How do you digitalize your business and make it pay for itself (quickly)? That is the 1.3 trillion-dollar question.
Digitalizing your organization is more critical than ever if you want to be competitive – and stay relevant. But embarking on a digitalization strategy is a daunting prospect. Business and IT must agree on many things. What is your goal? How much will it cost? How can you justify it to your Board? Crucially, you have to be able to prove the return on investment; otherwise you may not get approval.
Having a good idea of what you are getting into, what it will cost and how long it will take you to realize a return on money spent could make all the difference. Forrester Consultancy can help; it has just concluded a Total Economic Impact (TEI) study and examination into the potential ROI enterprises could realize from using Software AG’s Digital Business Platform.
The study, undertaken to better understand the benefits, costs, flexibility and risks associated with this investment, Forrester has interviewed several Software AG Digital Business Platform customers across six industries. And based on these interviews, Forrester has created a composite organization to describe the Total Economic Impact of the DBP.
According to this Forrester study, enterprises experienced a little over €5.9 million ($7.3 million) in present-value (PV) and risk adjusted benefits over three years, all directly attributed to their investment in the Software AG Digital Business Platform.
Additional gains include:
- Incremental revenue contribution (gross profit) of €1,134,041 ($1,403,070)
- Productivity improvement for developers of €1,418,102 ($1,754,520)
- IoT (Internet of Things) connectivity solution benefits of €1,841,265 ($2,278,070)
- Better decision and business insights with streaming and predictive analytics amounting to €1,547,021 ($1,914,020)
According to one interviewee, an IT manager in the retail industry, “the Digital Business Platform gave us the power to drive the changes we needed in our ecommerce business, to deliver greater value to customers, and respond to the future demands of our customers as they arise. The project was up and running in just a few days.”
Key to the productivity gains from the Digital Business Platform is the ability to re-use services. A Director in the Utility industry noted that it “allowed us to be more agile by re-using the automation of services that were previously developed. We don’t have to develop the same code or processes over and over again; resulting in the ability to deliver value faster to our customers.“
As fast as markets change, businesses must adapt even faster to stay ahead of their customer demands and Software AG’s Digital Business Platform provides the foundation for significant digital transformation. This Forrester study demonstrates that our Digital Business Platform not only delivers enhanced intelligence, agility, and control to keep enterprises at the forefront of innovation, but also pays for itself within less than six months. Yes, a SIX MONTH ROI!!
The Total Economic Impact is a methodology developed by Forrester. It helps companies demonstrate and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. The full report of the Total Economic Impact of the Software AG Digital Business Platform can be downloaded here.