Ruby on Rails
Ta-da List


November 29, 15:15

The business case for better tools

After recommending IDEA to a friend, I got him hooked and now he wants to convince the management at his firm to buy him a copy. IDEA costs $599 with one year of service and support. The place he works already bought licenses for JBuilder and TogetherJ. Two other IDE's for developing Java code.

How should my friend convince his manager that he needs yet another IDE? Simple. Tell a tale of good economics and productivity. Let's imagine my friend is payed the median salary of $76,000 and works the median 1,689 hours a year ($76,000 in yearly pay / $45 in hourly rate) for a senior developer in the U.S. A rough cut says that 50% of his time is actually spend programming and the rest is meetings, designing, courses, etc.

You could then argue that his company spends $76,000 to get the 834.5 programming hours by claiming that the rest of his time (the other %50) is spend in support costs to the actual programming. That puts a price tag of $91 per programming hour.

Now for the more serious leap of faith. How much time will my friend save by switching to IDEA? That's a pretty big unknown, so let's try to go around it. How much time must my friend at least save over the course of a year in order get a return on the investment?

The answer: $599 / $91 = 6.6 hours. That's over the course of a year. In productivity terms that 0,8% (6.6 / 834.5).

There are no silver bullets, but there's plenty of 0,8% productivity gains to be had.

Challenge by Anders Toxboe on December 08, 23:34

A little bit excited about ABC (Activity Based Costing) there?!? That article of yours could have been taken straight out of our management accounting book ;-)

Challenge by David Hansson on December 09, 0:05

A proper activity based costing approach would probably have defined the entire programmer staff as a cost pool, each programming hour as the cost driver, and calculated expected savings on a given project based on a pessimistic (3%?), neutral (5%?), and optimistic (8%?) productivity saving.

Actually, that sounds like fun. Let's do the extra quick version of that right now.

Four developers working on a six month project. All earning as described in the example of my friend above:

4 developers x 417.25 hours (834.5/2) x $91 = $151,879

4 IDEA licenses x $599 = $2,396

Pessimistic saving: $151,879 x 3% = $4,556 - $2,396 = $2,160
Neutral saving: $151,879 x 5% = $7,594 - $2,396 = $5,198
Optimistic saving: $151,879 x 8% = $12,150 - $2,396 = $9,754

Rough numbers say a saving of between two and ten grand. That's not taking into consideration that productive developers are probably happier. And what the business value of getting done 3-8% faster would be.

Challenge by craps free game on May 09, 2:33

You may find it interesting to check some helpful info about betty boop slot machine betty boop slot machine sands casino atlantic city sands casino atlantic city casino supplies casino supplies free strip poker games free strip poker games online casino bonus online casino bonus no deposit bonus casinos no deposit bonus casinos gambling taxation gambling taxation blackjack computer blackjack computer slot machine for sale slot machine for sale casino management casino management angry kid russian roulette angry kid russian roulette minnesota charitable gambling minnesota charitable gambling winning by not losing roulette system winning by not losing roulette system gulf coast casinos gulf coast casinos history of blackjack history of blackjack blackjack software download blackjack software download black jack strategy card black jack strategy card sexy roulette game sexy roulette game poker table kits poker table kits real poker online real poker online new york casinos new york casinos blackjack money management blackjack money management san manuel casino san manuel casino online slot machines online slot machines black jack monster truck black jack monster truck casino turnkey casino turnkey counting cards blackjack counting cards blackjack download free blackjack game download free blackjack game play blackjack in browser play blackjack in browser play slots for free and for fun play slots for free and for fun igt slot machine igt slot machine gambling advertising gambling advertising free online craps game free online craps game skagit valley casino skagit valley casino free video keno strategies free video keno strategies ...

Challenge by free poker on June 21, 7:23

You are invited to check out some information about free poker free poker .