Agile: How to Identify Value (continued)

This Agile AudioCast is brought to you by: 
“Agile” Al Smith, Jr. from AgiLean.ai

Value is the Mental Estimation a Consumer Makes of Something

Given that, we can refine the concept of value further by saying:

  1. The value of something is how much a product or service is worth to someone relative to other things.
  2. It may be conceptualized as the relationship between the consumer’s perceived benefits in relation to the perceived costs of receiving these benefits.And we can express value in the equation: Value is equal to something’s benefit, divided by it’s cost.

In Agile, value can be very subjective because is based on the prioritization of a collection of valuable items. Thus, the value of an iteration may be quantified based on each features return on investment (ROI)

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