Thursday, October 3, 2013

Wealth creation through software



The pursuit of wealth is as old as human history and its creation throughout the human civilization has evolved gradually from agricultural expansion, industrial revolution to the current information technology era driven mostly by sophisticated information systems built from software. Given that wealth is the abundance of valuable resources or material possessions, or the control of such assets and software being a general term for the various kinds of programs used to operate computers and related devices.  What are the contributions and impacts of software to the creation wealth? 

         Wealth creation means collecting some available resources in a strategic manner in order to generate surplus earnings usually over a long period of time. The surplus earning is what is referred to as wealth and it is used to acquire more resources to become more productive. But initially we have to start from nothing to something, by transforming our assets to more a valuable ones that other may need or want.  Therefore the people or the entity pretending to generate wealth must have the knowledge, skill or techniques, as well as facilities and dedicated environments.  Among this category of people figure programmers, able develop useful programs from a simple set of machine-readable instructions that directs a computer’s processor to perform specific operations. 

     The extensive usage of these programs called software nowadays is quickly placing them as a potential and unshakable factor for promoting development and production. However software need to be deployed effectively by giving adequate infrastructure, convenient policies and expertly skilled people who  can use it to find innovative ways of meeting customers’ needs and wants, and so leading to individuals or organizations creating wealth. When we look at history, it clearly appears that most people who got rich by creating wealth did it by developing new technology, e.g.: Microsoft, Oracle, IBM.
           In the same ways as presented in [1], even though money is not wealth, at the individual level "Wealth creation is a desire to be rich, desire to have control over the aspects that affect financial life, a desire to command respect with the control of money power. Wealth creation is not material, it is spiritual by nature with the ability to produce or manifest material wealth. Globalisation, outsourcing and world flattening advances in technology continue to rock the software industry in ways that will significantly alter the way technologists do business."  The software industry through offshoring, outsourcing and job migrations is also dragging many concerns regarding the future of computing related careers.

             By positioning itself as the leading factor for wealth creation, software through information technology is bringing tremendous, diversified changes and consequences to our life style and daily lives, and there is a need for a sustainable and precautious utilization.
Reference: [1] S. Kalaiselvi, Financial Performance in Software Industry, p.276

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