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RE: Quantifying ROI

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  • greg_urquhart@agilent.com
    Hi Terence Mark Denne s book Software by Numbers
    Message 1 of 5 , Feb 17 5:38 AM
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      Hi Terence

      Mark Denne's book 'Software by Numbers' (http://www.amazon.com/exec/obidos/tg/detail/-/0131407287/qid=1108647320/sr=1-1/ref=sr_1_1/104-9185927-9803132?v=glance&s=books) shows how to measure return using all the standard financial measures, such as NPV & IRR, and how to calculate key metrics such as self-fundng point and break-even point.

      It's well worth a read; it will help you clearly demonstrate the value of delivering early and often.

      Regards

      Greg

      -----Original Message-----
      From: Gannon, Terence [mailto:tcgannon@...]
      Sent: 16 February 2005 19:17
      To: scrumdevelopment@yahoogroups.com
      Subject: Quantifying ROI


      Agile Project Management with Scrum is predicated on prioritizing the Product Backlog based on ROI. I was curious to know what units of measure other organizations are using to quantify ROI.

      My thinking is that we ought to challenge ourselves to use good old dollars-and-cents, but perhaps there are other, better ideas out there that could also be used?

      I'm tempted to add a column to the PB spreadsheet depicted in Ken's book to capture this value, whatever it is we wind up using.

      Terence Gannon
      Manager, Software Development
      Trican Well Service
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