Forrester's Total Economic Impact™ 2024
study calculates a net present value of $12.07 million over three years from increased
operational and technical efficiencies, risk mitigation, and
customer 360.
BOSTON, Sept. 17,
2024 /PRNewswire/ -- Ataccama, an AI-powered data
management company, has released an independent study* which shows
that enterprises using the Ataccama data management platform can
generate on average a 348% return on investment (ROI) over three
years, with full payback in under six months. Produced by Forrester
Research, Inc., the findings highlight a substantial value increase
over time on the initial investment to create a net present value
of $12.07 million**,
emphasizing the benefits of long-term collaboration and joint
roadmap development for customers using Ataccama technology.
"We're implementing Ataccama Master Data Management (MDM) partly
to replace the legacy system that is challenging and expensive to
maintain. A modern tool helps to reduce expenses in data storage
costs and people working on the system, and it enables us to
troubleshoot flaws in our data," said the MDM product owner at an
insurance firm.
The commissioned study bases the findings on a composite
organization generated from interviews with six Ataccama customers
and combined with aggregated data, which enables Ataccama to
quantify the value its data quality, data governance and master
data management solutions deliver. Data leaders can use this
financial framework to model a strong investment case by
demonstrating the significant positive financial impact of
modernizing the data stack based on a present value calculation of
$15.54 million*** from
derived benefits.
Realizing operational efficiencies worth $10.6 million
- Using Ataccama to avoid operating expenses and maintenance
effort for homegrown data quality and master data management tools,
and reducing spend on data storage, servers and mainframes that
support the proprietary tools is worth $7.7
million to the composite organization.
- Benefits worth $2.9 million were
also identified by simplifying data management by having a single
source of truth. Ataccama's platform empowers users to create
reusable rule sets which makes data teams more efficient, freeing
up time for value-added activities, and provides business users
with faster data access and sharing.
Enabling customer 360 for improved business outcomes worth
$3.7 million
- Ataccama supports enterprises to improve the customer
experience through buyer-centric initiatives including predicting
behaviors for increased cross-sell conversions and consolidating
customer online portals to reduce call volumes in support
functions, delivering value worth $1.8
million.
- Benefits worth $1.9 million are
derived from the rationalization of the composite company's systems
with a unified view of customers and streamlining the associated
maintenance efforts.
Supporting compliance and security requirements for risk
reduction worth $1.8
million
- Avoiding poor data management helps the composite mitigate the
risk of resulting financial losses, reputational damage, legal
ramifications and lengthy problem remediation.
Jay Limburn, Chief Product Officer, Ataccama, said, "In the near
future, every organization will become a data organization and
maximizing the investment in data management solutions is now a
business imperative. The Forrester TEI study provides a usable
model for calculating the cost savings and value creation that can
be achieved with the right data management strategy and technology.
This empowers heads of data functions to have real conversations
with business leaders because they can quantify the considerable
contribution that quality, well-managed data can deliver to the
bottom line."
Forrester additionally highlighted several unquantified benefits
that also provide value to the composite including enhanced
cross-functional collaboration, improved customer experience,
better data quality to support business initiatives, improved
business continuity with knowledge retention, and enhanced employee
experience.
For more insights into how Ataccama can help with strategic data
management, read the full report here.
Notes to Editors
Methodology
*The Forrester Total Economic Impact™ study is an
independent, commissioned report assessing the cost, benefit,
flexibility and risk factors for organizations considering Ataccama
solutions. The investment value model is based on a composite
company with 8 million data records and $20
billion in revenue per year that Forrester created from
in-depth interviews with six Ataccama customers. This financial
framework enables data leaders to make a business case for
investing in data management technology and demonstrate the
tangible financial impact to senior management and business
leaders.
Key definitions
**Net Present Value (NPV): the current value of
(discounted) future net cash flows given an interest rate (the
discount rate). A positive NPV normally indicates that an
investment should be made.
***Present Value (PV): the current value of (Discounted)
cost and benefit estimates given at an interest rate (the discount
rate). The three-year, risk-adjusted PV for the composite
organization includes Ataccama licensing fees of $1.6 million and implementation and ongoing
management costs of $1.9 million.
About Ataccama
Ataccama enables organizations to
maximize the transformative potential of data and AI with Ataccama
ONE, a unified, AI-powered data management platform for automated
data quality, data governance, and master data management. Ataccama
was one of only three software companies to be recognized by
Gartner as a Market Leader for Augmented Data Quality in 2024. The
Ataccama ONE unified platform enables hundreds of companies around
the world to create high-quality data products that support
business initiatives and AI projects while maintaining data
accuracy, control, and governance. Learn more at
www.ataccama.com.
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SOURCE Ataccama