Forrester Wave

What is the Forrester Wave^TM?

The Forrester Wave™ is a highly respected and comprehensive evaluation framework developed by Forrester Research. Its main purpose is to help businesses make informed decisions when selecting technology solutions and service providers.

Introduced in 2002, the Forrester Wave™ serves as a decision-making tool businesses can use to assess and compare vendors. Its detailed analysis is based on transparent criteria, so it offers a clear, structured way to understand each option’s strengths and weaknesses.

Forrester is an independent research and advisory firm that provides insights and guidance to help companies succeed in the digital age. The Forrester Wave™ is one of their most prominent offerings, with hundreds of Wave reports published to date over dozens of technology and service categories.

Synonyms

• Forrester Wave™ framework
• Forrester Wave™ methodology
• Forrester Wave™ analysis

Understanding the Forrester Wave™

Each time, Forrester analysts follow a step-by-step methodology to ensure consistency in evaluations across different industries and technology categories.

Let’s dive into the process more in-depth:

Evaluation process

Analysts begin by identifying the key players in a particular technology market and then evaluate them based on a set of predefined criteria. They’re tailored to the specific technology or service being assessed and are designed to differentiate the vendors based on key factors like product functionality, strategy, and market presence.

From there, Forrester collects data from the vendors through a combination of detailed questionnaires, product demos, and customer references. Vendors are required to submit comprehensive information about their offerings, including technical details, strategic direction, and customer success stories.

Criteria

Again, criteria are tailored to the specific technology or service being assessed. They’re meant to capture the most critical aspects of each product.

For example, when evaluating a data management tool, criteria might include:

• Data integration capabilities
• Scalability
• User interface and ease of use
• Security features

Scenarios

Each vendor participates in product demonstrations, where they showcase the capabilities of their solutions according to predefined scenarios, which Forrester sets. This is what enables analysts to observe how well the products meet the evaluation criteria in real-world scenarios.

For example, when evaluating a marketing automation platform, scenarios might include:

• Creating a targeted email campaign
• Tracking and analyzing customer engagement data
• A/B testing of different marketing strategies

Scoring methodology

After gathering all the data, Forrester analysts score each vendor across the predefined criteria. The scoring is done using a detailed scale that reflects the relative strength of each vendor in specific areas, such as innovation, customer support, and ease of use.

The criteria are weighted based on their importance to the overall evaluation. Forrester then aggregates the scores to produce an overall rating for each vendor, which is visually represented in the Forrester Wave graphic.

Based on their scores, vendors are categorized as Leaders, Strong Performers, or Contenders.

Note: “Challengers” and “Visionaries” were other categories previously included in the Wave graphic but have since been removed as of July 1, 2024.

Key Components of the Forrester Wave™

When Forrester evaluates a business for their Wave report, they take a holistic approach that ends up grouping them into one of four categories, according to the firm’s criteria: Leaders, Strong Performers, or Contenders.

Leaders

Leaders have the strongest offerings and strategies, and they’re typically recommended for most companies. They exhibit a well-rounded, highly effective offering and a robust strategy that positions them well for future success.

Characteristics of leaders include:

• A wide array of features and functionalities that exceed market expectations
• Innovative new features and capabilities that set the standard for the industry
• Significant market share, a large customer base, and a strong brand reputation
• High customer satisfaction and retention levels
• A clear and compelling strategy for future growth and enterprise readiness

Strong Performers

Strong Performers perform well across most criteria but lack the same level of comprehensiveness or strategic vision as Leaders. They normally have specific strengths or weaknesses that make them more suitable for certain companies or use cases.

A Strong Performer is typically a company that:

• Offers reliable and effective solutions that meet most customer needs but might fall short in specific advanced features or functionalities
• Have a respectable market share and brand presence
• Consistently deliver on their promises and maintain a good track record of performance.
• Show potential to become Leaders with some improvements, particularly in areas like innovation or strategic direction

Contenders

Contenders offer solid products, but they generally lack a clear strategy or market presence compared to other players in their category. Their product catalogs are more limited, and they’re less mature or established than Leaders or Strong Performers.

A Contender is:

• Less well-known and widely adopted as higher-ranked vendors
• Able to provide the necessary functionality to meet basic market needs but lacks advanced features
• Unable to scale effectively (or, at the very least, is limited in that regard)
• Narrower in terms of strategic vision, often focusing on specific niches or regions rather than aiming for broad market dominance
• Potentially well-positioned in certain areas, but only with significant improvements or strategic adjustments to compete with the top players

Using the Forrester Wave™ to Select Software Vendors

At the enterprise level, software implementation can take months and cost well into the millions. There’s a lot riding on a software purchase, from user adoption to overall return on investment.

The Forrester Wave™ is an incredibly helpful tool for businesses going through the vendor selection process. Such a comprehensive evaluation makes it easier to understand where each vendor sits in the market and how their offering compares to others.

In addition, the scoring methodology and detailed criteria can help organizations prioritize what features and functionalities are most important to them. They save time and effort in the research process by narrowing their options down earlier on.

Not to mention, the whole process is designed to test each product to its full capacity. And, since reference customers and vendor presentations play a role in the scoring process, it paints an accurate picture of how each vendor fares in real-world scenarios with users just like you.

For businesses, this means they can rely on a well-researched, objective assessment that considers both the strengths and weaknesses of each vendor, allowing them to make decisions based on data-driven insights rather than marketing hype.

Interpreting the Forrester Wave™

Understand the product’s criteria.

The Forrester Wave™ evaluates vendors based on a range of criteria grouped into three main categories: Current Offering, Strategy, and Market Presence. Within those, there are more specific factors like user experience, customer support, and innovation.

Take the time to familiarize yourself with the specific criteria within these three main categories before diving into vendor evaluations. There may be one or two things that the report doesn’t cover, but which are critical to your business.

Focus on your priorities.

While the overall scores and vendor positions are useful, you should customize your interpretation of the Wave based on your own priorities. For example, if innovation is more critical than market presence for your business, pay closer attention to how vendors score in areas related to technology and future vision.

Use the interactive tools.

Forrester provides interactive tools that allow you to customize the evaluation according to their needs. These tools enable companies to adjust the weightings of the criteria based on what is most important to them, producing a more tailored vendor shortlist.

Look beyond the graphic.

The Wave graphic provides a quick snapshot, but it’s essential to dive into the detailed vendor profiles and scoring explanations. A deeper dive is what gives you a clearer understanding of why vendors scored the way they did and how those scores relate to your specific requirements.

Using the Forrester Wave™ for vendor selection

Create a shortlist.

Start by using the Forrester Wave™ to narrow down a long list of potential vendors. Focus on those that score well in the areas most critical to your business needs. This shortlist can then be further refined through direct engagements with vendors, such as demos and reference checks.

Customize the evaluation.

The interactive features of the Forrester Wave™ make it so you can adjust criteria weightings and see how vendors rank according to your specific priorities. That way, the final list of vendors aligns more closely with your business goals.

Engage with vendors.

Once you’ve refined your shortlist, reach out to your prospective vendors. Use the insights from the Wave report to ask targeted questions about their offerings, particularly in areas where they scored lower or which are most pertinent to your business.

Consider your future needs.

The Forrester Wave™ also evaluates vendors’ future plans in regards to scalability and innovation. Consider where your business is headed in the next few years and how each vendor’s growth strategy aligns with the trajectory of your business.

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