Using Financial Valuation Techniques to Minimize Waste in Requirements Scoping

Abstract

This paper presents our initial experiences with employing option theory and NPV techniques for optimizing waste reduction in requirements scoping. Inspired by financial market theories, we analyze a large requirements scoping decision making history from the mobile handset domain. We outline how we can optimize waste reduction in requirements scoping by modeling the neutral, positive and negative scenarios, giving each of the scenarios appropriate budget and development team commitment.