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The Business Value of Agile Software Methods by Saya Sone, Hasan Sayani, David Rico

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Real Options Analysis of Agile Methods

The real options analysis (ROA) of agile methods is the economic business value gained because of decreased risk and increased adaptability to change. Creating new software products is a complex and risk-prone activity, because customer needs cannot be defined in advance. Agile methods are based on new product development principles and have built-in practices to manage risk and respond to change. Remember, agile methods are based on the values of customer collaboration, teamwork, iterative development, and adaptability.

Customer collaboration uses close and frequent interactions with stakeholders to continuously capture and respond to their needs. By using teamwork, small groups of highly skilled ...

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