Tracking change and innovation in the enterprise software development community
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Return on Investment is a critical factor for decision making pertaining to following a particular software development practice. The post summarizes the ROI benefits of Agile and the inexpensive practices which lead to highest return on investment.
Some voices in industries have started to warn about the ROI of SOA initiatives which have proven to be often long and complex. As many still see reuse and flexibility as a major competitive asset, they might still wonder, as they prepare their 2008 budget, where to start? How to quickly demonstrate value? How to increase our maturity over time? Where do we source our skills?
This article is the second in the Ruby x Agile series, a set of six short videos exploring the relationship between Ruby and Agile methodologies, featuring Ruby creator Yukihiro Matsumoto.
A Ziff-Davis CIO Insight survey on Business Value reveals little improvement in how, or how well, IT is measuring value, even though most firms now try to use metrics such as IRR, NPV, return on assets, or activity-based costing. There's no consensus or consistency on which measures to use, or when to use them. And half of respondents doubt that the measures are even accurate.
Pareto's rule, also known as the 80-20 rule, tells us that we can acheive 80% of the benefits from 20% of the software. The implication is that we might want to stop at that 80% level whenever possible.
