Alternative name(s)

source:Agile Finance Agent

Business value


Finance is the science that describes the management of the study or creation of money, investment, credit, backing, assets and liabilities. Furthermore, finance consists of financial systems, which include government, private and public space and the study of finance and financial instruments, which can relate to countless liabilities and assets (investopedia, 2015). However, Simon Blackley (2011) defined finance as a simple task of providing the necessary funds required by firms, companies, individuals and others on the terms that are most favorable to accomplish their economic objectives while return on investment of agile method refers to the economic business value of using non-traditional methods to create new software products or the amount of money gained or lost on an investment relative to the amount of money invested
(Vikas, 2008). David Rico (2015) stated that, the significant concept with agile methods is the notion of creating business value, which often means delivering working software through the process of iterative development.


Return on investment is the common way to measure the efficiency of an investment or a business value of agile methods for creating new software products. It takes account of both the costs and benefit of agile methods into consideration when determining business valve. In basic terms it is a simple measure of benefits of costs. According to David Rico (2015) a significant principle within Agile methods is the notion of creating business value, which often means delivering working software through the process of iterative development. This is clearly evident by analysis of the first principle of the Agile Manifesto. "our highest priority is to satisfy the customers through early and continuous delivery of valuable software". Whilst the principal or concept within Traditional methods in which documentation and creating process is considered as the main measure of business value. In addition, within some traditional methods, documentation is considered as utmost to the reliability, maintainability, safety and quality of mission critical system such as aviation electronics. Traditional methods are frequently used on particularly large system, whereby public funds are necessary to pay for such Acquisition; examples of systems are aircraft, spacecraft and missiles. While agile methods use programming to create business value, some compare Agile methods with ill-conceived prototypes, hacking, coding without documented requirements and design (David, 2015)

Links to other agile values, principles or practices

The agile value which is related to Finance, include Scrum and XP

Economics This can be linked with finance, as the both deal with how to manage resource to funds in order to product value and get the best return

Links from this KA to other KAs

Value Management Business value focus on satisfying customers through an early continuous delivery of valuable softwares while value management focuses on enhancing and maintaining a desirable balance between the needs and want of partners and the assets expected to fulfill them. Project cost management it is the process of planning and controlling the budget of a business in order to make sure the project offers a value, cost management it an important aspect in financing a project, this is because if the project fail to meet with the budget the return on investment will also be affected.

Hazrati, V (2008) Agile Practices with the Highest Return on Investment. Available at: (
Accessed on: 17 March, 2015]
Rico, D (2015). What is the ROI of Agile vs Traditional Methods?

External links

Become an Agile Finance Agent Today
What is Finance? Meaning
ROI Metrics for Agile Methods

Read in another language

Finance (Including Return on Investment) Hausa