Appendix B. Quick Guide to the Incremental Funding Method

  1. Define project-level strategies, such as length of the development and analysis phases, duration of each development and analysis period, and applicable discount rate.

  2. Identify candidate MMFs and evaluate them according to their ability to return value in terms of revenue generation, cost savings, competitive differentiation, brand-name projection, enhanced customer loyalty, and other identified criterion. (See Chapter 3.)

  3. Define cost and revenue figures for all tangible MMFs. (See Chapter 3.)

  4. Evaluate equivalency values for intangible MMFs. (See Chapter 7.)

  5. If a traditional software development process such as RUP is being used, evaluate and select an architecture and decompose it into AEs. ...

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