fully burdened monthly salary for an IT and security team member | Composite | 10% | 10% | 10% | 10% | |
| G13 | Subtotal: Subject matter expert or department head cost | G1*G10*G11*G12 | $180,000 | $500,000 | $500,000 | $500,000 | |
| G14 | IT and security team members | Interviews | 2 | 1 | 1 | 1 | |
| G15 | Average fully burdened monthly salary for an IT and security team member | Composite | $14,000 | $14,000 | $14,000 | $14,000 | |
| G16 | Percentage of time spent | Composite | 25% | 10% | 10% | 10% | |
| G17 | Subtotal: IT and security team member cost | G1*G14*G15*G16 | $42,000 | $14,000 | $14,000 | $14,000 | |
| Gt | Implementation costs | G5+G9+G13+G17 | $257,250 | $534,750 | $534,750 | $534,750 | |
| Risk adjustment | ↑15% | ||||||
| Gtr | Implementation costs (risk-adjusted) | $295,838 | $614,963 | $614,963 | $614,963 | ||
| Three-year total: $2,140,725 | Three-year present value: $1,825,158 | ||||||
Evidence and data. All interviewees described Writer as intuitive, with training involving an initial 1- or 2-hour session followed by ongoing training sessions, typically quarterly, or a dedicated group chat. The senior manager of artificial intelligence in the software industry said, “Someone could get up and running in a 45-minute or 1-hour training session.” Users quickly became proficient in using the tool.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Results may not be representative of all experiences, and the benefit will vary based on the following variables:
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 $70,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| H1 | Writer users | Composite | 20 | 40 | 95 | 130 | |
| H2 | New Writer users | H1-H1 previous year | 20 | 20 | 55 | 35 | |
| H3 | Onboarding training hours for new users | Interviews | 1.5 | 1.5 | 1.5 | 1.5 | |
| H4 | Total training hours for new users | H2*H3 | 30 | 30 | 83 | 53 | |
| H5 | Additional hours per user per year for ongoing training and discovery | Interviews | 10 | 7 | 4 | ||
| H6 | Total hours per year for employee training | H4+H1*H5 | 30 | 430 | 653 | 573 | |
| H7 | Average fully burdened hourly rate for a Writer user | Composite | $40 | $40 | $40 | $40 | |
| Ht | Training and discovery | Composite | H6*H7 | $1,200 | $17,200 | $29,900 | |
| Risk adjustment | ↑15% | ||||||
| Htr | Training and discovery (risk-adjusted) | $1,380 | $19,780 | $34,385 | $26,335 | ||
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.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($600,818) | ($1,186,943) | ($1,219,698) | ($1,223,198) | ($4,230,655) | ($3,606,877) |
| Total benefits | $0 | $3,554,994 | $5,730,635 | $10,202,111 | $19,487,741 | $15,632,874 |
| Net benefits | ($600,818) | $2,366,672 | $4,511,513 | $8,976,499 | $15,253,866 | $12,023,403 |
| ROI | 333% | |||||
| Payback | <6 months | |||||
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.
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 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 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 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
How To Thoughtfully Enable HR Professionals With Generative AI Tools, Forrester Research, Inc., June 26, 2024.
It Takes A Village To Make AI Copilots Successful, Forrester Research, Inc., September 4, 2024.
1 Source: How To Drive Employee Productivity With Generative AI, Forrester Research, Inc., March 11, 2024.
2 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.
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Please accept cookies and the collection of behavioral information to receive full functionality and enhance your experience. If you decline cookies, some features of the website may not function normally.
Please see our
Privacy Policy for more information.
https://mainstayadvisor.com/go/mainstay/gdpr/policy.html