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HAPPY NEW YEAR MỌI NGƯỜI L4 + L5 (My) (Estimating ROI (Steps…
HAPPY NEW YEAR MỌI NGƯỜI
L4 + L5
(My)
Estimating ROI
Steps
Estimating Cost of SPI
Estimating the benefits of each process
improvement opportunities
Identify process improvement opportunities which
can be measured and quantified.
Define a formula to calculate ROI for the
improvement effort over time
Cost of SPI
Cost of the software process
assessment
the software process
infrastructure
Cost of software process improvement
actions
the software process improvement
roadmap
Benefits
Qualitative benefits
customer satisfaction and improved staff morale, attitudinal changes, improved competitive advantage.
Quantitative benefits
increased quality, productivity
Cost of Quality
Cost of
GOOD
Quality
Appraisal cost
Product, process or service audits
In-process and final inspection/testing
Prevention cost
Quality planning
Supplier evaluation
Capability evaluations
Quality improvement team meetings
...
Cost of
POOR
quality
Internal failure cost
Bug fixes
Direct cost of late shipment
Re-designing
Failure analysis
Downgrading
...
External failure cost
Complaints
Repairing goods and redoing services
Warranties cost
Refunds and recalls
Customers’ bad will
Lost sales
Environmental costs
Software process improvement important
Change drivers
help organization
understand "Why change?"
Benefits of SPI
Cost savings average 5:1 ROI
Cycle time reductions of 20% -50%
Improved ability to plan and control
projects
Improved customer satisfaction
Quality improvements
More stable work environment
Productivity improvements
Improved working conditions
Improved quality of work life
Improved employee morale
Fewer overtime hours
Improved management of project risk
Technology Change
Technology Change Cycle
(This cycle is becoming faster)
Changes in technology
Standard Functions used everyday
New capabilities
new Functions
Re- Technology Change Cycle
Management of technology: Evaluate and implement appropriate change
New function that don’t corrupt or destroy current IT system
Put Quality in the process, correct function at the first time
Motivation for process change
Benefits of well-established process
Change in organization’s Strategic Objectives
significant problems impact operations
Technology change