E-raamat: The Business Value of Software

(The David Consulting Group, Paoli, Pennsylvania, USA)
  • Formaat: 239 pages
  • Ilmumisaeg: 01-Sep-2017
  • Kirjastus: Auerbach Publishers Inc.
  • ISBN-13: 9781498782906
  • Formaat - PDF+DRM
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  • Formaat: 239 pages
  • Ilmumisaeg: 01-Sep-2017
  • Kirjastus: Auerbach Publishers Inc.
  • ISBN-13: 9781498782906

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In business, driving value is a key strategy and typically starts at the top of an organization. In todays 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 todays 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 hasnt 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 cultureone where all stakeholders, including technology and businesshave 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.
Preface xi
Acknowledgments xiii
Author xv
Acronyms xvii
1 Why Software Value?
1(18)
Why Not Information Technology Value More Generally?
1(3)
Who Should Care about the Business Value of Software?
4(1)
What Is the Business Value of Software?
5(6)
Impact of Perspective on Business Value
6(1)
Software Value Sidestep
7(1)
Software Value Life Cycle
8(2)
What Role Does Time Play in the Business Value of Software?
10(1)
A More Sophisticated Definition of the Business Value of Software
10(1)
What Do We Mean by Software Value as an Asset and Software Value as a Flow?
11(1)
Current Approach to Managing the Business Value of Software as an Asset
11(3)
Financial Perspective
12(1)
Software Maintenance Perspective
12(1)
Portfolio Management Perspective
13(1)
Current Approach to Maximizing the Flow of Software Business Value
14(4)
What Is Lost When Software Value Is Invisible?
18(1)
2 Six Things the C-Suite Should Know about Software Value
19(14)
Chief Executive Officer
21(1)
The Board
22(1)
Chief Financial Officer
23(2)
Chief Marketing Officer
25(1)
Chief Digital Officer
26(2)
Chief Information Officer
28(1)
Lenses
29(2)
Summary
31(2)
3 Make the Business Value of Software Visible
33(20)
Why Visible?
33(6)
Why Learning?
35(1)
Why Status?
36(3)
How Visible? Information Radiators
39(3)
Value of Problem Status Visualization
42(1)
Value of Process Status Visualization
43(8)
Value of Solution Status Visualization
51(1)
Summary
51(2)
4 Forms of Software Value
53(18)
Financial Forms of Software Business Value
55(1)
Software as an Asset or an Expense
56(12)
GASB Statement 42
60(1)
How to Capitalize Agile?
61(1)
The Dark Side of Software Capitalization and Amortization?
62(4)
Software as Revenue
66(2)
Non-Financial Forms of Software Value
68(2)
Software Reputation
68(1)
Technical Debt
69(1)
Data and Information
69(1)
Open Source
70(1)
Summary
70(1)
5 Establishing Software Value Strategies
71(20)
Lean Software Development
72(12)
Removal of Waste
72(1)
Pull Not Push
73(1)
Monitor and Control Variation in the Process but Not in the Inputs
74(1)
Reinertsen's Principles for Optimizing Value Flow through Product Development
75(2)
Kanban
77(3)
A Portfolio Management Kanban System
80(2)
Cost of Delay and Weighted Shortest Job First
82(2)
Connecting Up the Dots between Portfolio Management and Development Teams
84(3)
End-to-End Business Value
87(3)
Orphan Stories
88(1)
SAFe Portfolio Layer and Software Value
88(1)
SAFe Value Stream Layer and Software Value
89(1)
Summary
90(1)
6 Business Value from Products and Programs
91(16)
Product or Program?
91(3)
Similarities between Products and Programs
91(3)
Differences between Products and Programs
94(1)
Software Value for Product/Program with Enabling Portfolio Strategy
94(6)
Value Streams
95(2)
Value Stream Mapping and Analysis
97(3)
Software Value for Product/Program without Enabling Portfolio Strategy
100(4)
Product/Program Value in Waterfall Organizations
100(2)
Product/Program Value in Agile Organizations
102(2)
Organizations Using Agile and Waterfall
104(1)
Contributions to Maximizing Software Value at the Product/Program Level
104(1)
Summary
105(2)
7 Establishing Software Value Tactics
107(18)
The Why and How of Queue Management for Software Development...
108(2)
Waterfall and Queue Management
110(1)
Agile and Queue Management
111(2)
Value Visualization
113(3)
The Problem
113(2)
Why Value Visualization?
115(1)
The Value Visualization Framework
116(2)
VVF Step 4: Define the Cost of Delay
117(1)
VVF Step 5: Quantifying the Economic Value of Stories Once Deployed
118(1)
Resource Allocation at a Tactical Level
118(1)
Lenses on the VVF
119(1)
A VVF Example
120(3)
Summary
123(2)
8 Metrics for Business Value in Software Development
125(22)
Value Metrics for Agile Governance
126(1)
Traditional Waterfall Metrics
126(1)
The Metrics Challenge for Agile
127(19)
Software Size
130(1)
Software Productivity
131(1)
Software Complexity and Technology Flexibility
131(1)
Software Quality/Reliability
132(1)
Customer Collaboration
133(1)
Individuals and Interactions
134(1)
Responding to Change
135(1)
Agile Governance Metrics Maturity Evolution
136(4)
Benchmarking Business Value
140(6)
Summary
146(1)
9 The Software Value Management Office
147(14)
Where Does the SVMO Fit in the Organization?
148(3)
What Is the Mission of the SVMO?
151(1)
What Are the Functions of the SVMO?
151(2)
Software Value of People
153(3)
How Should the SVMO Itself Be Measured?
153(1)
Portfolio, Product/Program, and Team Measurement
154(1)
Software Value Information Available
154(1)
Percentage of Individuals with Access to Software Value Data
155(1)
Percentage of Individuals Using Software Value Data to Make Informed Decisions
155(1)
Software Value Flow Increase versus Last Quarter
155(1)
SVMO and Earned Value Management
156(3)
Summary
159(2)
10 The Business Value of Software Estimation
161(12)
Software Development Estimates
163(1)
Where Is the Business Value?
164(6)
#NoEstimates Scenarios
170(1)
Standard Corporate Environments
170(1)
High-Level Estimation (Product and Release)
170(1)
Task-Level Estimation (Iteration and Daily)
171(1)
Commercial/Contractual Work
171(1)
Budgeting, Estimation, Planning, #NoEstimates, and the Agile Planning Onion
171(1)
Summary
172(1)
11 Mergers and Acquisitions: Software Value and Risks
173(16)
Prioritizing the Software Value and Risk Assessment Based on Business Functions
174(2)
Software for Common Functions
175(1)
Software for New Functions (New to the Acquirer)
175(1)
Prioritizing the Software Value and Risk Assessment Based on Lenses
176(4)
Build-Buy Lens
177(2)
End-Client Lens
179(1)
Profit Lens
180(1)
Approach to Assessing the Software Value and Risk of a Business
180(7)
Software Asset Due Diligence
182(2)
Software Asset Risk Management
184(1)
Software Asset Maturity Analysis
184(1)
Software Asset Integration Management
185(2)
Summary
187(2)
12 Broader Impact of Software Value Management
189(16)
Business Value of Cybersecurity
189(3)
Value of Unused Software
192(1)
Hardware and Software Value
193(3)
Software and People
196(3)
Holistic Value
199(3)
Other Applications of Value Visualization, Cost of Delay, and WSJF in Information Technology
202(1)
Summary
202(3)
Appendix: Waterfall and Agile Software Development Methodologies
205(8)
Waterfall Development
205(3)
Agile Development
208(5)
Other Agile Methodologies
210(3)
References 213(2)
Index 215
Michael D. S. Harris is a recognized author and speaker on a range of topics related to the Value Visualization of IT. He is considered a thought leader in the software development industry and has more than 30 years of broad management experience in the IT field, including periods in R&D, development, production, business, and academia. Mr. Harris has held numerous senior executive positions in Fortune 500 companies, including: Fidelity National Services (NYSE: FIS), Sanchez Computer Associates (NASDAQ: SCAI) and MasterCard International (NASDAQ: MA). Currently, Mr. Harris is president, CEO and majority owner of David Consulting Group.