Clarify some research approaches on Software

Engineering Economics

- Cost-benefit analysis

- Cost modeling
 Cost-benefit analysis

Cost-benefit analysis is a general method that is often used in

engineering. What is typical of cost-benefit analysis is that all
considerations that are relevant for the choice between different
options are eventually expressed in one common unit, usually a
monetary unit, like dollars or euros.

Cost-benefit analysis may be an appropriate tool if one wants to

optimize the expected economic value of a design. Still, even in
such cases, some additional value laden assumptions and choices
need to be made. One issue is how to discount future benefits
against current costs (or vice versa). The choice of discount rate
may have a major impact on the outcome of the analysis. One might
also employ different choice criteria once the cost-benefit analysis
has been carried out. Sometimes all of the options in which the
benefits are greater than the costs are considered to be acceptable.
However, one can also choose the option in which the net benefits
are highest, or the option in which the net benefits are highest as a
percentage of the total costs.
Cost modeling

• A cost model is a set of mathematical relationships

arranged in a systematic sequence to develop a cost
methodology in which outputs, namely cost estimates, are
derived from inputs. These inputs include quantities and
prices. Cost models can vary from a simple one-formula
model to an extremely complex model that involves
hundreds or even thousands of calculations.
• Cost models can be classified in several ways. One basis
for classification would be the complexity of manipulation
of the inputs, secondly according to the function they
serve and lastly according to the likelihood of repetitive
use. Earlier various software cost estimation models have
been suggested and studied by many researchers (Kim and
Lee, Kafura and Henry, Kaur, Mittal and Parkash,
Maxwell, Brian and Smith).
 Cost modeling

Cost estimation is one of the most challenging tasks in project management. It is to accurately estimate needed resources and required schedules for
software evelopment projects. The software estimation process includes estimating the size of the software product to be produced, estimating the effort
required, developing preliminary project schedules, and finally, estimating overall cost of the project. Accurate cost estimation is important because:
- It can help to classify and prioritize development projects with respect to an overall business plan.
- It can be used to determine what resources to commit to the project and how well these resources will be used.
- It can be used to assess the impact of changes and support replanning.
- Projects can be easier to manage and control when resources are better matched to real needs.
- Customers expect actual development costs to be in line with estimated costs.
 Cost modeling

TYPES OF COST MODELS:

- COCOMO model
- SEER-SEM model
- PRICE-S
- SLIM
- COPMO model
- Function point analysis (FPA)
Cost Estimation models are good for budgeting, tradeoff analysis, planning and control, and investment analysis. As
they are calibrated to past experience, their primary difficulty is with unprecedented situations.
References
•[1] Huỳnh Quyết Thắng. Kinh tế công nghệ phần mềm. Nhà xuất bản Bách Khoa Hà Nội, 2016. ISBN 978-604-93-8864-4

• Chapter 1 (Tổng quan về Kinh tế công nghệ phần mềm)

•[2] Barry Boehm, Kevin Sullivan. “Software Economics: A Roadmap”, 2000.

•[3] Pierre Bourque, Richard E. (Dick) Fairley. Guide to the Software Engineering Body of Knowledge Version 3.0. IEEE Computer Society
Products and Services, 2014. ISBN-10: 0-7695-5166-1

• Chapter 12 (Software Engineering Economics)

•[4] (2012). International Journal of Engineering Research and Technology IJERT. [Erscheinungsort nicht ermittelbar], ESRSA Publ.

•and other materials from the Internet.