- Email: [email protected]
Industrial Practices of Evaluation of Projects In Global Environments: An Empirical study
Available online at www.sciencedirect.com
ScienceDirect ScienceDirect
Procedia Computer Science 00 (2018) 000–000
Available online at www.sciencedirect.com Procedia Computer Science 00 (2018) 000–000
www.elsevier.com/locate/procedia
ScienceDirect
www.elsevier.com/locate/procedia
Procedia Computer Science 132 (2018) 1663–1667
International Conference on Computational Intelligence and Data Science (ICCIDS 2018) International Conference on Computational Intelligence and Data Science (ICCIDS 2018)
Industrial Practices of Evaluation of Projects In Global Industrial Environments: Practices of Evaluation of Projects An Empirical study In Global Environments: An Empirical study a b c Varun Gupta , Sanchit Bhasin , Sri Devi Ravana Varun Guptaa, Sanchit Bhasinb, Sri Devi Ravanac
a,b
Amity School of Engineering & Technology (ASET), Amity University, Noida
a,b
c Amity School of of Engineering Technology (ASET),ofAmity University, Department Information&Systems, University Malaya, MalaysiaNoida c
Department of Information Systems, University of Malaya, Malaysia
Abstract Abstract One major problem that the software companies faces is the economic evaluation of evaluation done inaccurately may prove very atrocious firm.In this paper,the One major ifproblem that the software companies faces isfor thethe economic evaluation of analyze the techniques and challenges followed by major software companies evaluation if done inaccurately may prove very atrocious for the firm.In this paper,the
their software products. Economic outcome of research conducted to their software products. Economic for economic evaluation of the outcome of research conducted to
software product is given.and Thechallenges questionnaire (Annexure-1) is distributed to two software industry managers, are analyze the techniques followed by major software companies for economic evaluationwho of the involved product in undertaking evaluation(Annexure-1) of projects and had wide to experience in project management and are the software is given.economic The questionnaire is distributed two software industry managers, who data collected is then analyzed and the major challenges areinhighlighted and the twoand major involved in undertaking economic evaluation of projectsfaced and by hadthese widecompanies experience project management the research questions areanalyzed answeredand based the challenges data gathered rombythe companies. data collected is then the on major faced these companies are highlighted and the two major research questions are answered based on the data gathered rom the companies. © 2018 The Authors. Authors. Published by Elsevier Ltd. B.V. This is an open access article under the scientific CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/3.0/) Peer-review under responsibility of the of the International Conference on Computational Intelligence and © 2018 The Authors. Published byofElsevier B.V. committee Peer-review under responsibility the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018). Peer-review responsibility Data Scienceunder (ICCIDS 2018). of the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018).
Keywords: Economic Evaluation, data analytics, Software Projects Keywords: Economic Evaluation, data analytics, Software Projects
* Corresponding author.
address:[email protected] *E-mail Corresponding author.
E-mail address:[email protected] Keywords: Economic Evaluation, Software Projects. Keywords: Economic Evaluation, Software Projects. 1. Introduction 1. Introduction The software companies evaluate their software projects proposals well before agreeing to undertake them The software companies evaluate their software projects proposals well before agreeing to undertake them 1877-0509© 2018 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of thebyscientific committee of the International Conference on Computational Intelligence and 1877-0509© 2018 The Authors. Published Elsevier B.V. Data Scienceunder (ICCIDS 2018). of the scientific committee of the International Conference on Computational Intelligence and Peer-review responsibility Data Science (ICCIDS 2018). 1877-0509 © 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/3.0/) Peer-review under responsibility of the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018). 10.1016/j.procs.2018.05.135
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta/ Procedia Computer Science 00 (2018) 000–000
1664 2
.Economic evaluation ofr projects helps software companies to forecast the likely costs involved and expected benefits, which if done inaccurately may prove financially costly to the firm even leading to complete shutdown of operations due to decreased reputation and financial crisis.The estimation of cost is one major problem[1].In highly competitive markets, the acceptability of the product depends not only on the functionality of the software but also on the offered price, time of delivery etc. Thus to economically evaluate a product, the process must be undertaken in less time, less cost and with higher accuracy. The rest of this paper is organized as follows: Section 2 describes the research background and motivation for this project. Section 3 describes the primary aim for this paper and the objectives for achieving our aim. Section 4 explains the research methodology. Section 5 contains the data collected. Section 6 contains information of survey participants. Section 7 contains the research questions followed by the result analysis and the final section contains Future Work and conclusion. 2.
Research background and Motivation
There is no universal software economic evaluation or cost estimation technique that exists currently that works for all types and complexity of softwares. The various pros and cons of widely followed cost estimation techniques as well as the state and nature of the software project have to be studied first in order to choose an appropriate economic evaluation technique for a software project. Most of economic evaluation models are based on the size measure that includes Lines of Code and Function Points [2], obtained from size estimation of the project as well as other techniques such as ROI calculating [3]. The accuracy of size estimation of the project directly impacts the accuracy of economic evaluation but none of the technique leads to an accurate estimate [4]. Due to this reason, there is a need for an automated technique for economic evaluation of the software projects which will not only be much more accurate than the existing techniques but will also be less time consuming and will make the overall process of economic evaluation of the software projects less tedious. 3.
Aim
The aim of the research is to analyze the industrial practices and challenges faced by leading software development industries in undertaking the economic evaluation of the projects. The efforts are made to analyse the industrial practices and issues raised in the process of global projects evaluation. 4.
Research methodology:
To analyze the practices and challenges, the questionnaire (Annexure-1) is distributed to two software industry managers, who are involved in undertaking economic evaluation of projects and had wide experience in project management . After telephonic conversation with them, data was finalized for analysis. The analysis results are then presented that achieves the aim of the research. 5.
Data collection: Table 1: Table Depicting data collection
S. No
Tools used
Methodolgy
Challenges Faced
Company 1
Not Fixed
Return On Investment Method
Company 2
Not fixed
Modern techniques
Frequent changes in the nature of projects Cost effectiveness of project to outreach and benefit to users is foremost.
data
analytics
Time taken for Economic Ealuation Not fixed 3-6 months
6.
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta et al. / Procedia Computer Science 00 (2018) 000–000
1665 3
Survey participants: Table 2: Table depicting the survey participants
S.No 1
Level of manager Senior
2
Senior
7.
Experience 20+ years (Headed evaluation, development of projects, Part of strategy making of firm. 15+ years
Nature of the firm The company has its operations in more than 70 countries with a revenue of more than $300 billion. It has more than 200 units all over india.
Research questions:
The research aims to find answers to below framed questions. RQ1. How the software projects are put under economic evaluation? RQ2. What are the challenges faced in undertaking evaluation?
Table 3: Mapping table in reference to Annexure-1 Research Questions
1
Questions from Questionnaire that answers the research question.
1,2,7
Questions
1) What are the Techniques and Strategies adapted by your organization for performing economic evaluation of a global software projects? 2) Which tools are used by your organization for evaluating global software projects? 7) What parameters are considered for selection of particular economic evaluation ?
2
3,4,5,6
3) What are the various challenges that are faced by your organization while doing economic evaluation of a global software project? 4) How much time does it take to perform economic evaluation of a global software projects? 5) How much does it cost to do economic evaluation of a global software project? 6) How accurate is the economic evaluation?
8.
Result analysis:
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta/ Procedia Computer Science 00 (2018) 000–000
1666 4
Table 4: Result analysis S.N
Research Questions
Company A
Company B
Similar findings
1.
1) How the software projects are put under economic evaluation?
Modern data analytics technique is adopted without any tools.
No specific tools are used in either of the companies.
2.
2) What are the challenges faced in undertaking evaluation?
ROI technique is used without any tool. This technology is used because company has experience in this technology and it is less time consuming. The nature of project changes in terms of types and complexity which makes estimation a difficult affair. It takes 6 months for evaluation but fails to be highly accurate.
Cost effectiveness of project to outreach and benefit to users is foremost. It takes around 3-6 months for evaluation.
Time-period of around 6 months is invested and still the process is not highly accurate.
9.
Conclusion and future work
Companies uses the fixed technique for evaluation of projects like ROI, cost-benefit ratio. The pro0cess takes a long time of around 5-6 months which for some company is highly accurate and for another company is less accurate. The overall process is costly. The parameters varies from organization to organization .However, the success ratio(in terms of success of evaluation) is not reported by either company.
References [1]. Liming Wu, “The Comparison of the Software Cost Estimating Methods, 4-Mar-1997 [2]. M.A. Al-Hajri, A.A.A. Ghani, M.S. Sulaiman, M.H. Selamat,” Modification of standard function point complexity weights system,” Journal of Systems and Software vol.74 ,195–206, (2005) [3]. Capres Jones, Estimating Software Cost, New York : McGraw-Hill. [4]. Josephin.M.Baby Anusha M.E , Rajeswari Mukesh M.E, Ph.d , “A Study On Software Cost Estimation”, National Conference on Architecture, Software systems and Green computing-2013. ANNEXURE-1 1.
What are the Techniques and Strategies adapted by your organization for performing economic evaluation of a global software projects?
2.
Which tools are used by your organization for evaluating global software projects?
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta et al. / Procedia Computer Science 00 (2018) 000–000
3.
What are the various challenges that are faced by your organization while doing economic evaluation of a global software project?
4.
How much time does it take to perform economic evaluation of a global software projects?
5.
How much does it cost to do economic evaluation of a global software project?
6.
How accurate is the economic evaluation?
7.
What parameters are considered for selection of particular economic evaluation ?
(Rate on a scale of 1-5)
1667
5
ScienceDirect ScienceDirect
Procedia Computer Science 00 (2018) 000–000
Available online at www.sciencedirect.com Procedia Computer Science 00 (2018) 000–000
www.elsevier.com/locate/procedia
ScienceDirect
www.elsevier.com/locate/procedia
Procedia Computer Science 132 (2018) 1663–1667
International Conference on Computational Intelligence and Data Science (ICCIDS 2018) International Conference on Computational Intelligence and Data Science (ICCIDS 2018)
Industrial Practices of Evaluation of Projects In Global Industrial Environments: Practices of Evaluation of Projects An Empirical study In Global Environments: An Empirical study a b c Varun Gupta , Sanchit Bhasin , Sri Devi Ravana Varun Guptaa, Sanchit Bhasinb, Sri Devi Ravanac
a,b
Amity School of Engineering & Technology (ASET), Amity University, Noida
a,b
c Amity School of of Engineering Technology (ASET),ofAmity University, Department Information&Systems, University Malaya, MalaysiaNoida c
Department of Information Systems, University of Malaya, Malaysia
Abstract Abstract One major problem that the software companies faces is the economic evaluation of evaluation done inaccurately may prove very atrocious firm.In this paper,the One major ifproblem that the software companies faces isfor thethe economic evaluation of analyze the techniques and challenges followed by major software companies evaluation if done inaccurately may prove very atrocious for the firm.In this paper,the
their software products. Economic outcome of research conducted to their software products. Economic for economic evaluation of the outcome of research conducted to
software product is given.and Thechallenges questionnaire (Annexure-1) is distributed to two software industry managers, are analyze the techniques followed by major software companies for economic evaluationwho of the involved product in undertaking evaluation(Annexure-1) of projects and had wide to experience in project management and are the software is given.economic The questionnaire is distributed two software industry managers, who data collected is then analyzed and the major challenges areinhighlighted and the twoand major involved in undertaking economic evaluation of projectsfaced and by hadthese widecompanies experience project management the research questions areanalyzed answeredand based the challenges data gathered rombythe companies. data collected is then the on major faced these companies are highlighted and the two major research questions are answered based on the data gathered rom the companies. © 2018 The Authors. Authors. Published by Elsevier Ltd. B.V. This is an open access article under the scientific CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/3.0/) Peer-review under responsibility of the of the International Conference on Computational Intelligence and © 2018 The Authors. Published byofElsevier B.V. committee Peer-review under responsibility the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018). Peer-review responsibility Data Scienceunder (ICCIDS 2018). of the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018).
Keywords: Economic Evaluation, data analytics, Software Projects Keywords: Economic Evaluation, data analytics, Software Projects
* Corresponding author.
address:[email protected] *E-mail Corresponding author.
E-mail address:[email protected] Keywords: Economic Evaluation, Software Projects. Keywords: Economic Evaluation, Software Projects. 1. Introduction 1. Introduction The software companies evaluate their software projects proposals well before agreeing to undertake them The software companies evaluate their software projects proposals well before agreeing to undertake them 1877-0509© 2018 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of thebyscientific committee of the International Conference on Computational Intelligence and 1877-0509© 2018 The Authors. Published Elsevier B.V. Data Scienceunder (ICCIDS 2018). of the scientific committee of the International Conference on Computational Intelligence and Peer-review responsibility Data Science (ICCIDS 2018). 1877-0509 © 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/3.0/) Peer-review under responsibility of the scientific committee of the International Conference on Computational Intelligence and Data Science (ICCIDS 2018). 10.1016/j.procs.2018.05.135
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta/ Procedia Computer Science 00 (2018) 000–000
1664 2
.Economic evaluation ofr projects helps software companies to forecast the likely costs involved and expected benefits, which if done inaccurately may prove financially costly to the firm even leading to complete shutdown of operations due to decreased reputation and financial crisis.The estimation of cost is one major problem[1].In highly competitive markets, the acceptability of the product depends not only on the functionality of the software but also on the offered price, time of delivery etc. Thus to economically evaluate a product, the process must be undertaken in less time, less cost and with higher accuracy. The rest of this paper is organized as follows: Section 2 describes the research background and motivation for this project. Section 3 describes the primary aim for this paper and the objectives for achieving our aim. Section 4 explains the research methodology. Section 5 contains the data collected. Section 6 contains information of survey participants. Section 7 contains the research questions followed by the result analysis and the final section contains Future Work and conclusion. 2.
Research background and Motivation
There is no universal software economic evaluation or cost estimation technique that exists currently that works for all types and complexity of softwares. The various pros and cons of widely followed cost estimation techniques as well as the state and nature of the software project have to be studied first in order to choose an appropriate economic evaluation technique for a software project. Most of economic evaluation models are based on the size measure that includes Lines of Code and Function Points [2], obtained from size estimation of the project as well as other techniques such as ROI calculating [3]. The accuracy of size estimation of the project directly impacts the accuracy of economic evaluation but none of the technique leads to an accurate estimate [4]. Due to this reason, there is a need for an automated technique for economic evaluation of the software projects which will not only be much more accurate than the existing techniques but will also be less time consuming and will make the overall process of economic evaluation of the software projects less tedious. 3.
Aim
The aim of the research is to analyze the industrial practices and challenges faced by leading software development industries in undertaking the economic evaluation of the projects. The efforts are made to analyse the industrial practices and issues raised in the process of global projects evaluation. 4.
Research methodology:
To analyze the practices and challenges, the questionnaire (Annexure-1) is distributed to two software industry managers, who are involved in undertaking economic evaluation of projects and had wide experience in project management . After telephonic conversation with them, data was finalized for analysis. The analysis results are then presented that achieves the aim of the research. 5.
Data collection: Table 1: Table Depicting data collection
S. No
Tools used
Methodolgy
Challenges Faced
Company 1
Not Fixed
Return On Investment Method
Company 2
Not fixed
Modern techniques
Frequent changes in the nature of projects Cost effectiveness of project to outreach and benefit to users is foremost.
data
analytics
Time taken for Economic Ealuation Not fixed 3-6 months
6.
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta et al. / Procedia Computer Science 00 (2018) 000–000
1665 3
Survey participants: Table 2: Table depicting the survey participants
S.No 1
Level of manager Senior
2
Senior
7.
Experience 20+ years (Headed evaluation, development of projects, Part of strategy making of firm. 15+ years
Nature of the firm The company has its operations in more than 70 countries with a revenue of more than $300 billion. It has more than 200 units all over india.
Research questions:
The research aims to find answers to below framed questions. RQ1. How the software projects are put under economic evaluation? RQ2. What are the challenges faced in undertaking evaluation?
Table 3: Mapping table in reference to Annexure-1 Research Questions
1
Questions from Questionnaire that answers the research question.
1,2,7
Questions
1) What are the Techniques and Strategies adapted by your organization for performing economic evaluation of a global software projects? 2) Which tools are used by your organization for evaluating global software projects? 7) What parameters are considered for selection of particular economic evaluation ?
2
3,4,5,6
3) What are the various challenges that are faced by your organization while doing economic evaluation of a global software project? 4) How much time does it take to perform economic evaluation of a global software projects? 5) How much does it cost to do economic evaluation of a global software project? 6) How accurate is the economic evaluation?
8.
Result analysis:
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta/ Procedia Computer Science 00 (2018) 000–000
1666 4
Table 4: Result analysis S.N
Research Questions
Company A
Company B
Similar findings
1.
1) How the software projects are put under economic evaluation?
Modern data analytics technique is adopted without any tools.
No specific tools are used in either of the companies.
2.
2) What are the challenges faced in undertaking evaluation?
ROI technique is used without any tool. This technology is used because company has experience in this technology and it is less time consuming. The nature of project changes in terms of types and complexity which makes estimation a difficult affair. It takes 6 months for evaluation but fails to be highly accurate.
Cost effectiveness of project to outreach and benefit to users is foremost. It takes around 3-6 months for evaluation.
Time-period of around 6 months is invested and still the process is not highly accurate.
9.
Conclusion and future work
Companies uses the fixed technique for evaluation of projects like ROI, cost-benefit ratio. The pro0cess takes a long time of around 5-6 months which for some company is highly accurate and for another company is less accurate. The overall process is costly. The parameters varies from organization to organization .However, the success ratio(in terms of success of evaluation) is not reported by either company.
References [1]. Liming Wu, “The Comparison of the Software Cost Estimating Methods, 4-Mar-1997 [2]. M.A. Al-Hajri, A.A.A. Ghani, M.S. Sulaiman, M.H. Selamat,” Modification of standard function point complexity weights system,” Journal of Systems and Software vol.74 ,195–206, (2005) [3]. Capres Jones, Estimating Software Cost, New York : McGraw-Hill. [4]. Josephin.M.Baby Anusha M.E , Rajeswari Mukesh M.E, Ph.d , “A Study On Software Cost Estimation”, National Conference on Architecture, Software systems and Green computing-2013. ANNEXURE-1 1.
What are the Techniques and Strategies adapted by your organization for performing economic evaluation of a global software projects?
2.
Which tools are used by your organization for evaluating global software projects?
Varun Gupta et al. / Procedia Computer Science 132 (2018) 1663–1667 Varun Gupta et al. / Procedia Computer Science 00 (2018) 000–000
3.
What are the various challenges that are faced by your organization while doing economic evaluation of a global software project?
4.
How much time does it take to perform economic evaluation of a global software projects?
5.
How much does it cost to do economic evaluation of a global software project?
6.
How accurate is the economic evaluation?
7.
What parameters are considered for selection of particular economic evaluation ?
(Rate on a scale of 1-5)
1667
5