Recent Applications of Economic Theory in Information Technology Research

Academicians and practitioners are becoming increasingly interested in the economics of Information Technology (IT). In part, this interest stems from the increased role that IT now plays in the strategic thinking of most large organizations, and from the significant dollar costs expended by these organizations on IT. Naturally enough, researchers are turning to economics as a reference discipline in their attempt to answer questions concerning both the value added by IT and the true cost of providing IT resources. This increased interest in the economics of IT is manifested in the application of a number of aspects of economic theory in recent information systems research, leading to results that have appeared in a wide variety of publication outlets. This article reviews this work and provides a systematic categorization as a first step in establishing a common research tradition, and to serve as an introduction for researchers beginning work in this area. Six areas of economic theory are represented: information economics, production economics, economic models of organizational performance, industrial organization, institutional economics (agency theory and transaction cost theory), and macroeconomic studies of IT impact. For each of these areas, recent work is reviewed and suggestions for future research are provided.NYU, Stern School of Business, IOMS Department, Center for Digital Economy Researc

Software Complexity and Maintenance Costs

The effects of software complexity on the costs of Cobol maintenance projects within a large commercial bank are examined, and the impact of software complexity on the costs of software maintenance projects in a traditional information-system (IS) environment is estimated using a previously developed economic model of software maintenance. The model uses a multidimensional approach to measuring software complexity; other project factors that can be controlled by managers and that are believed to affect maintenance project costs are controlled for by the model. It is shown that software maintenance costs are affected significantly by software complexity in terms of module size, procedure size, and branching complexity. Dollar estimates are provided of the magnitude of the impact of software complexity on maintenance costs at a typical commercial site; the costs are high enough to justify complexity control and monitoring.Center for Information Systems ResearchCenter for the Management of Technology and Information in OrganizationsNational Science FoundationCenter for the Management of Technology and Information in OrganizationsInternational Financial Services Research CenterNational Science Foundation Grant No. SES-870904

Yoğun Bakım Hemşirelerinin Basınç Ülserlerini Önlemeye Yönelik Tutumları

This paper presents the effect of ‘schedule compression’ on software project management effort using COCOMO II (Constructive Cost Model II), considering projects which require more than 25 percent of compression in their schedule. At present, COCOMO II provides a cost driver for applying the effect of schedule compression or expansion on project effort. Its maximum allowed compression is 25 percent due to its exponential effect on effort. This research study is based on 15 industry projects and consists of two parts. In first part, the Compression Ratio (CR) is calculated using actual and estimated project schedules. CR is the schedule compression percentage that was applied in actual which is compared with rated schedule compression percentage to find schedule estimation accuracy. In the second part, a new rating level is derived to cover projects which provide schedule compression higher than 25 percent

Software complexity and maintenance costs

The effects of software complexity on the costs of Cobol maintenance projects within a large commercial bank are examined, and the impact of software complexity on the costs of software maintenance projects in a traditional information-system (IS) environment is estimated using a previously developed economic model of software maintenance. The model uses a multidimensional approach to measuring software complexity; other project factors that can be controlled by managers and that are believed to affect maintenance project costs are controlled for by the model. It is shown that software maintenance costs are affected significantly by software complexity in terms of module size, procedure size, and branching complexity. Dollar estimates are provided of the magnitude of the impact of software complexity on maintenance costs at a typical commercial site; the costs are high enough to justify complexity control and monitoring.Center for Information Systems ResearchCenter for the Management of Technology and Information in OrganizationsNational Science FoundationCenter for the Management of Technology and Information in OrganizationsInternational Financial Services Research CenterNational Science Foundation Grant No. SES-870904

Understanding the influential factors to development effort in Chinese software industry

A good understanding of the influential factors to software development effort and further precise effort estimate are undoubtedly crucial to any cost-effective and controllable software development projects. In most effort estimation researches, a large dataset is always a necessary basis of estimation modeling, model calibration and method validation. Among them, different attributes and characteristics of project data will to a large extent affect the applicable scope of particular research result. This research aims to identify the factors that significantly influence development effort, and to investigate how the influence works in Chinese software industry. In this study, six factors and their relationships to development effort are analyzed, prioritized and discussed based upon the dataset recording 999 projects from 140 software organizations in China. In terms of our analysis and findings, some suggestions for effort estimation and control are extracted to assist software practitioners in coping with various types of software projects