1.5 What are Key Principles of ROI of SPI?


1.5 What are Key Principles of ROI of SPI?

Key principles of ROI of SPI include application of basic ROI formulas, analysis of ROI inputs, and focusing on benefits of SPI. Key principles also include analysis of simple defect models, cost of quality, total life cycle costs, and pervasive defect prevention. Key principles of ROI of SPI do not require a postgraduate degree in design of mathematically analyzable attitudinal surveys, and they do not include the derivation of indecipherable ROI equations or the application of complex discounting methods . Mastery of Nobel laureate economics, collecting reams of data, and performing years of software measurement are not necessary. ROI of SPI also does not require a personal 15-year SPI journey.

ROI formulas contain only two fundamental terms: benefits and costs. How hard is that? Cost is by far the easiest of the terms to grasp, so focus on the benefits. If you can master the benefits, then you're almost there. Where does information on benefits come from? Benefit data come from analyzing SPI studies, conducting literature surveys, and collecting cost-benefit data. Information also comes from ROI studies, examining the cost of quality, performing cost modeling, and studying defect models.

The benefits of SPI come from two basic sources, increased revenue and profits and decreased costs and cost savings. The benefits of SPI originating from increased revenue and profits are primarily due to increased productivity. That is, increased output or work products per unit time. The benefits of SPI originating from decreased costs and cost savings are due to less maintenance, rework , and testing. This often leads to shorter cycle times and faster schedules.




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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