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Microeconomics and Risk Management in Decision Making for Software Development

Herding Cats

Economics is the study of how people make decisions in resource-limited situations. Economics has two basis branches: Macroeconomics is the study of how people make decisions in resource-limited situations on a national or global scale. A recent survey of 600 firms indicated that 35% of them had at least one "runaway' software project.

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125 Project Management Buzzwords

The IIL Blog

Continuous Improvement The ongoing effort to improve a project process, product, or service to achieve better results. Cost Estimation The process of estimating project costs is done by leveraging historical data, expert judgment, or quantitative models. Feasibility Study An analysis of a project’s viability.

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Software Estimating Resources

Herding Cats

Effort Distribution to Estimate Cost in Small to Medium Software Development Project with Use Case Points,” Putu Linda Primandari and Sholiq, The Third Information Systems International Conference, Procedia Computer Science, 72, pp. 229 “How Should We Estimate Agile Software Development Projects and What Data Do We Need?”

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Estimating is a Learned Skill

Herding Cats

The primary purpose of software estimation is not to predict a project’s outcome; it is to determine whether a project’s targets are realistic enough to allow the project to be controlled to meet them ‒ Steve McConnell. The Future of Systems-and Software Development. Springer International Publishing, 2016.

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Two Parallel Processes of Project Success - Both Value and Delivery are Needed

Herding Cats

Software development is a Value Creaton activity, but Value cannot be determined unless we know the cost to produce that value and when that value will be available for use by those who of paid for that Value. For software development, those scarce resources are people, time, and money. Microeconomics .

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Risk Management Resources

Herding Cats

Risk Management is essential for development and production programs. Information about key project cost, (technical) performance, and schedule attributes is often uncertain or unknown until late in the program. A Risk Management Methodology for Project Risk Dependencies,” Tak Wah Kwan and Hareton K.N., 255, April 2010.

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Misunderstanding Making Decisions in the Presence of Uncertainty

Herding Cats

Risk Management is essential for development and production programs. Information about key project cost, performance, and schedule attributes is often uncertain or unknown until late in the program. Hybrid–Agile Software Development Anti–Patterns, Risks, and Recommendations,” Paul E. 12, 2008. “A

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