The document discusses a conference on business value and productivity. It promotes measuring and prioritizing business value over productivity and functionality when estimating software development costs and priorities. It suggests that while functionality is a requirement, it does not necessarily equate to business value, and that economic value should be estimated to truly understand business value.

1. Bye bye, productivity
Hello, Business Value!
AUTUMN CONFERENCE 2015

2. - International Conference
- In 7 countries since 1991
- Academics and Industry
- Conference Chair 2014
www.iwsm-mensura.org
Over 20 publications
www.researchgate.net
- System Integrator
- Netherlands, Belgium, Luxemburg
- over 2,900 employees
- Manager Pricing Office
www.ordina.com
WHO IS FRANK?
- Software Metrics Association
- Based in the Netherlands
- About 90 member organisations
- Counting Practices Committee
www.nesma.org
- Functional Size Measurement
- 28 countries
- Open Source
- President & Measurement
Practices
www.cosmic-sizing.org
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3. PRODUCT
TIME
= PRODUCTIVITYPRODUCT
TIME
From the history book
| AUTUMN CONFERENCE 2015
© 2013 waterfall by Chrome Media Inc
Agile Software Development on Vehikl

4. IN 2015 WE’RE AGILE
2-4 Week
Iteration
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© 2015 PINGV Creative Engineering
Our Engineering Process

5. WHO NEEDS PRODUCTIVITY?
PRODUCT
TIME
AGILE ESTIMATION IS EASY
SPRINT TIME (PERSON HOURS)
x
TEAM SIZE
x
HOURLY RATE
COST / SPRINT =
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6. FEATURE
Say:
“Hello world”
IT’S THE RESULT THAT COUNTS
FEATURE
Rebuild it in
Windows 95
to make it
look modernFEATURE
Make it look really
attractive, so that
looks better than
similar software by
the competition
FEATURE
Make it robust
so that we can
say hello to all
the world 105
times per sec
B
U
S
I
N
E
S
S
V
A
L
U
E
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7. COUNT BUSINESS VALUE
BUSINESS VALUE  FUNCTIONALITY?
1 FP
3 FP4 FP
2 FP
1 FP
6 FP
5 FP
25 FP
0 FP
40 FP
62 FP
98 FP
43 FP
180 FP
IF FUNCTIONALITY IS REQUIRED THIS MEANS:
- IT HAS VALUE TO SOMEONE REQUESTING IT
- IT HAS PRIORITY TO REACH THE TOP OF BACKLOG
- IT HAS COST MONEY TO BUILD IT
WE MEASURE BUILDING COST . . .
. . . BUT DOES IT MEAN BUSINESS VALUE?
| AUTUMN CONFERENCE 2015

8. MEASURE BUSINESS VALUE
ECONOMIC VALUE:
CAN YOU ESTIMATE THIS?
€
$
£
¢
¥
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9. PRIORITIZE BUSINESS VALUE
RELATIVE WEIGHTING
© 2007 Mike Cohn
Prioritizing your Product Backlog
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XS S M L XL XXL8
13
5
1
8
13
=5
=0,6

10. BUSINESS VALUE FOR NESMA
ANSWER THE QUESTION:
WHAT IS BUSINESS VALUE
HOW DO WE ESTIMATE:
BUSINESS VALUE
DEFINE THE METRIC FOR:
BUSINESS VALUE
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BUSINESS VALUE MAKES NESMA
REMAIN RELEVANT