Tagetik Investment Pays Off Within Two Years

Independent study examines software’s Total Economic Impact™

Tagetik, a global provider of Performance Management and Financial Governance solutions, today announced that an independent case study conducted by Forrester Consulting, commissioned by Tagetik, shows that an investment in Tagetik software can quickly pay for itself. The study calculated that a Tagetik customer achieved a risk-adjusted ROI of 299% over five years with a payback period of 24 months. Tagetik commissioned the study to examine the total economic impact and potential return on investment (ROI) that enterprises may realize by deploying its Performance Management (PM) and Financial Governance (FG) software.

The Key findings of the study can be summarized in the following:

• “ROI. Based on the interviews with an existing customer, Forrester constructed a TEI framework to measure the ROI. As seen in Table 1, the risk-adjusted ROI for the interviewed organization is 299% with a break-even point (payback period) of 24 months after deployment.

• Benefits. The interviewed organization implemented Tagetik 3.0 to consolidate disparate financial applications to improve compliance and provide management with accurate and timely financial information. After implementation, by eliminating a number of manual processes, the representative organization experienced resource cost savings, a user productivity increase, and a reduction in monthly financial and cash flow efforts. The present value (PV) of the risk-adjusted total benefits is equal to $5,573,000.

• Costs. The costs to implement Tagetik include: software license costs, annual software maintenance fees, implementation costs, training opportunity costs, and ongoing administrative time. The software cost estimates are based on the most recent price list and do not include any discounts. Readers should measure the ROI for their own environment based on their negotiated price. According to Tagetik, the cost would decrease as the number of application purchased increases. In this study, we are evaluating an organization that has implemented all the applications. The PV of the risk-adjusted total costs is $1,398,447.”

"The findings from this independent survey went far beyond our expectations - and our customer’s as well," added Manuel Vellutini, Chief Operating Officer at Tagetik. "When a company can achieve a 299% ROI in challenging economic times like these, CFOs and CIOs can surely achieve significant savings by simplifying their complex business processes. This study showed that an investment in Tagetik 3.0 can pay off in less than 24 months and that companies can achieve tangible IT and business benefits in a very short time frame. Based on these results, we are going to commission other studies to deepen our understanding of the total economic impact that our solutions have on customers.”

Tagetik selected Forrester for this project due to its industry expertise in the BPS market and Forrester’s Total Economic Impact™ (TEI) methodology. TEI not only measures costs and cost reduction (areas that are typically accounted for within IT) but also weighs the enabling value of a technology in increasing the effectiveness of overall business processes. Forrester employed four fundamental elements of TEI in modeling Tagetik such as costs and cost reduction, benefits to the entire organization, risk and flexibility.

From a methodology point of view, Forrester Consulting examined the total economic impact and potential return on investment (ROI) that enterprises may realize by deploying the Tagetik Performance Management solution. Tagetik provides a complete, closed-loop solution for Performance Management and Financial Governance that supports CFOs in implementing corporate strategies and ensures a single, accurate view of the entire business in compliance with new regulations and governance requirements.

Forrester conducted a series of in-depth interviews with a large multinational company that uses Tagetik to manage projects in more than 15 locations worldwide. Its goal was to identify the key drivers and best practices for implementing and adopting the solution and to quantify the resulting cost savings. The organization deployed Tagetik to consolidate its disparate financial applications and create a single source of information to support financial and operational business decisions while reducing the manual effort that was previously needed to produce financial reports. The business benefits included cost savings in terms of hiring, improved monthly financial reporting activities, and higher user productivity. The company also reduced IT costs ranging from hardware to the administration of multiple applications.

» Read the study

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About Tagetik
Tagetik is a global software vendor of the first unified Performance Management & Financial Governance solution to help CFOs and CIOs simplify complex business processes.

A complete financial closed-loop software, Tagetik 3.0 unifies key processes and applications – such as budgeting & forecasting, cash flow planning, working capital analysis, financial consolidation, financial governance, strategy management, profitability modeling, financial & statement reporting – to manage and control overall performance, support compliance initiatives, harmonize different views of critical financial data, enable maximum visibility down to business transactions. In this way, the CFO can support the CEO in monitoring the implementation of strategies, ensure their sustainability and control corporate performance. Since the software leverages “built-in” processes and cross-platform technology – fully web-based and integrated with any ERP, our customers can profit by up to 50% reduction of the total cost of ownership (TCO).

Tagetik employs over 300 market experts in 11 countries (Italy, North America, UK, France, Austria, Germany, Portugal, Spain, South East Asia, Switzerland, The Netherlands) and shares its successful strategy with 350 worldwide satisfied customers representing all industries including: Unicredit Group, Telecom Italia, Fininvest, Mediaset, Barilla, De Agostini, BNL, Altair Engineering, Houghton Mifflin Harcourt, Artemide, Banco Privado Portugues, Talanx AG, Nationale Suisse, Krauss Maffei, Menarini Group, Volex Group, M+W Zander, IFIL, Aries Complex, Astaldi, Acea, SDA Express Courier, Yamaha Motor Italia, Techint, Milan AC, RAI, Costa Crociere.