Custom Built Software Is a Depreciating Asset

Custom built software.  It occurred to me this week that this ‘asset’ as it’s categorized by GAAP is a depreciating asset, much like a car or piece of capital equipment ( machinery ).

Does it derive value?  Yes….indirectly.  But ultimately it’s value is underutilized, and quickly de-valued.

Imperfect as it is…there is little alternative….FOR NOW.   So what’s the best strategy for investing in this ‘asset’?

Minimize it.  The less you put in.  The less you lose.

Find the cheapest way to accomplish your custom software needs and invest in that first.  Any other investment strategy invites disappointment, and reduced expectations in the future.  This strategy, however stark, also recognizes the truth…..big things start small and simple.

Prove it out with a minimal project and then decide whether additional value could be derived.

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Central Spin – January 24 2012

Background on SPIN

The Software and Systems Process Improvement Network (SPIN) is a global organization, founded in 1991, of professionals dedicated to the improvement of software development and systems engineering. CentralSPIN, headquartered in St. Louis, Missouri, is the newest SPIN chapter.  CentralSPIN supports members from the Central US region, including St. Louis, Chicago, Dallas, Denver and Atlanta. The chapter is affiliated with the Software Engineering Institute at Carnegie Mellon University (www.sei.cmu.edu/spin) and is sponsored by Daugherty Business Solutions (www.daugherty.com).

CentralSPIN is the newest of 119 sister SPINs in cities across the U.S. and around the world. SPIN’s mission is to provide leading, practical, and timely content on various process improvement topics for the IT industry. The CentralSPIN organization serves as a source of educational and practical information for its members, other SPIN organizations and the general community of project managers, business analysts and software professionals. Membership is free and open to all. The goals of CentralSPIN are to:

1.     Enhance members’ knowledge and skills through an active program of networking, publication, recognition of excellence, and mutual support

2.     Help sustain organizational commitment to the improvement of software excellence, maturity, and system processes, with particular focus on enabling project management and business analysis capabilities.

If you plan on attending,  click here or use the Register link below.  Membership and attendance are free, so please feel free to forward this to anyone else that you think may be interested.