Beyond planning, tracking and measuring a software project a company has to look at the Return On Investment(ROI) of the product in order to stay in business. However, unlike other industries, few software companies do this at all, and those that do mostly make a best guess (using only the developers best estimates of time as the only input).
Many software managers are surprised to learn that there are well developed models for calculating the cost of a software project and that these models take into account "intangibles" such as the teams experience in a particular language. A few minutes with one of these models can give you a rough estimate of the cost of a project. They can also let you know the cost of particular features and help in making decisions on requirements, design and platforms to be included in the project. Finally, they can be used to track the progress of the project and work as a break on overruns or changes to requirements during the Application LifeCycle.
I am by no means an expert, having only grazed the surface of Software Economics in the past, but have recently had to dive deep into the topic and I am surprised to find how few project managers even consider the actual costs of their project and how much they can expect to earn from it.
This talk would look at the importance of including economics in the ALM, the models available and how to integrate Software Economics into your project management system.
Robert McCabe is a development Manager with over 25 years in the software business. He has done a number of project rescues and worked in Canada, USA, Bermuda and India. His main focus these days is applying and streamlining Agile processes. A big part of this work is gathering metrics so that the improvements in performance can be quantified.