The Value of Corporate Software

18 Oct The Value of Corporate Software

Software has become the primary element of many business processes and is a vital element of both services and products. It is often the base of business models and can also be seen as a difference maker between companies. It is a major driver of productivity and innovation and is a key element of the digital transformation process across all industries. This is the reason why software has become a core subject in IT and business classes even for non-technical pupils.

In the 1980s, computer software revolutionized business. Word processing software, such as Microsoft Word and Word Perfect that swiftly replaced IBM’s typewriters, was among of the most notable examples. Additionally, spreadsheets like Lotus 1-2-3 or Excel became popular. In the 1990s, globalization triggered further changes as companies began to adopt SAP software to coordinate supply-chain vendors. These programs were utilized in logistics and manufacturing to improve efficiency in operations.

For businesses that are installing new software, the question of how to appraise these intangible assets is an important factor to take into. Whether it’s to determine the purchase price or to finance the purchase, or to understand how to improve the value flow over the lifetime of the product, the software valuation process is often a complex. For this reason, the IT team and the leaders of business units should focus on maximizing the value of software investments. Management should empower and support them to make informed decisions which will positively impact the flow of cash within their business.

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