Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-01T00:16:27.697Z Has data issue: false hasContentIssue false
  • English
  • Français

Budgeting for Agile Product Development

Part of: Innovation Engineering

Published online by Cambridge University Press:  26 July 2019

Maximilian Vierlboeck ,
Kristin Gövert ,
Jakob Trauer  and
Udo Lindemann

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Recent reports and predictions indicate a consistent and continuous growth in the field of Research and Development. Such growth leads to increased resource investments, which have to be managed effectively to eventually achieve value maximization. This management is cohesive with budgeting. In changing environments, said effectiveness can be difficult to attain.

Agile development is supposed to provide the necessary flexibility for uncertain situations and has recently seen a stark adoption incline. Unfortunately, budgeting and resource allocation have not yet been resolved for agile approaches: a comprehensive research including recent publications showed a lack of models and frameworks for the adoption and application of budgeting with agile development. Due to this lack of a comprehensive approach, as well as limitations and restrictions of existing research, this paper describes the design of a budgeting approach suitable for and compatible with agile product development. The developed solution, the Structured Agile Budgeting Process, provides a holistic and interdisciplinary way to allocate resources while still allowing the flexibility and benefits of agile development.

Keywords

BudgetingAgileDesign managementDesign costingOrganisation of product development
Type
Article
Information
Proceedings of the Design Society: International Conference on Engineering Design , Volume 1 , Issue 1 , July 2019 , pp. 2169 - 2178
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
© The Author(s) 2019

References

Abrahamsson, P., Salo, O., Ronkainen, J., & Warsta, J. (2002), “Agile software development methods: Review and Analysis”. Espoo, Finland: VTT Publications 478.Google Scholar
Beck, K., Beedle, M., Van Bennekum, A., Cockburn, A., Cunningham, W., Fowler, M., Grenning, J., Highsmith, J., Hunt, A., & Jeffries, R. (2001), Manifesto for Agile Software Development. Available at: http://agilemanifesto.org retrieved April 30, 2018.Google Scholar
Berk, J., & DeMarzo, P. (2017), Corporate Finance - Global Edition, Pearson, London.Google Scholar
Blumentritt, T. (2006), “Integrating strategic management and budgeting”, Journal of Business Strategy, Vol. 27 No. 6, pp. 73–79. https://doi.org/10.1108/02756660610710382Google Scholar
Boehm, B. W. (1981), Software Engineering Economics, Prentice Hall, Englewood Cliffs, NJ.Google Scholar
Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2013), Principles of Corporate Finance (11th ed.), McGraw-Hill, New York, NY.Google Scholar
Cao, L., Mohan, K., Ramesh, B., & Sarkar, S. (2013), “Adapting funding processes for agile IT projects: an empirical investigation”, European Journal of Information Systems, Vol. 22 No. 2, pp. 191–205. https://doi.org/10.1057/ejis.2012.9Google Scholar
Cobb, C. G. (2015), The Project Manager's Guide to Mastering Agile: Principles and Practices for an Adaptive Approach, John Wiley & Sons, Hoboken, NJ.Google Scholar
Cohn, M. (2010), Succeeding with Agile, Pearson, London.Google Scholar
Cooper, R. G. (1990), “Stage-Gate Systems: A New Tool for Managing New Products”, Business Horizons, Vol. 33 No. 3, pp. 44–54. https://doi.org/10.1016/0007-6813(90)90040-iGoogle Scholar
Cram, A. W., & Brohman, K. M. (2010), “Beyond Modes: A New Typology of ISD Control”, ICIS 2010, St. Louis, MO, December 12–15, 2010, Paper 94.Google Scholar
Dayananda, J., Irons, R., Harrison, S. R., Herbohn, J. L., & Rowland, P. (2002), Capital budgeting: Financial Appraisal of Investment Projects, Cambridge University Press, Cambridge.Google Scholar
de Campos, C. M. P., & Rodrigues, L. L. (2018), “Budgeting Techniques”, in Farazmand, A. (Ed.), Global Encyclopedia of Public Administration, Public Policy, and Governance, Springer, Berlin, pp. 501–509.Google Scholar
Denning, S. (2018a), “How major corporations are making sense of Agile”, Strategy & Leadership, Vol. 46 No. 1, pp. 3–9. https://doi.org/10.1108/SL-11-2017-0104Google Scholar
Denning, S. (2018b), “The Challenge of Leadership in the Age of Agile”, Leader to Leader, Vol. 2018 No. 89, pp. 20–25. https://doi.org/10.1002/ltl.20371Google Scholar
Ehrlenspiel, K., & Meerkamm, H. (2013), Integrierte Produktentwicklung (5th ed.), Hanser, Munich.Google Scholar
Eisenhardt, K. M. (1989), “Building Theories from Case Study Research”, Academy of management review, Vol. 14 No. 4, pp. 532–550. https://doi.org/10.5465/amr.1989.4308385Google Scholar
Gonçalves, L. (2018), “Scrum”, Controlling & Management Review, Vol. 62 No. 4, pp. 40–42. https://doi.org/10.1007/s12176-018-0020-3Google Scholar
Hogue, I. (2014), Managing the Impossible with an Agile Budget. Available at: https://www.leadingagile.com/2014/04/agile-budgeting retrieved May 12, 2018.Google Scholar
Innovation Research Interchange (2018), “2018 R&D Trends Forecast”, Research-Technology Management, Vol. 61 No. 1, pp. 23–34. https://doi.org/10.1080/08956308.2018.1399021Google Scholar
Jalali, S., & Wohlin, C. (2012), “Global software engineering and agile practices: a systematic review”, Journal of Software: Evolution and Process, Vol. 24 No. 6, pp. 643–659. https://doi.org/10.1002/smr.561Google Scholar
Kengatharan, L. (2018), “Capital Budgeting Theory and Practice: A review and agenda for future research”, American Journal of Economics and Business Management, Vol. 1 No. 1, pp. 20–53. https://doi.org/10.31150/ajebm.v1i1.5Google Scholar
Knaster, R., & Leffingwell, D. (2017), SAFe® 4.0 Distilled: Applying the Scaled Agile Framework for Lean Software and Systems Engineering, Addison-Wesley, Boston, MA.Google Scholar
Komus, A. (2013), “Agile Methoden in der Praxis - Studie zur Anwendung und Zufriedenheit”, HMD Praxis der Wirtschaftsinformatik, Vol. 50 No. 2, pp. 84–91. https://doi.org/10.1007/BF03340799Google Scholar
Komus, A. (2017), “Abschlussbericht: Status Quo Agile 2016/2017”, 3. Studie über Erfolg und Anwendungsformen von agilen Methoden, Hochschule Koblenz University of Applied Sciences.Google Scholar
Lalli, W. R. (2012), Handbook of Budgeting, John Wiley & Sons, Hoboken, NJ.Google Scholar
Michael, A. (2007), “Beyond Budgeting”, CIMA Topic Gateway Series, No. 35.Google Scholar
Moran, A. (2015), Managing Agile, Springer, Berlin. https://doi.org/10.1007/978-3-319-16262-1Google Scholar
Moreira, M. E. (2017), The Agile Enterprise: Building and Running Agile Organizations, Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4842-2391-8Google Scholar
Peterson, P. P., & Fabozzi, F. J. (2002), Capital Budgeting, John Wiley & Sons, Hoboken, NJ.Google Scholar
Poppendieck, M., & Poppendieck, T. (2003), Lean Software Development: An Agile Toolkit, Addison-Wesley, Boston, MA.Google Scholar
R&D Magazine. (2018), “2018 Global R&D Funding Forecast”, R&D Magazine, (Winter 2018), pp. 2–36.Google Scholar
Rieg, R. (2015), Planung und Budgetierung (2nd ed.), Springer, Berlin. https://doi.org/10.1007/978-3-8349-4629-4Google Scholar
Romeike, F., & Gleißner, W. (2018), Risikomanagement, Springer, Berlin. https://doi.org/10.1007/978-3-658-13952-0Google Scholar
Rumpe, B. (2017), Agile Modeling with UML, Springer, Berlin. https://doi.org/10.1007/978-3-319-58862-9Google Scholar
Sahota, M., Bogsnes, B., Nyfjord, J., Hesselberg, J., & Drugovic, A. (2014), Beyond Budgeting: A Proven Governance System Compatible with Agile Culture, Agile Alliance.Google Scholar
Scaled Agile Inc. (2018), SAFe. Available at: https://www.scaledagileframework.com retrieved August 9, 2018.Google Scholar
Serrador, P., & Pinto, J. K. (2015), “Does Agile work? - A quantitative analysis of agile project success”, International Journal of Project Management, Vol. 33 No. 5, pp. 1040–1051. https://doi.org/10.1016/j.ijproman.2015.01.006Google Scholar
Smeekes, I., Borgman, H., & Heier, H. (2018), “A Wheelbarrow Full of Frogs: Understanding Portfolio Management for Agile Projects”, HICSS-51, Waikoloa Village, HI, January 3–6, 2018, pp. 5473–5482. https://doi.org/10.24251/HICSS.2018.682Google Scholar
Hron, M., & Obwegeser, N. (2018), “Scrum in practice: an overview of Scrum adaptations”, HICSS-51, Waikoloa Village, HI, January 3–6, 2018, pp. 5445–5454. https://doi.org/10.24251/HICSS.2018.679Google Scholar
Soete, L., Schneegans, S., Eröcal, D., Angathevar, B., & Rasiah, R. (2015), UNESCO Science Report - Towards 2030, UNESCO Publishing, New York, NY.Google Scholar
Stellman, A., & Greene, J. (2015), Learning Agile, O'Reilly, Sebastopol, CA.Google Scholar
VersionOne Inc. (2018), 12th State of Agile Report. Available at: https://explore.versionone.com/state-of-agile/versionone-12th-annual-state-of-agile-report retrieved July 9, 2018.Google Scholar