The Business Value of Agile Software Methods: Maximizing ROI with Just-in-time Processes and Documentation

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J. Ross Publishing, Oct 15, 2009 - Business & Economics - 240 pages

“This reference shows that Agile methods are based on systematic values, principles, and discipline; and, more importantly, it demonstrates that Agile methods are right-sized, just-enough, just-in-time approaches for maximizing the business value of new product development.” 

—Dr. Jeffrey V. Sutherland, Co-Creator of Scrum, CEO, Scrum, Inc. 

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!

 

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Contents

Introduction to Agile Methods
1
Values of Agile Methods
7
History of Agile Methods
13
Antecedents of Agile Methods
19
Types of Agile Methods
25
Practices of Agile Methods
35
Agile Project Management
43
Agile Software Engineering
49
ROI Metrics for Agile Methods
99
Measures of Agile Methods
105
Costs of Agile Methods
113
Benefits of Agile Methods
121
Return on Investment of Agile Methods
131
Net Present Value of Agile Methods
141
Real Options Analysis of Agile Methods
149
Business Value of Agile Methods
159

Agile Support Processes
55
Agile Tools and Technologies
61
Comparison of Agile Methods
67
Agile Metrics and Models
75
Surveys of Agile Methods
83
Costs and Benefits of Agile Methods
91
Agile vs Traditional Methods
167
Future of Agile Methods
175
Appendix
185
Bibliography
193
Index
203
Copyright

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About the author (2009)

Dr. David F. Rico, PMP, CSM, has been a technical leader in support of NASA, DARPA, DISA, SPAWAR, USAF, AFMC, NAVAIR, CECOM, and MICOM for over 25 years. He has led, managed, or participated in over 20 organization change initiatives using Agile methods, Lean Six Sigma, ISO 9001, CMMI®, SW-CMM®, Enterprise Architecture, Baldrige, and DoD 5000. Dr. Rico specializes in IT investment analysis, IT project management, and IT-enabled change. He has been an international keynote speaker, published numerous articles, and written or contributed to six textbooks. David holds a B.S. in Computer Science, an M.S. in Software Engineering, and a D.M. in Information Systems. 

Dr. Hasan H. Sayani has been in industry and academia for over 40 years. His interests are in information systems, information systems development, life cycle methods and tools, and semantic database management systems. Dr. Sayani has taught at the University of Maryland College Park in the Information Systems Management program. He co-founded a firm which built systems for various commercial and governmental organizations. Dr. Sayani has participated in various professional and standardization organizations (e.g., IEEE, ACM, CASE, ANS, CODASYL, DoD, CALS, etc.). Hasan holds a B.S., M.S., and Ph.D. from the University of Michigan. 

Dr. Saya Sone, PMP, has worked for multiple Fortune 500 companies, such as CSC, BT, and AOL. She has led numerous data center design, software development, marketing, and customer support projects. Dr. Sone managed a corporate-wide rollout of Agile methods and Scrum at a major U.S. e-commerce firm. Her field of specialty is Agile Project Management. Saya holds an M.A. in Project Management, a D.B.A. in Information Systems and is also a Certified Scrum Practitioner.

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