Software has become the primary aspect of many business processes and is a key element of both services and products. It is often the basis of business models and can also be seen as a differentiation between businesses. It is a key factor in innovation and productivity, and an important part of digital transformation across
Software has become the primary aspect of many business processes and is a key element of both services and products. It is often the basis of business models and can also be seen as a differentiation between businesses. It is a key factor in innovation and productivity, and an important part of digital transformation across all industries. This is why software has become an essential part of business administration and IT classes even for non-technical students.
In the 1980s, computer programs revolutionized business. One of the most well-known examples was word processing software, such as Word Perfect and Microsoft Word which quickly replaced IBM typewriters. Also, spreadsheets such as Lotus 1-2-3 or Excel became popular. In the 1990s, globalization led to 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.
Businesses that are using software should consider how to value this intangible asset. The process of valuation for software is a complex one, whether to determine recognition boards ideas the purchase or financing cost, or find out the best way to impact the flow value over the lifetime of the product. Therefore, the IT team and leaders of business units should focus on maximizing 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 in their company.
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