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Complementing Measurements and Real Options Concepts to Support Inter-iteration Decision-Making in Agile Projects

Agile software projects are characterized by iterative and incremental development, accommodation of changes and active customer participation. The process is driven by creating business value for the client, assuming that the client (i) is aware of it, and (ii) is capable to estimate the business value, associated with the separate features of the system to be implemented. This paper is focused on the complementary use of measurement techniques and concepts of real-option-analysis to assist clients in assessing and comparing alternative sets of requirements. Our overall objective is to provide systematic support to clients for the decision-making process on what to implement in each iteration. The design of our approach is justified by using empirical data, published earlier by other authors.