The economic worth of a commercial organization is a function of the present value of its future profits, discounted for both time and risk. Consequently, the economic value of a software firm is greatly affected by the predictability of the organization's software development projects, since unpredictable projects warrant large risk premiums. We can quantitatively approximate the value of increased predictability, and evaluate the effectiveness of efforts, such as process improvement, to improve the predictability of software development projects.
- Software engineering -- Costs,
- Software engineering -- Evaluation -- Methodology,
- Software engineering -- Management
Available at: http://works.bepress.com/warren_harrison/4/