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A portfolio approach to technical debt management

Published: 23 May 2011 Publication History

Abstract

Technical debt describes the effect of immature software artifacts on software maintenance - the potential of extra effort required in future as if paying interest for the incurred debt. The uncertainty of interest payment further complicates the problem of what debt should be incurred or repaid and when. To help software managers make informed decisions, a portfolio approach is proposed in this paper. The approach leverages the portfolio management theory in the finance domain to determine the optimal collection of technical debt items that should be incurred or held. We expect this approach could provide a new perspective for technical debt management.

References

[1]
Cunningham, W. 1992. The WyCash Portfolio Management System. in Addendum to the proceedings on Object oriented programming systems, languages, and applications. pp. 29--30.
[2]
Fama, E. F. French, K. R. 2004. The Capital Asset Pricing Model: Theory and Evidence. the Journal of Economic Perspectives. Vol. 18, No. 3, pp. 25--46.
[3]
Markowitz, H. 1952. Portfolio Selection. the Journal of Finance. Vol. 7, No. 1, pp. 77--91.
[4]
Sortino, F. A. Price, L. N. 1994. Performance Measurement in a Downside Risk Framework. the Journal of Investing. Vol. 3, No. 3, pp. 59--64.
[5]
Rothman, J. 2006. An Incremental Technique to Pay Off Testing Technical Debt. Available: http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=COL&ObjectId=11011&tth=DYN&tt=siteemail&iDyn=2.

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  • (2024)A Systematic Mapping Study Exploring Quantification Approaches to Code, Design, and Architecture Technical DebtACM Transactions on Software Engineering and Methodology10.1145/367539333:7(1-44)Online publication date: 2-Jul-2024
  • (2024)Technical Debt Monitoring Decision Making with Skin in the GameACM Transactions on Software Engineering and Methodology10.1145/366480533:7(1-27)Online publication date: 26-Aug-2024
  • (2024)Supporting the Architectural Knowledge Condensation in a Co-Localized Agile Environment for Small Entities Using an OntologyProgramming and Computer Software10.1134/S036176882308018249:8(775-789)Online publication date: 24-Jan-2024
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cover image ACM Conferences
MTD '11: Proceedings of the 2nd Workshop on Managing Technical Debt
May 2011
54 pages
ISBN:9781450305860
DOI:10.1145/1985362
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 23 May 2011

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Author Tags

  1. decision making
  2. portfolio
  3. software maintenance
  4. software risk
  5. technical debt

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  • Short-paper

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ICSE11
Sponsor:
ICSE11: International Conference on Software Engineering
May 23, 2011
HI, Waikiki, Honolulu, USA

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Overall Acceptance Rate 40 of 92 submissions, 43%

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Cited By

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  • (2024)A Systematic Mapping Study Exploring Quantification Approaches to Code, Design, and Architecture Technical DebtACM Transactions on Software Engineering and Methodology10.1145/367539333:7(1-44)Online publication date: 2-Jul-2024
  • (2024)Technical Debt Monitoring Decision Making with Skin in the GameACM Transactions on Software Engineering and Methodology10.1145/366480533:7(1-27)Online publication date: 26-Aug-2024
  • (2024)Supporting the Architectural Knowledge Condensation in a Co-Localized Agile Environment for Small Entities Using an OntologyProgramming and Computer Software10.1134/S036176882308018249:8(775-789)Online publication date: 24-Jan-2024
  • (2024)Technical debt management automationInformation and Software Technology10.1016/j.infsof.2023.107375167:COnline publication date: 1-Mar-2024
  • (2024)Optimizing regression testing with AHP-TOPSIS metric system for effective technical debt evaluationAutomated Software Engineering10.1007/s10515-024-00458-531:2Online publication date: 8-Jul-2024
  • (2023)Exploration of metaphors as a way to understand socio-technical phenomena: An emergent frameworkInformation Polity10.3233/IP-21153428:3(317-340)Online publication date: 5-Sep-2023
  • (2023)Variability Debt: A Multi-method StudyProceedings of the XXII Brazilian Symposium on Software Quality10.1145/3629479.3629513(358-367)Online publication date: 7-Nov-2023
  • (2023)Software practitioners’ point of view on technical debt paymentJournal of Systems and Software10.1016/j.jss.2022.111554196:COnline publication date: 1-Feb-2023
  • (2023)What is asked about technical debt (TD) on Stack Exchange question-and-answer (Q&A) websites? An observational studyEmpirical Software Engineering10.1007/s10664-022-10269-528:2Online publication date: 28-Jan-2023
  • (2023)A two-stage approach for identifying and interpreting self-admitted technical debtApplied Intelligence10.1007/s10489-023-04941-653:22(26592-26602)Online publication date: 25-Aug-2023
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