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Software by Numbers: Low-Risk, High-Return Development by Mark Denne, Jane Cleland-Huang

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Chapter 2. The New ROI

If software development is to be treated as a value creation exercise, a solid understanding of the financial metrics used to evaluate and track value creation activities is necessary. In this chapter we define these metrics and show how they are impacted by the introduction of MMFs and incremental delivery concepts.

Applications and ROIs

In the world of commercial application software development, good ideas, technology, and design are rarely sufficient to elicit approval for a project. The reality of the commercial world is that software development is an investment. As with any investment, it involves certain risks and is made with the objective of achieving a return on that investment.

Of course, the return on that investment ...

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