Return on Investment (ROI)
The principles of Agile scrum delivery allow business owners to begin realizing the benefit of feature delivery before the project is completed. The project is front loaded with the most profitable features and once the break-even point in the ROI is reached, it is up to the stakeholders and product owner to continue to evaluate the benefit of delivering additional features.
The ROI can be produced at both the product level (a compilation of all desired features) and at the feature level. Business value can be defined using a profitability calculation for determining prioritization of each feature-
Revenue –Cost = Priority
The larger the difference between Revenue and Cost, the higher the priority of a feature. It is through these calculations as related to the ROI that business value in Agile scrum is rapidly delivered. The following criteria will provide an opportunity for the product owner to evaluate the quality of the ROI delivered by feature:
- Features are not meeting the projected timeline for driving revenue and the difference becomes smaller in execution and
- Costs increase during the development cycle.
Recommended Further Reading
The following materials may assist you in order to get the most out of this course: