Value estimation for software product management

Value-based approach of software engineering proved to be one of the most important branches of software engineering because it elicits and reconciles stakeholder¿s value propositions with respect to the system into a mutually satisfactory set of objectives for the system. Thus most of software organizations in market-driven environment nowadays adopt value-based approach with the focus on maximizing the value gained from their products against consumed resources. This leads to a need for a value estimation methodology to incorporate all the software product value aspects altogether while measuring the product value. Most of the existing methodologies focus on measuring product financial value and neglect the nonfinancial value. Value point measurement will facilitate quantifying the total value obtained from the product and compare it against planned product budget at early phases of the product life cycle. Such comparison will be used as a sort of justification for product feasibility. This paper illustrates a new estimation methodology for the software product value called ¿Value Point¿. VP measures value gained from the software product through quantifying value obtained from each product requirement. The process for value point counting will be illustrated through a designed product management framework. A case study is performed to demonstrate the added value from the proposed methodology.