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Whether to continue using traditional cost and benefit analysis
methods such as systems and software engineering standards or to
use a relatively new family of software development processes known
as Agile methods is one of most prevalent questions within the
information technology field today. Since each family of methods
has its strengths and weaknesses, the question being raised by a
growing number of executives and practitioners is: Which family of
methods provides the greater business value and return on
investment (ROI)? Whereas traditional methods have been in use for
many decades, Agile methods are still a new phenomenon and, until
now, very little literature has existed on how to quantify the
business value of Agile methods in economic terms, such as ROI and
net present value (NPV).Using cost of quality, total cost of
ownership, and total life cycle cost parameters, The Business Value
of Agile Software Methods offers a comprehensive methodology and
introduces the industry's initial top-down parametric models for
quantifying the costs and benefits of using Agile methods to create
innovative software products. Based on real-world data, it
illustrates the first simple-to-use parametric models of Real
Options for estimating the business value of Agile methods since
the inception of the Nobel prize-winning Black-Scholes formula.
Numerous examples on how to estimate the costs, benefits, ROI, NPV,
and real options of the major types of Agile methods such as Scrum,
Extreme Programming and Crystal Methods are also included. In
addition, this reference provides the first comprehensive
compilation of cost and benefit data on Agile methods from an
analysis of hundreds of research studies. The Business Value of
Agile Software Methods shatters key myths and misconceptions
surrounding the modern-day phenomenon of Agile methods for creating
software products. It provides a complete business value comparison
between traditional and Agile methods. The keys to maximizing the
business value of any method are low costs and high benefits and
the business value of Agile methods, when compared to traditional
methods, proves to be very impressive. Agile methods are a new
model of project management that can be used to improve the
success, business value, and ROI of high-risk and highly complex IT
projects in today's dynamic, turbulent, and highly uncertain
marketplace. If you are an executive, manager, scholar, student,
consultant or practitioner currently on the fence, you need to read
this book!
An indispensable addition to your project management, software
engineering or computer science bookshelf, this book illuminates
and simplifies otherwise complex topics in ROI. It presents
extremely simple, but powerful metrics, models, and methods for
designing professional business cases and providing hard-hitting
economic justification. It explores the most popular international
methods, models, and standards for software process improvement.
The author's practical tutorial on the costs, benefits, and ROI of
software process improvement is a soup-to-nuts guide that helps
readers rapidly master powerful concepts. Rico demystifies esoteric
concepts in ROI and provides a self-contained tutorial of ROI
methods for novices as well as economic experts and a
treasure-trove of value adding economic data which is missing from
popular texts. The ROI of Software Process Improvement features a
number of free downloads to help continue the learning process
outside the pages of the book.
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