Economic Validation
The Futurum Group uses a methodology called Total Economic Validation to evaluate the financial impact and value of technology investments for businesses. These methodologies provide organizations with a framework to assess the potential return on investment (ROI) and economic benefits associated with adopting a specific technology or solution.
The process of economic validation involves evaluating and confirming the economic and business worth of a technology solution by examining real-world case studies and data. The analysts at Futurum Group collaborate with organizations to collect empirical data and conduct interviews to comprehend the impact of the technology solution on their operations. The research is then used to create:
- Case Studies: Develop in-depth case studies that highlight specific implementations of the technology in different organizations.
- Data Collection: Gather quantitative and qualitative data to measure the actual impact on costs, revenue, efficiency, and other relevant factors.
- Validation: Validate the economic benefits and ROI by comparing the real-world outcomes with the initially projected benefits.
- Report Findings: Present the findings in a comprehensive report that provides insights into the actual economic impact and value realized by organizations.
There are three primary types of Economic Validation
TCO Study
A Total Cost of Ownership (TCO) study is an analysis designed to determine the business and technical benefits associated with acquisition and use of a technology
ROI Study
An ROI study is an assessment that calculates the Return on Investment, typically measuring the financial gain or loss generated on an investment relative to its cost.
The Economic Validation
The Futurum Group’s methodology aims to quantify and communicate the value of a technology solution investment over a specified period. The analysis involves a detailed examination of costs, benefits, flexibility, and risks associated with technology use and implementation.
Process
- Define Scope: Begin by outlining the scope of the technology deployment and identifying the relevant costs and benefits.
- Gather Data: Collect data through interviews, surveys, and research to assess the impact on various aspects of the organization.
- Build Financial Model: Construct a financial model that includes upfront costs, ongoing operational costs, and the anticipated benefits over time.
- Calculate the Economic Value: Quantify the return on investment and other financial metrics to provide a comprehensive view of the economic impact.
The Economic Validation provides a structured and data-driven approach for businesses to evaluate technology investments, helping them make informed decisions.
