Experiences of implementing a value-based approach

This study tries to advance and define the concepts, principles and practical methods of a value-based approach, involving definition of the essential concepts of value, cost and worth in software development. These definitions originate from the Value Engineering (VE) method, originally applied and developed for the needs of the production industry. Therefore, for the purposes of this study these concepts are firstly justified and secondly defined. In order to study and evaluate the value-based approach, a method called value assessment is developed and used when assessing processes and products. The results of industrial case show that even though there is still much to do in making the economic-driven view complete in software engineering, the value-based approach outlines a way towards a more comprehensive understanding of it. For industrial users value assessment seems to give a practical help for handling cost and profitability related challenges.