Managing economic value and uncertainty on software projects; an empirical study with the CASSE Framework

• Main Author: Balikuddembe, Joseph
• Published: 2009
• Online Access: http://pubs.cs.uct.ac.za/archive/00000580/

Lack of adaptive-predictor models in software development renders the decision-making process complex, principally when evaluating investment options. Prior work has presented various approaches which are still non-integrated, requiring rigour to embrace overall economic value and uncertainty management. In this study, a Complex Adaptive Software Engineering Framework which uses the Actor Object Dependency Analysis (AOD) technique is proposed as a feasible option. It is aimed at providing a useful technique for monitoring and controlling value propositions in terms of cost, schedule, and progress of complex issues in software development. Specifically, examination was made on how:AODs and their properties can enhance the estimation of the probability distribution of losses and earnings on software project portfolio; economic concepts, models and tools can help advance our understanding and improvement of the development of software and process that produce them; and also if the project selection and requirements engineering processes employed in industry today align appropriately with organizational business strategies of supporting value creation on software projects. A business and process view dimension were formulated to test this phenomenon. Empirical data tests from industry revealed that overall predictions of economic value is possible in the solution domain and also planning and control of software projects can greatly be enhanced with use of such value-oriented approaches. Secondly, the ranking metric utilized therein is fundamentally important in communicating economic value to stakeholder as project unit costs change during the project lifetime; thereby empowering the portfolio office to decide which projects to initiate, which on-going projects to continue to fund, and which projects to terminate. On the other hand, the process view dimension revealed that the need to realign engineering and project selection processes with business objectives is still evident. In instances where business objectives are not well integrated into the processes that produce the software, certain business elements may be sacrificed, such as productivity measurement, quality and risk detection in business selection and overall management. These results thus reinforced the view that it is a significant business security to exploit adequate project selection techniques that increase the rate of successful yet profitable projects.