ABSTRACT
This chapter considers some of the most important forms that the business value of software can take, both financial and non-financial. It also considers the impact of the presence of shareholders on the behavior of the managers of the organization. The chapter looks at how software business value can take various forms in an organization. It considers financial forms of value than non-financial forms of value because the focus is on business value. Understanding the nature of the business value is important for deciding on, measuring, and communicating the best metrics to drive desired behaviors. Ask a chief financial officer (CFO) about the value of an organization and they will start with the financial statement for the organization. From the financial perspective, software is only an asset if it appears on balance sheets. From a Waterfall perspective, the software development phases are debatable around the edges, but basically clear. However, from an Agile perspective, the definitions are much more fuzzy.
