Project Economics

Selecting and Prioritizing High-Value Work

Almost all of us have worked on too many projects that have failed because of economic reasons rather than technical reasons. Just as the technical team is required to estimate the effort that will go into a project, a marketing or product management team should estimate the benefits of doing the project. Benefits can come in the form of additional sales, increased customer retention, increased operating efficiencies, and so on.

In this class we will look at return on investment (ROI) as well as traditional discounted cash flow methods such as net present value (NPV) and internal rate of return (IRR). We will also look at newer approaches such as economic value added (EVA) and real options valuation, which becomes especially applicable for teams using agile processes or an incremental development process. The math is easy, the concepts are powerful. You will return home with practical knowledge about how to apply these straight-forward techniques to prioritizing and selecting projects.


	File size	0.5 MB
	File type	pdf
	Presentation date	September 29, 2005
	Presented at	Software Development Best Practices 2005
	Duration	90 minutes
	Tags	2005 prioritizing product owner
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