Building a business case for COTS-centric development: an investment analysis perspective

نویسنده

  • Hakan Erdogmus
چکیده

Software development centered on Commercial Off-theShelf, or COTS, components is becoming exceedingly important. However, building a business case for COTScentric development may be hard, owing to the risks and uncertainties involved. Investment analysis can be a valuable tool to support the business case for a new software project. This position paper discusses an approach based on economic value and two complementary investment analysis techniques. Comparative evaluation is proposed to analyze the economic incentive to choose a COTS-centric strategy in a project vis à vis the alternative, the custom development strategy, through an appropriately defined metric. Real options analysis is proposed to value strategic flexibility inherent in COTS-centric development in the face of uncertainty.

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تاریخ انتشار 1999