Software is now a key element in many business processes. It is also a crucial part of services and products. It is often the core of business models and may be considered a distinct factor between companies. It is a major source of innovation and increased productivity, and is an important component of digital transformation in all industries. Software is now a major subject in business administration and computer classes, even among students who are not technical.
In the 1980s computer programs revolutionized world of business. One of the most famous examples was word processing software such as Word Perfect and Microsoft Word which quickly replaced IBM typewriters. Mathematical spreadsheet software like Lotus 1-2-3 and Excel became popular too. The 1990s saw further shifts in globalization as what are the duties of a meeting secretary companies moved to SAP software that coordinated supply chain vendors. These programs were utilized in manufacturing and logistics to improve efficiency in operations.
Businesses that are implementing software must consider how to evaluate this intangible asset. If it’s to determine the purchase price or for financing purposes or to know how to maximize the flow of value throughout the life of the product the process of valuation for software is often a complex. For this reason, the IT team and the leaders of business units should be focused on maximizing the value of software investments. Upper management should empower and support them to make educated decisions which will positively impact the flow of value within their organizations.
