Software has emerged as the main aspect of many business processes and is an essential component of products and services. It is often at the heart of business models and is often considered to be an important differentiator. It is a key factor in the development of productivity and innovation, and an important part of digital transformation across all industries. Software is now a key aspect of business administration and computer classes, even for students who aren’t technically inclined.
In the 1980s computer programs revolutionized business. Word processing software like Microsoft Word and Word Perfect which swiftly replaced IBM’s typewriters, was among of the most well-known examples. Mathematical spreadsheet software like Lotus 1-2-3 http://www.boardroomspot.com/online-meeting-management-software-top-choices/ and Excel became popular as well. In the 1990s, globalization brought about additional changes as companies began to implement SAP software to coordinate supply-chain vendors. These programs were utilized in manufacturing and logistics to improve efficiency in operations.
For companies who are using new software, the issue of how to appraise these intangible assets is a critical consideration. The software valuation process is complex, whether it’s to determine the purchase price or financing price, or to find out the best way to impact the value of the flow over the life of the product. The IT staff and the managers of business units must therefore concentrate on maximising the value of software investments. They should be urged and empowered by the top management to make informed decisions which will positively impact the flow of value through their business.