Date Added: Nov 2010
Software product, project and process decisions are ultimately driven by economic calculations. A problem is that decision makers generally do not have an adequate picture of all important sources of value. The value of a software product derives from the market's willingness to pay for its capabilities and for the opportunities it affords for potentially pro table future investments: to correct a system (e.g., x a bug), reduce uncertainty (e.g., more testing), change capabilities (e.g., new feature), or change its opportunity set (e.g., through refactoring). Capabilities are visible both to development teams and to executives and the market, and their value is tangible, even if uncertain. Opportunities, are generally not as visible to executives or the market.