Financial Management and Control of Iterative Software Processes

Cost Estimation

Alexander Baumeister and Markus Ilg


May 20, 2013

Vortrag an der 3. Jahreskonferenz Accounting and Finance 2013 (AF 2013) in Bangkok.

Combining mainstream software process models and activity based costing enables new and improved approaches to the financial management and control of software processes. A similarity-based approach is presented and a solution to one of the key problems, the sufficient size of the similarity database is given – by introducing the concept of normalized iteration types. It is shown how to generate normalized iterations as well as how these have to be applied to calculate new software pro-cesses. Iteration signatures are defined and their application to form clusters of iterations as well as to easily search the data-base for similar iteration types is discussed. To further support management and control of projects up and running, ideas tak-en from the earned value method are adopted.