ROI of Software Process Improvement: Metrics for Project Managers and Software Engineers

The return on investment (ROI) methodology for the Software Capability Maturity Model is a procedure to measure, quantify, and analyze its economic value. The Software Capability Maturity Model is a set of guidelines for selecting software suppliers and performing software process improvement. ROI is the amount of money gained, returned, or earned above the resources spent on the Software Capability Maturity Model . Its ROI methodology is a six-part process that consists of estimating costs, benefits, benefit/cost ratio (B/CR), ROI%, net present value (NPV), and breakeven point. The ROI methodology for the Software Capability Maturity Model has unique elements for estimating costs, benefits, and B/CR. Its cost and benefit methodologies are complex, although its B/CR, ROI%, NPV, and breakeven point methodologies are simple. Key elements include the process and total life cycle cost models, which are used to estimate its costs and benefits. Figure 46 illustrates the ROI methodology for the Software Capability Maturity Model .
The cost methodology for the Software Capability Maturity Model is a procedure to measure, quantify, and analyze the amount of money spent. The Software Capability Maturity Model incurs cost to develop processes, resulting in higher productivity and lower maintenance. Cost is the economic consequence of using the Software Capability Maturity Model to create new and improved software processes. Its cost methodology is an eight-part process that consists of estimating process, product, preparation, assessment, software, meeting, test, and maintenance costs. The cost methodology for...