Making the Software Business Case: Improvement by the Numbers (SEI Series in Software Engineering S)

Description

"Just the understanding and insights you will pick up about how people encounter and cope with combinations of technical, social, political, and economic opportunities and challenges make the book a joy to read and worth much more than the price of it alone." --Barry Boehm, from the Foreword This practical handbook shows you how to build an effective business case when you need to justify--and persuade management to accept--software change or improvement. Based on real-world scenarios, the book covers the most common situations in which business case analyses are required and explains specific techniques that have proved successful in practice. Drawing on years of experience in winning the "battle of the budget," the author shows you how to use commonly accepted engineering economic arguments to make your numbers "sing" to management. The book provides examples of successful business cases; along the way, tables, tools, facts, figures, and metrics guide you through the entire analytic process. Writing in a concise and witty style, the author makes this valuable guidance accessible to every software engineer, manager, and IT professional. Highlights include:How and where business case analyses fit into the software and IT life cycle process Explanations of the most common tools for business case analysis, such as present-value, return-on-investment, break-even, and cost/benefit calculation Tying the business process to the software development life cycle Packaging the business case for management consumption Frameworks and guidelines for justifying IT productivity, quality, and delivery cycle improvement strategies Case studies for applying appropriate decision situations to software process improvement Strategic guidelines for various business case analyses With this book in hand, you will find the facts, examples, hard data, and case studies needed for preparing your own winning business cases in today's complex software environment. 0201728877B09102001 Contents Foreword Preface Acknowledgments PART I: FUNDAMENTAL CONCEPTS 1 Improvement Is Everybody’s Business Viewing Software as a Business Change Is the Nature of Software Making the Giant Leap Forward Success Is a Numbers Game Improvement Cycles and Tricycles Improvement by the Numbers Business versus Technical Cases Why Change? Are You Ready to Change? Getting Your Boss to Commit How This Book Can Help You Summary 2 Making a Business Case The Whats, Whys, and Whens of Business Cases The Business Case Process Setting Improvement Goals Using the GQM Paradigm Developing Business Cases: The Front-End Process Putting the Process to Work Tying the Business Process to the Software Development Life Cycle Business Cases: Stepping Through the Life Cycle Summary 3 Making the Business Case: Principles, Rules, and Analysis Tools Tooling the Process Business Case Principles Present Value and Future Worth A Smorgasbord of Analysis Techniques Tools of the Trade Packaging the Business Case for Management Consumption Avoiding Taxes and Tax Penalties Summary 4 Business Cases That Make Sense The Parable of the Chinese Emperor Process Improvement Using Productivity Increases as a Justification Cost Avoidance versus Cost Reduction Software Capitalization Approaches Depreciation Concepts Quick-to-Market Strategies Architecting Products Using Time to Market as Justification Make-versus-Buy Analysis Moving to a Web-Based Economy Summary PART II: THE CASE STUDIES 5 Playing the Game of Dungeons and Dragons: Process Improvement Case Study Setting the Stage Current Business Climate Developing a Game Plan Process Maturity: Are the Investments Justified? Quantifying the Return on Investment Getting Everyone Involved in Playing the Game Reinventing and Refreshing the Organization Summary 6 Quantifying the Costs/Benefits: Capitalizing Software Case Study You’ve Got a Problem Organization Profile Initial Operational Concept Capital Decision-Making Process Make-versus-Buy Analysis Putting Software Cost Models to Work Performing Risk Analyses Addressing “What-If” Questions Making Your Numbers Believable Summary 7 Making Your Numbers Sing: Architecting Case Study The Grand Proposal Developing a Strategy Readying the Financials Determining the Numbers Trimming the Fat Justifying Your Recommendations Why Pursue Product Lines in the First Place? Summary 8 Maneuvering the Maze: Web-Based Economy Case Study For Openers Finding a Likely Candidate Determining the “Value” of a Firm Computing How Much to Pay To Buy or Not to Buy Avoiding the Traps Going Global Timing Is Strategy Summary PART III: FINALE 9 Overcoming Adversity: More Than a Pep Talk The Wary Traveler You Too Can Be Successful Change Tactics Abound Avoid the Many Traps Focus on the Things That Count Other Interesting Uses of Numbers Where’s the Technology Heading? Summary Appendix A: Recommended Readings Appendix B: Compound Interest Tables Acronyms Glossary A B C D E F H I K L M N O P Q R S T U V W Index A B C D E F G H I J K L M N O P Q R S T U V W X Y