Why Software is a Good Investment
In tough economic times organizations are faced with hard budgeting choices as they weigh the cost and benefit of investing in durable goods, people, marketing and software. Here are some reasons why software should be at the top of the list:
- Software helps people do their jobs better - whether they are engaged in collaborative activity on a wiki, making decisions about supply chain issue, or managing sales activity.
- Software allows organizations to monitor and leverage their marketing activity.
- Software helps organizations leverage their investments in durable goods like manufacturing systems by optimizing and tracking the flow of material through the supply chain.
While computers, cars, and manufacturing equipment ultimately age and depreciate to $0 (or worse, if you have to dispose of them), software is generally likely to appreciate over time through a series of upgrades and patches. Beyond the simple benefit of not falling into disrepair, software value increases as data is added and information externalities develop.
Taking Traction TeamPage as an example:
- In the summer of 2002, InfoWorld's Test Center gave Traction TeamPage Version 2.8 an 8.0 (Deploy) out of 10 on their rating scale.
- Five years later, in Winter 2007, InfoWorld's Test Center gave Traction TeamPage a 9.0 (Excellent) out of 10 and named it the Best Enterprise Wiki against 3 competitors.
- In 2008, a series of reviews validate TeamPage 4.0 as a breakthrough in Enterprise 2.0 collaboration.
- This week, Michael Sampson referred to Traction TeamPage as The One System to Rule it All. With each release, the value of this software platform clearly increases.
So, if you are trying to figure out how to put together your 2009 budgets, consider software. And if a track record of technology leadership is any indicator, get Traction.