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Re: Cost Benefit Analysis

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  • Rich Guess
    Jeff, It doesn t seem to me that Scrum is the best tool to provide a cost benefit analysis, it is the way to build the project. While traditional methods give
    Message 1 of 13 , Jan 20, 2005
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      Jeff,

      It doesn't seem to me that Scrum is the best tool to provide a cost
      benefit analysis, it is the way to build the project. While
      traditional methods give you a number, don't a lot of those projects
      fail or deliver obsolete software? You can't strictly plan every
      phase of a software project, no matter who the developer, there are
      too many variables that are not considered at the beginning of a
      project, which will invariable have an effect on the scope.

      If you need to give a better picture to the management, what about
      having a Sprint planning meeting for each of the primary components
      of the project? The estimates will be inaccurate compared to the end
      result, but you may get the OK to begin the project. With Scrum you
      will give them incremental updates and an actual view of the
      software every 30 days. If at the end of the first 30 days you and
      your team realize that everything was grossly underestimated, it
      will be evident to the management team and they could make a new
      assessment based on the new information.

      In getting management to replace an old system, really define
      the "pain points". For example, it takes 2 people 4 hours to do task
      X, with the new software, 1 person should be able to do it in 2
      hours. Give them back some of the cost benefit analysis they are
      asking for; the company is going to grow, right now it takes us X
      hours per client to complete this task, that equates to Y staff
      members. How many new clients are you going to add? Are you going to
      staff up to meet that demand, or should we get started building a
      tool?

      Good luck




      --- In scrumdevelopment@yahoogroups.com, "jtjhornby" <jhornby@s...>
      wrote:
      >
      > How does one do a cost benefit analysis for a project that will be
      > using a Scrum methodology? Estimating benefits of software is
      always
      > difficult, but traditional methods of software development at
      least
      > gave us a number for how much it was going to cost. How do you
      > figure out the cost of an entire new system unless you strictly
      plan
      > every sprint at the beginning of the project? And if that's not
      > possible, how do you convince management to replace an old system
      if
      > you can't tell them when the minimum functionality to replace the
      old
      > system will be ready and how much the new system will cost?
      >
      > Jeff
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