Current management capabilities and challenges in the software industry

In the last 30 years the world went through a very powerful technology transformation. On the other hand, it can be said that it has not been exaggerated that the advent of electronic devices and the internet has had an unprecedented impact on daily life and administrative work. Computer processing of many business processes and the creation of large-scale databases, among many other radical technological advances, have resulted in high cost and quality improvements over the years. The interconnection of financial markets electronically and international acceptance of the Internet have significantly reduced transaction and communication costs and brought nations and culture closer to each other than ever before. Computers are now the basic tools in almost all companies around the world, and their applications and adaptation to special trade disruptions in the form of software development is an exercise that many companies execute on their own. In the past, such computer and automation activities were very expensive and only by large companies. Over the years, however, the software industry has come up with offering solutions and services to smaller companies. Today, after surviving a huge dotcom collapse in 2000, software development companies have emerged as strong players in the technology industry.

The advent of numerous computer standards and technology has created many tasks and opportunities. One of the major opportunities in the software sector is a relatively low entry barrier. Since the software company is not capital-intensive, entry to the market depends largely on knowledge and specific industry knowledge. Employers with the right skills can relatively easily compete with large companies and thus a significant threat to other, much larger organizations. Companies, however, need to find ways to reduce turnover and protect their intellectual property; Therefore, strong knowledge freedom, along with relatively short lifecycle of computer technology, makes knowledge professionals very important to the company. Knowledge in this industry will therefore have stronger negotiation and require different management styles and working environments than in other sectors, especially those industries that have higher market access requirements. This relatively strong position of software staff challenges human resource management challenges in the organization and is also concerned with the protection of intellectual property rights.

The relatively young industry is blessed with clean endless new opportunities, such as corporate ability to work with other organizations around the world without interruption and have virtually no communication costs. In addition, there are no import charges to transfer software across borders very efficiently; However, industry with industrialized industries suffers from a lack of standards and quality problems. The effective management of such institutions manages today's management and modern management because traditional management styles such as Weberian bureaucracies seem unable to respond to unstable environments.

Challenges in the Software Industry

Many studies indicate that current software development methods are very inefficient and wasteful (Flitman, 2003). On average, the tasks are only 62% efficient, which means a waste of 37%. Typical software development project has the following distribution of workloads: 12% planning, 10% specification, 42% quality control, 17% implementation and 19% software development (2003). There are many possible interpretations of the nature of this distribution of resources. First, an unusually high rate of 42% in quality trading may indicate a lack of standards and standardized practices. This great waste of effort can also be the result of inefficient planning and scripting processes. Because the 19% share of software architecture is a function of software complex, hardware and tools used, it is possible to reduce it by controlling and interrupting the internal workflow. The disappointment, however, only 17% implemented, should be scary for business owners, where executive activity is the main activity that leads to income. Flitman (2003) appears to be a relatively low productivity level also reflected in the average US programmer producing about 7,700 lines per year, which means only 33 on the working day (Slavova, 2000). Given that major software projects such as Microsoft Word are announced by Microsoft to claim 2 to 3 million lines of code, it becomes evident how expensive such projects can be and that productivity and quality management are a major concern for software companies today . The challenge for simultaneous software managers is to find the root of the productive man and remedies in the form of management skills.

Excess of recent research deals with software development and quality of concern. Elliott, Dawson and Edwards (2007) believe that there is a lack of talent in existing organizations. Furthermore, scientists place a part of the prominent organizational culture, which can lead to counterproductive work patterns. One of the main issues identified was the creation of a documentary project because the documents are inadequate in detail and not updated frequently enough. Quality control in the form of software testing is not practiced as often as there seems to be a lack of quality assurance process to ensure that the software is built with quality in mind from the outset. Organizationalism was considered to be a lack of companies where workers tend to avoid collisions and to avoid completely product testing (2007).

As knowledge professionals are the main thing in software companies, it is important to create a fruitful and efficient organization. to management today. The relationship between the organization and quality and productivity of software companies was recently investigated by Mathew (2007). Software agencies tend to be people who aim to target and their consequences on knowledge workers are also reflected by huge spending and benefits of more than 50% of revenue. As the industry grows and grows further, the challenge to organizations is that it needs to manage a larger number of employees who bring culture to the attention of managers. Mathew (2007) concluded that the most important impact on productivity was achieved by creating an environment of mutual trust. Higher solidarity led to increased employee independence and empowerment, which strengthened the current management philosophy and the organizational effect is highly linked. Those companies with greater confidence and strength benefit from greater employee involvement, thus achieving better quality products (2007).

However, product quality depends on other factors that cover the work process. Relatively high employee turnover has been detrimental to product quality and planning (Hamid & Tarek, 1992). Continuous turnover and consequence increase the cost of the project, cause delays and exclude the institution from greater risk because their development process can be severely distorted. While human resources management should help to find ways to maintain key employees in the company, organizations need to be prepared for transition and mitigate their risks. One of the biggest risk factors for employees in the centers is losing knowledge when employees leave.

Knowledge management has developed into a relatively new discipline over the last two decades, but is mainly conducted by a large international organization (Mehta, 2008). When companies established the importance of knowledge management to reduce the risk of loss of knowledge within their organizations, they began recruiting officers and captains with the aim of collecting and organizing information. By building a custom knowledge management system, companies can benefit from increased transportation, storage and access to critical business information. Such activities can help companies utilize and build up knowledge over time (2008). However, the challenge is to set up such systems and provide employee support for knowledge management systems. In addition, these systems leave another important question open. What happens when high performers take all the knowledge with them when they go?

Another important parameter that affects software and service quality is a high level of management involvement. Projects in the software industry generally fail due to one or combination of the following three main causes: poor project planning, weak business and lack of support and participation (Zwikael, 2008). Software projects are similar projects in other industries by focusing on temporary projects, budget and compliance with specifications, the industry requires special support processes from management to facilitate tasks. These methods are summarized in Table 1. The main support process, such as relevant project tasks and the presence of a Performance Performance Program, indicate that successful companies demonstrate higher levels of executive management than others; Zwikael admits, however, that senior executives rarely focus on these key processes, and rather rather cope with the processes that are easier to handle personally.

Table 1

Ten most important support management processes in the software sector (Zwikael, 2008).

Supporting Project

Relevant Project Project Manager *

Completion Project

Initiator Initiation Initiative

Relationship between Project Manager and Organization

Prospect of Success Surveys *

Support Structure

Presence of Interactive Projects Groups *

Organizational Planning Planning

19659002] Using Standard Project Management System *

Opportunities in the Software Industry

The introduction of low cost communication across the Internet and the variety of software industry in many different articles led to numerous new marketing initiatives. Some of the key opportunities are rooted in low cost of communication, while others originate from the potential of geographical diversity and international cooperation.

One major opportunity that specifically larger organizations seeks to seize is geographical diversity in the form of world-wide software development. Kotlarsky, Oshri, van Hillegersberg and Kumar (2007) have investigated this possibility, mainly pursued by multinational companies; Nevertheless, there is a growing number of small businesses benefiting from distributed software development at national level. The study found that software companies can achieve significantly higher productivity by creating renewable software components and reducing interrelationships. By reducing contexts, chances are that manufactured units will be useful in future projects on their own. Furthermore, this decrease in communication technology has a positive impact on the project level. A team in companies that allocate global development costs due to increased independence and reduced communication needs. The authors, however, point out that the prerequisites for spreading software development are not only good project planning but also standardization tools and development methods. Without such orders, it can be almost impossible to manage and strengthen the various diversified group activities (2007). Especially for teams that work away from one another, it can pay for uploading video or other technology based on the internet and making great savings. But are these communication technologies active?

Over the past decade, a new organization has made use of the Internet. Actual organizations are entirely in cyberspace and their team members interact, if not only, through the Internet using webcams and messaging applications. The challenge for managers in real-world organizations is to utilize new technologies, but also to find ways to encourage and manage labor and work processes. A study by Andres (2002) compares virtual software development teams with face to face groups, highlighting some challenges and opportunities for virtual executives. Managing work from another time zone can be difficult due to lack of physical presence. Communication must be asynchronous or can only occur during working hours that overlap in both time zones. The actual team facilitates this process by using email and voice / text messages, but more importantly by reducing the context of tasks. Andres (2002) suggested that this communication technology has a lower "social presence" which means that people have the need and ability to find the existence of others in the group. The problem with many computerized communicators is that visual clues, wording, body resolutions, and clues from man's voice are missing. When placed on a continuous presence, various types of communication are ranked from lowest to highest: email, phone, video and face to face meetings. Comparing Andres between development teams using video conferences and face-to-face meetings revealed that the second group was much more efficient and productive, despite the fact that the video drive had benefited from lower travel costs and time.

The study was conducted In 2002, however, there are some drawbacks. First, it's already seven years and the cost of the Internet has dropped and speed has improved dramatically since then. Considering the improvements in image quality and accessibility and speed, this form of communication became more accessible recently. In addition, today's managers are learning how to use this communication technology efficiently. For example, even though e-mail technology has been around for about two decades now, many executives still find that email can create a lot of ambiguity. The challenge for future generations of managers must change their style to match the restrictions on email and other text messages. Another important factor in mind is that written communication can be stored forever and have legal consequences; The more often than not, executives can intentionally want to prevent such communication centers for political or legal reasons. The study by Andres (2002), however, resulted in a negative image of cameras, probably because technology was not redesigned and the team members were not yet happy with it.

In order for video devices to work well, all participants need to be knowledgeable about the characteristics of the technology and set the communication style and speech accordingly. Regardless of the meeting type, another important factor is preparation. What can be investigated in connection with Andres's future study is to prepare the group. Do the team members have enough time to prepare questions and answers for their team members before coming to the meeting? Video elements may require more preparation than face to face meetings in some circumstances.

Another opportunity for software companies and a challenge for executives worldwide is outsourcing. In 2007, 70 billion US dollars were spent in the world for software development outsourcing (Scott, 2007). Due to the huge lack of information technology in the US and Europe, many companies utilize globalization by selecting international suppliers for their software development projects. Outsourcing, on the other hand, requires careful coordination between the organization and its many supplier groups. The idea is that the total cost and problem costs are cheaper than domestic developments; however, this goal is not always achieved. While outsourcing, when applied and coordinated properly, can lead to world-wide daily development, thus providing continuous service to the organization around the clock, it can lead to intellectual property loss. While mechanical objects are patented in most countries that support intellectual property rights, the software is not patented in most countries outside North America.

In addition to dealing with outsourcing management, software technology utilizes technologies in a variety of ways to save costs, for example by offering remote access, telecommunications services and service-oriented architecture (Scott, 2007). Access to telecommunications and telecommunications has increased six times in 1997-2005 and led to USD 300 million annual savings due to a reduction in office space (2007). SOA is a similar concept and involves software leasing for customers. Instead of buying, installing and maintaining software and servers, customers can rent online and reduce overall costs because these operations are no longer required on the customer side. Gradually, the virtualization software company displays the new horizons and provides additional opportunities, but also introduces executives endless challenges.

Some of the strengths and weaknesses of ocean and ocean evolution were investigated by Slavova (2000). In 2000, India and Ireland were the biggest exemptions in software development. Offshore companies can offer up to 60% cost reduction, faster closure of development projects by distributing them worldwide and selective domain names they purchased over the years providing similar services to other customers. Integration of work from outside parties is, however, a major obstacle. Furthermore, language and cultural problems can cause serious communication problems that prevent the project from being compromised, especially when misunderstandings cause errors in the project. Slavova (2000) concluded that the most common remedies and programs that avoid problems with offshore suppliers are to visit them often face to face; This approach, however, results in increased travel costs and interruptions in management positions, and as a result, it can offset the benefits achieved for outsourcing in all respects. Managers of the software company need to balance the risks and potential possibilities before they participate in outsourcing because many companies eventually lost this payment.

A great opportunity that emerged in the last decade is online innovation. A common innovation project of many individuals and companies is commonly known as an open source on the Internet and has led to many advances in computer technology, such as the free Linux operating system. In the first companies, there was a threat of this wave of market development because the companies perceived that solutions to solutions were in competition with their products. In many cases this was and is still really true; However, some companies, including IBM, are using this new innovation strategy for their own and shared benefits (Vujovic & Ulhøi, 2008). Because software companies operate in an increasingly unstable environment, they battle to create stable new and better products. By releasing the computer code to the public on the Internet, companies can benefit from ideas from the public, especially other companies. Additionally, benefit from companies by finding loose bugs and testing by external users, but one of the main reasons for "going open" is to quickly pick up and distribute the technology of the company at relatively low or no cost. The spread of open technology IBM, for example, is also free marketing for the company. But how can companies make money by offering something for free?

The unlocked model can be combined (the traditional model of providing software without revealing the software code) with open source, so the company can charge for the product. In other cases, the company can show a free online technical platform and sells specialized tools that utilize the new platform. Large depositors are obviously common development, testing and maintenance costs, as many stakeholders work on the same project.

The open source knowledge center is nothing new. Philosophy and benefits of open innovations have already taken place in the third quarter of the nineteenth century. Then open innovation was practiced in the UK iron and

US steel industry. The collaboration of many skilled workers ended the interrogation of specialized technology that costly commissions took place (Vujovic & Ulhøi, 2008). Based on the powerful IT environment and short lifecycle of computer technology, open-source innovations gained much more popularity. By analyzing the biggest open players in the market, Vujovic and Ulhøi summarized the list of support methods shown in Table 2. Some of these methods are entirely relevant from the management and also by using open

Table 2

Methods for to adopt an open approach (Vujovic & Ulhøi, 2008).

Trading Strategy

Gaining More Market Sharing

Gaining Market Strength

Better Approval of Goods and Establishing Standards

Changing Competitive Advantages to Other Buildings

Making Product More Almost Nearby [19659002] Delivering Time to Market

Quiz Innovation

Supplement of Keystrokes

Blocking Competitor


Reviewing a recent recent emergence of the information technology industry and the software specifically try, it is possible to draw some parallels with management history. Although Taylor's science management has been a high point in the development of the Science Board (Wren, 2005), the software industry seems to be weak behind such great progress. Due to its complexity, software development still has problems with quality problems due to lack of standardization. Like Taylor's efforts, managers need to analyze the software development process and develop standards and measures in all areas of the industry. When such measures and procedures are in place, this will help the software project much more predictable.

Much of the software industry today would have been déjà vu for Taylor, if he were still alive. In addition, the anomy and social disadvantage concerns at social time today apply more significantly than before. Mayo described in the 1940s how managers were concerned about technical problems in the hope of increasing efficiency and ignoring a social role in man (page 296). The same situation is now apparently to a greater extent in the computer industry. Major technological progress has created many opportunities and changed the working environment significantly. At the same time, however, managers were unable to prepare for these dramatic changes that technology would bring to the workplace. At best, managers are simply responding to technological advances because the consequences are largely unpredictable based on complex human nature. For example, emails came with some benefits like low cost and simple asynchronous communications; However, many email messages are misunderstood because they are not properly written. In addition, information technology is struggling to monitor a large number of messages received today as they are a serious disruption to daily workflows.

As knowledge workers become increasingly important for survival, and as organizations in this industry mature and demand a greater population, the government is becoming a problem for executives to deal with justice. As discussed in Wren (2005), where the articulation increases, the number of relationships directed to astronomy increases (page 353). Managing larger teams is a major problem, because the sheer amount of communication also makes it harder to develop trust within the team. Encouraging large groups of knowledge workers can therefore be difficult, especially because creative projects can require high level of cooperation. Working design is therefore a major obstacle for future managers to overcome. There has been a great deal of emphasis on hygiene aspects and not the motivation of the labor force. Flexible hours, communications, commissions and increased responsibilities can help in the short term, but long-term management needs to find new methods for maintaining knowledge workers.

Product quality is still a big issue. Deming ideas are good, but quality assurance in the software world is difficult to implement due to lack of standards and measures. Innovative innovation model can provide some relief in this regard because increased involvement of external developers can help to improve overall quality. On the other hand, it is difficult to manage the structure of projects for the same reason. Since open-source projects are self-managed and not owned by anyone, these tasks sometimes suffer from uncontrolled tumor growth.

Several of Death's Demings Demings (Wren, 2005, p. 463) deal directly with the software industry. Most products are made from scratch rather than from components and there is little standard in software companies. As software professionals tend to see their work as a craft they threaten standards and procedures. In addition, a rather complex environment with its powerful demands and pressure to meet deadlines makes it easier for professionals to lose sight of quality improvements by making organizational standards. High turnover and individual performance measures are continuing industrial work, although many scientists, like Deming, have long claimed that such actions are counterproductive.

Future Governments need to find ways to make up for high turnover if they can not find ways to avoid it. The work shift could be good for the company, but it is not well received by labor that tends to demand a constant challenge. Top performers disfavor mundane projects and choose to walk away with all their knowledge. IBM has been able to expand employment for some time to combat this phenomenon (Wren, 2005, p.332). Unfortunately, this policy could not work for each company and can only be used within the organization's specific limits. In view of the development of the past two decades, managers will face the discipline of knowledge management and find a way for their creation.

Integration of management science with advances in psychology and sociology can provide a way to solve the problem of knowledge work. It is important for managers to have a thorough understanding of the motivation centers for this particular group of employees. These employees enjoy higher income, greater flexibility and freedom and greater purchasing power. This puts them in a gray area between the traditional, lower qualified employee and owner of the company because knowledge workers create intellectual capital in the company. Because most of these funds are lost and are employees when they decide to leave the organization, they may be much shorter than those of traditional employees. Managers can not simply apply traditional methods to this different group of employees; They need to look for more creative incentives to encourage and preserve knowledge workers.


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