Skip to main content Accessibility help
Hostname: page-component-99c86f546-x5mqb Total loading time: 0.176 Render date: 2021-11-28T15:33:09.291Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "metricsAbstractViews": false, "figures": true, "newCiteModal": false, "newCitedByModal": true, "newEcommerce": true, "newUsageEvents": true }

Budgeting for Agile Product Development

Published online by Cambridge University Press:  26 July 2019


HTML view is not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Recent reports and predictions indicate a consistent and continuous growth in the field of Research and Development. Such growth leads to increased resource investments, which have to be managed effectively to eventually achieve value maximization. This management is cohesive with budgeting. In changing environments, said effectiveness can be difficult to attain.

Agile development is supposed to provide the necessary flexibility for uncertain situations and has recently seen a stark adoption incline. Unfortunately, budgeting and resource allocation have not yet been resolved for agile approaches: a comprehensive research including recent publications showed a lack of models and frameworks for the adoption and application of budgeting with agile development. Due to this lack of a comprehensive approach, as well as limitations and restrictions of existing research, this paper describes the design of a budgeting approach suitable for and compatible with agile product development. The developed solution, the Structured Agile Budgeting Process, provides a holistic and interdisciplinary way to allocate resources while still allowing the flexibility and benefits of agile development.

Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
© The Author(s) 2019


Abrahamsson, P., Salo, O., Ronkainen, J., & Warsta, J. (2002), “Agile software development methods: Review and Analysis”. Espoo, Finland: VTT Publications 478.Google Scholar
Beck, K., Beedle, M., Van Bennekum, A., Cockburn, A., Cunningham, W., Fowler, M., Grenning, J., Highsmith, J., Hunt, A., & Jeffries, R. (2001), Manifesto for Agile Software Development. Available at: retrieved April 30, 2018.Google Scholar
Berk, J., & DeMarzo, P. (2017), Corporate Finance - Global Edition, Pearson, London.Google Scholar
Blumentritt, T. (2006), “Integrating strategic management and budgeting”, Journal of Business Strategy, Vol. 27 No. 6, pp. 7379. Scholar
Boehm, B. W. (1981), Software Engineering Economics, Prentice Hall, Englewood Cliffs, NJ.Google Scholar
Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2013), Principles of Corporate Finance (11th ed.), McGraw-Hill, New York, NY.Google Scholar
Cao, L., Mohan, K., Ramesh, B., & Sarkar, S. (2013), “Adapting funding processes for agile IT projects: an empirical investigation”, European Journal of Information Systems, Vol. 22 No. 2, pp. 191205. Scholar
Cobb, C. G. (2015), The Project Manager's Guide to Mastering Agile: Principles and Practices for an Adaptive Approach, John Wiley & Sons, Hoboken, NJ.Google Scholar
Cohn, M. (2010), Succeeding with Agile, Pearson, London.Google Scholar
Cooper, R. G. (1990), “Stage-Gate Systems: A New Tool for Managing New Products”, Business Horizons, Vol. 33 No. 3, pp. 4454. Scholar
Cram, A. W., & Brohman, K. M. (2010), “Beyond Modes: A New Typology of ISD Control”, ICIS 2010, St. Louis, MO, December 12–15, 2010, Paper 94.Google Scholar
Dayananda, J., Irons, R., Harrison, S. R., Herbohn, J. L., & Rowland, P. (2002), Capital budgeting: Financial Appraisal of Investment Projects, Cambridge University Press, Cambridge.CrossRefGoogle Scholar
de Campos, C. M. P., & Rodrigues, L. L. (2018), “Budgeting Techniques”, in Farazmand, A. (Ed.), Global Encyclopedia of Public Administration, Public Policy, and Governance, Springer, Berlin, pp. 501509.CrossRefGoogle Scholar
Denning, S. (2018a), “How major corporations are making sense of Agile”, Strategy & Leadership, Vol. 46 No. 1, pp. 39. Scholar
Denning, S. (2018b), “The Challenge of Leadership in the Age of Agile”, Leader to Leader, Vol. 2018 No. 89, pp. 2025. Scholar
Ehrlenspiel, K., & Meerkamm, H. (2013), Integrierte Produktentwicklung (5th ed.), Hanser, Munich.CrossRefGoogle Scholar
Eisenhardt, K. M. (1989), “Building Theories from Case Study Research”, Academy of management review, Vol. 14 No. 4, pp. 532550. Scholar
Gonçalves, L. (2018), “Scrum”, Controlling & Management Review, Vol. 62 No. 4, pp. 4042. Scholar
Hogue, I. (2014), Managing the Impossible with an Agile Budget. Available at: retrieved May 12, 2018.Google Scholar
Innovation Research Interchange (2018), “2018 R&D Trends Forecast”, Research-Technology Management, Vol. 61 No. 1, pp. 2334. Scholar
Jalali, S., & Wohlin, C. (2012), “Global software engineering and agile practices: a systematic review”, Journal of Software: Evolution and Process, Vol. 24 No. 6, pp. 643659. Scholar
Kengatharan, L. (2018), “Capital Budgeting Theory and Practice: A review and agenda for future research”, American Journal of Economics and Business Management, Vol. 1 No. 1, pp. 2053. Scholar
Knaster, R., & Leffingwell, D. (2017), SAFe® 4.0 Distilled: Applying the Scaled Agile Framework for Lean Software and Systems Engineering, Addison-Wesley, Boston, MA.Google Scholar
Komus, A. (2013), “Agile Methoden in der Praxis - Studie zur Anwendung und Zufriedenheit”, HMD Praxis der Wirtschaftsinformatik, Vol. 50 No. 2, pp. 8491. Scholar
Komus, A. (2017), “Abschlussbericht: Status Quo Agile 2016/2017”, 3. Studie über Erfolg und Anwendungsformen von agilen Methoden, Hochschule Koblenz University of Applied Sciences.Google Scholar
Lalli, W. R. (2012), Handbook of Budgeting, John Wiley & Sons, Hoboken, NJ.CrossRefGoogle Scholar
Michael, A. (2007), “Beyond Budgeting”, CIMA Topic Gateway Series, No. 35.Google Scholar
Moran, A. (2015), Managing Agile, Springer, Berlin. Scholar
Moreira, M. E. (2017), The Agile Enterprise: Building and Running Agile Organizations, Apress, Berkeley, CA. Scholar
Peterson, P. P., & Fabozzi, F. J. (2002), Capital Budgeting, John Wiley & Sons, Hoboken, NJ.Google Scholar
Poppendieck, M., & Poppendieck, T. (2003), Lean Software Development: An Agile Toolkit, Addison-Wesley, Boston, MA.Google Scholar
R&D Magazine. (2018), “2018 Global R&D Funding Forecast”, R&D Magazine, (Winter 2018), pp. 236.Google Scholar
Rieg, R. (2015), Planung und Budgetierung (2nd ed.), Springer, Berlin. Scholar
Romeike, F., & Gleißner, W. (2018), Risikomanagement, Springer, Berlin. Scholar
Rumpe, B. (2017), Agile Modeling with UML, Springer, Berlin. Scholar
Sahota, M., Bogsnes, B., Nyfjord, J., Hesselberg, J., & Drugovic, A. (2014), Beyond Budgeting: A Proven Governance System Compatible with Agile Culture, Agile Alliance.Google Scholar
Scaled Agile Inc. (2018), SAFe. Available at: retrieved August 9, 2018.Google Scholar
Serrador, P., & Pinto, J. K. (2015), “Does Agile work? - A quantitative analysis of agile project success”, International Journal of Project Management, Vol. 33 No. 5, pp. 10401051. Scholar
Smeekes, I., Borgman, H., & Heier, H. (2018), “A Wheelbarrow Full of Frogs: Understanding Portfolio Management for Agile Projects”, HICSS-51, Waikoloa Village, HI, January 3–6, 2018, pp. 54735482. Scholar
Hron, M., & Obwegeser, N. (2018), “Scrum in practice: an overview of Scrum adaptations”, HICSS-51, Waikoloa Village, HI, January 3–6, 2018, pp. 54455454. Scholar
Soete, L., Schneegans, S., Eröcal, D., Angathevar, B., & Rasiah, R. (2015), UNESCO Science Report - Towards 2030, UNESCO Publishing, New York, NY.Google Scholar
Stellman, A., & Greene, J. (2015), Learning Agile, O'Reilly, Sebastopol, CA.Google Scholar
VersionOne Inc. (2018), 12th State of Agile Report. Available at: retrieved July 9, 2018.Google Scholar
You have Access
Open access
Cited by

Send article to Kindle

To send this article to your Kindle, first ensure is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

Note you can select to send to either the or variations. ‘’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Budgeting for Agile Product Development
Available formats

Send article to Dropbox

To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

Budgeting for Agile Product Development
Available formats

Send article to Google Drive

To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

Budgeting for Agile Product Development
Available formats

Reply to: Submit a response

Please enter your response.

Your details

Please enter a valid email address.

Conflicting interests

Do you have any conflicting interests? *