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Making a strong case for Requirements Management

Excerpt from Jama Unplugged Blog

Is Requirements Management a smart investment right now? What is the expected ROI for an RM tool? Does your executive team view RM as a “must have” or a “nice to have” solution?

Kevin Thomson, Director of Sales at Jama Software US reports in Jama unplugged as having conversations on these topics almost every day with customers…


Kevin“I thought I’d write about a model we use to think about these questions. These are great discussions and with any enterprise software purchase, it’s a good practice to assess the total cost of ownership and determine the anticipated return on investment (ROI). Especially in a tough economy, this is even more critical.

The good news is that in the field of requirements management, there’s a pretty thorough model that exists. We use an ROI model developed for Software Quality Engineering (Stickyminds.com) by Richard Denney, a software and process management consultant. This model has been used by many in the industry to assess the value of requirements management.

It helps quantify the tangible cost savings and benefit-to-cost ratio for these 4 key benefits of RM:
1. Improved team efficiency
2. Avoiding lost requirements
3. Avoiding unnecessary workROI
4. Reducing requirements defects

On average, the cost savings we’re seeing for companies range from $300k – $400k per year for a team size of 20 though there are a handful of variables to consider to customise the analysis to your team.”

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