News provided byAtaccama
Sep 17, 2024, 04:03 ET
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.
SOURCE Ataccama