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Contribution to Book
Risk and the Economic Value of the Software Producer
Value-Based Software Engineering (2006)
  • Warren Harrison, Portland State University
Abstract

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.

Keywords
  • Software engineering -- Costs,
  • Software engineering -- Evaluation -- Methodology,
  • Software engineering -- Management
Disciplines
Publication Date
2006
Editor
Stefan Biffl, Aybuke Aurum, Barry Boehm, Hakan Erdogmus, Paul GrĂĽnbacher
Publisher
Springer
Citation Information
Warren Harrison. "Risk and the Economic Value of the Software Producer" Value-Based Software Engineering (2006)
Available at: http://works.bepress.com/warren_harrison/4/