ABSTRACT
This chapter argues that the business value of software estimation is derived from underline the fact that estimation is both a form of planning and an input to the business planning process. From a business value perspective, the cone of uncertainty is important because of the impact that the rigid adoption of early estimates can have on the budgeting and planning processes, especially if the software development is outsourced. The classic estimation cone of uncertainty around the working estimate starts wide at the start of the project. Estimation exists in the middle layers of the Agile planning onion. Estimation as a topic is often a synthesis of three related, but different concepts: budgeting, estimation, and planning. Budgeting is a strategic form of estimation that most corporate and governmental entities perform. The flow of activity conflated as estimation often runs from budget, to project estimation, to planning.
