Alacra's experience has been the easier it is to demonstrate a compelling return on investment, the shorter the sales cycle. Our product with the easiest to calculate ROI is Alacra Book - for all our customers we've been able to show that the cost of our service is dramatically less than the cost of building PIBs by hand. This is true even if the labor is offshore. In fact, many customers are using Alacra Book in their offshore libraries and document processing departments.
For Alacra Concordance, the products' benefits are slightly less tangible and vary from firm to firm. We've therefore had a more difficult time demonstrating to customers that the product offers a remarkable ROI. To overcome this challenge we commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study, in which they interviewed four Alacra Concordance customers. From these four interviews Forrester created a "composite customer" and described how Alacra Concordance is deployed within the organization.
Data from the four customers was entered into Forrester's economic model to calculate ROI and payback. The study found that Alacra Concordance offered users a 402 percent return on investment, paid for itself within two months of use, and offered a total net value close to $2 million.
In conducting in-depth interviews with four of Alacra’s financial services industry customers, Forrester found that these companies achieved significant value from Alacra Concordance in several areas.
- First, all the participants in the study described greater productivity for high-value investment bankers, commercial bankers, portfolio managers, and analysts resulting from greater accuracy and timeliness of data used by these decision-makers on important investment opportunities.
- Second, each of the study participants described very labor-intensive processes for manually concording entity identifiers that were eliminated with the implementation of Alacra Concordance. Each customer discovered that Concordance was a cost-effective response to the time, cost and errors associated with manual concording and provided both front- and back-office utility.
- Finally, Alacra Concordance provides a foundation for the creation and exercise of future flexibility options – to expand the value of Concordance to more users in the organization, to consolidate data silos, or to create new tools that can bring competitive advantage to bankers’ analyses and ultimately in client service or investing on behalf of one’s own firm.
Our press release announcing the availability of the study is here; to request a copy of the study, please click here.
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