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

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Agile vs. Traditional Methods

The business value of agile methods is impressive when compared to that of traditional methods. The primary drivers of economic business value are costs and benefits. This is true whether return on investment (ROI), net present value (NPV), or real options analysis (ROA) is used to estimate business value. The key to maximizing the business value of any method is low costs and high benefits, be it agile or traditional. This is especially true for valuation based on the cost of quality, total cost of ownership, and total life cycle cost.

Agile methods have both intangible and tangible business value. Examples of intangible business value are improved customer communication, trust, and satisfaction as well as ...

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