![]() ![]() The Economic Value of Software and Quality to Enterprises That Build Internal Software for Their Own Useīuilding software internally for corporate or government operations was the first application for computers in a business setting. In Chapter 7 we present quantitative frameworks for measuring the operating costs and the business impact of software quality. To come to grips with both the value of software itself and economic value of software quality, it is useful to explore a sample of these disparate views, including both the value of high quality levels and the economic harm from poor quality levels. ![]() Revenue from inventing entirely new kinds of products and services.Revenue from increasing market share of current products or services.In sum, when considering the economics of software and also of software quality, we need to balance three distinct threads of analysis: In other words, the third dimension of economic value is "innovation" and the creation of entirely new kinds of products and new business models. At a lower level, computer gaming is now a multi-billion dollar industry that is selling immersive 3D products that could not exist without software. Modern companies such as Amazon, Google, and eBay are doing forms of business that could not be done at all without software and the Web. ![]() Consider the products and business models that are now based on the Internet and the World Wide Web. Robotic manufacturing and sophisticated customer support and inventory management systems made significant changes in industrial production, marketing, and sales methodologies.įrom about 1990 through today, computers and software have been rapidly creating new kinds of businesses that never existed before in all of human history. Many clerical and paper-pushing jobs were converted from manual labor to computers.įrom about 1970 to 1990, computers and software started to be aimed at improving manufacturing and marketing capabilities so that companies could build and sell more of their current products.
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