Current Management Opportunities and Challenges in the Software Industry

Through the past 30 years that the entire world went through a really dynamic technological transformation.

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In retrospective, it may be stated without exaggeration that the development of electronic devices and the Web have significantly impacted daily life as well as managerial practice to an unforeseen extent. The computerization of multiple business processes and the creation of large scale databases, among many other radical technological improvements, have result in enormous cost savings and quality enhancements over recent years. Computers are now fundamental tools in almost all companies around the world and their application and adaptation to particular business problems in the kind of software development is a practice that lots of companies perform on their own. Before, these computerization and automation attempts were rather costly and therefore only practiced by large corporations. Through the years, however, the software industry emerged to offer off-the-shelf solutions and services to smaller companies. Now, having survived the huge dotcom crash of the year 2000, software development businesses established themselves as strong players in the tech industry.The emergence of many computer standards and technology has created many challenges and opportunities. One of the main opportunities provided by the software sector is comparatively low entrance barrier. Considering that the software business is not capital intensive, effective market entry chiefly depends upon know-how and specific industry domain knowledge. Teachers with the right skills can relatively easily compete with big corporations and thus pose a considerable threat to other, much larger associations. Companies, on the other hand, need to find strategies to reduce turnover and protect their intellectual property; consequently, the strong knowledge dependence along with the relatively short lifespan of computer technologies makes knowledge employees very important to the business. This relatively strong position of software staff challenges human resource strategies in organizations and it also raises concerns about the protection of intellectual property.The relatively young sector is blessed with absolute endless new opportunities, like the capability of companies to collaborate with other businesses around the globe without interruption and also incur virtually no communication expenses. In addition, no import tariffs exist creating the transfer of applications across boundaries very efficient; however, the sector with its craft-like professions suffers from lack of standards and quality issues. The successful management of these energetic organizations challenges today’s supervisors as well as contemporary management science because traditional management styles, such as Weberian bureaucracies, appear to be not able to cope with unstable environments.Challenges from the Software IndustryMany studies suggest that existing software development practices are highly ineffective and inefficient (Flitman, 2003). Typically, projects are only 62% effective, which translates to some waste of 37 percent. The typical software development project has the following supply of work attempt: 12% planning, 10% specification, 42% quality control, 17% implementation, and 19% computer software construction (2003). There are lots of potential interpretations of the essence of this distribution of resources. First, the extraordinarily large share of 42 percent for quality management purposes can indicate a lack of criteria and standardized labor practices. This massive waste of effort may also be the consequence of unsuccessful planning and specification processes. Since the share of 19 percent for software construction is a function of software complexity, hardware, and resources used, there’s a opportunity to decrease it by carefully handling and standardizing internal work processes. The unsatisfactory share of just 17% for execution, however, should be alarming to business owners, since execution actions are the chief activity that leads to earnings. The comparatively low productivity level reported by Flitman (2003) seems to be reflected in how the normal U.S. developer generates roughly 7,700 lines of code per year, which translates to only 33 per workday (Slavova, 2000). Considering that a big software project, for example Microsoft Word, is documented by Microsoft to need 2 to 3 million lines of code, it becomes evident how expensive such endeavors can become and that productivity and quality management are major concerns to the current software companies. The challenge for contemporary software supervisors is to find the root of the productivity problem and also a remedy in the kind of a management clinic.An array of recent studies addresses software development productivity and quality concerns. Elliott, Dawson, and Edwards (2007) conclude that there is a scarcity of quality skills in current organizations. What’s more, the researchers placed partial blame on existing organizational principles, which can lead to counterproductive work habits. Of the principal problems identified, job documentation was found to be lacking since files have been deficient in detail rather than updated frequent enough. Quality control in the kind of software testing isn’t practiced as frequently and there looks like a lack of quality assurance procedures to ensure that applications is built with quality in mind from the start. Organizational culture was found to be deficient in companies were employees tend to avoid confrontation and so prevent product tests altogether (2007).Since knowledge workers are the major drive in software organizations, creating a fruitful and efficient organizational culture represents a main challenge to the current managers. Software organizations have a tendency to be people-centered and their dependency on knowledge workers can also be reflected by the tremendous spending remuneration and benefits of over 50% of earnings. As the industry grows and develops further, the obstacle to organizations is that bigger number of workers will need to be managed which brings civilization to the focus of direction. Mathew (2007) found that the most important impact on productivity was achieved by creating an environment of mutual trust. Higher levels of confidence lead to greater employee autonomy and empowerment, that bolstered the existing management perspective that trust and organizational effectiveness are all highly associated with Those companies with greater confidence and empowerment levels gained from more intensive employee participation and thereby achieved better quality products (2007).Item quality, however, depends upon other factors as well that reach beyond the conversation of work processes. Constant turnover and chain increase project completion expenses, cause considerable delays, and expose organization to higher risks because their development processes can be seriously disrupted. While human resources plans should help find ways to retain key employees in the business, organizations will need to nevertheless be prepared for turnovers and minimize their risks. One of the most important dangers for people-centered, knowledge employee organizations is that the loss of knowledge when employees leave.Knowledge management has developed into a relatively new discipline in the last two decades but is largely practiced by large, international organizations only (Mehta, 2008). As corporations realized the significance of knowledge management actions to mitigate the probability of know-how loss inside their associations, they began employing chief knowledge officers and teams with the objective of collecting and organizing data. By building custom knowledge management platforms, businesses may benefit from increased transfer, storage, and availability of critical business data. Such activities can help businesses innovate and build knowledge capital over the years (2008). The challenge remains, however, to set up such systems and to elicit employee support for knowledge management methods. Additionally, these systems leave another critical question available. What happens when top performers take all of the knowledge with them when they leave?

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