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4.0 The ROI

4.1 Traditional Calculation

From the ROI on data models, an enterprise is likely to have 100 reasonable sized business information systems with about 200 database tables each.

Business Information System Traditional Cost

 

Quantity Tables

Function Points per Table

Total Function Points

Function Point Cost

Total Initial Cost

Main-tence Cycles

Percent Maintained

Main-tenance Cycles Cost

Total Cost

200

80

16,000

$200

$3.2 million

5

25%

$3.2 million

$6.4 million

Notes:

  1. This includes the expected overlap resulting from not employing Resource Life Cycles Analysis.
  2. This presumes 5 cycles of maintenance from not starting first implementation at Cycle 6 (ROI, Data Centered Development and Maintenance)
  3. For an enterprise inventory of 100 such systems, the total initial cost is $640 million.

4.2 Changed Approach Calculation

Business Information System Traditional Cost

 

Quantity Tables

Function Points per Table

Total Function Points

Function Point Cost

Total Initial Cost

Main-tence Cycles

Percent Main-tained

Main-tenance Cycles Cost

Total Cost

160

80

12,800

$50

$640K

3

10%

$192K

$832K

  1. This excludes the expected overlap resulting from applying Resource Life Cycles Analysis. (200 * .8 = 160)
  2. This presumes 3 cycles of only 10% maintenance by starting first implementation at Cycle 6 (ROI, Data Centered Development and Maintenance)
  3. For an enterprise inventory of 100 such systems, the total initial cost is $83.2 million.

4.3 ROI Summary

The ROI created from the traditional approach cost to the changed approach is 7.7. That is a dramatic reduction is cost.

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