Uses real-world examples to calculate revenues and productivity savings
London, UK – 21st April 2009 – Sitecore, a leading provider of .NET Web Content Management Systems (CMS) and portal software, today announced that businesses deploying the latest Web Content Management systems can expect a Return on Investment (ROI) of more than 100 per cent, according to a commissioned study conducted by Forrester Consulting on Sitecore’s behalf.
The study was carried out by using Forrester’s Total Economic Impact™ (TEI) methodology - a rigorous cost and benefit analysis framework that explicitly incorporates an evaluation of future technology and business flexibility and associated risk. The study examined the combined average results in terms of costs, benefits, risk and flexibility of six real-world customers. Based on the interviews of the six Sitecore customers, Forrester calculated a TEI framework for a composite organisation which yielded the following key findings:
ROI - The associated ROI analysis illustrating the financial impact areas Forrester consulted that the risk-adjusted ROI for the composite organisation was 109%, with a payback period of 1.1 years after deployment.
Financial Benefits – Total financial benefits made up of process savings and revenue gains amounted to approximately $2.5 million (risk adjusted, present value) over a three-year period.
Process Savings - Among the benefits were labour savings of 31% brought about by the need for fewer .NET developer resources. SEO automation improvements delivered 8% productivity gains while standardization and simplification of the web content publishing process produced further a further 8% savings.
Revenue Gains - Revenue increases were derived from improved customer retention rates (up 35%), and sales of additional services (up 19%) coupled with savings on advertising costs due to increased flow of customers through the online channel.
In the study the composite company, named NewMarkets Inc., represents a US-based marketing services firm (with satellite offices in Europe) with 2,500 employees and $850 million in annual revenue. NewMarkets Inc. was adjudged to have made a total Web Content Management outlay of $1.2 million (risk adjusted, present value) over three years. Figures took into account the costs of Sitecore CMS software licence fees, maintenance fees, additional hardware costs, additional software costs, internal implementation costs, professional implementation fees, training fees, operational and ongoing development costs and administration costs.
“Sitecore is the first Web CMS to put marketing and business decision-makers firmly in the Web site driver’s seat,” said Laust Sondergaard, VP business development for Sitecore UK. “This study provides for the first time some solid real-world data to help companies appreciate the kinds of tangible ROI benefits that can be gained from Web CMS deployment.”
“It is important for customers to understand that a good CMS strategy can give enormous business advantages to organisations, helping them to reap the benefits of new, unforeseen revenue streams during this time of economic down turn,” he added.
Sitecore’s Web Content Management System (CMS) and portal software solutions enable companies to deliver compelling web experiences. Sitecore’s award-winning CMS software makes it easy for businesses to create and keep up-to-date dynamic, full featured Web sites of all types. Sitecore’s industry leading flexibility and scalability allows companies to better leverage their content to improve customer experience and drive business growth.
Thousands of public and private organisations, including national governments and Fortune 500 companies utilise Sitecore solutions for their Web sites. These organisations have created and now manage over 20,000 dynamic Web sites with Sitecore including Microsoft, Sara Lee, Siemens, ABN Amro, Omni Hotels, Cabinet Office, Manchester United, Bristol Airport and The Science Museum.
For further information and for details of the full report please contact:
Paul Shlackman, BondPR,
T: +44 (0)1628 560161
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