SUMMARY In software intensive products such as cars or telecom systems, software has traditionally been associated with cost, and there has been no real perception of its value in relation to the entire product offering. However, because software is becoming a larger part of the main competitive advantage, driving innovation and product differentiation, hardware is becoming more standardized, thus the valuation of software is becoming critical. In existing literature, several value constructs and corresponding valuation/measurement solutions needed for making decisions about software product development are presented. However, the contributions are often isolated with respect to a certain perspective such as focusing on product's internal or external quality aspects only. Consequently, a complete view of value constructs relevant from different perspectives required for making decisions about software product development is missing. This paper presents a consolidated view of the software value concept utilizing the major perspectives and introduces a software value map. The created value map was evaluated through an industry case study through the development of impact evaluation patterns, which were subsequently used by professionals in industry, and experiences gathered. During industry evaluation, practitioners found substantial benefits of having a consolidated, vastly improved, and extended value aspect's view of software. Copyright © 2012 John Wiley & Sons, Ltd.

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Value stream mapping (VSM) is one of the several Lean practices, which has recently attracted interest in the software engineering community. In other contexts (such as military, health and production), VSM has achieved considerable improvements in processes and products. The goal is to capitalize on these benefits in the software intensive product development context. The primary contribution is that we are extending the definition of waste to fit in the software intensive product development context. As traditionally in VSM everything that is not considered valuable is waste, we do this practically by looking at value beyond the customer perspective and using the software value map. An evaluation has been conducted through an industrial case study. First, the instantiation and motivations for selecting certain strategies have been provided. Second, the outcome of the VSM is described in detail. The instantiation of VSM via workshops was considered good as workshops allowed active interaction and discussion stakeholders' groups that are distant from each other in the regular work. With respect to waste and improvement identification, the participants were able to identify similar improvement suggestions. In a retrospective, the value stream approach was perceived positively by the practitioners with respect to process and outcome.

Abstract. Sustaining innovation in a fast growing software development company is difficult. As organisations grow, peoples' focus often changes from the big picture of the product being developed to the specific role they fill. This paper presents two complementary approaches that were successfully used to support continued developer-driven innovation in a rapidly growing Australian agile software development company. The method "FedEx™ Day" gives developers one day to showcase a proof of concept they believe should be part of the product, while the method "20% Time" allows more ambitious projects to be undertaken. Given the right setting and management support, the two approaches can support and improve bottom-up innovation in organizations.

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