The business world today runs on software. However, it can become obsolete in a matter of days. Customer needs and expectations change at the blink of an eye, and barriers to entry in almost every industry are falling at unprecedented rates.

To keep up with the constantly changing world of commerce, organizations rely on agile software development methods. Be it financial services companies, high-tech enterprises, or retailing giants, the agile method has been widely adopted.

Why has agile become hugely popular? Compared to traditional software development, agile methods let companies evolve their scope of work and keep up with the changing trends, provide early delivery of value, even while the project is under way. Companies using agile methods are able to accelerate software development and better manage changing priorities.

However, a number of companies are struggling with agile development or seeing mixed results. This is happening, because while they embrace Agile Project Management and Engineering practices, they also need to look at scoping and budgeting in a different way.

To learn how they do that, read my article Why Agile Software Development Requires Radical Changes in Budgeting and Scoping in this edition of our management journal, Perspectives.