Domo commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) .This study therefore provides readers with a framework to evaluate the potential financial impact of Domo on their organizations. Domo provides a platform that integrates data with user friendly capabilities.
Hence, to better understand the benefits, costs and risks associated with using Domo, Forrester interviewed four customers. These customers had multiple years of experience using Domo. The organizations included companies in media, entertainment, oil and gas and telecommunications.
Domo’s business optimization platform helps decision-makers access data in real time and make more rapid business decisions. The benefits for a composite organization, based on customer interviews, are:
- Increased revenue and profit by optimizing real-time data: $2.1 million.
- Reduced cost of company operations: $2 million.
- Productivity savings with self-service: $4.9 million.
DOMO INCREASES REVENUE BY MILLIONS OF DOLLARS PER YEAR
Forrester’s interviewed with four existing customers. And also, the subsequent financial analysis found that a composite organization experienced the risk-adjusted ROI, benefits and costs. The composite organization analysis points to benefits of more than $7.4 million. In addition, this adds up to a net present value (NPV) of more than $5.5 million.
The financial results calculated in the costs sections can be used to determine the ROI, NPV and payback period. Table 9 below shows the risk-adjusted ROI, NPV and payback period values. These values are determined from Table 8 in the Risks section to the unadjusted results in each cost section.
Flexibility, as defined by TEI, represents an investment in additional capacity or capability. Similarly, this could be turned into business benefit for some future additional investment. There are hence multiple scenarios in which a customer might choose to implement Domo and later realize additional business opportunities.
Forrester defines two types of risk associated with this analysis. First is implementation risk and second is impact risk. Implementation risk is the risk that a proposed investment in Domo may deviate from the original or expected requirements. In addition, this results in higher costs than anticipated, hence Impacting the needs of the organization. Therefore resulting in lower overall total benefits. In other words, the greater the uncertainty, the wider the potential range of outcomes for cost and benefit estimates.
In conclusion, here’s a sneak peek at the benefits of using Domo that Forrester uncovered from four in-depth customer interviews. Download this report to find out how Domo customers achieved 294% ROI over three years.
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