5Investment Fundamentals

This chapter expands on the Investment definition introduced earlier and provides a practical method for forecasting income projections to support Cost of Delay (CoD) and Weighted Shortest Job First (WSJF) calculations. Investments are the smallest increment of software functionality that has the potential to increase income and/or reduce operational expenses. This allows CoD to be associated at the Investment level.

We start by differentiating Investments from initiatives and programs commonly used in portfolio management. Portfolio management is the process used to distribute funds across numerous potential projects to maximize the benefits for the company. It is like your stock portfolio where you allocate money ...

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