Software has become the primary component of a lot of business processes and is an essential component of products and services. It is often at the core of business models and is often considered to be an important difference maker. It is a major driver of productivity and innovation and is an integral part of the digital transformation process across all industries. This is why software has also become an essential part of IT and business classes even for non-technical pupils.

In the 1980s computers revolutionized the world of business. Word processing software such as Microsoft Word and Word Perfect, which quickly replaced IBM’s typewriters, was among of the most well-known examples. Mathematical spreadsheets like Lotus 1-2-3 and Excel became popular too. The 1990s saw a number of changes with globalization as companies moved to SAP software that coordinated supply chain vendors. These applications were used to streamline logistics and manufacturing operations.

If a company is implementing new software, the issue of how to value these intangible assets is a vital consideration. Whether it’s to determine the purchase price or to finance check out the post right here the purchase, or to understand how to maximize the value flow over the life of the product the process of valuation for software is often a complex. The IT team and managers of business units need to concentrate on maximizing their software investments. They should be urged and empowered by the upper management to make educated decisions which will positively impact the flow of value through their business.