Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
The Total Economic Impact™ ofcleverbridge WebinarForrester ConsultingReggie LauTEI ConsultantPeter SheldonSenior AnalystSe...
Welcome        Introductions© 2012 Forrester Research, Inc. Reproduction Prohibited   2
Agenda        Market Overview                                   Please note: this slide presentation is an                ...
Housekeeping                        Slides will be provided following the webinar                        Submit questions ...
Market Overview                                                          5© 2012 Forrester Research, Inc. Reproduction Pro...
The global software market is set to grow to $476billion by next year                                         2010        ...
Consumers, SMB’s and enterprisesalike are increasing acquiringsoftware via direct channels                                ...
Software firms have many optionswhen choosing an approach forimplementing eCommerce technology                            ...
Many have built and evolved homegrown eCommerce solutions                                   9
But as the complexity of sellingincreases, these solutions arebecoming costly to maintain                                 ...
29% of online retailers are planning to re-platform their existing eCommerce solution in the next 2 yearsSource: Forrester...
Build-in-HouseAssembling a home grown solution may be viable in the short term, but should not beunderestimated and will l...
Outsource to a Commerce PartnerFull service digital commerce solutions provide an integrated suite of solutions and servic...
Recap        The world of eCommerce is becoming increasingly        complex        With in-house solutions, companies have...
What is TEI?                                                          15© 2012 Forrester Research, Inc. Reproduction Prohi...
Disclosures  The audience should be aware of the following:  • This document is an abridged webinar version of a full case...
“Next level” business case justifications are increasingly   vital for critical investments.           Do I need a busines...
The TEI framework centers on quantifying benefits,capturing costs, evaluating flexibility, and adjusting risk.            ...
Executive Summary                                                          19© 2012 Forrester Research, Inc. Reproduction ...
cleverbridge generates incremental revenues andsimplifies eCommerce for organizations.                                    ...
Analysis     ›       Interview Highlights     ›       Benefits     ›       Costs     ›       Flexibility     ›       Risk ...
cleverbridge’s customer found value in migrating froman in-house solution to the cleverbridge SaaS platform.        clever...
Incremental international revenue is the largest benefitarea of the cleverbridge platform.  Incremental international reve...
Although IT-focused productivity is a relatively smallpiece of the total benefits, it is a cost avoidance withimplications...
There are intrinsic resource efficiencies in IT andcustomer service when outsourcing eCommerce.  eCommerce efficiencies   ...
cleverbridge’s semi-annual events are a value-add thatgenerate leads and partnerships.  Incremental partnership revenue   ...
cleverbridge’s customer experienced three costs thatare based on sales and usage.  Direct sales transaction  • This is the...
In addition to benefits and costs, TEI focuses onpotential risks along with “flexibility” for future benefits.   Flexibili...
Financial Summary                                                          29© 2012 Forrester Research, Inc. Reproduction ...
The three-year risk-adjusted cash flow for cleverbridgeshows a positive ROI (18%), a NPV of over $750,000, anda payback pe...
Recap        Incremental revenue        Positive ROI        Short payback period        Organizational efficiencies       ...
Q&A                                                          32© 2012 Forrester Research, Inc. Reproduction Prohibited
Wrap Up - The Total Economic Impact™ of cleverbridge        Expect an email follow up in the next 24 hours        Check ou...
Thank You for Attending our         Webinar       www.cleverbridge.com
Appendix                                                          35© 2012 Forrester Research, Inc. Reproduction Prohibited
Appendix A: TEI Methodology and Framework Introduction Total Economic Impact is a methodology developed by Forrester Resea...
Appendix A: TEI Methodology and Framework (cont.) Introduction (cont.) Risk Risk measures the uncertainty of benefit and c...
Appendix A: TEI Methodology and Framework (cont.)Framework and Components“Options”created                                 ...
Appendix B: Interviewee Description Interviewee Forrester interviewed a current cleverbridge customer for this study. The ...
Appendix C: Model Assumptions                     Metric                                        Value  Hours per week     ...
Appendix D: Glossary Discount rate: The interest rate used in cash flow analysis to take into account the time value of mo...
Appendix E: cleverbridge Overview     cleverbridge is a full-service eCommerce provider for companies that sell software o...
Upcoming SlideShare
Loading in …5
×

The Total Economic Impact™ of cleverbridge Webinar - Forrester Research

1,775 views

Published on

When organizations outsource their e-commerce to cleverbridge, they gain expertise and capabilities not previously available with their in-house solution. But you don’t have to take our word for it.

Forrester Consulting conducted a commissioned Total Economic Impact (TEI) Study on behalf of cleverbridge to compare an in-house e-commerce solution to the cleverbridge platform. The Forrester analysis shows that organizations can realize significant benefits by outsourcing to cleverbridge, including a positive return on investment, short payback period, international growth and more.

Here is a resource to help guide you through the in-house versus outsourcing decision for your e-commerce.

  • Be the first to comment

The Total Economic Impact™ of cleverbridge Webinar - Forrester Research

  1. 1. The Total Economic Impact™ ofcleverbridge WebinarForrester ConsultingReggie LauTEI ConsultantPeter SheldonSenior AnalystSeptember 25, 2012
  2. 2. Welcome Introductions© 2012 Forrester Research, Inc. Reproduction Prohibited 2
  3. 3. Agenda Market Overview Please note: this slide presentation is an abridged, graphical and complementary representation of a full case study. For a What is TEI? full explanation of methodology and details on model calculations, please refer to the Executive Summary full case study: Forrester Total Economic Impact of cleverbridge, August 2012). Analysis o Interview Highlights o Benefits o Costs o Flexibility o Risk Financial Summary Q &A© 2012 Forrester Research, Inc. Reproduction Prohibited 3
  4. 4. Housekeeping Slides will be provided following the webinar Submit questions at any time On Twitter: #CRO© 2012 Forrester Research, Inc. Reproduction Prohibited 4
  5. 5. Market Overview 5© 2012 Forrester Research, Inc. Reproduction Prohibited
  6. 6. The global software market is set to grow to $476billion by next year 2010 2013Source: Forrester Research, Jan 12, 2011 ―Which Software Markets Will SaaS Disrupt‖ Report 6© 2012 Forrester Research, Inc. Reproduction Prohibited
  7. 7. Consumers, SMB’s and enterprisesalike are increasing acquiringsoftware via direct channels 7
  8. 8. Software firms have many optionswhen choosing an approach forimplementing eCommerce technology 8
  9. 9. Many have built and evolved homegrown eCommerce solutions 9
  10. 10. But as the complexity of sellingincreases, these solutions arebecoming costly to maintain 10
  11. 11. 29% of online retailers are planning to re-platform their existing eCommerce solution in the next 2 yearsSource: Forrester Research, Jan 28, 2011 ―2011 Online Retail Technology Investment Outlook‖ 11© 2012 Forrester Research, Inc. Reproduction Prohibited
  12. 12. Build-in-HouseAssembling a home grown solution may be viable in the short term, but should not beunderestimated and will likely constrain growth in the long-term Front Channel Contact My Account Renewals Web Orders Office Partners Center quotes subscription billing pricing entitlements / provisioning Back CRM Office API’s BI & analytics chargebacks asset mgmt order mgmt GL / ERP payments customer accounts revenue recognition license keys Payment Fraud Sales Tax CDN Gateway Screening Engine Merchant Account Custom development Existing in-house systems Required partner solutions 12© 2012 Forrester Research, Inc. Reproduction Prohibited
  13. 13. Outsource to a Commerce PartnerFull service digital commerce solutions provide an integrated suite of solutions and servicesacross channels and markets, but may be overkill in some scenarios Front Channel Contact My Account Renewals Web Orders Office Partners Center Digital eCommerce Platform quotes subscription billing pricing entitlements / provisioning Back CRM Office API’s BI & analytics chargebacks asset mgmt order mgmt GL / ERP payments customer accounts revenue recognition license keys Payment Fraud Sales Tax CDN Gateway Screening Engine Merchant Account Custom development Included in solution Existing in-house systems Required partner solutions 13© 2012 Forrester Research, Inc. Reproduction Prohibited
  14. 14. Recap The world of eCommerce is becoming increasingly complex With in-house solutions, companies have control over direction, capabilities, priorities, resources, etc. When building an in-house solution, companies should be cognizant of the effort and resources required Full service commerce partners can offer end-to-end solutions and extensive expertise© 2012 Forrester Research, Inc. Reproduction Prohibited 14
  15. 15. What is TEI? 15© 2012 Forrester Research, Inc. Reproduction Prohibited
  16. 16. Disclosures The audience should be aware of the following: • This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of cleverbridge, August 2012). • The study is commissioned by cleverbridge and delivered by the Forrester Consulting group. • Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in cleverbridge. • cleverbridge 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. • The customer name for the interview was provided by cleverbridge. • Forrester does not endorse cleverbridge.© 2012 Forrester Research, Inc. Reproduction Prohibited 16
  17. 17. “Next level” business case justifications are increasingly vital for critical investments. Do I need a business case? What is an effective business case? • Over 90% of IT decision-makers • TCO and ROI only tells the story of costs find value in a business case and quantified benefits • Decision-makers will likely want to • TEI adjusts for risks and factors the apply standard criteria/factors to flexibility of a product into the case study investment opportunities Investment Impact 33%, Some TCO ROI TEI Categories what important IT costs    IT Impact IT cost savings    User efficiency   60%, Very Business 4%, Somew Business important Impact   hat effectiveness unimportant Risk and Risk mitigation  3%, Not at Uncertainty Risk vs. reward  all important Strategic Scalability Base: 825 IT decision-makers at North American enterprises Impact Flexibility  17 © 2012 Forrester Research, Inc. Reproduction Prohibited
  18. 18. The TEI framework centers on quantifying benefits,capturing costs, evaluating flexibility, and adjusting risk. TEI Framework and Components Flexibility (Options) Costs Total RISK Economic (Impact on Budget) Impact Benefits (Impact on Business) TEI Approach and Methodology Conduct Construct Write Perform due Conduct customer financial case diligence webinar interview model study 18© 2012 Forrester Research, Inc. Reproduction Prohibited
  19. 19. Executive Summary 19© 2012 Forrester Research, Inc. Reproduction Prohibited
  20. 20. cleverbridge generates incremental revenues andsimplifies eCommerce for organizations. Executive Summary • Forrester was commissioned by cleverbridge to examine the financial benefit of cleverbridge • cleverbridge is a full-service eCommerce provider for companies that sell software or SaaS • Its services include customer shopping cart and experience optimization, transaction ownership, channel/partner Source: cleverbridge website and marketing integration, and customer service • Based on an analysis of cleverbridge’s Three-Year Risk-Adjusted Financial Snapshot customer feedback and quantified Total Benefits Total Costs ROI NPV benefits, costs, risks, and (PV) (PV) flexibility, Forrester has determined 18% $5.1M $(4.4)M $769,566 cleverbridge has a three-year risk- Payback Period adjusted ROI of 18% and NPV of $769,566, with a payback period of <1 MonthSource: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester than Inc. Reproduction Prohibited less Research, 1 month 20
  21. 21. Analysis › Interview Highlights › Benefits › Costs › Flexibility › Risk 21© 2012 Forrester Research, Inc. Reproduction Prohibited
  22. 22. cleverbridge’s customer found value in migrating froman in-house solution to the cleverbridge SaaS platform. cleverbridge had an 8% impact on incremental international revenue. The testing environment and overall product management functionality created efficiencies. Outsourcing eCommerce freed up both IT and customer service resources. cleverbridge’s semi-annual networking events provided partnership and future sales opportunities.Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 22© 2012 Forrester Research, Inc. Reproduction Prohibited
  23. 23. Incremental international revenue is the largest benefitarea of the cleverbridge platform. Incremental international revenue Three-Year Non-Risk-Adjusted Benefits • Customer migrated from an in-house platform supporting three languages, two payment options, and three currencies to Incremental the cleverbridge platform, which supports international revenue over 30 checkout languages, 20 payment 91% options, and 30 currencies • Key metrics: International revenue growth Three-Year Non-Risk-Adjusted Benefit Metric Year 1 Year 2 Year 3 Total Annual revenue $20,000,000 $21,500,000 $23,112,500 Annual revenue growth 7.5% 7.5% 7.5% Incremental international revenue ratio 8.0% 9.0% 10.0% Total $1,600,000 $1,935,000 $2,311,250 $5,846,250Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 23© 2012 Forrester Research, Inc. Reproduction Prohibited
  24. 24. Although IT-focused productivity is a relatively smallpiece of the total benefits, it is a cost avoidance withimplications for organizations seeking more automation. IT-focused productivity Three-Year Non-Risk-Adjusted Benefits IT-focused • Customer heavily adopted report productivity generation and product 0.4% management/testing features, which produced material time/resource savings • Key metrics: Heavily adopted automation features, efficiency/time saving, labor cost Three-Year Non-Risk-Adjusted Benefit Metric Year 1 Year 2 Year 3 Total Hourly rate/FTE $40.00 $41.20 $42.44 Annual hours spent on manual process 144 144 144 Annual dollars spent on manual process $5,760 $5,933 $6,111 Efficiency gain ratio 50% 50% 50% Efficiency gain $2,880 $2,966 $3,055 Relevant and adopted automated features 2 3 4 Total $5,760 $8,899 $12,222 $26,881Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 24© 2012 Forrester Research, Inc. Reproduction Prohibited
  25. 25. There are intrinsic resource efficiencies in IT andcustomer service when outsourcing eCommerce. eCommerce efficiencies Three-Year Non-Risk-Adjusted Benefits • Customer was able to reallocate resources to more strategic initiatives like new product development, while also experiencing a resource efficiency in customer support eCommerce efficiencies • Key metrics: eCommerce/customer service 8% headcount, average customer support inquiries, labor cost Three-Year Non-Risk-Adjusted Benefit Metric Year 1 Year 2 Year 3 Total Annual IT FTE salary $80,000 $82,400 $84,872 IT FTE need for in-house 3.5 3.5 3.5 IT FTE need for outsourced 2.0 2.0 2.0 IT FTE cost avoidance $120,000 $123,600 $127,308 Hourly rate/customer service FTE $40.00 $41.20 $42.44 Average contact hours/year 702 1,160 1,247 Call center FTE cost avoidance $28,064 $47,806 $52,933 Total $148,064 $171,406 $180,241 $499,711Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 25© 2012 Forrester Research, Inc. Reproduction Prohibited
  26. 26. cleverbridge’s semi-annual events are a value-add thatgenerate leads and partnerships. Incremental partnership revenue Three-Year Non-Risk-Adjusted Benefits • Customer actively participated in cleverbridge’s semi-annual event and achieved a tangible, revenue impacting outcome • Key metrics: Events attended, conversion Incremental partnership ratio revenue 0.9% Three-Year Non-Risk-Adjusted Benefit Metric Year 1 Year 2 Year 3 Total Event frequency/year 2 2 2 Incremental revenue $20,000 $20,000 $20,000 Probability/conversion 50% 50% 50% Total $20,000 $20,000 $20,000 $60,000Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 26© 2012 Forrester Research, Inc. Reproduction Prohibited
  27. 27. cleverbridge’s customer experienced three costs thatare based on sales and usage. Direct sales transaction • This is the transaction fee (8%) charged per direct sale, which can vary by customer. Direct sales accounted for over 96% of sales for the interviewed customer • Key metrics: Direct sales transaction fee, direct sales revenue Affiliate sales transaction • This is the transaction fee (11%) charged per indirect sale, which can vary by customer. Affiliate sales accounted for 3.5% of sales for the interviewed customer • Key metrics: Affiliate sales transaction fee, affiliate sales revenue CD/DVD Backup software • This is the blended fee ($6.50) charged per backup copy requested, which can vary by customer. The interviewed customer’s end-users requested an average of 2,000 copies per month – an above average amount as reported by cleverbridge across all clients • Key metrics: Cost per backup copy, backups requested Three-Year Non-Risk-Adjusted Costs Cost Year 1 Year 2 Year 3 Total Direct sales transaction ($1,003,600) ($1,651,200) ($1,765,795) ($4,420,595) Affiliate sales transaction ($50,050) ($94,600) ($114,407) ($259,057) Backup software ($156,000) ($258,000) ($277,350) ($691,350) Total ($1,209,650) ($2,003,800) ($2,157,552) ($5,371,002)Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 27© 2012 Forrester Research, Inc. Reproduction Prohibited
  28. 28. In addition to benefits and costs, TEI focuses onpotential risks along with “flexibility” for future benefits. Flexibility – Future Value • Fraud management: Potentially allows customers to reduce support for fraudulent orders, reduce legal fees and fines, and lower risk of losing credit card contracts • Continuous technology updates: Expect to experience updates in functionality that spans from new international payment options to compatibility with social media and mobile • Business intelligence (BI): Sales data is analyzed and displayed through the BI module and can also be integrated with other popular BI applications • No exclusive contract required: Flexibility to stop using cleverbridge at any point or even split eCommerce operations with another third-party provider or an in-house solution Risks* Most Costs Low High Mean • Implementation risks (causing higher costs) Likely − Transaction fee increase Direct sales 98% 100% 110% 103% Affiliate sales 98% 100% 105% 101% − Unexpected increase in affiliate revenue Backups 98% 100% 102% 100% − Unusually high amount of backups requested Most Benefits Low High Mean • Impact risks (causing lower benefits) Likely Intl revenue 90% 100% 105% 98% − Low focus on international growth IT productivity 85% 90% 100% 92% − International product saturation eCommerce − Low adoption of technology efficiencies 90% 95% 100% 95% − Large eCommerce and customer service Partnership revenue 0% 50% 100% 50% staff*Please refer to Appendix slides for details on how to use the risk adjustment tableSource: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 28© 2012 Forrester Research, Inc. Reproduction Prohibited
  29. 29. Financial Summary 29© 2012 Forrester Research, Inc. Reproduction Prohibited
  30. 30. The three-year risk-adjusted cash flow for cleverbridgeshows a positive ROI (18%), a NPV of over $750,000, anda payback period of less than 1 month. Three-Year Risk-Adjusted Cash Flow Initial Year 1 Year 2 Year 3 Total PVBenefits $0 $1,729,274 $2,083,743 $2,465,161 $6,278,179 $5,146,281Costs $0 ($1,209,650) ($2,003,800) ($2,157,552) ($5,371,002) ($4,376,716)Net Benefits $0 $519,624 $79,943 $307,609 $907,177 $769,566ROI 18%Payback Period <1 month $3,000,000 $2,465,161 $2,083,743 $2,000,000 $1,729,274 $1,000,000 Costs $0 Benefits Initial Year 1 Year 2 Year 3 Payback ($1,000,000) ($1,209,650) ($2,000,000) ($2,003,800) ($2,157,552) ($3,000,000)Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 30© 2012 Forrester Research, Inc. Reproduction Prohibited
  31. 31. Recap Incremental revenue Positive ROI Short payback period Organizational efficiencies Ongoing partnership approach© 2012 Forrester Research, Inc. Reproduction Prohibited 31
  32. 32. Q&A 32© 2012 Forrester Research, Inc. Reproduction Prohibited
  33. 33. Wrap Up - The Total Economic Impact™ of cleverbridge Expect an email follow up in the next 24 hours Check out our TEI resources at http://tei.cleverbridge.com • Executive Summary of the TEI Study • Copy of the full TEI study • On-demand version of this webinar • ROI Calculator© 2012 Forrester Research, Inc. Reproduction Prohibited 33
  34. 34. Thank You for Attending our Webinar www.cleverbridge.com
  35. 35. Appendix 35© 2012 Forrester Research, Inc. Reproduction Prohibited
  36. 36. Appendix A: TEI Methodology and Framework Introduction Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. The TEI methodology consists of four components to evaluate investment value: benefits, costs, risks, and flexibility. Benefits Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product or project. Often product or project justification exercises focus just on IT cost and cost reduction, leaving little room to analyze the effect of the technology on the entire organization. The TEI methodology and the resulting financial model place equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization. Calculation of benefit estimates involves a clear dialogue with the user organization to understand the specific value that is created. In addition, Forrester also requires that there be a clear line of accountability established between the measurement and justification of benefit estimates after the project has been completed. This ensures that benefit estimates tie back directly to the bottom line. Costs Costs represent the investment necessary to capture the value, or benefits, of the proposed project. IT or the business units may incur costs in the form of fully burdened labor, subcontractors, or materials. Costs consider all the investments and expenses necessary to deliver the proposed value. In addition, the cost category within TEI captures any incremental costs over the existing environment for ongoing costs associated with the solution. All costs must be tied to the benefits that are created.Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited
  37. 37. Appendix A: TEI Methodology and Framework (cont.) Introduction (cont.) Risk Risk measures the uncertainty of benefit and cost estimates contained within the investment. Uncertainty is measured in two ways: 1) the likelihood that the cost and benefit estimates will meet the original projections, and 2) the likelihood that the estimates will be measured and tracked over time. TEI applies a probability density function known as ―triangular distribution‖ to the values entered. At minimum, three values are calculated to estimate the underlying range around each cost and benefit. Flexibility Within the TEI methodology, direct benefits represent one part of the investment value. While direct benefits can typically be the primary way to justify a project, Forrester believes that organizations should be able to measure the strategic value of an investment. Flexibility represents the value that can be obtained for some future additional investment building on top of the initial investment already made. For instance, an investment in an enterprise-wide upgrade of an office productivity suite can potentially increase standardization (to increase efficiency) and reduce licensing costs. However, an embedded collaboration feature may translate to greater worker productivity if activated. The collaboration can only be used with additional investment in training at some future point in time. However, having the ability to capture that benefit has a present value that can be estimated. The flexibility component of TEI captures that value. Approach Conduct Construct Write Perform due customer financial case diligence interview model studySource: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited
  38. 38. Appendix A: TEI Methodology and Framework (cont.)Framework and Components“Options”created Flexibility• Are there new opportunities (Options) created for the future?Cost Costs Total• People RISK Economic• Process (Impact on Budget)• Technology ImpactBenefits• Quantified Benefits value• Defined (Impact on Business) metrics Uncertainty • Impact of assumptions Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012 © 2012 Forrester Research, Inc. Reproduction Prohibited
  39. 39. Appendix B: Interviewee Description Interviewee Forrester interviewed a current cleverbridge customer for this study. The customer is a U.S.-based utilities software company with annual eCommerce revenues of $20M. The primary revenue model focuses on the sale of software licenses – approximately 65% for consumers, and 35% for upgrades and enterprises. The customer had approximately 10 full-time staff supplemented by contractor support in its eCommerce department. The eCommerce department was responsible for building and maintaining the prior in-house eCommerce platform, which supported three languages, two payment methods, and three currencies.Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited
  40. 40. Appendix C: Model Assumptions Metric Value Hours per week 40 Weeks per year (M-F, 9-5) 52 Hours per year (24x7) 2,080 Hours per year 8,760 Annual salary $80,000 Hourly wage $40.00 Annual labor increase 3%Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited
  41. 41. Appendix D: Glossary Discount rate: The interest rate used in cash flow analysis to take into account the time value of money. Although the Federal Reserve Bank sets a discount rate, companies often set a discount rate based on their business and investment environment. Forrester assumes a yearly discount rate of 10% for this analysis. Organizations typically use discount rates between 8% and 16% based on their current environment. Readers are urged to consult their respective organization to determine the most appropriate discount rate to use in their own environment. Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total net present value of cash flows. Payback period: The breakeven point for an investment. The point in time at which net benefits (benefits minus costs) equal initial investment or cost. Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits minus costs) by costs.Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited
  42. 42. Appendix E: cleverbridge Overview cleverbridge is a full-service eCommerce provider for companies that sell software or SaaS. Its services include customer shopping cart and experience optimization, transaction ownership, channel/partner integration, and customer service. cleverbridge works with more than 300 clients and more than 17,000 affiliates globally to provide eCommerce for B2C and B2B software licenses and subscriptions. Key highlights of cleverbridge capabilities include: • A customizable checkout process that integrates into the customer’s web experience. • The ability to enable a variety of promotions and discounts during the checkout process. • Detailed multivariate and A/B testing modules that can assist in layout, regional, and pricing decisions. • Localization with more than 20 local payment options, 30 checkout languages, and 30 currencies. • Fulfillment of both online licenses/subscriptions and physical backups. • An in-house customer service center. • A standalone business intelligence module with the option of integrating sales data with existing CRM, ERP, and BI tools. • A .NET solution with structured layers, multiple API’s and flexibility in customization. • Management for eCommerce support functions such as marketing, affiliates, and fraud.Source: Forrester Total Economic Impact of cleverbridge, a commissioned study conducted by Forrester Consulting on behalf of cleverbridge, August 2012© 2012 Forrester Research, Inc. Reproduction Prohibited

×