Experiences of risk enhanced value assessment in a software company

During the last years value engineering has become a usable method for assessing, developing and improving high value products. It has also been used as a basis for assessing and improving value in software processes. In complex and highly competed markets information of assessed and planned value might not always be enough, because development of high value products contains also several risks. These risks can have a significant effect for the value and to the profitability of the company in question. Therefore it is highly recommended that a company interested in of value would also consider the risks related to it. This research combines value engineering and risk management practices into a usable new method in order to better respond to the challenges that risks might cause to the value of software companies and their product development. This is done in part by defining the concepts of value, worth and cost and in part by defining the value engineering process with needed risk management practices. The practical industrial case shows that proposed two-dimensional method works in practice and is useful to the assessed company.