The ROI from Software Quality

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ISBN: 9780849332982 | 0849332982
Cover: Hardcover
Copyright: 6/9/2005

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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.

Preface

Introduction

(12)

Profiting from Defects

(1)

Losing from Defects

(2)

Investing in Quality

(1)

The Benefits of Software Quality Practices

(3)

Using Return-On-Investment (ROI) Analysis

(4)

References

(2)

Measuring Software Quality

(24)

Definition of Quality

(2)

Pre- and Post-Release Quality

(1)

Counting Minor and Major Defects

(1)

Types of Defects

(1)

The Defect Life Cycle

(2)

Defect Undercounting

(3)

Interpreting Defect Counts

(7)

Defects and Usage

(1)

Raw Defect Counts

(1)

Defects and Size

(1)

Adjusted Defect Density

(3)

Defects and Corporate Evolution

(1)

Defect Classification

(8)

Defect Priorities

(1)

Defect Severities

(1)

Classification by Problem Type

(2)

References

(3)

Software Quality Practices

(12)

Software Inspections

(4)

Why Inspections Work

(1)

The Benefits of Inspections

(1)

Risk Assessment Using Metrics

(3)

Test-Driven Development

(2)

Automatic Defect Detection

(1)

Other Practices

(3)

References

(2)

The State of the Practice

(14)

Quality Assurance (QA) Function

(5)

Metrics

(1)

Testing

(2)

Software Inspections

(4)

Tools

(1)

Limitations

(2)

References

(1)

A Software Quality Benchmark

(8)

Data Sources

(1)

The Industry Canada Data Set

(1)

The Jones Data Set

(1)

The ISBSG Data Set

(1)

The MIT Study Data Set

(1)

Benchmarks

(5)

Summary

(2)

References

(2)

Quality and the Cost of Ownership

(14)

A Definition of Customer Costs

(2)

Savings from Higher-Quality Software

(3)

Benchmarking Customer Costs

(3)

SW-CMM Example

(1)

Customer Savings by Industry, Country, and Platform

(2)

Discussion

(6)

References

(2)

Quality and the Cost to Developers

(18)

Project Costs

(8)

Distribution of Pre-Release Costs

(2)

Distribution of Post-Release Costs

(3)

References

(1)

Breakdown of Rework Costs

(1)

The Payoff from Cost Reductions

(1)

Reducing Rework Costs

(9)

References

100

(3)

Quality and Profitability

103

(6)

Product Positioning

103

(1)

Revenue and Quality

104

(1)

Quality and Profit

105

(1)

Improving Productivity

106

(3)

References

108

(1)

Calculating Return-On-Investment

109

(24)

Cost Savings

109

(3)

Schedule Benefits

112

(4)

The ROI Evaluation Process

116

(5)

Developing a Process Model

116

(4)

Data Characterization

120

(1)

Discounting

121

(3)

Uncertainty and Sensitivity Analysis

124

(1)

Subjective Distributions

125

(3)

Interpreting the ROI Values

128

(1)

Payback Period

129

(4)

References

130

(3)

Example ROI Calculations

133

(26)

Context

133

(6)

Introducing Code Inspections

139

(5)

Evaluating Code Inspections after Deployment

144

(2)

Automatic Defect Detection Tools

146

(4)

Risk Assessment

150

(2)

Test-Driven Development

152

(2)

Multiple Practices

154

(5)

References

156

(3)

The Quality of Open Source Software

159

(42)

Adoption of OSS

160

(3)

Definition Open Source Software

160

(1)

Reasons for Adoption

160

(1)

Adoption of OSS

161

(1)

Number of Developers of OSS

161

(1)

The OSS Process

162

(1)

The OSS Advantage

163

(6)

Incremental Software Process

163

(1)

Users Fix Bugs

163

(2)

Large-Scale Peer Reviews Improve Quality

165

(2)

Large-Scale Beta Testing

167

(1)

OSS Projects Have Good Programmers

168

(1)

Fewer Schedule Pressures

168

(1)

Requirements Uncertainty

168

(1)

Summary

169

(1)

The Cost of Adopting OSS

169

(5)

Purchase Costs

170

(1)

Installation Costs

171

(1)

Post-Purchase Costs

172

(2)

Summary

174

(1)

Comparing OSS and CSS Software Reliability

174

(10)

Complexity of OSS

174

(3)

Evaluation of Software Failures

177

(1)

Evaluation of Defect Levels

178

(4)

Summary

182

(2)

Comparing OSS and CSS on Security

184

(12)

The Open Source Advantage?

184

(2)

Security Evaluation

186

(2)

Comparing Vulnerabilities and Exploits

188

(4)

Days of Risk

192

(3)

Summary

195

(1)

Conclusions

196

(5)

References

196

(5)

Making the Business Case

201

(66)

Wariness about Initial Investments

202

(1)

Length of Payback Period

203

(1)

Hardware Culture

204

(2)

References

205

(1)

Software Culture

206

(1)

Time-to-Market Is King

207

(2)

Summary

209

(2)

References

210

(1)

APPENDICES

A Definition of Application Domains

211

(2)

Military Software

211

(1)

Systems Software

211

(1)

Commercial Software

211

(1)

MIS (Management Information Systems)

212

(1)

References

212

(1)

B Overview of the Data Sets

213

(6)

B.1 The ISBSG Data Set

213

(1)

B.2 The MIT Data Set

214

(4)

References

218

(1)

C The Effectiveness and Efficiency of Software Inspections

219

(8)

C.1 Effectiveness of Defect Detection Activities

220

(2)

C.2 Average Effort per Defect

222

(2)

References

224

(3)

D Backfiring Table

227

(2)

E The ROI Model

229

(18)

E.1 Definitions

229

(1)

E.1.1 Total Project Cost

229

(1)

E.1.2 Defect Detection Costs

229

(1)

E.1.3 Defect Counts

230

(1)

E.1.4 Defect Detection Effort

231

(1)

E.1.5 Bad Fixes

232

(1)

E.2 Defect Detection Stages

233

(3)

E.3 The Customer Cost Savings Model

236

(1)

E.4 The Financial ROI Model

237

(3)

E.5 Schedule ROI

240

(1)

E.6 Defaults

240

(2)

E.7 Illustration

242

(2)

E.8 Assumptions and Limitations

244

(1)

Endnotes

245

(1)

References

246

(1)

F Evaluating Schedule Reduction

247

(14)

References

253

(1)

Questionnaire

254

(7)

G Expecting and Interpreting Evidence

261

(6)

G.1 The SW-CMM Example

262

(1)

G.2 Evidence in Software Engineering

263

(1)

References

264

(3)

Index

267

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The ROI from Software Quality

Summary

Table of Contents

Supplemental Materials