Feeds

Companies still clueless about their software spend

Boards missing software's hidden value

Top three mobile application threats

Businesses need to radically shake up their attitudes about how they value information technology assets, according to new research released yesterday.

The Paris-based business school Insead, which carried out the study, said it found that far from understanding IT assets as a core business need, many firms instead wrote hardware and software development costs off as mere expense items.

It also reckoned that IT assets at the world's top companies should be kicked up to the boardroom rather than left in the laps of middle management.

The study, which was sponsored by UK software developer Micro Focus, said that core IT assets deserved the same value as corporate assets such as brand and intellectual property.

Insead Professor Soumitra Dutta said:

"Core software assets represent the hidden value in firms and need to be correctly measured for making the right investment decisions."

The study built on a Micro Focus report released last month which surveyed some 250 CEOs and CFOs from the US, UK, France, Germany and Italy, and found that fewer than half had attempted to value their IT assets.

It said that 30 per cent of all respondents were clueless about how much cash was spent each year by their companies on software.

Dutta suggested that firms large and small could consider adopting a statistical methodology dubbed conjoint analysis, where people make trade-offs across different business outcomes associated with the software asset.

"If organisations analyse the conversion of real business outcome attributes generated by core IT systems into measures of business value, then there is a strong opportunity to calculate the real financial value of core software assets to the business," he said. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.