October 18th, 2023
Author: Simon Schaffer
The Value of Corporate Software
Software has become the central point of many business processes and is an essential element in both products and services. It is often the base of business models, and can be considered a distinct factor between companies. It is a significant driver of innovation and productivity, and is an important component of digital transformation in all industries. This is the reason why software has also become an essential part of IT and business administration classes even for non-technical learners.
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 the role of corporate software Microsoft Word which quickly replaced IBM typewriters. Also, spreadsheets like Lotus 1-2-3 or Excel became popular. In the 1990s, globalization brought about further changes as businesses began to utilize SAP software to coordinate supply-chain vendors. These applications were used to streamline logistics and manufacturing operations.
Companies that are considering implementing software should think about how to appraise this intangible asset. If it’s to determine the purchase price or to finance the purchase, or to understand how best to influence the value flow over the lifetime of the product, the software valuation process is often a complex. The IT team as well as the managers of business units need to concentrate on maximizing the value of software investment. They should be encouraged and empowered by the top management to make educated decisions that positively impact the flow of value in their company.
The utopian dreams of Russian-style cybernetic communism could only be turned into everyday reality within the made-in-the-USA global village.
