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Linking Software Development and Business Strategy Through Measurement

Published 25 Nov 2013 in cs.SE | (1311.6224v1)

Abstract: Most of today's products and services are software-based. Organizations that develop software want to maintain and improve their competitiveness by controlling software-related risks. To do this, they need to align their business goals with software development strategies and translate them into quantitative project management. There is also an increasing need to justify cost and resources for software and system development and other IT services by demonstrating their impact on an organisation's higher-level goals. For both, linking business goals and software-related efforts in an organization is necessary. However, this is a challenging task, and there is a lack of methods addressing this gap. The GQM+Strategies approach effectively links goals and strategies on all levels of an organization by means of goal-oriented measurement. The approach is based on rationales for deciding about options when operationalizing goals and for evaluating the success of strategies with respect to goals.

Citations (163)

Summary

  • The paper introduces GQM+Strategies®, an evolution of the GQM methodology, providing a structured framework to directly link high-level business strategies with granular software development goals via measurement.
  • GQM+Strategies® enhances traditional GQM by incorporating interpretation models and structured templates at multiple levels to ensure consistent strategic alignment and effective data analysis.
  • Implementing GQM+Strategies® can improve cross-tier communication, facilitate efficient resource allocation, enhance decision-making in software investments, and support future risk management and standardization.

Linking Software Development and Business Strategy Through Measurement

The authors of the paper present the GQM+Strategies® approach as an advancement of the established Goal Question Metric (GQM) methodology, aiming to bridge the gap between software development processes and overarching business strategies. This model offers a structured framework for aligning business objectives with software project goals, thus facilitating a comprehensive approach to measurement and strategic alignment.

Overview of GQM+Strategies®

GQM+Strategies® expands upon the traditional GQM paradigm by incorporating elements that explicitly integrate business objectives with software goals across different organizational levels. It does so by defining business goals with corresponding strategies and measurement activities, which in turn inform lower-level technical goals. One notable enhancement to the traditional GQM approach is the incorporation of interpretation models at multiple levels, which guide the analysis of measurement data in context and provide criteria for assessing goal achievements.

Key Contribution

The primary contribution of GQM+Strategies® lies in its ability to create consistent linkages between high-level strategic objectives and granular project-level goals, ensuring alignment. This alignment is achieved through structured templates that document not only goals and strategies but also context factors and assumptions impacting those strategies. By emphasizing strategic clarity and measurement objectives, GQM+Strategies® enables organizations to track progress effectively, align resources, and make informed decisions about software development efforts.

Example Implementation

The article illustrates the application of GQM+Strategies® through an example of an organization, referred to as ABC, which aims to increase profitability from software service usage. The model supports defining a clear path from strategic goals, such as enhancing customer satisfaction, to specific software development targets, such as the timely delivery of functionalities aligned with customer requests. By adopting strategies such as delivering regular software updates and leveraging software measurement tools like COCOMO, the organization can tie software metrics directly to business outcomes, increasing accountability and transparency in project management.

Implications

The theoretical implications of the GQM+Strategies® approach are significant; it represents a paradigm shift towards a more integrated and systematic measurement framework that could potentially enhance how stakeholders conceptualize and execute software strategies in relation to business objectives. Practically, this approach can facilitate better communication across organizational tiers, promote efficiency in resource allocation, and improve decision-making processes regarding software project investments.

Speculation on Future Developments

Moving forward, the GQM+Strategies® approach may play a central role in advancing how organizations manage software-related risks and justify resource allocations based on strategic impact. As the complexity and interdependence between business processes and software systems continue to grow, methodologies like GQM+Strategies® will likely become integral in navigating competitive pressures and technological transformation. Furthermore, as its use expands across various sectors, it may also help organizations standardize measurement practices, thus fostering comparability and benchmarking opportunities industry-wide.

In summary, this paper underscores the importance of linking software development activities with broader business strategies through a structured measurement approach, paving the way for enhanced coordination and strategic agility.

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