Requirements' Characteristics: How do they Impact on Project Budget in a Systems Engineering Context?

TL;DR

This study investigates how different characteristics of natural language requirements impact project budgets, revealing that software requirements are less costly and more complex than hardware ones, with interaction reducing costs.

Contribution

The paper introduces an empirical analysis of requirement characteristics' influence on project budgets using statistical models and field data from the Swedish Transportation Agency.

Findings

Software requirements are associated with lower costs than hardware requirements.

Software requirements tend to remain open longer, indicating higher complexity.

Increased discussion on change requests can reduce their costs.

Abstract

Background: Requirements engineering is of a principal importance when starting a new project. However, the number of the requirements involved in a single project can reach up to thousands. Controlling and assuring the quality of natural language requirements (NLRs), in these quantities, is challenging. Aims: In a field study, we investigated with the Swedish Transportation Agency (STA) to what extent the characteristics of requirements had an influence on change requests and budget changes in the project. Method: We choose the following models to characterize system requirements formulated in natural language: Concern-based Model of Requirements (CMR), Requirements Abstractions Model (RAM) and Software-Hardware model (SHM). The classification of the NLRs was conducted by the three authors. The robust statistical measure Fleiss' Kappa was used to verify the reliability of the results. We used descriptive statistics, contingency tables, results from the Chi-Square test of association along with post hoc tests. Finally, a multivariate statistical technique, Correspondence analysis was used in order to provide a means of displaying a set of requirements in two-dimensional graphical form. Results: The results showed that software requirements are associated with less budget cost than hardware requirements. Moreover, software requirements tend to stay open for a longer period indicating that they are "harder" to handle. Finally, the more discussion or interaction on a change request can lower the actual estimated change request cost. Conclusions: The results lead us to a need to further investigate the reasons why the software requirements are treated differently from the hardware requirements, interview the project managers, understand better the way those requirements are formulated and propose effective ways of Software management.