It is vital for businesses to understand the ROI of their technology investments. That can be especially difficult for functions that do not directly generate revenue, such as market research, so a metric like ‘consumer surplus’ is particularly valuable.
Boston, MA (PRWEB) June 17, 2013
The value of professional staff time saved by companies that use SinglePoint™ portals to streamline search and analysis of their research assets in support of business decision-making totals approximately $162 million annually, Northern Light announced today.
The estimated value of the social benefits (e.g., time saved) of using a more efficient technology is known as “consumer surplus”*. Recently a New York Times article cited an estimate by Google that the value of time saved worldwide by all people who use search engines to find answers to questions more quickly is up to $65 billion annually.
“It is vital for businesses to understand the ROI of their technology investments,” C. David Seuss, Northern Light’s CEO, said. “That can be especially difficult for functions that do not directly generate revenue, such as market research, so a metric like ‘consumer surplus’ is particularly valuable.”
Northern Light calculated the “consumer surplus” value of SinglePoint by multiplying the total number of SinglePoint user sessions across Northern Light’s entire client base annually (1,080,000), by a savings constant of 1.5 hours per session (developed by a long-time SinglePoint client in the telecommunications industry), by an average hourly staff cost of $100.
In addition to these savings, Northern Light also has compelling anecdotal evidence from its clients of direct financial benefits they gained as a result of using SinglePoint market intelligence portals. For example, in one case, a company avoided a disastrous acquisition because relevant research was easily findable in a time-pressured deal setting.
Northern Light provides large enterprises with hosted, custom strategic research portals, under the platform brand name SinglePoint™. SinglePoint portals enable integrated search and automated analysis of a company’s primary and licensed secondary market and technical research, as well as other industry news and information that is valuable for competitive intelligence, strategic planning, product development, and other business functions. Northern Light recently launched a second product line, called Northern Light Discovery, a family of hosted, industry-specific research portals.
About Northern Light
Northern Light has been providing strategic research portals, business research content, and search technology to global enterprises since 1996. Northern Light’s current clients include Fortune 100 market leaders in information technology, pharmaceuticals, telecommunications, energy, financial services, transportation, retailing, and consumer products. Headquartered in Boston, Massachusetts, Northern Light has unique partnerships with more than 100 of the world’s leading syndicated technology and industry research publishers, and is a charter member of the Center for Complex Systems and Enterprises at the Stevens Institute of Technology.
- The New York Times: “McKinsey: The $33 Trillion Technology Payoff” by Steve Lohr, May 22, 2013