Agile Tools: An ROI Example

Agile Tools: An ROI Example

on Jul 20, 10 • by Todd Landry • with No Comments

There has been lots of discussion on this blog (and others for that matter) on the importance of early defect detection, refactoring, and code reviews, but what does it all mean to a team of developers trying to maximize their velocity in a 2 week iteration? Based on a number of studies, and some real-world ...

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There has been lots of discussion on this blog (and others for that matter) on the importance of early defect detection, refactoring, and code reviews, but what does it all mean to a team of developers trying to maximize their velocity in a 2 week iteration? Based on a number of studies, and some real-world customer feedback  we have put together the following ROI…but note that this ROI is not measured in dollars, but rather in hours saved, because a development team can more easily relate to a 20 hour time savings per iteration rather than a break even point of 14.5 months. A few assumptions first…the team is made up of 10 developers, working on 5 stories (each story creates about 300 LOC) every 2 week iteration. Also, we used internal estimates for the refactoring time savings since we couldn’t find any 3rd party data on refactoring ROI. . If you have anything more concrete, I’d love to hear about it.

 

 

 

 

 

 

 

 

From this table (which has been a regular slide in our Agile in Action roadshow series) we see that tools can help, in this example just over 40 hours/iteration, which if you break that down further works out to about 1/2 day per developer every 2 weeks. Now that is an ROI that an agile development team can relate to…

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