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Software Development has DISeconomies of scale
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Lightning talk from Agile in the City, November 2015
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Software Development has DISeconomies of scale
1.
Software Development has DISECONOMIES
of Scale Not Economies of Scale Allan Kelly allan@allankelly.net @allankellynet
2.
Milk is cheapest in
BIG cartons Software is cheapest in lots of small cartons And small cartons of software reduce risk
3.
Big increases risk
4.
Consider a large
project Against several small projects Project A: Risk = 30% Value at risk = £1m Therefore risk weighted value = £300,000 Prj B: Risk = 15% Value @ risk = £½m Therefore … = £75,000 Prj C: Risk = 15% Value @risk = £½m Therefore … = £75,000 E: Risk = 6% @risk = £200k Therefore = £12k F: Risk = 6% @risk = £200k Therefore = £12k G: Risk = 6% @risk = £200k Therefore = £12k H: Risk = 6% @risk = £200k Therefore = £12k I: Risk = 6% @risk = £200k Therefore = £12k
5.
Software development… • Does
NOT have economies of Scale • Development has DISECONOMIES of scale Therefore • Stop thinking BIG • Start thinking SMALL Allan Kelly – allan@allankelly.net - @allankellynet