2015 Reprints: Technology and Information Systems
Reducing the software value gap, Communications of the ACM, 57(5), 80-87, May 2014; DOI:10.1145/2594413.2594422
S. Pass and B. Ronen
(Reprint No. 302)
The software value gap is the unexploited potential of an IT division to increase the value of the overall organization. In today’s dynamic business environment, most companies depend on value creation from software solutions delivered by IT. These solutions are crucial for day-to-day running, controlling, and growing the business, as well as complying with regulatory requirements. In many cases, the availability of suitable software solutions is a prerequisite for launching new business initiatives and innovation. In most companies demand for software solutions and functionality exceeds the IT budget (or capacity of the related human resources) for development and maintenance by up to 500%, especially when accounting for the “hidden queue” of software solutions. This occurs since even the most prosperous companies cannot afford to allocate unlimited resources to IT, as it would adversely affect the value of the overall organization.