A Forrester Total Economic Impact ™ Study Commissioned By Atlassian, December 2024
In today’s rapidly evolving digital landscape, traditional IT service management (ITSM) approaches often fall short in addressing the complexities of modern business environments. The rise of digital business, the shift towards distributed workforces, and the prevalence of siloed teams demand a more agile and integrated solution. When business and IT service teams, operations, and developers work in a connected environment, end users benefit from a high-velocity, responsive, and transparent service experience.
Jira Service Management from Atlassian is designed to enhance collaboration and efficiency across IT, development, and business teams. It integrates end-to-end practices across service request, incident, problem, change, knowledge, asset, and configuration management, which can empower teams to deliver high-velocity servic e experiences by improving visibility and accelerating the flow of work. Additionally, the AI capabilities of the Atlassian platform — including process automation, machine learning, and generative AI (genAI) — can enhance collaboration across teams and enable support and service agents to work smarter with less effort. The focus on simplicity and rapid deployment allows organizations to realize the benefits of genAI without complex training processes while the implementation of virtual service agent capabilities facilitates self-service and request deflection.
Atlassian commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Jira Service Management. 1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Jira Service Management on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives at organizations using Jira Service Management. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a hospitality and food service technology vendor with 14,000 employees and annual revenue of $3.51 billion.
has 0 total employees with 0 total license users, and it avoids $0 in legacy solution costs with Jira Service Management. Custom results are based on your inputs and the TEI case study.
Interviewees said that prior to using Jira Service Management, their organizations either relied on complex traditional ITSM solutions that were not fully utilized or they employed a collection of disparate tools for communication and service management across different regions and departments. Disjointed support delivery methods led to inconsistent service levels, fragmented processes, disconnected workflows, and limited organizational visibility. Several of the organizations faced worsening inefficiencies and slow response times due to using multiple tools. Additionally, these tools were neither scalable nor user-friendly, complicating support for global user bases.
After the investment in Jira Service Management, the interviewees’ organizations experienced a reduction in annual ITSM expenses. The interface and scalability enabled the organizations to implement AI-driven automation for self-service and more effective service delivery. Moreover, integration with existing Atlassian solutions and other collaboration platforms improved teamwork and enabled centralized service management processes. As an enterprise management solution, the Atlassian platform enhanced visibility into the organizations’ service levels and performance across regions and departments by providing automated workflows, standardized processes, and governance practices.
Quantified benefits . Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
For , this benefit could be worth over three years.
For , this benefit could be worth over three years.
For , this benefit could be worth over three years.
For , this benefit could be worth over three years.
For , this benefit could be worth over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
For , this cost could be over three years.
For , this cost could be over three years.
For , this cost could be over three years.
The representative interviews and financial analysis found that a composite organization experiences benefits of $9.50 million over three years versus costs of $2.54 million, adding up to a net present value (NPV) of $6.97 million and an ROI of 275%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Jira Service Management.
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 Jira Service Management can have on an organization.
Interviewed Atlassian stakeholders and Forrester analysts to gather data relative to Jira Service Management.
Interviewed five representatives at organizations using Jira Service Management to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
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.
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.
Readers should be aware of the following:
This study is commissioned by Atlassian 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 Jira Service Management. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with Jira Service Management based on the inputs provided and any assumptions made. Forrester does not endorse Atlassian or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Atlassian and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Atlassian make no warranties of any kind.
Atlassian 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.
Atlassian provided the customer names for the interviews but did not participate in the interviews.
TEI Consultant:
Anna Orban-Imreh
Role | Industry | Corporate Employees | Jira Service Management Capabilities Used |
---|---|---|---|
Manager of global service management | Global restaurant chain | 14,000 |
Service management, incident management, problem management,
knowledge management, change management, asset management |
Engineering director | Gaming and entertainment | 7,000 |
Incident management, problem management, knowledge management,
change management, asset management, virtual service agents |
Manager of production operations | Food delivery technology | 6,000 |
Service management, incident management, problem management,
knowledge management, asset management, virtual service agents |
Chief operating officer | Financial services | 3,000 |
Service management, incident management, problem management,
knowledge management, change management |
Director of IT operations | Home services | 4,000 |
Service management, incident management, problem management,
knowledge management, change management, asset management, virtual service agents |
The interviewees’ organizations had varied approaches to IT service management. Some had invested in high-end traditional solutions, while others relied on collections of point solutions. However, a common challenge across all these organizations was the lack of integration between their disparate systems and the existing ecosystems of Atlassian project management and knowledge management solutions. Various departments within these organizations used different tools and methods for logging incidents and communications, and they also used disparate reporting systems. This fragmentation significantly hindered a unified and cohesive approach to service management that impacted overall efficiency, effectiveness, and teamwork. Interviewees highlighted common challenges that emphasized the need for a centralized, integrated, and scalable ITSM solution, including:
The interviewees’ organizations searched for a solution that could:
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 five interviewees, 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 serves the hospitality and food service industry and provides technology solutions, financial services, and customer support to its global user base. The organization has an annual revenue of $3.5 billion and 14,000 employees.
Driven by the need for a more cost-effective, integrated, and scalable solution that could provide better visibility, efficiency, and governance, the composite organization chooses Jira Service Management after a short proof of concept (POC).
Deployment characteristics. With the goal to replace its traditional ITSM solution, the composite organization orchestrates a companywide rollout of Jira Service Management. It is made available to 950 users in various technology departments (e.g., IT, development) and an additional 250 users across procurement, finance, legal, human resources, and facilities departments. The implementation takes a total of nine months and follows the following implementation schedule:
At the end of the allocated implementation period, the composite organization decommissions its traditional ITSM platform and launches Atlassian for ITSM into full production with 1,200 users across six departments. It utilizes the following services:
has 0 total employees with 0 total license users, and it avoids $0 in legacy solution costs with Jira Service Management. Custom results are based on your inputs and the TEI case study.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Improved service desk productivity | $751,027 $751,027 | $1,214,976 $1,214,976 | $1,613,875 $1,613,875 | $3,579,878 $3,579,878 | $2,899,393 $2,899,393 |
Btr | Improved end-user productivity | $382,200 $382,200 | $1,528,800 $1,528,800 | $1,911,000 $1,911,000 | $3,822,000 $3,822,000 | $3,046,688 $3,046,688 |
Ctr | Improved IT operations productivity | $354,298 $354,298 | $295,179 $295,179 | $398,512 $398,512 | $1,047,990 $1,047,990 | $865,447 $865,447 |
Dtr | Improved engineer and decision-maker productivity | $110,099 $110,099 | $140,973 $140,973 | $193,865 $193,865 | $444,937 $444,937 | $362,250 $362,250 |
Etr | Cost savings from retiring previous solutions | $936,700 $936,700 | $936,700 $936,700 | $936,700 $936,700 | $2,810,100 $2,810,100 | $2,329,434 $2,329,434 |
Total benefits (risk-adjusted) | $2,534,324 $2,534,324 | $4,116,628 $4,116,628 | $5,053,953 $5,053,953 | $11,704,905 $11,704,905 | $9,503,212 $9,503,212 | |
Evidence and data. The interviewees’ organizations realized their greatest savings with Jira Service Management through improved service desk productivity across business teams as well as their IT support teams. The Atlassian platform helped the interviewees’ organizations achieve the following results:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including:
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 $2.9 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
A1 | IT tickets received (average) | Composite Composite | 168,000 168,000 | 168,000 168,000 | 168,000 168,000 |
A2 | IT ticket deflection rate due to Jira Service Management self-service capabilities | Interviews TEI case study | 10% 10% | 25% 25% | 30% 30% |
A3 | Average handling time per IT ticket (minutes) | Composite Composite | 32 32 | 32 32 | 32 32 |
A4 | Average fully burdened hourly salary for an IT service desk employee | TEI standard | $33 $33 | $33 $33 | $33 $33 |
A5 | Subtotal: Savings from IT help desk ticket deflection | ((A1*A2*A3)/60) *A4 | $295,680 $295,680 | $739,200 $739,200 | $887,040 $887,040 |
A6 | Tickets received with Jira Service Management (average) | Composite Composite | 277,200 277,200 | 252,000 252,000 | 243,600 243,600 |
A7 | Percent decrease in handling time per ticket with Jira Service Management | Interviews TEI case study | 15% 15% | 20% 20% | 30% 30% |
A8 | Reduced handling time per ticket with Jira Service Management (minutes) | A3*A7 | 4.8 4.8 | 6.4 6.4 | 9.6 9.6 |
A9 | Average fully burdened hourly salary for a service desk agent | TEI standard | $29 $29 | $29 $29 | $29 $29 |
A10 | Subtotal: Savings from reduced IT and service desk ticket handling times | (A6*A8)/60*A9 | $643,104 $643,104 | $779,520 $779,520 | $1,130,304 $1,130,304 |
At | Improved service desk productivity | A5+A10 | $938,784 $938,784 | $1,518,720 $1,518,720 | $2,017,344 $2,017,344 |
Risk adjustment | ↓20% | ||||
Atr | Improved service desk productivity (risk-adjusted) | $751,027 $751,027 | $1,214,976 $1,214,976 | $1,613,875 $1,613,875 | |
Three-year total: $3,579,878 $3,579,878 | Three-year present value: $2,899,393 $2,899,393 |
Evidence and data. Interviewees said Jira Service Management’s easy-to-use interface, improved ticket visibility, and self-service options boosted end-user satisfaction and end-user productivity. They explained that the Atlassian platform tracks SLAs for different request types, ensuring timely resolution through automation and escalation rules, and that this visibility into ticket status improved cross-team communication, replacing the previously chaotic email and chat methods. Furthermore, automated onboarding and offboarding ensure that new employees have immediate access to necessary applications. The integration of virtual service agent capabilities in help desk channels provides instant responses to queries, reducing downtime and enhancing user satisfaction.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including:
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 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
B1 | Employees | Composite Composite | 14,000 14,000 | 14,000 14,000 | 14,000 14,000 |
B2 | Tickets logged with Jira Service Management per employee (average) | Composite Scaled to your organization | 21 21 | 21 21 | 21 21 |
B3 | User time saved per ticket (minutes) | Interviews TEI case study | 5 5 | 20 20 | 25 25 |
B4 | Average fully burdened hourly salary for an employee | TEI standard | $39 $39 | $39 $39 | $39 $39 |
B5 | Productivity recapture rate | TEI standard | 50% 50% | 50% 50% | 50% 50% |
Bt | Improved end-user productivity |
B1*B2*B3/60
*B4*B5 |
$477,750 $477,750 | $1,911,000 $1,911,000 | $2,388,750 $2,388,750 |
Risk adjustment | ↓20% | ||||
Btr | Improved end-user productivity (risk-adjusted) | $382,200 $382,200 | $1,528,800 $1,528,800 | $1,911,000 $1,911,000 | |
Three-year total: $3,822,000 $3,822,000 | Three-year present value: $3,046,688 $3,046,688 |
Evidence and data. Interviewees said consolidating on the Atlassian platform facilitated seamless collaboration across teams, which enabled IT operations to match the pace of agile development practices, respond to incidents more effectively, and benefit from enhanced visibility, collaboration, and streamlined processes.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including:
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 $866,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
C1 | Problems resolved per month by IT operations (average) | Composite Composite | 378 378 | 315 315 | 294 294 |
C2 | Average time saved per problem and associated incidents (minutes) | Interviews TEI case study | 35 35 | 35 35 | 55 55 |
C3 | Normal IT change requests pushed per month (average) | Composite Composite | 189 189 | 158 158 | 147 147 |
C4 | Work time to completion of change request (hours) | Interviews TEI case study | 40 40 | 40 40 | 40 40 |
C5 | Percent decrease in change approval and routing and documentation time for normal change requests | Interviews TEI case study | 25% 25% | 25% 25% | 35% 35% |
C6 | Average time saved per change request (hours) | C4*C5/3 | 3.33 3.33 | 3.33 3.33 | 4.67 4.67 |
C7 | Total time saved per month by IT operations team (hours) | (C1*C2)/60+C3*C6 | 850 850 | 708 708 | 956 956 |
C8 | Fully burdened hourly salary for an IT operations team member | TEI standard | $62 $62 | $62 $62 | $62 $62 |
C9 | Productivity recapture rate | TEI standard | 70% 70% | 70% 70% | 70% 70% |
Ct | Improved IT operations productivity | C7*12*C8*C9 | $442,873 $442,873 | $368,974 $368,974 | $498,140 $498,140 |
Risk adjustment | ↓20% | ||||
Ctr | Improved IT operations productivity (risk-adjusted) | $354,298 $354,298 | $295,179 $295,179 | $398,512 $398,512 | |
Three-year total: $1,047,990 $1,047,990 | Three-year present value: $865,447 $865,447 |
Evidence and data. According to the interviewees, the Atlassian platform significantly enhanced productivity for both software engineers and decision-makers by integrating natively with Jira. Development teams used Jira to track backlogs, deployments, and other tasks, with Jira Service Management serving as the central portal for all service requests and incidents in the production environment. Automated routing and escalation processes ensured incidents were promptly addressed by the appropriate teams, reducing manual intervention and speeding up response times. The “Summarize” feature allowed agents to quickly review escalated tickets by providing a bulleted list of all activities, facilitating faster problem resolution. These capabilities collectively streamlined workflows, enhanced collaboration, and improved overall efficiency in managing service requests by software developers.
For team leads and decision-makers, the consolidation with Atlassian also boosted productivity. They served as escalation points for service requests requiring managerial involvement. With comprehensive documentation in Jira Service Management, team leads could refer to the entire timeline of an incident, including all actions taken. The AI summarization feature provided concise summaries of incidents, aiding in root cause analysis and making post-incident review procedures more thorough. This integration ensured that both engineers and decision-makers could work more efficiently and effectively.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including:
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $362,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
D1 | IT service desk and incident tickets resolved per month by engineer and/or DevOps resources (average) | Composite Scaled to your organization | 2,520 2,520 | 2,100 2,100 | 1,960 1,960 |
D2 | Average time saved per ticket by engineers and DevOps FTEs (minutes) | Interviews TEI case study | 5 5 | 8 8 | 12 12 |
D3 | Total time saved per month by technical resources (hours) | (D1*D2)/60 | 210 210 | 280 280 | 392 392 |
D4 | Fully burdened hourly salary for an engineer and DevOps employee |
TEI standard |
$62 $62 | $62 $62 | $62 $62 |
D5 | Productivity recapture rate | TEI standard | 50% 50% | 50% 50% | 50% 50% |
D6 | Subtotal: Engineer and DevOps savings from time saved | D3*12*D4*D5 | $78,120 $78,120 | $104,160 $104,160 | $145,824 $145,824 |
D7 | Team leaders and decision-maker FTEs | Composite TEI case study | 18 18 | 18 18 | 18 18 |
D8 | Time saved per FTE per month (hours) | Interviews TEI case study | 5 5 | 6 6 | 8 8 |
D9 | Average fully burdened salary for a team leader and decision-maker | TEI standard | $68 $68 | $68 $68 | $68 $68 |
D10 | Productivity recapture rate | TEI standard | 70% 70% | 70% 70% | 70% 70% |
D11 | Subtotal: Team leader and decision-maker savings from time saved | D7*D8*D9*D10*12 | $51,408 $51,408 | $61,690 $61,690 | $82,253 $82,253 |
Dt | Improved engineer and decision-maker productivity | D6+D11 | $129,528 $129,528 | $165,850 $165,850 | $228,077 $228,077 |
Risk adjustment | ↓15% | ||||
Dtr | Improved engineer and decision-maker productivity (risk-adjusted) | $110,099 $110,099 | $140,973 $140,973 | $193,865 $193,865 | |
Three-year total: $444,937 $444,937 | Three-year present value: $362,250 $362,250 |
Evidence and data. Interviewees said that Jira Service Management is a cost-effective alternative to their organizations’ legacy platforms and tools. They reported spending significant amounts on their previous ITSM solution without realizing the expected value. Consolidating with Atlassian enabled several of the interviewees’ organizations to operate at 60% or less of the cost of their previous ITSM solutions, representing considerable financial savings.
The chief operating officer of the financial services firm mentioned the reasons behind their organization’s decision to switch from a traditional ITSM platform to Jira Service Management, highlighting the high costs and insufficient value from the legacy platform. They said, “We were paying close to $900,000 a year, and were just not getting the value that we needed.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on:
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.3 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
E1 | Users on previous ITSM tool | Composite Scaled to your organization | 850 850 | 850 850 | 850 850 |
E2 | Monthly per-user cost of previous ITSM tool | Composite TEI case study | $85 $85 | $85 $85 | $85 $85 |
E3 | Total cost of previous ITSM tool | E1*E2*12 months | $867,000 $867,000 | $867,000 $867,000 | $867,000 $867,000 |
E4 | Labor and services costs to maintain the prior solution | G3*2.5 FTEs | $235,000 $235,000 | $235,000 $235,000 | $235,000 $235,000 |
Et | Cost savings from retiring previous solutions | E3+E4 | $1,102,000 $1,102,000 | $1,102,000 $1,102,000 | $1,102,000 $1,102,000 |
Risk adjustment | ↓15% | ||||
Etr | Cost savings from retiring previous solutions (risk-adjusted) | $936,700 $936,700 | $936,700 $936,700 | $936,700 $936,700 | |
Three-year total: $2,810,100 $2,810,100 | Three-year present value: $2,329,434 $2,329,434 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Jira Service Management and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A ).
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Ftr | Jira Service Management solution cost | $0 $0 | $460,635 $460,635 | $473,193 $473,193 | $482,139 $482,139 | $1,415,967 $1,415,967 | $1,172,066 $1,172,066 |
Gtr | Implementation and training costs | $564,850 $564,850 | $38,665 $38,665 | $16,665 $16,665 | $16,665 $16,665 | $636,845 $636,845 | $626,293 $626,293 |
Htr | Ongoing management labor | $0 $0 | $361,900 $361,900 | $258,500 $258,500 | $258,500 $258,500 | $878,900 $878,900 | $736,851 $736,851 |
Total costs (risk-adjusted) | $564,850 $564,850 | $861,200 $861,200 | $748,358 $748,358 | $757,304 $757,304 | $2,931,712 $2,931,712 | $2,535,210 $2,535,210 | |
Evidence and data. Atlassian has four plan tiers available for its ITSM cloud offering that range from Free to Enterprise. Tiers are largely differentiated on the number of agents supported, depth and maturity of features, and the level of support the organization receives. These factors are used to determine the pricing per agent. Atlassian does not charge for users only needing to submit or review requests.
On the Enterprise plan, the licensing costs include service management including change, problem, incident, asset, and service configuration capabilities and knowledge management as well as Atlassian analytics and AI. While no add-ons are required, Atlassian hosts a marketplace of technology partners and applications to extend functionality and connect to other systems. Most of the interviewees’ organizations purchased add-ons from Atlassian’s marketplace for various additional capabilities, including advanced reporting, data intake, and timesheet tracking.
The interviewees said their companies managed and tracked their assets in various ways, often using native CMDB capabilities in Jira Service Management Assets. Approaches included updating IT assets to maintain a comprehensive view of stores and objects, managing a database of applications with automation tools for access and provisioning, leveraging the platform and Atlassian’s developer experience platform to control assets and services, or using a third-party CMDB product integrated with Jira Service Management to manage applications, infrastructure, and related metadata. In all cases, Jira Service Management played a central role in providing a unified platform for tracking, managing, and automating asset-related processes, which enhanced efficiency and visibility across operations.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on the pricing of Jira Service Management licenses and marketplace add-ons. This pricing may vary depending on:
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 $1.2 million.
For , fees to Atlassian for Jira Service Management may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
F1 | Jira Service Management subscription cost | Composite Composite | $430,200 $430,200 | $430,200 $430,200 | $430,200 $430,200 | |
F2 | Cost of virtual service agent-assisted conversations | Composite Scaled to your organization | $0 $0 | $3,960 $3,960 | $6,480 $6,480 | |
F3 | Cost of stored objects in asset repository | Composite Composite | $0 $0 | $0 $0 | $6,000 $6,000 | |
F4 | Cost of marketplace add-ons | Composite TEI case study | $8,500 $8,500 | $16,500 $16,500 | $16,500 $16,500 | |
Ft | Jira Service Management solution cost | F1+F2+F3+F4 | $0 $0 | $438,700 $438,700 | $450,660 $450,660 | $459,180 $459,180 |
Risk adjustment | ↑5% | |||||
Ftr | Jira Service Management solution cost (risk-adjusted) | $0 $0 | $460,635 $460,635 | $473,193 $473,193 | $482,139 $482,139 | |
Three-year total: $1,415,967 $1,415,967 | Three-year present value: $1,172,066 $1,172,066 |
Evidence and data. The interviewees’ organizations incurred up-front internal labor costs for implementation and time spent on training. All five interviewees said their organization already had Jira in place, which poised them for easier and faster implementations of Jira Service Management. Implementation timelines ranged between three and nine months, and most of the organizations utilized professional services or partners to guide the implementation.
Initially, the interviewees’ organizations replaced their existing toolsets or traditional ITSM platforms with Jira Service Management to unify incident and request management. The integration process included configuring the platform to handle various service requests, linking it with Jira for seamless task management, and linking it with Confluence for knowledge management. Automation was implemented to streamline workflows, such as creating tickets from [team communication platform] messages and integrating with third-party tools like CRM systems. Additionally, some interviewees’ organizations enhanced asset management capabilities by integrating with tools like Atlassian Compass for comprehensive CMDB functionality. The integration also involved setting up processes for alerting and incident management and leveraging AI features like the virtual service agent for automated responses and issue summaries.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks . The expected financial impact is subject to risks and variation based on factors including:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $626,000.
For , implementation and training costs may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
G1 | Implementation length (months) | Composite TEI case study | 9 9 | ||||
G2 | FTEs involved in implementation | Composite TEI case study | 4 4 | ||||
G3 | Average fully burdened salary for an ITSM administrator/developer FTE |
TEI standard |
$94,000 $94,000 | ||||
G4 | Professional services costs | Interviews TEI case study | $80,000 $80,000 | $20,000 $20,000 | |||
G5 | Subtotal: Implementation labor costs | G1*G2*G3/12+G4 | $362,000 $362,000 | $20,000 $20,000 | $0 $0 | $0 $0 | |
G6 | Training time per Jira Service Management ticket handler (hours) | Interviews TEI case study | 2 2 | 2 2 | 2 2 | 2 2 | |
G7 | Jira Service Management users trained | Composite Composite | 1200 1200 | 120 120 | 120 120 | 120 120 | |
G8 | Average fully burdened hourly salary for a service desk employee |
TEI standard |
$29 $29 | $29 $29 | $29 $29 | $29 $29 | |
G9 | Training time per Jira Service Management end user (hours) | Interviews TEI case study | 0.15 0.15 | 0.15 0.15 | 0.15 0.15 | 0.15 0.15 | |
G10 | Jira Service Management end users trained | Composite Composite | 14,000 14,000 | 1,400 1,400 | 1,400 1,400 | 1,400 1,400 | |
G11 | Average fully burdened hourly salary for an employee |
TEI standard |
$39 $39 | $39 $39 | $39 $39 | $39 $39 | |
G12 | Subtotal: Training costs | (G6*G7*G8)+(G9* G10*G11) | $151,500 $151,500 | $15,150 $15,150 | $15,150 $15,150 | $15,150 $15,150 | |
Gt | Implementation and training costs | G5+G12 | $513,500 $513,500 | $35,150 $35,150 | $15,150 $15,150 | $15,150 $15,150 | |
Risk adjustment | ↑10% | ||||||
Gtr | Implementation and training costs (risk-adjusted) | $564,850 $564,850 | $38,665 $38,665 | $16,665 $16,665 | $16,665 $16,665 | ||
Three-year total: $636,845 $636,845 | Three-year present value: $626,293 $626,293 |
Evidence and data. Most of the interviewees said their organization had one employee whose focus was supporting Jira Service Management on an ongoing basis with two to three additional employees lightly involved. Ongoing support included basic maintenance, support, and administration, the optimization of service management processes and architecture, and implementation of new service desks across additional teams or use cases.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $737,000.
For , ongoing management labor costs may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
H1 | FTE employees involved in ongoing management and support | Interviews TEI case study | 1.50 1.50 | 1.50 1.50 | 1.50 1.50 | ||
H2 | FTE employees involved in ongoing planning, development, and optimization | Interviews TEI case study | 2.00 2.00 | 1.00 1.00 | 1.00 1.00 | ||
H3 | Average fully burdened annual salary for an implementation resource | TEI standard | $94,000 $94,000 | $94,000 $94,000 | $94,000 $94,000 | ||
Ht | Ongoing management labor | (H1+H2)*H3 | $0 $0 | $329,000 $329,000 | $235,000 $235,000 | $235,000 $235,000 | |
Risk adjustment | ↑10% | ||||||
Htr | Ongoing management labor (risk-adjusted) | $0 $0 | $361,900 $361,900 | $258,500 $258,500 | $258,500 $258,500 | ||
Three-year total: $878,900 $878,900 | Three-year present value: $736,851 $736,851 |
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.
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.
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($564,850) ($564,850) | ($861,200) ($861,200) | ($748,358) ($748,358) | ($757,304) ($757,304) | ($2,931,712) ($2,931,712) | ($2,535,210) ($2,535,210) |
Total benefits | $0 $0 | $2,534,324 $2,534,324 | $4,116,628 $4,116,628 | $5,053,953 $5,053,953 | $11,704,905 $11,704,905 | $9,503,212 $9,503,212 |
Net benefits | ($564,850) ($564,850) | $1,673,124 $1,673,124 | $3,368,270 $3,368,270 | $4,296,649 $4,296,649 | $8,773,193 $8,773,193 | $6,968,002 $6,968,002 |
ROI | 275% 275% | |||||
Payback period (months) | <6 <6 | |||||
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.
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.
Related Forrester Research
Change The Interface; Change The World , Forrester Research, Inc., September 6, 2024.
2024 Service Desk Benchmarks, Global , Forrester Research, Inc., September 3, 2024.
Simplify Process Management With Lean And Agile Thinking , Forrester Research, Inc., August 13, 2024.
Vendors Move To Dominate IT Management Software , Forrester Research, Inc., July 10, 2024.
The Knowledge Management Solutions Landscape, Q3 2024 , Forrester Research, Inc., July 10, 2024.
Julie Mohr, Unleash The Potential Of Knowledge Management And Generative AI , Forrester Blogs.
Build A Knowledge Management Culture To Increase Knowledge Flow And Learning , Forrester Research, Inc., April 9, 2024.
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.
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