Using Portfolio Theory to Support Requirements Selection Decisions
| Document type: | Conference Papers |
|---|---|
| Peer reviewed: | Yes |
| Full text: | |
| Author(s): | Nina Dzamashvili-Fogelström, Emil Numminen, Sebastian Barney |
| Title: | Using Portfolio Theory to Support Requirements Selection Decisions |
| Conference name: | 4th International Workshop on Software Product Management (IWSPM) |
| Year: | 2010 |
| Pagination: | 49 - 52 |
| ISBN: | 978-1-4244-8764-6 |
| City: | Sydney |
| URI/DOI: | 10.1109/IWSPM.2010.5623864 |
| Organization: | Blekinge Institute of Technology |
| Department: | School of Computing, School of Management (Sektionen för datavetenskap och kommunikation, Sektionen för management) School of Computing S-371 79 Karlskrona, School of Management S- 371 79 Karlskrona +46 455 38 50 00 http://www.bth.se/com; http://www.bth.se/mam/ |
| Authors e-mail: | nino.dzamashvili.fogelstrom@bth.se, emil.numminen@bth.se, sebastian.barney@bth.se |
| Language: | English |
| Abstract: | Abstract—Selecting requirements for a release of software is a difficult undertaking as people have trouble comparing requirements of different types and have natural biases towards short-terms gains over longer-term sustainability. Portfolio theory is proposed as a solution to this problem, as it provides a method for balancing investment options to maximize the likelihood of a given return. This approach is explored generally and through an example. The results suggest portfolio theory can be applied for this purpose. Applying portfolio theory to determine the amount of development time that should be spent on different types of requirements shows the most potential, especially when data on expected risks and returns is limited. |
| Subject: | Software Engineering\General |
| Keywords: | Market-driven development, software product, requirements selection, product management, portfolio theory, real options theory |
