Systems Engineering FAQ

Answers by Robert Halligan FIE Aust CPEng IntPE(Aus).

What is the source of data used for “Requirements Analysis ROI for Contractor” of the “Business Case for Systems Engineering” downloadable presentation?


The sources of the data are:

Marketing 12.5%:

This is my experience in working with two systems contractors, one in the role of Manager Engineering and Support to Marketing, the other in setting up an Electronics Warfare systems business for a large American company. I won’t name the companies, but you wouldn’t need to look far to connect the dots. I have also substantiated this figure as representative in discussion with some business development managers of systems companies.

Branding and other general positioning/public relations 3%:

This is my experience in working with a systems contractor in the role of Manager Engineering and Support to Marketing.

A win ratio of the more successful companies 1 in 2, to 1 in 4: I have seen this information in print on a number of occasions. It should easily be available on the web; if there is difficulty in finding, contact Hy Silver (with a name like that, he would be easy to find!).

Cost/bid information:

Apart from deriving cost/bid from the above, I have seen these figures in study reports on the cost of bidding/tendering, one at least from the U.S. National Technical Information Service (NTIS), and one from a study done in Australia by, I recall, Defence Science and Technology Organisation (DSTO), for what is now the Defence Materiel Organisation (DMO). DSTO has a good searchable catalog of its reports on its website. Most of the reports are publicly available.

Cost of Requirements Analysis (RA):

This data comes from records of the cost of RA per requirement for requirements analysis that I have led over the years. The data has not been previously published, to my knowledge.

Relative cost of Winning Business from a New Customer vs an Existing Satisfied Customer: 5:1:

I did some research on this about 15 years ago (!), and found a number of credible sources behind the “throw-away line”. I expect that this data is easily available through normal searching channels. If help is needed in finding it, let me know.


Answered By

Systems engineering thought leader, consultant, trainer and coach, impacting people's lives on six continents.
Published 2 years ago


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