ROI of Software Process Improvement

• Establishes a foundation, framework, and standard for determining the costs and benefits of SPI and for measuring its ROI
• Provides penetrating cost metrics, models, and methods which are usually very proprietary and helps users learn, understand, and master them
• Includes a self-contained tutorial of ROI methods for novices as well as economic experts
• Presents the only broad-ranging economic analysis of major international SPI methods and the first large-scale economic analysis of mandatory U.S. government standards
• Covers quantitative analysis of international SPI methods that are only qualitatively understood and includes a treasure-trove of value-adding economic data missing from other popular texts
• Includes over 100 tables and illustrations to facilitate learning and instruction
• WAV Offers free downloadable detailed SPI cost models for SW-CMM®, ISO 9001:2000, and CMMI® and spreadsheets with metrics and models for costs, benefits, benefit/cost ratio, net present value, return on investment and breakeven point—available from the Web Added Value™ Download Resource Center at www.jrosspub.com

David F. Rico is a software process improvement consultant specializing in cost, benefit, and return-on-investment analysis. He holds a B.S. in Computer Science and an M.S.A. in Software Engineering and has been in the field of computer programming since 1983. He has been an international keynote speaker and is a well published author. Some of his noteworthy accomplishments include designing software for NASA's $20 billion space station, spearheading SW-CMM® and ISO 9001 initiatives for Fujitsu in Tokyo, modernizing a family of U.S. Air Force static radar ranges, reengineering 36 military logistics depots in Cairo, designing a $30 billion constellation of U.S. Air Force satellites, conducting a $42 million U.S. Navy source selection, designing a $70 million cost model for U.S. Navy aircraft, and participating in over 15 SW-CMM® initiatives.

Introduction What Is ROI of SPI? Why Is ROI of SPI Important? How Is ROI of SPI Determined? What Are Key Methods for ROI of SPI? What Are Key Principles of ROI of SPI? What Are Pitfalls of ROI of SPI? Who Cares About ROI of SPI? Software Process Improvement What Is SPI? Why Is SPI Important? How Is SPI Determined? What Are Key Methods for SPI? What Are Key Principles of SPI? What Are Pitfalls of SPI? Who Cares About SPI? Methods for Software Process Improvement Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Methods for Return on Investment Analysis Benefit Cost Benefit/Cost Ratio Return on Investment Net Present Value Breakeven Point Methods for Benefit Analysis Productivity Defect Density Quality Defect Removal Efficiency Defect Removal Model Software Effort Total Life Cycle Cost Methods for Cost Analysis Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Software Inspection Process ROI Methodology Inspection Cost Methodology Inspection Benefit Methodology Inspection B/CR Methodology Inspection ROI% Methodology Inspection NPV Methodology Inspection Breakeven Point Methodology Personal Software Process ROI Methodology PSP Cost Methodology PSP Benefit Methodology PSP B/CR Methodology PSP ROI% Methodology PSP NPV Methodology PSP Breakeven Point Methodology Team Software Process ROI Methodology TSP Cost Methodology TSP Benefit Methodology TSP B/CR Methodology TSP ROI% Methodology TSP NPV Methodology TSP Breakeven Point Methodology Software Capability Maturity Model® ROI Methodology SW-CMM® Cost Methodology SW-CMM® Benefit Methodology SW-CMM® B/CR Methodology SW-CMM® ROI% Methodology SW-CMM® NPV Methodology SW-CMM® Breakeven Point Methodology ISO 9001 ROI Methodology ISO 9001 Cost Methodology ISO 9001 Benefit Methodology ISO 9001 B/CR Methodology ISO 9001 ROI% Methodology ISO 9001 NPV Methodology ISO 9001 Breakeven Point Methodology Capability Maturity Model Integration® ROI Methodology CMMI® Cost Methodology CMMI® Benefit Methodology CMMI® B/CR Methodology CMMI® ROI% Methodology CMMI® NPV Methodology CMMI® Breakeven Point Methodology Costs Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Benefits Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Benefit/Cost Ratio Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Return on Investment Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Net Present Value Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Breakeven Point Software Inspection Process Personal Software Process Team Software Process Software Capability Maturity Model® ISO 9001 Capability Maturity Model Integration® Analysis of Return on Investment Analysis of Costs Analysis of Benefits Analysis of Benefit/Cost Ratio Analysis of Return on Investment Analysis of Net Present Value Analysis of Breakeven Point Optimizing Return on Investment Low Costs High Benefits Good Benefit/Cost Ratio High Return on Investment High Net Present Value Near Breakeven Point Future of Software Process Improvement Trainingless Methods Automated Workflow Methods Low-Cost Commercial Tools Non-invasive Measurement Expert System Workflow Tools Self-Documenting Approaches Boundaryless Virtual Teams PSP and TSP are service marks of Carnegie Mellon University SW-CMM and CMMI are registered in the U.S. Patent and Trademark Office by Carnegie Mellon University

From the Foreword by Dr. Roger Pressman:

"With the publication of this book, David Rico cuts through the complexity and confusion associated with the measurement of the software process and provides us with a road map for understanding its costs and benefits. At the core of Rico's approach is an age-old business metric - return on investment (ROI) - a common-sense method for evaluating whether the costs associated with any business activity are justified based on the return (benefit) accrued as the business activity is applied over time."