Potential Economic Benefits

Potential Economic Benefits

💰 Potential Economic Benefit (PEB) Calculator BETA


🧭 Overview

The Potential Economic Benefit (PEB) Calculator helps teams and leaders translate software delivery improvements into tangible financial value.
It connects engineering outcomes with business impact by showing how better Speed, Efficiency, Quality, and Productivity drive measurable cost savings.

💡 In simple terms - PEB tells you how much value your improvements are adding.


⚙️ What It Does

KnowHOW continuously tracks delivery KPIs and calculates performance trends.
The PEB Calculator converts these gains into cost savings, giving you a single financial summary of improvement.

When you input:

  1. 👥 Team Size

  2. 💵 Average Cost or Billing Rate per Developer

  3. ⏱️ Duration (Month / Quarter / Year)

KnowHOW:

  • Aggregates KPI trends

  • Calculates category-wise gains

  • Converts them into monetary benefits

  • Displays results instantly on the Executive Dashboard


📊 Key Categories Measured

Category

Description

Example KPIs

Category

Description

Example KPIs

Speed

How fast teams deliver working software

Cycle Time, Lead Time, Sprint Velocity, Code Build Time, Scope Churn

🧩 Efficiency

How well teams use their capacity

Capacity Utilization, Wastage, Delay

🛡️ Quality

Delivery stability and defect reduction

Defect Density, Defect Seepage Rate, Defect Reopen Rate

👩‍💻 Productivity

Overall delivery effectiveness

Commitment Reliability, Check-ins & PRs, PR Success Rate, PR Revert Rate

Each category contributes to overall productivity gain through a weighted scoring model.


🔢 How It Works


🧮 Using the Calculator

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1️⃣ Enter team size
2️⃣ Enter average developer cost or billing rate
3️⃣ Choose duration (Monthly / Quarterly / Yearly)
4️⃣ Click Calculate PEB
5️⃣ Review real-time savings across Speed, Efficiency, Quality, and Productivity

Your results remain visible until you change inputs or recalculate.


📈 Summary View

You’ll see:

  • Category-wise Gains with % improvement

  • Cost Savings ($) for each category

  • Total Potential Economic Benefit

  • Inline tooltips explaining metrics

  • Auto-refresh on parameter change

📊 A simple, financial snapshot of your engineering performance.


🚀 Coming Soon – AI Adoption Insights

The next evolution of the PEB Calculator integrates AI-assisted Agile metrics, helping you quantify how AI tools and practices amplify business value.

You’ll soon measure:

⏩ Productivity gains from AI-assisted backlog, coding, and testing

🤖 Efficiency improvements via automation and intelligent recommendations

💸 Verified ROI from AI-driven delivery acceleration

 

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