Analyzing the Trade-Off between Traditional and Agile Software Development - A Cost/Risk Perspective

Analyzing the Trade-Off between Traditional and Agile Software Development - A Cost/Risk Perspective

Digitalization heralds a new era of enterprise IT. It challenges CIOs to find a balance between renovating legacy IT and seizing the opportunities of digital technologies to keep up with competitors and start-ups. This requires organizations to operate two software development modes simultaneously: the traditional and the agile mode. Despite substantial research on both modes, little is known about whether to implement distinct software development projects traditionally or agile. As a first step to addressing this gap, we propose a quantitative decision model that compares the cost and risk profiles of both modes associated with the implementation of a distinct project. The decision model integrates qualitative and quantitative characteristics of the project in focus and of the traditional and the agile mode. As for evaluation, we implemented the decision model as a software prototype and validated its behavior using sample projects as well as a sensitivity analysis.