High level estimations

In the world of IT software development, particularly within the Agile framework, understanding project costs and managing expectations around them can often feel like navigating a complex marketplace.

To demystify this process, let’s draw a parallel to a more relatable scenario: ordering a fleet of cars for a company.

Project Estimations

Imagine you’re tasked with acquiring a fleet of cars to meet the diverse needs of 100 employees across five different groups within your organization. Each group has specific requirements and a rough budget allocation per car (initial project estimations in a software development project). You start by gathering the basic requirements: a red VW Passat with air conditioning, a blue VW but quick, a Toyota Supra, a sedan with diesel, and something with 4-wheel drive that accelerates from 0-100 in less than 6 seconds.

With this list in hand, you approach a car dealership and receive a quote for each vehicle based on these preliminary requirements (Initial estimation of the software). You agree to refine the details of each car before production – a process that mirrors the just-in-time requirements refinement in Agile software development.

As you and the dealership representative delve into the car configurator, you’re presented with an array of options. Some features, like color and wheel type, can be added without affecting the price, much like adding minor details to a software feature that don’t impact the overall scope. However, other options, such as a glass roof or leather upholstery, come with additional costs—this is where scope creep begins to sneak in.

In the context of our analogy, if you stick to the basic configurations and initial requests, you’ll likely stay within your budget. The cars may not have all the bells and whistles, but they’ll meet the essential needs of your employees. However, the temptation to add premium features can quickly inflate the budget, leading to scope creep. Without careful management and clear communication between you (the client) and the dealership (the vendor), you might find yourself exceeding the budget without the possibility of securing additional funds, risking the termination of the project.

Get back to software development

This scenario closely mirrors the Agile software development process. The product owner, akin to the employee responsible for ordering the cars, outlines the product vision and initial high-level requirements. The vendor then provides estimates based on these requirements. As the project progresses and more details are added during development meetings, it’s crucial to manage these refinements carefully to prevent scope creep.

This scenario closely mirrors the Agile software development process. The product owner, akin to the employee responsible for ordering the cars, outlines the product vision and initial high-level requirements. The vendor then provides estimates based on these requirements. As the project progresses and more details are added during development meetings, it’s crucial to manage these refinements carefully to prevent scope creep.

Final thoughts and something more

This scenario closely mirrors the Agile software development process. The product owner, akin to the employee responsible for ordering the cars, outlines the product vision and initial high-level requirements. The vendor then provides estimates based on these requirements. As the project progresses and more details are added during development meetings, it’s crucial to manage these refinements carefully to prevent scope creep.