The ROI from Software Quality  book cover
1st Edition

The ROI from Software Quality

ISBN 9780849332982
Published June 9, 2005 by Auerbach Publications
296 Pages 63 B/W Illustrations

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Book Description

The ROI from Software Quality provides the tools needed for software engineers and project managers to calculate how much they should invest in quality, what benefits the investment will reap, and just how quickly those benefits will be realized. This text provides the quantitative models necessary for making real and reasonable calculations and it shows how to perform ROI analysis before and after implementing a quality program. The book demonstrates how to collect the appropriate data and easily perform the appropriate ROI analysis.

Taking an evidence-based approach, this book supports its methodology with large amounts of data and backs up its positioning with numerous case studies and straightforward return-on-investment calculations. By carefully substantiating arguments, this volume separates itself from other works on ROI.

Table of Contents

Profiting from Defects
Losing from Defects
Investing in Quality
The Benefits of Software Quality Practices
Using Return-On-Investment (ROI) Analysis

Measuring Software Quality
Definition of Quality
Types of Defects
The Defect Life Cycle
Defect Undercounting
Interpreting Defect Counts
Defects and Corporate Evolution
Defect Classification

Software Quality Practices
Software Inspections
Risk Assessment Using Metrics
Test-Driven Development
Automatic Defect Detection
Other Practices

The State of the Practice
Quality Assurance (QA) Function
Software Inspections

A Software Quality Benchmark
Data Sources

Quality and the Cost of Ownership
A Definition of Customer Costs
Savings from Higher-Quality Software
Benchmarking Customer Costs

Quality and the Cost to Developers
Project Costs
The Payoff from Cost Reductions
Reducing Rework Costs

Quality and Profitability
Product Positioning
Revenue and Quality
Quality and Profit
Improving Productivity

Calculating Return-On-Investment
Cost Savings
Schedule Benefits
The ROI Evaluation Process
Uncertainty and Sensitivity Analysis
Subjective Distributions
Interpreting the ROI Values
Payback Period

Example ROI Calculations
Introducing Code Inspections
Evaluating Code Inspections after Deployment
Automatic Defect Detection Tools
Risk Assessment
Test-Driven Development
Multiple Practices

The Quality of Open Source Software
Adoption of OSS
The OSS Advantage
The Cost of Adopting OSS
Comparing OSS and CSS Software Reliability
Comparing OSS and CSS on Security

Making the Business Case
Wariness about Initial Investments
Length of Payback Period
Hardware Culture
Software Culture
Time-to-Market Is King

A Definition of Application Domains
Military Software
Systems Software
Commercial Software
MIS (Management Information Systems)

B Overview of the Data Sets
The ISBSG Data Set
The MIT Data Set

C The Effectiveness and Efficiency of Software Inspections
Effectiveness of Defect Detection Activities
Average Effort per Defect

D Backfiring Table

E The ROI Model
Defect Detection Stages
The Customer Cost Savings Model
The Financial ROI Model
Schedule ROI
Assumptions and Limitations

F Evaluating Schedule Reduction

G Expecting and Interpreting Evidence
The SW-CMM Example
Evidence in Software Engineering

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