Return on Investment.

This article focuses on the significance of return on investment (ROI) policy in the computer software industry. On the contrary, ROI analysis aim to achieve clarity in the decision-making process. A robust economic and strategic analysis can help answer these questions. If a firm strategy to achieve competitive advantage based on higher customer satisfaction at corresponding higher prices, then it can argue for a certain level and type of investment in quality. A competitive strategy based on lower production costs and low prices might lead to targeting the investment in quality to specific parts of the software product or service. In this way, the value of increasing software quality is framed in terms that senior management can understand and use to make informed decisions. The ROl calculation organizes a project's costs and benefits, into a useful profitability measure. But this measure alone doesn't capture two essential ingredients of any serious economic analysis: time and risk.