1.1 What is ROI of SPI?

The ROI of SPI is the amount of money gained from a new and improved software process. That is, the ROI of SPI refers to a new and improved software process which results in more money than is spent to improve it. For example, ROI is 10 to 1 or 1,000% if a new process requires 100 hours to create and use, versus 1,100 hours for an old one.

The ROI of SPI is generally a ratio of benefits to costs for creating a new and improved software process. The benefits are first adjusted by removing all of the costs before calculating the ratio of benefits to costs. The ROI of SPI or ratio of adjusted benefits to costs indicates the economic value of a new and improved software process. The ROI of SPI is used for determining the value of a new and improved software process. It is also used to decide whether to use a new process, revert to an old one, or begin seeking an even better software process.

ROI of SPI is a tool for teaching people, ranging from executives to the technical staff, that processes have economic value. Software processes affect economic performance and should be evaluated for the purpose of improving cost and quality efficiency. Cost and quality are inseparably linked in often surprising ways.