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

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Chapter 3. Identifying and Valuing Marketable Features

Agility and time to market are critical for success in today's fast-paced IT environment. A software development project can be optimized for financial performance by defining it in terms of MMFs. In this section we introduce methods for eliciting MMFs and define the incremental funding methodology (IFM).

Incremental Funding Methodology

In Chapter 2 we introduced the concept that a carefully prioritized delivery schedule optimizes the ROI of a project. If limited funds are available for financing a project, this has the effect of enhancing the project's cash flow so that revenue can be generated earlier to offset the development costs of subsequent MMFs, thereby lowering capital demand.

Usually, ...

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