Total Economic Impact Methodology

Forrester’s Total Economic Impact™ (TEI) consulting practice develops business value justification analysis to help organizations understand the financial impact of a technology investment. Forrester helps both business technology consumers build financial analysis for their own internal technology decisions as well as help technology organizations objectively showcase the financial impact of their solutions.

The TEI methodology has been used for over 20 years by technology consumers and technology organizations. It consists of four components to evaluate investment value: cost, benefits, flexibility, and risk. It is a proven industry-standard framework that models all aspects of a piece of technology or solution and the associated impacts on the business and illustrates the ROI of products and services. For technology organizations, TEIs use Forrester’s proven and rigorous research methodologies to create custom studies. They are conducted with the execution of a custom quantitative or qualitative research study. Forrester sets B2B and B2C sample standards with minimums for qualitative and quantitative samples via surveys and interviews for the research. Every TEI study is based on due diligence, independent customer interviews and primary research, and a financial model framework including benefits, costs, flexibility, and risks.

Forrester does not endorse a company or its solution, and clients cannot purchase favorable opinions or results. Forrester maintains editorial control over any content created, and positive results are not guaranteed. Forrester only states what the data shows. All TEIs are clearly marked as “commissioned” and cannot be used in Forrester’s syndicated content.