ReliaSoft’s Reliability ROI: Difference between revisions

Latest revision as of 00:37, 22 August 2012

Redirect to:

@@ Line 1: / Line 1: @@
-= R3OI =
+#REDIRECT [[Target_Reliability_Tool]]
-ReliaSoft's Reliability Return on Investment(RRROI or R3OI)metric was
-First, traditinal Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In general to calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; and the result is expressed as a percentage or a ratio.
-<math>ROI=\frac{Gain\,from\,Investment\,-\,Cost\,of\,Investment}{Cost\,of\,Investment}</math>
-In this formula "gains from investment", refers to the revenue or proceeds obtained the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
-Relibility ROI, is similarly computed by looking at the investement as the the investment in improving the reliability.
-To illustrate consider the case of ACME's Widgets.  The current design has had an average reliability perfromance in the field, yielding ACME a 10% market share. To stay competitive ACME offers the same warranty as it's competitors (2 years) and prices the product simlarly.