Integrating Value and Utility Concepts into a Value Decomposition Model for Value-Based Software Engineering

Value-based software engineering (VBSE) is an emerging stream of research that addresses the value considerations of software and extends the traditional scope of software engineering from technical issues to business-relevant decision problems. While the concept of value in VBSE relies on the well-established economic value concept, the exact definition for this key concept within VBSE domain is still not well defined or agreed upon. We argue the discourse on value can significantly benefit from drawing from research in management, particularly software business. In this paper, we present three aspects of software: as a technology, as a design, and as an artifact. Furthermore, we divide the value concept into three components that are relevant for software product development companies and their customers: intrinsic value, externalities and option value. Finally, we propose a value decomposition matrix based on technology views and value components.