Integrating Agile and Business Metrics into Backlog Prioritization: A Case Study at PT. XYZ

Abstract

Backlog prioritization is an essential component of Agile development because it makes sure that resources are used in the best way possible and that business value is maximized. The Effort-influence Matrix gives you a way to prioritize items in your backlog based on how much effort they will take and how much influence they might have. However, just prioritizing them doesn't mean you'll be successful in the long term. Integrating Agile Metrics—such as velocity, cycle time, and lead time—with Business Metrics—such as customer satisfaction, retention, and market adoption—offers a more comprehensive approach to guiding decision-making. This study examines how Product Owners at PT. XYZ applies the Effort-Impact Matrix while incorporating Agile and Business Metrics to align development priorities with organizational objectives. This study employed qualitative research design, drawing on structured interviews, project documentation, and literature review. The findings show that combining prioritizing frameworks with performance indicators improves decision-making, increases alignment with company goals, and leads to more predictable delivery outcomes. This study contributes to the literature by being among the few to empirically demonstrate how Agile and Business Metrics can be systematically integrated into backlog prioritization using the Effort-Impact Matrix.