Over the last three decades, the world has undergone highly dynamic technological transformation. Looking back, it is no exaggeration to say that the unexpected appearance of electronic devices and the Internet has had a major impact on our daily lives and management. Computerization of various business processes and the creation of large databases have resulted in significant cost savings and quality improvements over the years, among other fundamental technological advances. The interconnection of financial markets by electronic means and the global use of the Internet have significantly reduced the cost of transactions and communications, making countries and cultures closer than previously thought. Computers are now a fundamental tool in almost every business in the world, and the application and adaptation of computers to specific business problems in the form of software development is a practice that many companies do independently. In the past, such computer and automation attempts were very expensive and therefore practiced only by large corporations. But over the years, the software industry has begun to provide small businesses with automated solutions and services. Today, after surviving the massive dot-com crash of 2000, software development companies have established themselves as key players in the tech industry.
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The rise of numerous IT standards and technologies has created many challenges and opportunities. One of the major opportunities offered by the software industry is relatively low barriers to entry. Because the software business is not capital-intensive, successful market access relies heavily on technical knowledge and industry-specific domain knowledge. Entrepreneurs with the right skills can compete relatively easily with large corporations, which can pose a significant threat to other much larger organizations. Meanwhile, businesses need to find ways to reduce setbacks and protect their intellectual property. Therefore, knowledge workers are very important to the organization due to their high reliance on knowledge and the relatively short lifespan of computer technology. Therefore, knowledge workers in this industry enjoy different bargaining powers than other sectors, especially those with high market capital requirements, and require different management styles and working environments. This relatively strong position of software personnel challenges an organization’s human resources strategy and raises concerns about intellectual property protection. The younger industry is endowed with a wealth of new opportunities, including the ability of companies to work seamlessly with other organizations around the world and virtually incur communication costs. In addition, there are no import duties that make the transfer of software across borders very efficient. However, the industry in which it does business suffers from lack of standards and quality issues. Successful management of these dynamic organizations poses challenges not only to modern business science, but also to today’s managers, as traditional management styles such as Weber’s bureaucracy cannot cope with volatile environments. ..
Software industry challenges
Many studies have shown that current software development practices are extremely inefficient and wasteful (Flitman, 2003). On average, the efficiency of the project is only 62%, which is equivalent to 37% of waste. A typical software development project has the following division of labor: 12% planning, 10% specifications, 42% quality control, 17% implementation, 19% software creation (2003). There are many possible interpretations of the nature of this resource allocation. First, a very high turnout of 42% for quality control purposes may indicate a lack of standardized labor standards and practices. This huge waste of effort can also be the result of inefficient planning and specification processes. A 19% share of software construction is a function of the complexity of the software, hardware, and tools used, so careful management and standardization of internal work processes could reduce it. Since implementation activities are the most important revenue-generating activity, a disappointing participation of only 17% in implementation should be a concern for business owners. The relatively low levels of productivity reported by Flitman (2003) also seem to be reflected in the fact that the average American programmer generates about 7,700 lines of code per year. That is, only 33 lines per business day (Slavova, 2000). Microsoft reports that large software projects such as Microsoft Word require 2 to 3 million lines of code, so how expensive such projects are, and productivity and quality control. Is clearly the main concern of today’s software companies. The challenge for software administrators today is to find the root of the productivity problem and the solution in the form of management techniques.