Requirement management tools increase work efficiency, staff productivity while reducing development costs and efforts and time consumed. You should analyze return on investment of new process or tools which has been implemented.
Return on Investment (ROI) is a popular method of measuring the success of process improvements and IT investments. The simplest method is the Benefit to Cost Ration; this if obtained simply by dividing the benefits by the costs.
1.1 Typical sources of costs:
- IT investments, including ongoing maintenance
- ？Training staff in new processes and IT tools
- ？Consulting needed to assist process change and IT installation
- ？Recurring cost associated with new process and IT
1.2 Typical benefits:
- ？Increased revenue such as increased sales and sales margins
- ？Retention of sales that would otherwise have been lost
- ？Reduction in operating expense, for instance daily time savings, eliminated rework
2. Calculating the ROI
There is no question that a requirement management tool is very useful, but can it pay for itself at your company? In Dean Leffingwell’s paper Calculating Your Return on Investment from More Effective Requirements Management, he advances this model for estimating ROI (numbers are from his example)
You can simply divide the cost saving by the investment (this might be purchase price of the Requirement management tool)
We begin by making a number of working assumptions and conventions that will be used throughout the ROI model.
2.1 The Cost
This ROI calculation takes into account the total of ownership for requirements management and compares it to the cost saving achieved from the benefits. The fields are variables adjust to accommodate your company. Numbers are from “More effective Requirements Management” by Dean Leffingwell.
- RM solution investment
- Team’s time & Rigor？
2.2 The incremental benefits far outweigh incremental costs.？
- Avoiding the cost of lost requirements？
- Team efficiency cost saving？
- Avoiding cost of unnecessary development？
LeffingwellDean, WidrigDon, & YourdonEd.“Managing Software Requirements: A use case approach.” 2003: Addison-Wesley Professional.
MacLeod, J. (n.d.). Requirements Management Tools: "Friend or Foe?". International Developer.
Priklandnicki, R., & Sul, G. (2003). Requirements Management in Global Software Development: "Preliminary Findings from a Case Study in a SW-CMM Context", Proceedings of the Thirty-third Hawaii. International Conference on Systems Sciences.