Forrester Study Shows How You Can Save Millions with ForgeRock CIAM
Forrester Total Economic Impact™ (TEI) Study Confirms a 186% ROI.
Can you afford not to look at the economics of your CIAM strategy?
To say that an organization's identity and access management strategy is important to its business is somewhere between a major understatement and a massive one. Most businesses agree that if they don't pay sufficient attention to how well they manage their customer interactions, they are at an economic and competitive disadvantage. And although many can articulate the role of customer identity and access management (CIAM) in their strategy, few have a way to analyze CIAM's benefits with data. In today's economic environment, it's imperative that organizations take a close look at their strategy and infrastructure to identify and quantify areas for improvement.
Forrester Consulting recently conducted a commissioned Total Economic Impact™ (TEI) study to examine the return on investment (ROI) enterprises can realize by deploying the CIAM platform from ForgeRock. The top-line benefits realized by a typical large enterprise over three years are 186% ROI, less than nine-month payback period, and a net present value (NPV) of $28.5M. Forrester's approach and methodology give you a way to analyze your own enterprise and gauge the value you could realize.
The approach and methodology
The TEI study analyzed the IT infrastructure and technology deployments for customer identity and access management, the business impact of the deployments on the organizations, and their overall strategic significance. Forrester conducted in-depth interviews with several people responsible for the strategy, implementation, and maintenance of their companies' CIAM infrastructure at five large enterprises. They used the resulting information to create a composite organization that represents a typical large global enterprise with $30B in revenue, 20,000 employees, and 30 million customer identities to manage.
The Forrester framework is used to measure the economic impact for the composite organization, and is meant to be adapted and used for any organization to measure current costs and estimate the value of future benefits from implementing the ForgeRock CIAM platform.
Analysis and results
The impact analysis focused on five key areas and the potential benefits realized in each of them.
- Legacy environment infrastructure – Not surprisingly, the CIAM infrastructure in most enterprises consists of legacy components that are either home-grown or bought off the shelf and deployed in a heterogeneous manner with some components on-prem and others in the cloud. Deploying ForgeRock as the single CIAM platform and integrating it with other applications in the enterprise returned a present value savings of $8.1 million over three years.
- Avoiding development costs – Software development to integrate an organization's customer workflow into their CIAM environment is expensive to implement and maintain. ForgeRock's orchestration capabilities enable one to build and modify specific customer journeys using a drag-and-drop capability called Intelligent Access Trees. This capability saved $1.3 million in custom development.
- Reduction in customer support requests – High friction in customer interaction is costly and detrimental to customer satisfaction. Yet organizations must continue to evolve their identity infrastructure to keep their customers secure, and often do so by sacrificing the customer experience and increasing support costs. Much of this is due to tedious password reset procedures, multiple login requirements, and poor implementations of multifactor authentication (MFA). ForgeRock's CIAM platform provides a frictionless self-service approach to password resets, flexible MFA capabilities, and consistent single sign-on capabilities that reduced call volume by 40%, resulting in a present value saving of $24 million.
- Improved time-to-value for new releases – Fast-moving enterprises are under constant pressure to add new IT capabilities to support their business. They could include deploying new applications in the infrastructure, improving existing processes such as self-service workflows for customers, and security improvements. Many of these systems and processes have been dependent on and restricted by the CIAM infrastructure. ForgeRock CIAM transforms this dynamic. Improvements included an increase in the number of software releases made to the existing infrastructure, a reduction in the time taken for each release due to the simplified integration capabilities in the ForgeRock platform, and an increase in the number of new software capabilities added to the infrastructure. All this resulted in a present value benefit of $5.9 million realized through cost savings as well as an increase in revenue attributed to the faster addition of customer-facing functionality.
- Reduction of fraud – The impact of fraud on customer-facing organizations is significant and expensive. Costs include reimbursements to customers for fraudulent orders made with their accounts and the effort required to detect such activity. ForgeRock's platform was directly responsible for detecting and reducing fraudulent transactions by 25%, resulting in a present value savings of $4.7 million.
Applying these results
In its study, Forrester says: "By adopting a unified identity platform, enterprises have an opportunity to treat digital identity and identity access management as a key strategic initiative and work to develop and deliver differentiated experiences that delight customers and drive loyalty and profitability." Through its analysis, Forrester provides a framework that identifies the cost, benefit, flexibility, and risks that factor into a CIAM investment decision.
Download the TEI study for all the data and details on the methodology that will help you evaluate the potential financial impact ForgeRock CIAM could have on your organization.
In today's economic climate, can you afford not to?