Total Economic Impact of Everbridge Critical Event Management Platform
A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY EVERBRIDGE
The Total Economic Impact™ Of Everbridge Critical Event Management Cost Savings And Business Benefits Enabled By Critical Event Management FEBRUARY 2023
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT
Table Of Contents
Executive Summary ................................................. 1
The Everbridge CEM Customer Journey ............... 6
Key Challenges ...................................................... 6
Solution Requirements ........................................... 7
Composite Organization ......................................... 8
Analysis Of Benefits ................................................ 9
Revenue Recaptured From Reduced Business Interruptions ........................................................... 9
Reduced IT Downtime .......................................... 11
Increased Security Team Productivity .................. 12
Avoided Inventory And Property Damage ............ 13
Recaptured Employee Productivity ...................... 15
Unquantified Benefits ........................................... 17
Flexibility ............................................................... 18
Analysis Of Costs .................................................. 19
Subscription Fees ................................................. 19
Implementation Costs ........................................... 20
Maintenance And Operations Cost ...................... 21
Security Team Internal Training ........................... 22
Financial Summary ................................................ 23
Appendix A: Total Economic Impact ................... 24
Appendix B: Endnotes .......................................... 25
Consulting Team: Rishabh Dua
Sarah Lervold Kim Finnerty
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THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 1
Executive Summary
Organizations today continue to face major events that have the potential to disrupt
business operations and threaten employee safety. From civil unrest to severe weather,
organizations need a process to monitor, assess, and efficiently communicate and
respond to all types of threats that could impact them. The Everbridge Critical Event
Management platform helps teams efficiently identify, communicate, and respond to
events affecting employees and company assets.
The Everbridge Critical Event Management (CEM)
platform helps teams quickly identify and respond to
relevant critical events to keep employees and
company assets safe. The CEM platform integrates
data feeds from weather to emergency incidents,
delivers richer contextualized intelligence, provides
an intuitive dashboard to visualize all the information
in a singular location, and gives teams the ability to
create and activate automated and templated
communications with standard operating procedures
so that organizations can make faster decisions to
decrease the impact of events.
Everbridge commissioned Forrester Consulting to
conduct a Total Economic Impact™ (TEI) study and
examine the potential return on investment (ROI)
enterprises may realize by deploying CEM.1 The
purpose of this study is to provide readers with a
framework to evaluate the potential financial impact
of CEM on their organizations.
To better understand the benefits, costs, and risks
associated with this investment, Forrester interviewed
six representatives from four organizations with
experience using the CEM platform. For the purposes
of this study, Forrester aggregated the interviewees’
experiences and combined the results into a single
composite organization that is a global manufacturing
firm with $16 billion in revenue and 30,000
employees.
Prior to using Everbridge CEM, interviewees noted
their organizations utilized teams of analysts who
relied on internet searches, news alerts, web-based
maps, and other disparate tools to monitor potential
safety or operational threats and assess their impact
to employees and business assets. Interviewees’
organizations lacked an enterprisewide process to
deal with events and needed a more robust
enterprise communication system. With the manual
process and limited threat intelligence capabilities to
help accurately identify relevant weather, security, or
disruptive events near their people and locations, it
was difficult for security administrators to alert the
correct set of employees accurately and efficiently.
Therefore, interviewees found themselves reacting to
critical events and scrambling to effectively identify
the full extent of an impact to employees and
company assets. After the investment in Everbridge’s
CEM platform, interviewees’ organizations had the
capabilities and resources to effectively respond to
and contain critical events, allowing them to better
protect employees, company assets, and business
processes.
Return on investment (ROI)
358%
Net present value (NPV)
$6.62M
KEY STATISTICS
https://www.everbridge.com/
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 2
EXECUTIVE SUMMARY
KEY FINDINGS
Quantified benefits. Three-year, risk-adjusted
present value (PV) quantified benefits for the
composite organization include:
• Reduced business interruption from critical
events, resulting in up to $3 million in
efficiency gains over three years. Everbridge
CEM allows the composite organization to
maintain business operations as it can react
faster to unplanned business interruptions and
get information to appropriate teams to resume
operations and decrease the impact of critical
events.
• Decreased costs from IT downtime, saving up
to $2 million over three years. With increasingly
complex IT environments, the composite
organization’s IT teams need intelligent alerting
to react efficiently. Implementing CEM, the
composite’s IT teams improve workflow and
ensure teams are aware of issues and can
quickly and easily collaborate to remediate them.
• Increased security team productivity, gaining
$1.5 million over three years. Prior to
implementing Everbridge CEM, the composite
organization implemented a manual and time-
consuming process to identify and assess
events. By leveraging CEM, the composite
organization obtains 24/7 support and security
team members gain efficiencies in managing the
various data sources and communicating to
appropriate teams about the impact of critical
events. Security analysts conduct more
productive and valuable work for the composite
organization.
• Avoided inventory and property damages,
saving $1.1 million over three years. Prior to
CEM, teams used a manual process to identify
locations that potentially damaging events could
affect. Everbridge CEM utilizes a variety of data
sets and an intuitive UI to help the composite’s
teams quickly identify potential threats to assets
and promptly send alerts to the appropriate
employees and locations.
• Recapture employee productivity with faster
response management and coordination,
totaling $861,000 over three years. Prior to
Everbridge CEM, the composite organization did
not have an efficient method of getting in touch
with the right employees at the right time. With
CEM, the composite organization can monitor
threats, send out automated alerts, and provide
information in a timely manner to all impacted
employees, recapturing lost time.
Unquantified benefits. Benefits that provide value
for the composite organization but are not quantified
in this study include:
• Improved duty of care for employees. With
Everbridge, organizations can reach employees
more efficiently through automated
communication functionality, including while
travelling, and ensures that each impacted
employee receives the necessary alert with two-
way, multi-modal notification capability.
• Proactive approach for event management.
With CEM, rather than reacting to events,
organizations gain a proactive approach allowing
them to be nimbler and more efficient in planning
for and managing the impact of the event.
Additionally, with an enterprise plan, the right
information reaches correct people in a timely
fashion.
Revenue recaptured from unplanned downtime attributable to the CEM platform annually
25%
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 3
EXECUTIVE SUMMARY
Costs. Three-year, risk-adjusted PV costs for the
composite organization include:
• Subscription fees total $1.6 million over three
years. Everbridge annual subscription fees are
based on number of modules, number of assets,
and number of users.
• Implementation fees cost $105,000 over three
years. Implementation and professional services
fees to set up the CEM platform include
connecting data sources, company assets, and
employees.
• Maintenance and operations cost $137,000
over three years. With composite organization’s
continued usage of the CEM platform, tasks for
continued operations include regular
maintenance of assets, templates and workflows,
and time spent responding to critical events.
• Training for the CEM platform totals $39,000
over three years. The composite’s team
members utilize trainings sessions and on-the-job
work to learn about functionality and utilize the
capabilities within the CEM platform.
The representative interviews and financial analysis
found that a composite organization experiences
benefits of $8.47 million over three years versus
costs of $1.85 million, adding up to a net present
value (NPV) of $6.62 million and an ROI of 358%.
Increased security team productivity annually
$607,500
“Whether it’s weather or some
crazy incident, before
[Everbridge], we would wait for
HR to send us a file. They would
try to upload either to maps and
figure out what zip codes were
affected and then do a lot of
spreadsheet work, a lot of
copying and pasting, and then
would manually send out an
email at the time saying this
[event] is happening now. [With
Everbridge CEM], the alert will
come in and the analysts just
have to draw a radius around
that alert and all those people
are populated [in the system]. All
the language is already
templatized and they just send it
out.”
Global security operations
manager, pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 4
EXECUTIVE SUMMARY
“A one-stop shop … Everyone would get the same message. Everyone is on the same page, and it is miraculous for them. I could not believe that [teams] were doing phone trees for that long.”
— Global security operations manager, pharmaceutical
$3.0M
$2.0M
$1.5M
$1.1M
$860.8K
Revenue recaptured from reduced business interruptions
Reduced IT downtime
Increased security team productivity
Avoided inventory and property damage
Recaptured employee productivity
Benefits (Three-Year)
ROI
358%
BENEFITS PV
$8.47M
NPV
$6.62M PAYBACK
<6 months
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 5
EXECUTIVE SUMMARY
TEI FRAMEWORK AND METHODOLOGY
From the information provided in the interviews,
Forrester constructed a Total Economic Impact™
framework for those organizations considering an
investment in Everbridge CEM.
The objective of the framework is to identify the cost,
benefit, flexibility, and risk factors that affect the
investment decision. Forrester took a multistep
approach to evaluate the impact that Everbridge
CEM can have on an organization.
DUE DILIGENCE
Interviewed Everbridge stakeholders and
Forrester analysts to gather data relative to
CEM.
INTERVIEWS
Interviewed six representatives at four
organizations using CEM to obtain data with
respect to costs, benefits, and risks.
COMPOSITE ORGANIZATION
Designed a composite organization based on
characteristics of the interviewees’
organizations.
FINANCIAL MODEL FRAMEWORK
Constructed a financial model representative
of the interviews using the TEI methodology
and risk-adjusted the financial model based
on issues and concerns of the interviewees.
CASE STUDY
Employed four fundamental elements of TEI
in modeling the investment impact: benefits,
costs, flexibility, and risks. Given the
increasing sophistication of ROI analyses
related to IT investments, Forrester’s TEI
methodology provides a complete picture of
the total economic impact of purchase
decisions. Please see Appendix A for
additional information on the TEI
methodology.
DISCLOSURES
Readers should be aware of the following:
This study is commissioned by Everbridge and delivered
by Forrester Consulting. It is not meant to be used as a
competitive analysis.
Forrester makes no assumptions as to the potential ROI
that other organizations will receive. Forrester strongly
advises that readers use their own estimates within the
framework provided in the study to determine the
appropriateness of an investment in CEM.
Everbridge reviewed and provided feedback to Forrester,
but Forrester maintains editorial control over the study
and its findings and does not accept changes to the study
that contradict Forrester’s findings or obscure the
meaning of the study.
Everbridge provided the customer names for the
interviews but did not participate in the interviews.
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 6
The Everbridge CEM Customer Journey
Drivers leading to the CEM investment
KEY CHALLENGES
Before investing in and deploying Everbridge, the
interviewees’ organizations used disparate
intelligence sources with no formal process to
manage event identification and response. The
organizations struggled with common challenges,
including:
• Inefficient processes to identify a critical
event relevant to the organization. Before
Everbridge, interviewees noted that teams
utilized various sources to learn of critical events,
from news report alerts to risk intelligence feeds.
Teams used a manual and time-consuming
process of parsing through all the information
available to determine the relevancy of the event
and the potential impact to employees and
business processes. The speed to identify and
respond was a vital part of the process and one
that interviewees acknowledged needed to
improve.
• Inability to accurately alert all employees
impacted of critical events in a timely manner.
Upon identifying a relevant critical event,
interviewees noted that they struggled with
identifying and notifying all impacted employees
Interviews
Role Industry Region Revenue Employees
Crisis management and global security operations senior manager
Pharmaceutical Asia $29 billion 50,000
Crisis management and global security operations director
Pharmaceutical Asia $29 billion 50,000
Security systems director Pharmaceutical Asia $29 billion 50,000
Global security operations manager Pharmaceutical North America $6 billion 7,000
Head of resilience Marketing United Kingdom $18 billion 45,000
Security intelligence director Financial services North America $11 billion 16,000
“A lot of the analysts were just
manually searching the internet
for keywords and anything that
might pop up in the news, which
was obviously not very efficient
… The wear and tear that was
happening on our analysts; they
were just swivel seating between
multiple different platforms,
multiple different sources. And
then when an event came, it was
hard to manage all of that under
one person.”
Global security operations
manager, pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 7
THE EVERBRIDGE CEM CUSTOMER JOURNEY
in a timely manner. Depending on the type of
event and organization structure, interviewees
described how a notification of the incident could
first be sent to a central office or even to an
affected office’s HR team and then to employees.
Moreover, with the challenges of accurately
identifying the radius of impact, employees could
be missed. Thus, communication accuracy varied
greatly and could take a long time to reach
employees.
• A lack of a formal enterprisewide process to
manage identification or response criteria for
events. Prior to implementing Everbridge’s CEM
platform, interviewees noted a lack of an
enterprisewide process to manage a critical
event. From security teams to IT teams, there
was a lack of communication between offices and
varied sources of information spread. Without a
singular source and common data set to work
with, there was a greater chance that a potential
threat could be missed and could cost
organizations valuable time. Additionally,
communications to employees were delayed,
increasing the potential risks to employee safety
and business continuity.
SOLUTION REQUIREMENTS
The interviewees’ organizations searched for a
solution that could:
• Offer a more robust threat intelligence system
that integrated with a communication solution.
• Integrate threat intelligence solutions and news
feeds into one solution.
• Provide a scalable solution to implement
enterprise wide.
“Without alerting in place, you
would have to have come across
the fact that there had been an
incident. For example, let’s say
you were walking to the office
one day, you find out that a
neighboring building is on fire.
We’d be reliant on you knowing
the process if this occurs,
knowing the right channels to
report it to, and then escalating
that issue. Without alerting, you
don’t necessarily have the most
efficient means of response or
means of notifying.”
Head of resilience, marketing
“[We were] manually uploading
employee addresses into online
maps and then, as an incident
occurred, teams were pushing
the incident on to the map trying
to figure out what the potential
impact was. The process was
very manual and tedious. I
remember one hurricane in
particular that hit Florida. The
teams were trying to identify
people that were within 50 miles
off the coast. And, with their
methods at that time, it took
hours and multiple people.”
Crisis management and global
security operations senior manager,
pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 8
THE EVERBRIDGE CEM CUSTOMER JOURNEY
• Cover all assets for the organization.
• Allow team members to work with a common
data set, also known as a single pane of glass.
COMPOSITE ORGANIZATION
Based on the interviews, Forrester constructed a TEI
framework, a composite company, and an ROI
analysis that illustrates the areas financially affected.
The composite organization is representative of the
six interviewees from four organizations, and it is
used to present the aggregate financial analysis in
the next section. The composite organization has the
following characteristics:
Description of composite. The composite
organization is a global manufacturer based in North
America. The firm has annual revenues of $16 billion
with 30,000 employees and operates 75 facilities
around the world from factories to distribution centers
to offices. The organization has 33,000 total assets
managed in CEM, including — but not limited to —
employees, offices, physical resources, supply chain
resources, and traveler locations. The Everbridge
CEM capabilities that the organization utilizes include
emergency communication, mobile safety, data
visualization, and IT alerting on desktop and mobile
instances.
“What we really were screaming
for was the ability to have all of
this information held within one
platform.”
Global security operations
manager, pharmaceutical
Key Assumptions
• Manufacturing
• $16 billion annual revenue
• 30,000 employees
• 33,000 total assets
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 9
Analysis Of Benefits
Quantified benefit data as applied to the composite
REVENUE RECAPTURED FROM REDUCED
BUSINESS INTERRUPTIONS
Evidence and data. Critical events, such as extreme
weather and protests, could require organizations to
pause or shut down operations. Interviewees said
that prior to Everbridge CEM, they would react to
events after receiving a news alert and were slow in
getting information out to the appropriate teams and
locations. Implementing Everbridge CEM allowed the
interviewees’ organizations to maintain business
operations as they could react faster to unplanned
business interruptions and activate the appropriate
standard operating plans to manage an event.
Everbridge provided complete and integrated threat
intelligence with all data feeds situated with the data
visualization, the ability to automate alerts,
multichannel notifications, and templated process
plans to deal with critical events. Additionally, with all
key locations and employees covered within
Everbridge, security analysts could send information
out faster to the appropriate stakeholders.
• The head of resilience at a marketing company
said: “A business that doesn’t have a mass
communications platform, you’re talking like a
day to get on top of the detection, analyzing
impact, and responding. Whereas with one … 4
to 8 hours.”
Total Benefits
Ref. Benefit Year 1 Year 2 Year 3 Total Present
Value
Atr Revenue recaptured from reduced business interruptions
$1,200,000 $1,200,000 $1,200,000 $3,600,000 $2,984,222
Btr Reduced IT downtime $796,500 $796,500 $796,500 $2,389,500 $1,980,778
Ctr Increased security team productivity
$607,500 $607,500 $607,500 $1,822,500 $1,510,763
Dtr Avoided inventory and property damage
$455,625 $455,625 $455,625 $1,366,875 $1,133,072
Etr Recaptured employee productivity
$346,140 $346,140 $346,140 $1,038,420 $860,799
Total benefits (risk-adjusted) $3,405,765 $3,405,765 $3,405,765 $10,217,295 $8,469,634
“Whereas today with the CEM
platform and with the Visual
Command Center [data
visualization] in particular, that’s a
couple of mouse clicks and we
have all of that information. So,
significant change in
improvement and process for us
and basically it gave us the
advantage of being more nimble
and able to respond to incidents
as they happened.”
Crisis management and global
security operations senior manager,
pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 10
ANALYSIS OF BENEFITS
• The crisis management and global security
operations director said, “The nature of the
platform, it helps us and gives us the ability to
help bolster business continuity for our internal
global security team.”
Modeling and assumptions. For the composite
organization, Forrester assumes:
• A conservative estimate of 24 hours of unplanned
downtime at facilities and average downtime cost
of $250,000 per hour.
• A 25% reduction in downtime attributable to CEM
as a result of earlier alerts and faster response
team communication.
Risks. Risks that could impact the realization of this
benefit include the following:
• Organizations may experience more or less
frequent unplanned downtime.
• The hourly cost of downtime.
• The reduction in downtime attributed to
Everbridge.
Results. To account for these risks, Forrester
adjusted this benefit downward by 20%, yielding a
three-year, risk-adjusted total PV (discounted at 10%)
of $3.0 million.
Revenue Recaptured From Reduced Business Interruptions
Ref. Metric Source Year 1 Year 2 Year 3
A1 Average cost of unplanned downtime per hour
Composite $250,000 $250,000 $250,000
A2 Average annual hours unplanned downtime
Composite 24 24 24
A3 Annual cost of unplanned downtime A1*A2 $6,000,000 $6,000,000 $6,000,000
A4 Reduction attributable to Everbridge Interviews 25% 25% 25%
At Revenue recaptured from reduced business interruptions
A3*A4 $1,500,000 $1,500,000 $1,500,000
Risk adjustment ↓20%
Atr Revenue recaptured from reduced business interruptions (risk-adjusted)
$1,200,000 $1,200,000 $1,200,000
Three-year total: $3,600,000 Three-year present value: $2,984,222
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 11
ANALYSIS OF BENEFITS
REDUCED IT DOWNTIME
Evidence and data. The interviewees’ organizations
had complex computing environments that ranged
from on-premises servers to hybrid environments
with multiple cloud providers. Interruptions to IT
services could be from natural disasters at offices to
outages at cloud data centers. Downtime at data
centers and servers disrupted workflow, causing
inaccessible external customer-facing websites,
internal applications for employees, and more.
Interviewees noted that IT teams improved operating
workflows to detect, investigate, and respond to
reduce IT downtime after implementing Everbridge
CEM and utilizing Everbridge’s IT alerting on both
desktop and mobile instances, along with its
emergency communication functionality.
• The global security operations manager at a
pharmaceutical firm explained: “A system goes
down from an IT perspective, there was no easy
way for the IT team to notify people except
through email. They would get flooded with
tickets and not be able to focus on the incident
Now, since we’re integrated with our process and
we now have the partnership with Everbridge, we
know [when there] is a problem. We always use
email and apps when we send out notifications.
And if it’s something where we know we want
people to have eyes on it, we will send it out via
text message as well.”
Modeling and assumptions. For the composite
organization, Forrester assumes:
• Each outage costs $8,850 per minute and lasts
approximately 80 minutes.2
• The composite organization experiences four
outages per year.
• The composite organization saves 30 minutes
per outage attributable to CEM.
Risks. Risks that could impact the realization of this
benefit include the following:
• The number and length of outages.
• The cost of an IT outage will vary based on the
organization and industry.
• The time saved using CEM will vary based on
maturity and complexity of the IT organization.
Results. To account for these risks, Forrester
adjusted this benefit downward by 25%, yielding a
three-year, risk-adjusted total PV of $2.0 million.
Reduced IT Downtime
Ref. Metric Source Year 1 Year 2 Year 3
B1 IT cost per minute Ponemon $8,850 $8,850 $8,850
B2 Average minutes per outage Ponemon 80 80 80
B3 Average frequency of outages per year Composite 4 4 4
B4 Cost of IT downtime B1*B2*B3 $2,832,000 $2,832,000 $2,832,000
B5 Average minutes saved due to faster response by the IT team applicable to Everbridge
Interviews 30 30 30
Bt Reduced IT downtime B1*B3*B5 $1,062,000 $1,062,000 $1,062,000
Risk adjustment ↓25%
Btr Reduced IT downtime (risk-adjusted) $796,500 $796,500 $796,500
Three-year total: $2,389,500 Three-year present value: $1,980,778
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 12
ANALYSIS OF BENEFITS
INCREASED SECURITY TEAM PRODUCTIVITY
Evidence and data. Prior to implementing the CEM
platform, the interviewees’ organizations lacked a
comprehensive solution that integrated data
intelligence feeds and had a formalized plan to
manage critical events, so teams were forced to use
ad hoc tools like internet maps and alerts via news
sites. This was a time-consuming and labor-intensive
process that made it challenging to consistently and
accurately identify threats relevant to their
organizations and notify employees when an event
was happening around their location. With CEM,
interviewees’ organizations could take their existing
resources on security teams and reallocate them to
higher value-add activities.
With more comprehensive detection for critical events
using the underlying technology and analytics within
the platform and more efficient management of all
assets, interviewees more efficiently managed critical
events. Interviewees found that the ability to view all
information in one location within the data
visualization saved their team’s time. Interviewees
further noted that Everbridge allowed security teams
to create templated plans and get information out
quickly to the right people with the easy-to-use UI
and integrated data sources, saving security analysts
time to work on other high-priority tasks.
• The security intelligence director at a financial
services firm estimated a 60% efficiency gain for
their security team of five analysts.
• The crisis management and global security
operations director estimated a 50% efficiency
improvement for their security analysts. They
said: “We are dramatically faster using CEM
today. It would have taken maybe three or four
people to do the same task and same amount of
work … whereas today, it’s one person in front of
one screen just making several clicks and
understanding exactly what they’re dealing with.”
• The global security operations manager
estimated their security team decreased from 15
team members down to seven or eight. They
said: “Had we not had [CEM], it would have been
a lot of phone trees, it would have been a lot of
relying on managers to put the word out
themselves. We [now have] everything in one
central location.”
Modeling and assumptions. For the composite
organization, Forrester assumes:
• The composite organization has 10 employees
on the security team and five are redeployed.
• Average annual salary per security analyst is
$135,000.
Risks. Risks that could impact the realization of this
benefit include the following:
• The size of the security team and number of
employees redeployed.
• The annual salary will vary based on industry and
organization.
Results. To account for these risks, Forrester
adjusted this benefit downward by 10%, yielding a
three-year, risk-adjusted total PV of $1.5 million.
“With Everbridge CEM, there is
reduced noise.”
Head of resilience, marketing
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 13
ANALYSIS OF BENEFITS
AVOIDED INVENTORY AND PROPERTY DAMAGE
Evidence and data. Representatives from
organizations noted how prior to CEM, getting
information out to locations was manual and time-
consuming. After implementing CEM, they could
inform teams and locations within a specified radius
of a weather, protest, or other major event that could
cause damage. With the CEM platform, interviewees
noted that analysts found the ability to use the data
across a variety of integrated data feeds to verify
information and swiftly identify impacted areas and
employees. The intuitive UI saved necessary time to
inform the affected entities. Because Everbridge
works with location data and data about an
organization’s valuable assets, such as buildings and
inventory to supply chains and employees, it allowed
analysts to quickly identify potential threats to assets
and rapidly notify the appropriate teams to act and
decrease the impact of events.
• The global security operations manager for a
pharmaceutical firm approximated that the supply
chain team was 10% more efficient with the
information received from CEM. They said: “If we
know the routes or where these shipments are
going, we can help them anticipate anything like
that, especially with Russia-Ukraine situations.
We were able to help them anticipate [for
example] the sanctions and the route diversions.
That was a big one. That’s probably the biggest
assistance that we get for the supply chain team
for sure.”
• The security intelligence director at a financial
services firm said, “We went from having a very
manual process to having a tool [with CEM] that
we have one location where we get all of our
intelligence, it’s triaged through the system based
on proximity to our locations, and then from there
it triggers out alerts to us”.
Increased Security Team Productivity
Ref. Metric Source Year 1 Year 2 Year 3
C1 Number of security analysts redeployed Composite 5 5 5
C2 Security analyst fully loaded annual salary
TEI standard $135,000 $135,000 $135,000
C3 Security team productivity savings E1*E2 $675,000 $675,000 $675,000
Ct Increased security team productivity $675,000 $675,000 $675,000
Risk adjustment ↓10%
Ctr Increased security team productivity (risk-adjusted)
$607,500 $607,500 $607,500
Three-year total: $1,822,500 Three-year present value: $1,510,763
“The moment somebody knows
something happens, they dial or
they radio into the security team,
the security team pushes out
that templatized Everbridge
[information], and the correct
people immediately know, “I
need to rush to X, Y, and Z part
of the building to mitigate it
quickly.’”
Global security operations
manager, pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 14
ANALYSIS OF BENEFITS
Modeling and assumptions. For the composite
organization, Forrester assumes:
• An average loss per event of $1.5 million.
• The composite has 75 facilities globally.
• With Everbridge, the composite avoids 15% of
inventory loss due to advanced planning and
rapid response.
Risks. Risks that could impact the realization of this
benefit include the following:
• The average loss claims amount and likelihood of
a claim.
• Number of facilities depending on the size of the
organization and industry.
• Amount avoidable attributable to Everbridge.
Results. To account for these risks, Forrester
adjusted this benefit downward by 10%, yielding a
three-year, risk-adjusted total PV of $1.1 million.
Avoided Inventory And Property Damage
Ref. Metric Source Year 1 Year 2 Year 3
D1 Average loss claim Composite $1,500,000 $1,500,000 $1,500,000
D2 Likelihood of claim per facility Composite 3% 3% 3%
D3 Number of facilities Composite 75 75 75
D4 Projected loss per year C1*C2*C3 $3,375,000 $3,375,000 $3,375,000
D5 Percent avoidable attributable to Everbridge
Interviews 15% 15% 15%
Dt Avoided inventory and property damage C4*C5 $506,250 $506,250 $506,250
Risk adjustment ↓10%
Dtr Avoided inventory and property damage (risk-adjusted)
$455,625 $455,625 $455,625
Three-year total: $1,366,875 Three-year present value: $1,133,072
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 15
ANALYSIS OF BENEFITS
RECAPTURED EMPLOYEE PRODUCTIVITY
Evidence and data. Prior to Everbridge CEM, the
interviewees’ organizations did not have an efficient
method of getting in touch with the right employees at
potentially impacted locations from corporate offices
to home locations. Interviewees struggled with
identifying which employees to contact and if they
had the most up-to-date and accurate contact
information. Furthermore, with no way to check if
employees received the alert regarding critical events
like weather or an IT outage, interviewees’
organizations were left in the dark about if the
information was correctly dispersed and resulted in
employees not being able to complete their work
effectively. Because Everbridge CEM uses data from
both external and internal feeds, including the
location of employees and assets, it helped security
teams better assess what people and locations the
event could impact. With the CEM platform, the
interviewees’ organizations were efficiently able to
alert employees using the emergency communication
capability and, with multimodal, two-way
communication, confirm employees received the
notification. With speed of utmost importance, the
information through the platform allowed employees
to continue work with less disruption, such as working
away from an affected office or quickly getting back
online from an IT outage.
• The security intelligence director at a financial
services firm said: “Being able to connect our
system using the Safety Connection [mobile
safety] has given us more dynamic locations of
where our people are. If I’m assigned to our
Boston office but I’m traveling to the Dallas office,
and I swipe my badge, the system then knows
I’m in Dallas. So, anytime there’s a
communication that goes out to the Dallas area,
I’d be included in that. That makes it a lot more
efficient when you’re trying to notify employees of
a potential problem in the area that they’re in.”
• The global security operations manager for a
pharmaceutical firm said: “It was a very manual
process and then [we struggled to] try to
remember who’s on that team, who do we
actually have to send it to. [Now,] everything is
templatized. The analysts just click a couple
buttons and everything was listed. Before, it
would have been, write this template or you have
to write [it all] by yourself. … Employees were
notified within seconds [with Everbridge] rather
than a half hour.”
• The head of resilience at a marketing company
said: “You’ve filtered the information and you’ve
sent it to employees and prompted them to
respond. There’s a higher level of confidence that
there’s a requirement to respond. Whereas
previously, you may have been looking at, let’s
say half an hour to two hours for someone to
think this is probably something we need to send
out a message about. They need to speak to
their boss and the boss wants to speak to a
subject matter expert, etc. Now, this information
has already gone through a criteria process and
I’ve provided them with the criteria to say this is
how Everbridge categorizes a severe event.”
“We have all of the most up-to-
date [information on] employees
that are affected and are able to
push them out a notification
quickly, rather than going
through reading these names
one by one and then manually
entering them in one by one and
pushing out the template.”
Global security operations
manager, pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 16
ANALYSIS OF BENEFITS
Modeling and assumptions. For the composite
organization, Forrester assumes:
• There are 2,000 employees impacted by weather
and IT downtime with a total average of 30 hours
missed.
• An average industry margin of 10%.3
• 50% of hours are regained by employees with the
CEM platform.
• That not all end users’ time saved is used for
additional work. Breaks or socializing with
colleagues are likely part of that time saved;
hence, Forrester applied a 50% productivity
realization factor.
Risks. Risks that could impact the realization of this
benefit include the following:
• The number of total employees and number of
employees affected by events will vary based on
number and type of events.
• Revenue per employee and industry margin will
vary based on size of organization.
• The number of hours and missed per employee
and hours regained.
Results. To account for these risks, Forrester
adjusted this benefit downward by 10%, yielding a
three-year, risk-adjusted total PV of $861,000.
Recaptured Employee Productivity
Ref. Metric Source Year 1 Year 2 Year 3
E1 Revenue per employee per hour Composite $256 $256 $256
E2 Average number of employees not working due to events
Composite 2,000 2,000 2,000
E3 Average hours missed Composite 30 30 30
E4 Revenue lost due to lost productivity D1*D2*D3 $15,384,000 $15,384,000 $15,384,000
E5 Average industry margin Industry sources 10% 10% 10%
E6 Profit impact of lost productivity D5*D4 $1,538,400 $1,538,400 $1,538,400
E7 Portion regained with Everbridge Interviews 50% 50% 50%
E8 Productivity recapture rate TEI standard 50% 50% 50%
Et Recaptured employee productivity D6*D7*D8 $384,600 $384,600 $384,600
Risk adjustment ↓10%
Etr Recaptured employee productivity (risk- adjusted)
$346,140 $346,140 $346,140
Three-year total: $1,038,420 Three-year present value: $860,799
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 17
ANALYSIS OF BENEFITS
UNQUANTIFIED BENEFITS
Interviewees mentioned the following additional
benefits that their organizations experienced but were
not able to quantify:
• Improved duty of care for employees. With
critical events, knowledge and speed are
essential. With CEM’s integration of data
sources, accessible UI, prebuilt templates, and
alerting capabilities, the interviewees’
organizations were aware of critical events and
notified employees with vital information more
efficiently than with legacy manual processes.
The CEM platform allowed security analysts to
quickly identify threats to employees and
escalate them for appropriate action. Additionally,
with the capability of two-way communication and
easily accessible, templated pages, employees
confirmed receipt of an alert and found pertinent
information on the event quickly.
▪ The security intelligence director at a
financial services firm said: “We do get a
lot of good feedback about the
communications of the information that
we get and send. Because at the end of
the day, we have people all over the
country and when something is
happening in their neck of the woods and
we send them something that says, ‘This
is happening right now or in a couple of
hours, just be aware of it and follow your
emergency procedures if necessary.’”
▪ The head of resilience at a marketing
company said, “We target reaching 90%
of employees and having 70% respond
within four hours and we typically meet or
hit well above that target, nearly 100%.”
• Proactive approach to event management.
Interviewees described a lack of enterprisewide
processes that led to a reactive approach to
impactful events; however, after implementing
the CEM platform, interviewees’ organizations
gained a comprehensive solution that covered all
assets from employees to working locations, and
provided faster intelligence on critical events. For
example, with weather events that affected an
organization, interviewees could use templated
plans that automatically triggered once the event
was detected. This proactive approach made
interviewees’ organizations nimbler and more
efficient in managing the impact of the event.
Additionally, with an enterprise plan and more
standardized operating procedure, the right
information went to the correct people in a timely
fashion.
▪ The global security operations manager at
a pharmaceutical firm said, “The CEM
platform has allowed us to [become] very
proactive when it comes to supply chain
reasons, for business continuity reasons,
for employee safety reasons; we [now]
reach out to any impacted employees.”
“For our response to the war in
the Ukraine where we had
enabled the safety check-in for
some of our colleagues that were
in the area. [Overall] we took the
high-risk areas that [employees]
travel to and employees would
do the safety check-in at the
beginning and at the end of their
trip.”
Crisis management and global
security operations senior manager,
pharmaceutical
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 18
ANALYSIS OF BENEFITS
▪ The security intelligence director for a
financial services firm said, “We got really
good feedback around the proactive
intelligence communications we send out,
which generate out of and are sent out of
Everbridge.”
FLEXIBILITY
The value of flexibility is unique to each customer.
There are multiple scenarios in which a customer
might implement CEM and later realize additional
uses and business opportunities, including:
• New and additional capabilities. Interviewees
discussed how they would expand their use of
the system by adding additional modules to the
CEM platform. Two interviewees noted they were
looking to add an additional module with
Everbridge’s travel risk management solution to
the platform.
The global security operations manager for a
pharmaceutical firm said, “[Looking at] the travel
portion with Everbridge’s acquisition … we’re
looking forward to how those two big platforms
merge efficiently.” They added they were also
looking at Everbridge’s social media and dark
web solution, noting, “[With] social media
scrubbing and anything that we can alert on
especially for executive protection … will be
interesting to see how that pans out.”
The security intelligence director at a financial
services firm noted they were looking at an
additional module with Everbridge’s physical
security management solution. They said, “We
have a 24-hour alarm monitoring center, which is
our security operations, and there may be some
value in connecting all of our systems to Control
Center [physical security management], which we
are looking at.”
• The ability to scale the platform across the
organization. Interviewees noted they looked to
build the use cases for CEM modules and
continue to grow usage across global offices of
the organizations. The head of resilience for a
marketing company said, “With Everbridge, we’re
looking to enable those wider capabilities and
reporting around mean time to respond or mean
time to detect.” Additionally, the global security
operations manager for a pharmaceutical firm
said “[With] Everbridge right now, [we’re] trying to
focus on scaling [it] to 80,000 people. Not that
we’re going to turn it on immediately, but trying to
little by little and inch [forward] that way.”
Flexibility would also be quantified when evaluated as
part of a specific project (described in more detail in
Appendix A).
“It’s the adaptability component
of flexibility; it’s data driven. If
we know where our assets are,
then we can transpose that with
events. It means that regardless
of the event, to some extent
you’re still able to respond.
Whereas in the previous
situations, without having those
systems in place, your fixed by
whatever scenario you’ve built
your process around.”
Head of resilience, marketing
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 19
Analysis Of Costs
Quantified cost data as applied to the composite
SUBSCRIPTION FEES
Evidence and data. All the interviewees paid an
annual subscription fee for the CEM platform. The
amount was based on the solution type, number of
assets, and number of users.
Modeling and assumptions. For the composite
organization, Forrester assumes:
• An annual subscription of $600,000. This is
based on Everbridge pricing for a company the
size and structure of the composite organization,
assets covered, and number of users.
Risks. Risks that could impact the realization of this
cost include the following:
• The number of assets covered by the platform.
• The number of modules and/or solution type.
• The number of users.
Results. To account for these risks, Forrester
adjusted this cost upward by 5%, yielding a three-
year, risk-adjusted total PV (discounted at 10%) of
$1.6 million.
Total Costs
Ref. Cost Initial Year 1 Year 2 Year 3 Total Present
Value
Ftr Subscription fees $0 $630,000 $630,000 $630,000 $1,890,000 $1,566,717
Gtr Implementation costs $105,000 $0 $0 $0 $105,000 $105,000
Htr Maintenance and operations cost
$0 $55,125 $55,125 $55,125 $165,375 $137,088
Itr Security team internal training
$25,740 $5,148 $5,148 $5,148 $41,184 $38,542
Total costs (risk- adjusted)
$130,740 $690,273 $690,273 $690,273 $2,201,559 $1,847,347
Subscription Fees
Ref. Metric Source Initial Year 1 Year 2 Year 3
F1 Subscription fees Composite $600,000 $600,000 $600,000
Ft Subscription fees F1 $0 $600,000 $600,000 $600,000
Risk adjustment ↑5%
Ftr Subscription fees (risk-adjusted) $0 $630,000 $630,000 $630,000
Three-year total: $1,890,000 Three-year present value: $1,566,717
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 20
ANALYSIS OF COSTS
IMPLEMENTATION COSTS
Evidence and data. Interviewees described a
straightforward setup utilizing professional services
from Everbridge. They worked with Everbridge to
connect different data feeds and made sure all
employees and company assets were connected to
the CEM platform.
Modeling and assumptions. For the composite
organization, Forrester assumes an initial cost of
$100,000 for professional services and
implementation fees during implementation.
Risks. Risks that could impact the realization of this
cost include the following:
• The number of data sources to connect to the
CEM platform.
• The number of employees and assets to connect
to the CEM platform.
Results. To account for these risks, Forrester
adjusted this cost upward by 5%, yielding a three-
year, risk-adjusted total PV of $105,000.
Implementation Costs
Ref. Metric Source Initial Year 1 Year 2 Year 3
G1 Implementation cost Composite $100,000
Gt Implementation costs G1 $100,000 $0 $0 $0
Risk adjustment ↑5%
Gtr Implementation costs (risk-adjusted) $105,000 $0 $0 $0
Three-year total: $105,000 Three-year present value: $105,000
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 21
ANALYSIS OF COSTS
MAINTENANCE AND OPERATIONS COST
Evidence and data. Interviewees described minimal
time and effort to maintain and continue operations
for the CEM platform. A team member monitored and
maintained the functionality of the system, including
adding new modules and performs other tasks to
ensure the quality of the data going into the system.
Modeling and assumptions. For the composite
organization, Forrester assumes:
• One team member spends 35% of their time on
maintenance and operations of the CEM
platform.
• An average annual salary of $150,000 for a
senior team member on the security team, such
as a senior analyst or manager.
Risks. Risks that could impact the realization of this
cost include the following:
• The number of users and time required per user
on maintenance and operations.
• The average salary per security team member.
Results. To account for these risks, Forrester
adjusted this cost upward by 5%, yielding a three-
year, risk-adjusted total PV of $137,000.
Maintenance And Operations Cost
Ref. Metric Source Initial Year 1 Year 2 Year 3
H1 Number of users Composite 1 1 1
H2 Time spent for ongoing management Composite 35% 35% 35%
H3 Security team member fully loaded annual salary
TEI standard $150,000 $150,000 $150,000
Ht Maintenance and operations cost H1*H2*H3 $0 $52,500 $52,500 $52,500
Risk adjustment ↑5%
Htr Maintenance and operations cost (risk- adjusted)
$0 $55,125 $55,125 $55,125
Three-year total: $165,375 Three-year present value: $137,088
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 22
ANALYSIS OF COSTS
SECURITY TEAM INTERNAL TRAINING
Evidence and data. Interviewees noted that security
team members only required some time and effort
training with the CEM platform. The teams spent time
learning how to use the system through training
sessions and then worked with the system to become
familiarized with the CEM platform. Interviewees
noted ease of use with the system once implemented
given the intuitive dashboard and alerts that were
focused to criteria important to their organizations.
Modeling and assumptions. For the composite
organization, Forrester assumes:
• Initially, all 10 members of the security team
spend time on training.
• Two security analysts need to be trained in future
years due to turnover, etc.
• 36 total hours are spent annually on training,
including training sessions and working with the
system.
Risks. Risks that could impact the realization of this
cost include the following:
• The size of the security team.
• Total training hours.
• Changes year over year to the size of the
security team.
Results. To account for these risks, Forrester
adjusted this cost upward by 10%, yielding a three-
year, risk-adjusted total PV of $38,500.
Security Team Internal Training
Ref. Metric Source Initial Year 1 Year 2 Year 3
I1 Number of users Composite 10 2 2 2
I2 Dedicated training hours Interviews 16 16 16 16
I3 On the job training hours Interviews 20 20 20 20
I4 Security analyst fully loaded salary (hourly)
TEI standard $65 $65 $65 $65
It Security team internal training I1*(I2+I3)*I4 $23,400 $4,680 $4,680 $4,680
Risk adjustment ↑10%
Itr Security team internal training (risk- adjusted)
$25,740 $5,148 $5,148 $5,148
Three-year total: $41,184 Three-year present value: $38,542
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 23
Financial Summary
CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS
-$2.0 M
-$1.0 M
$1.0 M
$2.0 M
$3.0 M
$4.0 M
$5.0 M
$6.0 M
$7.0 M
$8.0 M
$9.0 M
Initial Year 1 Year 2 Year 3
C a
s h
fl o
w s
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The financial results calculated in the
Benefits and Costs sections can be
used to determine the ROI, NPV, and
payback period for the composite
organization’s investment. Forrester
assumes a yearly discount rate of 10%
for this analysis.
Cash Flow Analysis (Risk-Adjusted Estimates)
Initial Year 1 Year 2 Year 3 Total Present
Value
Total costs ($130,740) ($690,273) ($690,273) ($690,273) ($2,201,559) ($1,847,347)
Total benefits $0 $3,405,765 $3,405,765 $3,405,765 $10,217,295 $8,469,634
Net benefits ($130,740) $2,715,492 $2,715,492 $2,715,492 $8,015,736 $6,622,287
ROI 358%
Payback period <6 months
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CRITICAL EVENT MANAGEMENT 24
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed
by Forrester Research that enhances a company’s
technology decision-making processes and assists
vendors in communicating the value proposition of
their products and services to clients. The TEI
methodology helps companies demonstrate, justify,
and realize the tangible value of IT initiatives to both
senior management and other key business
stakeholders.
TOTAL ECONOMIC IMPACT APPROACH
Benefits represent the value delivered to the
business by the product. The TEI methodology
places equal weight on the measure of benefits and
the measure of costs, allowing for a full examination
of the effect of the technology on the entire
organization.
Costs consider all expenses necessary to deliver the
proposed value, or benefits, of the product. The cost
category within TEI captures incremental costs over
the existing environment for ongoing costs
associated with the solution.
Flexibility represents the strategic value that can be
obtained for some future additional investment
building on top of the initial investment already made.
Having the ability to capture that benefit has a PV
that can be estimated.
Risks measure the uncertainty of benefit and cost
estimates given: 1) the likelihood that estimates will
meet original projections and 2) the likelihood that
estimates will be tracked over time. TEI risk factors
are based on “triangular distribution.”
The initial investment column contains costs incurred at “time
0” or at the beginning of Year 1 that are not discounted. All
other cash flows are discounted using the discount rate at the
end of the year. PV calculations are calculated for each total
cost and benefit estimate. NPV calculations in the summary
tables are the sum of the initial investment and the
discounted cash flows in each year. Sums and present value
calculations of the Total Benefits, Total Costs, and Cash Flow
tables may not exactly add up, as some rounding may occur.
PRESENT VALUE (PV)
The present or current value of
(discounted) cost and benefit estimates
given at an interest rate (the discount
rate). The PV of costs and benefits feed
into the total NPV of cash flows.
NET PRESENT VALUE (NPV)
The present or current value of
(discounted) future net cash flows given
an interest rate (the discount rate). A
positive project NPV normally indicates
that the investment should be made
unless other projects have higher NPVs.
RETURN ON INVESTMENT (ROI)
A project’s expected return in
percentage terms. ROI is calculated by
dividing net benefits (benefits less costs)
by costs.
DISCOUNT RATE
The interest rate used in cash flow
analysis to take into account the
time value of money. Organizations
typically use discount rates between
8% and 16%.
PAYBACK PERIOD
The breakeven point for an investment.
This is the point in time at which net
benefits (benefits minus costs) equal
initial investment or cost.
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CEM 25
Appendix B: Endnotes
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s
technology decision-making processes and assists vendors in communicating the value proposition of their
products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the
tangible value of IT initiatives to both senior management and other key business stakeholders.
2 Source: “Cost of a Data Breach 2015,” Ponemon Institute, January 2016. 3 Source: Aswath Damodaran, “Margins By Sector (US),” NYU Stern School of Business, January 2023.
THE TOTAL ECONOMIC IMPACT™ OF EVERBRIDGE CEM 26