## Look at the whole picture when deciding on a solution

### Value vs. Cost

There are number of free tools out there that help teams with story point estimation. The problem with these tools is that they are not properly integrated with the main solution teams use during planning, i.e. the Jira backlog. This means valuable time is lost every time a story is estimated. More information on this in the following article: Outdated planning poker apps waste your time!

When comparing free tools and solutions that cost - we need to step back and look at the whole picture:

- Cost of the solution AND
- Value of the time saved

## Large 2000+ employee - budget conscious organization

### Case example

This article is inspired by the following question posted on the Atlassian Community: “Help me find an estimation tool that my IT admins will approve“.

Let’s use the information we got (2000+ employees) and let’s make assumptions about other things in order to estimate potential Value vs Cost. Lets say 10%, approximately 200 team members take part in planning, refinement sessions on average every week. Let’s say each Planning, Refinement meeting takes on average 60 minutes. Let’s make a conservative approximation and say that a better solution drastically simplifying the process, will only save 1 minute during these meetings, compared to a free solution:

## How much could the company save by selecting a better solution?

A better solution that manages to save only 1 minute during planning / refinement meetings would save:

- 200 planning users/week * 1 minute saving/meeting * 4 estimation meetings/month = 800 minutes saved / month
- Which is: 800 minutes / 60minutes per hour = 13,3 hours saved /month
- Which is: 13.3 hours/month * 12 months/year = 160 hours saved / year

### Let's calculate how much this will save every year:

- According to Clockify there are: 1757 working hours/year in the US
- According to Statista.com the average tech salary in the US per year is: $124.000
- $124.000 / 1757 hours = $70 / hour average salary

In addition, according to this study total cost of an employee in the US, taking taxes and benefits into account, is 1.25-1.40 times the base salary.

### Summary

- 160 hours saved/year * $70 / hour average tech salary = $11.200 saved / every year (not including taxes and benefits)
**$14000 - $15680 saved / every year**(including taxes and benefits)

Notice if time savings are more than 1 minute and more than 200 take part in planning then the total number is obviously higher.

So given this, even though a better solution might cost couple of thousand dollars / year, it has the potential to pay back multible times every year. This is why Smart Guess was built to work in perfect harmony with the Jira Issue and the Jira Backlog - optimizing the flow of the discussion taking place during Sprint Planning.