Software has become the central component of a lot of business processes and is an essential element in both products and services. It is often at the core of business models and is an important difference maker. It is an essential driver of innovation and productivity and is a key component of digital transformation in all industries. Software is now a key area of study in business administration as well as computer classes, even for non-technical students.

The 1980s saw the advent of computer programs that revolutionized business. Word processing software, such as Microsoft Word and www.boardroomspot.com/board-members-development-and-recognition Word Perfect which swiftly replaced IBM’s typewriters. It was one of the most notable examples. Mathematical spreadsheet software such as Lotus 1-2-3 and Excel became popular as well. In the 1990s, globalization led to further changes as companies began to adopt SAP software to coordinate supply chain vendors. These programs were utilized to streamline logistics and manufacturing operations.

Businesses that are using software should think about how to evaluate this intangible asset. If it’s to determine the purchase price, or for financing purposes or to determine how to best impact the value flow over the lifetime of the product the process of valuation for software can be a complicated. The IT team and managers of business units must therefore concentrate on maximizing the value of software investment. They should be urged and empowered by upper management to make informed choices that will favorably impact the flow of value in the company.