Predicting When Product Line Investment Pays
• Technical Note
Publisher
Software Engineering Institute
CMU/SEI Report Number
CMU/SEI-2003-TN-017DOI (Digital Object Identifier)
10.1184/R1/6582137.v1Topic or Tag
Abstract
A product line approach may appear very attractive, with obvious benefits in speedier time to market and higher quality, however many organizations demand financial justification before proceeding. Without knowing costs, the decision makers won't budget funds or personnel to carry out the up-front asset construction tasks. In addition, not all organizations are ready to commit up front to a full asset set, one that covers most if not all product line features. Many managers favor an incremental approach to product line adoption, one that first tackles areas of highest and most readily available commonality, earning payback early in the adoption cycle.
This report defines key factors to consider in taking an incremental approach to fielding a product line. An organization building a business case can apply these factors to show that product line investment can result in product development savings. The example presented here shows a net savings of almost $180 million in projects that would have cost about $600 million under traditional development approaches. The $180 million in savings takes into account an investment of $54 million in product line start-up costs. The example also illustrates ways to present the data needed to make a compelling business case.
Cite This Technical Note
Cohen, S. (2003, July 1). Predicting When Product Line Investment Pays. (Technical Note CMU/SEI-2003-TN-017). Retrieved December 22, 2024, from https://doi.org/10.1184/R1/6582137.v1.
@techreport{cohen_2003,
author={Cohen, Sholom},
title={Predicting When Product Line Investment Pays},
month={{Jul},
year={{2003},
number={{CMU/SEI-2003-TN-017},
howpublished={Carnegie Mellon University, Software Engineering Institute's Digital Library},
url={https://doi.org/10.1184/R1/6582137.v1},
note={Accessed: 2024-Dec-22}
}
Cohen, Sholom. "Predicting When Product Line Investment Pays." (CMU/SEI-2003-TN-017). Carnegie Mellon University, Software Engineering Institute's Digital Library. Software Engineering Institute, July 1, 2003. https://doi.org/10.1184/R1/6582137.v1.
S. Cohen, "Predicting When Product Line Investment Pays," Carnegie Mellon University, Software Engineering Institute's Digital Library. Software Engineering Institute, Technical Note CMU/SEI-2003-TN-017, 1-Jul-2003 [Online]. Available: https://doi.org/10.1184/R1/6582137.v1. [Accessed: 22-Dec-2024].
Cohen, Sholom. "Predicting When Product Line Investment Pays." (Technical Note CMU/SEI-2003-TN-017). Carnegie Mellon University, Software Engineering Institute's Digital Library, Software Engineering Institute, 1 Jul. 2003. https://doi.org/10.1184/R1/6582137.v1. Accessed 22 Dec. 2024.
Cohen, Sholom. Predicting When Product Line Investment Pays. CMU/SEI-2003-TN-017. Software Engineering Institute. 2003. https://doi.org/10.1184/R1/6582137.v1