Value-Based Feedback in Software and Information Systems Development

The role of feedback control in software and information system development has traditionally focused on a milestone plan to deliver a pre-specified set of capabilities within a negotiated budget and schedule. One of the most powerful approaches available for controlling traditional software projects is called the Earned Value system. However, the Earned Value Management process is generally good for tracking whether a project is meeting its original plan. It becomes difficult to administer if the project plans change rapidly. And more significantly it has absolutely nothing to say about the actual value being earned for the organization by the results of the project. This chapter begins by summering a set of four nested feedback and feedforward loops that have been successfully used to scope, estimate, control, and improve the predictability and efficiency of software development and evolution. It then proposes an alternative approach for project feedback control. It focuses on the actual stakeholder value likely to be earned by completing the project. And a framework is provided for monitoring and controlling value in terms of a Benefits Realization Approach [Thorp, 1998] and business case analysis. An order processing system is used as an example to illustrate the value-based feedback control mechanisms. At the end of this chapter, it presents the conclusions and directions for future research and development.