Value based software reuse investment

  • Authors:
  • John M. Favaro;Kenneth R. Favaro;Paul F. Favaro

  • Affiliations:
  • Intecs Sistemi S.p.A., Via Gereschi 32‐34, I‐56127 Pisa, Italy E-mail: favaro@pisa.intecs.it;Marakon Associates, Strand 1‐3, London WC2N 5HP, UK;Marakon Associates, 77 West Wacker Drive, Chicago, IL 60601, USA

  • Venue:
  • Annals of Software Engineering
  • Year:
  • 1998

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Abstract

A number of issues are covered in this paper. Chief among them is the need for greater discipline in understanding the economic benefits of software reuse within the context of a broader business strategy. While traditional methods fail to account for growth opportunities and flexibility generated by investments in reuse, the introduction of option pricing theory can greatly enhance the design and evaluation of software reuse projects. Similarly, the disciplines of business strategy hold promise to help to fill the void of “strategic context” within which reuse investment happens.