Software has emerged as the main aspect of many business processes and is a vital element of both services and products. It is often at the heart of business models, and is often considered to be an important differentiation. It is an essential driver of innovation and efficiency and is an essential element of digital transformation in all industries. Software is now a key subject in business administration and computer classes, even among students who aren’t technical.
The 1980s saw the advent of computer programs that revolutionized business. One of the most well-known examples was word processing software such as Word Perfect and Microsoft Word that quickly replaced IBM typewriters. Also, spreadsheets like Lotus 1-2-3 or Excel became popular. The 1990s saw a number of changes with globalization as companies moved to SAP software that coordinated supply chain vendors. These programs were used to streamline logistics and manufacturing operations.
Businesses that are using software should consider how to value this intangible asset. The process of software valuation is a complex one, whether to determine the purchase or financing cost, or to figure out the best way to influence the value of flow over the life of the product. The IT team as well as the managers of business units have to concentrate on maximising the value of software investments. They should be encouraged and aided by management to make informed choices that will favorably impact the flow of value within their company.
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