Appendix B. Estimating Business Value

“What’s it worth to you?”

Anonymous

Creating software is about delivering business value. Without some measure of business value, it’s hard to determine whether the software has any.

Business Value

Every feature in a system such as Sam’s should have business value. Business value can come from numerous areas, such as these:

• Increased revenue (sales, royalties, fees)

• Decreased expenses

• Using fewer resources

• More efficient use of resources

• Customer satisfaction

• Product promoters/satisfiers/detractors

• Staying in business

• Avoiding risk

Business value in some areas is easy to quantify because it is straight dollars. However, in other areas, quantification is more difficult. But without some ...

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