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From Model to Money: Using the CMM to Improve Financial Performance

• Tags:
• delivery,
• bottom line,
• maturity,
• maturity model

Overview Application development is becoming ever more complex. The size and sophistication of software and applications have increased enormously in the last few years. In addition, the user base of these products has become more diverse, more demanding, and more unpredictable. With this complexity comes the attendant increase in costs for development and deployment. IT delivery is now such a costly business that the means to contain budgets and still deliver high value solutions is on the agenda in many boardrooms. A plethora of tools and techniques are available to help organizations meet these dual objectives. However, most focus on a specific aspect of delivery, and the hard reality is that an all-encompassing approach to delivery must be taken to even begin to make a difference to the bottom line. To provide a framework for delivery improvement, many organizations are working toward an organizational maturity model such as the Software Engineering Institute's (SEI) Capability Maturity Model (CMM). Using the CMM can help an organization: Deliver solutions that meet the business and market requirements in shorter timescales than its competitors, Significantly reduce software development costs, Plan and manage its delivery capability to be as innovative as possible while still remaining cost effective. Yet, why should this model be successful in improving the bottom line when so many other solutions appear to have failed. To address this question, this paper describes the components and characteristics of the CMM that enable a business to improve its profitability.

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