1.2 Why is ROI of SPI Important?


1.2 Why is ROI of SPI Important?

The ROI of SPI is important because it is a process of determining the amount of money to be gained from a new process. It can even be used to determine how much money is lost from creating and using a new and improved software process. The ROI of SPI for a new software process can be astonishingly large, disinterestingly negligible, or soberingly negative. The ROI of SPI is an indispensable everyday tool for aggressively profit-driven corporations. Oftentimes their rise and fall hinges on the ability to successfully steward their assets through many economic obstacle courses. The market is often fraught with dangerous fluctuations, conditions, and confusing indicators. Corporations can avert financial catastrophe and seize their rightful titles as captains of industry by applying the ROI of SPI.

The ROI of SPI is quite useful for large nonprofit organizations and government institutions. The ROI of SPI helps them manage their hard-won resources, capitalization, and funding. It does this by helping to steer them clear of a new software process that has negligible effects on peak operating efficiency. Minimally, the ROI of SPI has a sobering effect on unbridled enthusiasm for a new software process with a negative ROI.

However, it is important to note that the ROI of SPI is merely one of many tools to support critical decision-making processes. There are many tools to support decision making when it comes to selecting a new and improved software process. In fact, it may be necessary for a corporation or organization to create a new process that has a negligible or even negative ROI. This is often done because it is sociopolitically correct or part of a mandatory government regulation or industrial trade agreement. Sometimes, inefficient processes are tied to other forms of economic incentives, motivations, or gains.

For instance, a new and improved software process may have an acceptably negative ROI. However, this process may be part of an industrial trade agreement, resulting in long-term economic gains in place of short-term loss. This, of course, doesn't mean that the ROI of SPI is unimportant, invalid, or fails under certain conditions. It simply means that long-term economic gains should be factored into the equation for ROI of SPI if they can be reliably quantified . Doing this helps to overcome the effects of negligible or even negative impacts on short- term economic performance.




ROI of Software Process Improvement. Metrics for Project Managers and Software Engineers
ROI of Software Process Improvement: Metrics for Project Managers and Software Engineers
ISBN: 193215924X
EAN: 2147483647
Year: 2004
Pages: 145

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