Software-driven innovation
Updated at: 7 October 2024
Software driven innovation - changes in a company, the driver of which is software (software).
At first, it was thought that software could change the structure of corporations related only to the IT sphere. But recent studies show that software has a strong impact on innovation in all areas: pharma, engineering, mining and many others.
New products, services and business models are the main results of software-driven innovation. Therefore, using software to create innovations is a key component in the digital transformation strategy of any business sphere.
The main difference between relying on software for innovation (versus relying on hardware) is speed. Innovation is faster to create and faster to implement. Modern software can be updated continuously, in some cases automatically, which saves the company from unnecessary headaches. For example, Tesla provides its vehicle owners with a large number of software updates, continuously providing new and improved features and capabilities.
By utilizing software, the company is also able to study the needs of the market. With modern applications comes the ability to interact more closely with the customer. And the use of software tools to engage workers in a digital collaborative environment leads to the search for more and more effective management and work organization systems.
In due time, the advent of electronic document management improved the work of many companies. Modern ESM-systems help to build a transparent end-to-end flow of value creation for the end customer, which creates a favorable environment for innovation.