10.2 SW-CMM Benefit Methodology

9.4 TSP ^SM ROI% Methodology

The ROI% methodology for the Team Software Process ^SM is a procedure to measure, quantify, and analyze the money returned. The ratio of net benefits to costs for the Team Software Process ^SM is high due to vast software maintenance cost savings. ROI% is the money earned from using the Team Software Process ^SM to create a new and improved software process. Its ROI% methodology is a two part process that consists of estimating the B/CR using net benefits versus gross benefits. Its benefit methodology consists of combining the net or adjusted benefits together with the special costs using the B/CR formula. Key elements include subtracting the special costs from the gross benefits to form net benefits. These are used to form a better picture of the magnitude of the benefits to the costs for the Team Software Process ^SM . (B/CR and ROI% are similar in that they are used to compare benefits to costs. However, B/CR uses gross benefits, while ROI% uses net benefits. Net benefits do not contain the implementation costs. Therefore, ROI% lowers the magnitude of benefits to costs versus using B/CR. The objective of using ROI% versus B/CR is to begin forming an accurate picture of the actual benefits of using a software process improvement method.) Figure 43 illustrates the ROI% methodology for the Team Software Process ^SM .

Figure 43: ROI% Methodology for Team Software Process ^SM

Estimate adjusted benefits for TSP ^SM : The objective of this activity is to validate the benefits of TSP ^SM by removing its costs. This substep includes: subtract special costs from benefits for TSP ^SM .

Estimate adjusted B/CR for TSP ^SM : The objective of this activity is to measure the magnitude of the net benefits to the costs for implementing TSP ^SM . This substep includes: divide adjusted benefits by special costs for TSP ^SM .