Projects and product development is one long series of difficult decisions, says Pascal Van Cauwenberghe. Real Options can help you to take the right decision at the right time, even under difficult circumstances. At the Agile Tour Brussels conference, Pascal presented stories of his experiences with using real options in decision taking.
Should software development look to finance for planning risk and uncertainty? That question recently surfaced in a debate about the “Last Responsible Moment” decision making practice in agile software development. This article covers some recent trends and debate around using finance concepts for risk management and planning in software development.
Clive Gee, an experienced IBM SOA Practitioner, describes how IT securing the networks has evolved into what he refers to as Information risk management. As the collaboration space increases with application integration and service oriented systems, he examines the risk management of the increased the surface area of threats and vulnerability.
Irrespective of the size of the project, stakeholders feel confident when they can a keep track of the risks and their mitigation strategies. Agile heavily promotes the use of information radiators. Keeping in line with the philosophy of radiators, Agilists suggested different ways of depicting risks visually for easy tracking and mitigation.
Real Options, a decision-making process based on Financial Option mathematics, was mentioned by Kent Beck in his 1999 "white book," Extreme Progamming Explained. More recently, Agilists have been exploring how Real Options intersects with Agile. Now Chris Matts and Olav Maassen specifically address the Lean Software community, proposing that application of Real Options improves Lean Development.
Risk management is an activity directed towards the assessing, mitigating and monitoring of risks. Agilists suggest ways to effectively manage risk and use it to make better commitments to the stakeholders.
Software development is Hard. One of the main reasons is that it is a complex adaptive system. Agile - when done right - seems to do a very good job of providing stabilizing feedback. We take a look at what it means for something to be a 'complex adaptive system' and what particular practices in Agile help us out.
Risk management deals with reducing the probability and impact of adverse events on a project. Members of the Agile community discuss whether explicit risk management is required or it is addressed implicitly as a part of Scrum.
Adopting Agile practices requires a shift in the organisation on many different levels, but can making such a change lead to serious trouble?
With Agile, we avoid early commitments to gain flexibility later. APLN members Chris Matts and Olav Maassen have noted a connection here with the math behind financial options. Their article introduces "Real Options," applying both psychology and financial math to our thinking about Agile practices. They propose it will help us refine our agile practices and take agile in new directions.
"Ruby is risky" is a common perception. As Ruby on Rails moves closer to the mainstream, that risk will decrease. In this article, Bruce Tate examines the changing risk profiles for Java and Ruby from a managers perspective, examining Java's initial adoption and also common risk myths about Rails.