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

~ (Author), Roger S. Pressman (Foreword) "The return on investment (ROI) of software process improvement (SPI) is an indispensable tool for determining how effective an organization is at computer programming..." (more)
Key Phrases: improved software process, total life cycle cost model, using software testing, Capability Maturity Model, Software Inspection Process, Personal Software (more...)

Editorial Reviews

Product Description

An indispensable addition to your project management, software engineering or computer science bookshelf, this book masterfully illuminates and simplifies otherwise complex topics in ROI. It presents extremely simple, but overwhelmingly powerful metrics, models, and methods for designing professional business cases and provides hard-hitting economic justification. It explores the most popular international methods, models, and standards for software process improvement. The author’s practical tutorial on the costs, benefits, and ROI of software process improvement is a soup-to-nuts guide that helps readers rapidly master powerful concepts. He demystifies esoteric concepts in ROI and provides a self-contained tutorial of ROI methods for novices as well as economic experts and a treasure-trove of value adding economic data which is missing from popular texts.

About the Author

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.

Product Details

• Hardcover: 256 pages
• Publisher: J. Ross Publishing, Inc. (February 2004)
• Language: English
• ISBN-10: 193215924X
• ISBN-13: 978-1932159240
• Product Dimensions: 9.3 x 6 x 0.7 inches
• Shipping Weight: 15.5 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (17 customer reviews)
• Amazon.com Sales Rank: #455,570 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

9 of 11 people found the following review helpful:

5.0 out of 5 stars This is a keeper!, March 22, 2004

By	"j_guerra" (Austin, Tx United States) - See all my reviews

In today's IT Shops one of the common failures is that managers and SW Engineers fail to properly select and implement the proper SPI method for the immediate job. I have seen 1st hand how many so called experts have tried to force the square peg into the round hole with little knowledge on why they recommend one method or another. Mr. Rico brings the complex tasks of selecting and manageing the SPI methods by clearly explaining the pro's and con's of each of the popular methods. PM's, SW Engineers and IT Managers can easily defend their decisions. The decisions on how to improve a IT project comes down to nothing more then dollars and cents. Reduce defects efficiently with proper SPI method and your project wins! There are many books on the subject, some focus on one method or another, but Mr. Rico's approach makes no illusion of a perfect model. He reviews the major methods and helps the reader walk through a decision based on metrics. Those metrics will deliver the Best Fit method for any project.

Bottom line: David Rico's book is a must have in helping the reader choose the Best Fit SPI Method for maximum ROI! Without admitting my age; this new book deserves to sit next to my "C Programming Book" by Kernighan and Ritchie. I give accolades to Mr. Rico who has shared his excellent work on the subject with the SW Engineering community, which complements his many other technical / business contributions to the field of SW Project Process Improvements.

6 of 7 people found the following review helpful:

5.0 out of 5 stars Provides tools/techniques to assess SPI value, March 26, 2004

By	Mike Tarrani "www.tarrani.com" (Deltona, FL USA) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)    (COMMUNITY FORUM 04)

It's a safe bet that most readers who are interested in determining the return on investment of a software process improvement initiative have stumbled upon the author's web site at one point. The material that comprises this excellent book is a distillation of Mr. Rico's extensive work in this area, and is one of the most useful and complete books on the subject.

He begins by providing a context for both software process improvement and its associated ROI. The introduction answers the who, what, how and why of ROI of software process improvement (SPI), and the methods, principles and pitfalls of measuring it. The next chapter drills down into SPI itself in which he answers the who, what, why and how questions. This segues into a chapter that surveys the major SPI approaches (Software inspection process, Personal and Team Software Processes, CMM and CMMI, and ISO 9001). These establish the foundation for the heart of the book - three chapters, each dealing with a specific method (ROI analysis, benefit analysis, and cost analysis.

After thoroughly covering each analysis method the subsequent chapters focus on how they are applied to the SPI models. Here he uses a set format that addresses the following methods:
- Cost Methodology
- Benefit Methodology
- B/CR Methodology
- ROI% Methodology
- NPV Methodology
- Breakeven Point Methodology

Next are chapters that cross-reference the above by individually discussing in separate chapters costs, benefits, cost/benefit ratios, ROI, NPV and breakeven analysis. Here the format for each of these chapters is:
- Software Inspection Process
- Personal Software Process
- Team Software Process
- Software Capability Maturity Model®
- ISO 9001
- Capability Maturity Model Integration®

Finally, the book provides yet another view by addressing analysis of return on investment, optimizing return on investment, and future of software process improvement, rounding out the dimensions.

This book is more about how to examine the return on investment of SPI, using proven tools and techniques, and drawing your own conclusions that reflect your organization, constraints and opportunities. In addition to the exhaustive examination of all facets of SPI ROI, you can also download invaluable tools and artifacts from the publisher's web site, including: ROI high-level and detailed models, and ISO 9001 and SW-CMM cost model (all in Microsoft Excel format). You can also download an additional ROI article in MS Word format that augments this book. This book, plus these value-added artifacts, are invaluable to any practitioner who is examining the true benefits of SPI.

8 of 11 people found the following review helpful:

5.0 out of 5 stars Highly valuable book on neglected SPI subject., March 30, 2004

By	D. LAJUETT "Brazilnut" (Rockville, Maryland USA) - See all my reviews (REAL NAME)

I found ROI of Software Process Improvement to be a useful, thoughtful and in depth review of a neglected SPI area - how to
estimate the costs and benefits of major SPI methods such as CMMI, SW-CMM, ISO 9001, Inspections, PSP, and TSP.

It is practical, complete, and is a good guide for anyone who wants to rapidly master and apply professional return on investment techniques.

The author does provide ample and valuable personal data, examples, and case studies, which are derived from his own varied experiences with implementing SPI methods in the Far East, Europe, U.S., and for organizations such as NASA, Fujitsu, U.S. Navy, and many more.

While the book does expect readers to input their own personal data, it provides simple, but powerful formulas for costs, benefits, net present value, benefit/cost ratio, return on investment, and breakeven point; in addition, the author also expects individuals, projects, firms, and organizations to use their own data to design their own business cases. In any event, the author provides so many formulas, data points, and examples, he practically gives away the answer for free.

There are free spreadsheets for estimating the costs and benefits of software process improvement available at the publisher's website, which are worth thousands in consulting fees. This book is pretty much like having a $250 an hour consultant in a box for 50 bucks. Who could argue with that?

SO far as I can tell, there have only been a few major in-depth studies, which have attempted to identify, analyze, and compare the costs and benefits of major SPI methods such as CMMI, SW-CMM, ISO 9001, Inspections, PSP, and TSP (one of which was popularized by the same author). These studies were unique, controversial, and yet sorely needed. They were controversial because they challenge the myth of one best SPI method, they shatter the illusion that SPI is cheap and easy, and yet they teach people how to identify, quantify, and express the elusive benefits of SPI. Very few people can convincingly and authoritatively tap into the secret benefits of software process improvement.

ROI of Software Process Improvement is no exception. It is one of a kind, it will surely push you to the edge of your comfort zone, it will cause you to reconsider the ROI approaches, and will teach you all you need to know about the ROI of SPI. Software process improvement is a highly competitive field and this book will certainly challenge your current paradigms and cause a lot of people to think very hard. However, make no mistake about it, this book is highly educational, it is a perfect example of just in time training and information, and, for the open minded reader, it is a notable tool for taking individuals and organizations to the next level of performance.

Further, the author's web site is worth a visit for additional articles and links that relate to what's in the book. ... In sum, the book is a highly useful, portable tutorial on an area of SPI that has been neglected by most other SPI authors, and yet ROI is an area that most organizations place a strong focus on.