Decoding Forrester's TEI methodology: a comprehensive approach to evaluating technology investments
How TEI Studies can help your business
The main purpose of Forrester's Total Economic Impact™ (TEI) studies is to provide organizations with a framework for evaluating the financial impact of implementing a particular technology solution. The studies aim to quantify the costs, benefits, flexibility, and risks of the technology investment over a three-year period.
The goal of these studies is to help organizations make more informed decisions about whether or not to invest in a particular technology solution and to understand the potential financial benefits they could receive from that investment.
How Forrester evaluates the financial upsides of technology
Forrester's TEI methodology involves a comprehensive approach to evaluating the financial impact of a technology investment. The methodology includes four main components:
a detailed analysis of the costs associated with implementing and maintaining the technology solution,
an assessment of the benefits the organization can expect to receive from the solution, including both direct and indirect benefits,
an examination of the flexibility of the solution, including the ability to adapt to changing business needs, and
a review of the risks associated with the investment, such as implementation risk and technology obsolescence.
The methodology involves collecting data from various sources, including vendor interviews, customer surveys, and financial data, and using that data to create a detailed financial model that quantifies the costs and benefits of the investment over a three-year period.
The resulting report provides organizations with a clear understanding of the potential financial impact of the technology investment, allowing them to make more informed investment decisions.
Measuring ROI: an analysis of Fourthline deployment with Forrester TEI
Dive deeper: how Forrester evaluated Fourthline’s ROI
To better understand the benefits, costs, and risks associated with investing in Fourthline, Forrester interviewed four representatives with experience using Fourthline’s KYC solution. Forrester then aggregated the interviewees’ experiences and combined the results into a single composite organization.
The composite organization is representative of the four interviewees and has, among others, the following characteristics:
It is a global, digital-native financial institution
It has been in business for less than five years,
And it has 1.5 million customers.
From costs to profits: the ROI of Fourthline's identity verification solutions
Forrester’s TEI study lists the quantified and unquantified benefits of using the Fourthline solution as follows:
Improved operational efficiency worth $13.3 million.
Improved conversions driving incremental account openings worth $10.4 million.
Reduced exposure to fraud worth $2.7 million.
Improved regulatory compliance.
Scalability/ability to flex capacity based on demand.