21.2 Automated Workflow Methods

Overview

Analysis of return on investment (ROI) involves using a set, group , or portfolio of metrics and models to count, quantify, and evaluate software process improvement (SPI) economics. Analysis of ROI involves much more than the use or exploitation of but a single metric or model, cost or benefit, or ROI equation. Instead, analysis of ROI involves a wide, broad, and expansive suite of metrics and models. Using several metrics and models helps quantify the economic consequences of a SPI method. There are many cost, benefit, and ROI metrics, models, and values to consider when quantifying the economics of SPI.

Some of the fundamental metrics and models to consider include complete costs, total life cycle costs, and special costs. Important metrics are benefits, benefit/cost ratio (B/CR), adjusted benefits, ROI, net present value (NPV) benefits, NPV B/CR, NPV adjusted benefits, and NPV ROI. Productivity, productivity difference, breakeven point, and breakeven point after project start cannot be ignored. The point is that analysis of ROI consists of evaluating many metrics, models, and measurements, not just one. These models are readily identifiable, simple, and powerful indicators of SPI economics.

For the sake of simplicity, we will focus only on the most basic metrics, models, and measurements for analyzing ROI. These include costs, benefits, B/CR, ROI, NPV, and breakeven point. We will do this to strike a balance between simplicity and objectivity, without introducing unnecessary complexity.