VALUE BASED SOFTWARE REUSE INVESTMENT

A number of issues are covered in this paper. Chief among them is the need for greater discipline in understanding the economic benefits of software reuse within the context of a broader business strategy. Whil e traditional methods fail to account for growth opportunities and fle xibility generated by investments in reuse, the introduction of option pricing theory can greatly enhance the design and evaluation of softw are reuse projects. Similarly, the disciplines of business strategy ho ld promise to help to fill the void of ''strategic context'' within wh ich reuse investment happens.