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In business, driving value is a key strategy and typically starts at the top of an organization. In today’s digital age, driving software value is also an important, and often overlooked, key strategy. Executives, and the corporate board, need to expect the highest level of business value from the software the organization is developing, buying, and selling. In today’s digital transformation marketplace, it is imperative that organizations start driving business value from software development initiatives. For many years, the cost of software development challenged organizations with questions such as: How do we allocate software development costs? Should these costs be considered an overhead expense? Are we getting the most value possible for our investment? A fundamental problem has been built into these questions – the focus on cost. In almost every other part of the organization, maximizing profit or, in the case of a not-for-profit, maximizing the funds available, provides a clear focus with metrics to determine success or failure. In theory, simply aligning software spending with the maximizing profit goals should be sufficient to avoid any questions about value for money. Unfortunately, this alignment hasn’t turned out to be so simple, and the questions persist, particularly at the strategic or application portfolio level. In this book, Michael D.S. Harris describes how a software business value culture—one where all stakeholders, including technology and business—have a clear understanding of the goals and expected business value from software development. The book shows readers how they can transform software development from a cost or profit center to a business value center. Only a culture of software as a value center enables an organization to constantly maximize business value flow through software development. If your organization is starting to ask how it can change software from a cost-center to a value-center, this book is for you.
Do you really understand what business value is? Information technology can and should deliver business value. But the Agile literature has paid scant attention to what business value means—and how to know whether or not you are delivering it. This problem becomes ever more critical as you push value delivery toward autonomous teams and away from requirements “tossed over the wall” by business stakeholders. An empowered team needs to understand its goal! Playful and thought-provoking, The Art of Business Value explores what business value means, why it matters, and how it should affect your software development and delivery practices. More than any other IT delivery approach, DevOps (and Agile thinking in general) makes business value a central concern. This book examines the role of business value in software and makes a compelling case for why a clear understanding of business value will change the way you deliver software. This book will make you think deeply about not only what it means to deliver value but also the relationship of the IT organization to the rest of the enterprise. It will give you the language to discuss value with the business, methods to cut through bureaucracy, and strategies for incorporating Agile teams and culture into the enterprise. Most of all, this book will startle you into new ways of thinking about the cutting-edge of Agile practice and where it may lead.
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 formulas. 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 innovative 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!
The book addresses the practical needs of executives responsible for planning, budgeting & justifying information technology expenditures. Written by the former chief information executive (1956-1978) & vice president of strategic planning (1978-1985), author of the widely acclaimed & translated INFORMATION PAYOFF - THE TRANSFORMATION OF WORK IN THE ELECTRONIC AGE (Free Press, 1985), lecturer & university professor. Reviews: "A New Bible for Management Information Systems. An eminently readable book made more so by a playful sense of humor" -Information Week-; "Strips away obfuscation that has concealed the real value of computers." (The Financial Post); "A true path to the Holy Grail of business value." (Computer Weekly); "Some surprising answers to familiar questions cast new light on investing profitably in computer hardware & software." (The Conference Board); "All those either transfixed or baffled by the powers & potential of computers would do well to heed Strassmann's advice." (Daily Telegraph); "Measuring managerial productivity is the key to knowing how to invest in information technology. Strassmann's new book sets out the results of his research in detail. His argument comes through clearly." (The Financial Times).
The importance of demonstrating the value achieved from IT investments is long established in the Computer Science (CS) and Information Systems (IS) literature. However, emerging technologies such as the ever-changing complex area of cloud computing present new challenges and opportunities for demonstrating how IT investments lead to business value. Recent reviews of extant literature highlights the need for multi-disciplinary research. This research should explore and further develops the conceptualization of value in cloud computing research. In addition, there is a need for research which investigates how IT value manifests itself across the chain of service provision and in inter-organizational scenarios. This open access book will review the state of the art from an IS, Computer Science and Accounting perspective, will introduce and discuss the main techniques for measuring business value for cloud computing in a variety of scenarios, and illustrate these with mini-case studies.
In business, driving value is a key strategy and typically starts at the top of an organization. In today’s digital age, driving software value is also an important, and often overlooked, key strategy. Executives, and the corporate board, need to expect the highest level of business value from the software the organization is developing, buying, and selling. In today’s digital transformation marketplace, it is imperative that organizations start driving business value from software development initiatives. For many years, the cost of software development challenged organizations with questions such as: How do we allocate software development costs? Should these costs be considered an overhead expense? Are we getting the most value possible for our investment? A fundamental problem has been built into these questions – the focus on cost. In almost every other part of the organization, maximizing profit or, in the case of a not-for-profit, maximizing the funds available, provides a clear focus with metrics to determine success or failure. In theory, simply aligning software spending with the maximizing profit goals should be sufficient to avoid any questions about value for money. Unfortunately, this alignment hasn’t turned out to be so simple, and the questions persist, particularly at the strategic or application portfolio level. In this book, Michael D.S. Harris describes how a software business value culture—one where all stakeholders, including technology and business—have a clear understanding of the goals and expected business value from software development. The book shows readers how they can transform software development from a cost or profit center to a business value center. Only a culture of software as a value center enables an organization to constantly maximize business value flow through software development. If your organization is starting to ask how it can change software from a cost-center to a value-center, this book is for you.
"Offers a practical, close-up examination of how a manager or executive can best determine whether a new technology expenditure is justified by a business need." - cover.
In order to maximize IT resources and justify IT expenditures, CIO's and other IT managers must be able to identify meaningful metrics and explain them in a way that management can understand. The Business Value of IT: Managing Risks, Optimizing Performance, and Measuring Results solves this problem by providing practical answers to
The ultimate guide to assessing and exploiting the customer value and revenue potential of the Cloud A new business model is sweeping the world—the Cloud. And, as with any new technology, there is a great deal of fear, uncertainty, and doubt surrounding cloud computing. Cloudonomics radically upends the conventional wisdom, clearly explains the underlying principles and illustrates through understandable examples how Cloud computing can create compelling value—whether you are a customer, a provider, a strategist, or an investor. Cloudonomics covers everything you need to consider for the delivery of business solutions, opportunities, and customer satisfaction through the Cloud, so you can understand it—and put it to work for your business. Cloudonomics also delivers insight into when to avoid the cloud, and why. Quantifies how customers, users, and cloud providers can collaborate to create win-wins Reveals how to use the Laws of Cloudonomics to define strategy and guide implementation Explains the probable evolution of cloud businesses and ecosystems Demolishes the conventional wisdom on cloud usage, IT spend, community clouds, and the enterprise-provider cloud balance Whether you're ready for it or not, Cloud computing is here to stay. Cloudonomics provides deep insights into the business value of the Cloud for executives, practitioners, and strategists in virtually any industry—not just technology executives but also those in the marketing, operations, economics, venture capital, and financial fields.
As tech giants and startups disrupt every market, those who master large-scale software delivery will define the economic landscape of the 21st century, just as the masters of mass production defined the landscape in the 20th. Unfortunately, business and technology leaders are woefully ill-equipped to solve the problems posed by digital transformation. At the current rate of disruption, half of S&P 500 companies will be replaced in the next ten years. A new approach is needed. In Project to Product, Value Stream Network pioneer and technology business leader Dr. Mik Kersten introduces the Flow Framework—a new way of seeing, measuring, and managing software delivery. The Flow Framework will enable your company’s evolution from project-oriented dinosaur to product-centric innovator that thrives in the Age of Software. If you’re driving your organization’s transformation at any level, this is the book for you.