Software is always a liability, the true asset is the knowledge it encodes
The difference between naive and savvy software lies in the knowledge they contain.
Software is its design, encoding the knowledge of how it works. When software entities align with business concepts, they also encode the knowledge of how business works.
Unfortunately, software can impede knowledge sharing or even encode ignorance without customers and end-users noticing, as long as it works well enough for their needs. This happens because software suppliers often focus on delivering the product, overlooking that while customers and end-users benefit from its use, the real value for suppliers is the underlying knowledge.
Software is a medium for storing executable knowledge, like a book with the power to act, but before knowledge can be encoded into software, it must first be acquired. Software development is about capturing and encoding knowledge, with software as a byproduct rather than a product.
Naive software can hamper or disrupt business processes, underdelivering or draining value while increasing the likelihood and cost of future changes. In contrast, savvy software supports and enhances business operations, delivering value and adapting as easily as possible to business change.
The difference between naive and savvy software lies in the knowledge they contain. While software, like paper and ink in books, is always a liability, the true asset is the knowledge it encodes.
