Personal tools
You are here: Home Research Trends & Opportunities Advanced Software Engineering and Web Technology The Future of Software Development and Software Engineering Economics

The Future of Software Development and Software Engineering Economics

Stanford_University_091421A
[Stanford University]
 
 

- Overview

Software engineering economics is about making software engineering-related decisions in a business setting. The success of software products, services and solutions depends on good business management. However, the relationship between the software business and software development and engineering remains ambiguous in many companies and organizations. 

Software engineering economics provides a method to systematically examine the properties of software and software processes and relate them to economic measures. These can be weighted and analyzed when making decisions within a software engineering project and its organization.

The essence of software engineering economics is to align software technology decisions with an organization's business goals. It explores key aspects of software engineering economics, including life cycle economics; risk and uncertainty; economic analysis methods and practical considerations, linking concepts and theories to contemporary software economic realities 
 
 

- Software Engineering Economics

Economics is the study of values, costs, resources and their relationships in a particular context or situation. In the software engineering discipline, activities have costs, but the resulting software itself has economic properties. Software engineering economics provides a method to study the properties of software and software processes in a systematic manner, linking them to economic measures. These economic indicators can be weighed and analyzed when making software organization-wide decisions, as well as comprehensively across the production or acquisition business. 

Software engineering economics is concerned with aligning software technology decisions with an organization's business goals. In all types of organizations -- whether "for-profit", "non-profit" or government agencies -- this translates to going concern. 

In a "for-profit" organization, this also involves realizing a tangible return on invested capital -- both assets and capital employed. This Knowledge Area (KA) has been developed to address all types of organisations regardless of focus, product and service mix or capital ownership and tax restrictions. Decisions such as "should we use a particular component?" may seem easy from a technical perspective, but can have serious implications for the software project and the business viability of the final product. 

Engineers often wonder if these concerns apply because they are "just engineers." Economic analysis and decision-making are important engineering considerations because engineers are able to evaluate decisions from a technical and business perspective. The content of this knowledge area is an important topic for software engineers to understand, even if they have never actually been involved in a specific business decision; they will have a comprehensive understanding of business issues and the role that technical considerations play in making business decisions. 

Many engineering proposals and decisions, such as make vs. buy, have deep inherent economic implications and should be explicitly considered. This Knowledge area (KA) begins by covering the fundamentals of software engineering economics, key terms, fundamental concepts, and common practices to show how decision-making in software engineering includes or should include a business perspective. It then provides a life cycle perspective, emphasizes risk and uncertainty management, and shows how to use economic analysis methods. A number of practical considerations culminated in the knowledge domain.

 

- The Future of Software Development and Beyond

 

 

 
 

[More to come ...]


 

 

Document Actions