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Q: bespoke software valuation ( No Answer,   6 Comments )
Question  
Subject: bespoke software valuation
Category: Business and Money > Finance
Asked by: ripperie-ga
List Price: $10.00
Posted: 21 Jul 2004 10:20 PDT
Expires: 20 Aug 2004 10:20 PDT
Question ID: 377177
one of our customers has asked us to get a value put on software they
have developed in house. i need to get a template for this. 2 pager
report.
it is webbased operational software and contributes to the smooth
running of their business.
Answer  
There is no answer at this time.

Comments  
Subject: Re: bespoke software valuation
From: omnivorous-ga on 21 Jul 2004 10:26 PDT
 
Ripperie --

The value really depends on the use of the data.  

1.  The easiest valuation of in-house software is determined by the
cost of development and that's what would be used for tax purposes.

2.  If they're seeking an intrinsic value of the software, measuring
cost savings since its implementation would be the technique used.

3.  Market value would be determined by the likely returns from
licensing or marketing the software outside the firm.  This is often
the toughest determination, as the firm may have little experience in
marketing software.  Note that the determination of detailed
operational advantages (measured in #2) is extremely helpful in
selling or licensing the software to others.

Best regards,

Omnivorous-GA
Subject: Re: bespoke software valuation
From: ripperie-ga on 21 Jul 2004 10:38 PDT
 
do you know where i would get a template for a valuation. not a large
doc 5 6 pages ?
Subject: Re: bespoke software valuation
From: ripperie-ga on 21 Jul 2004 11:05 PDT
 
for method 2 that is
Subject: Re: bespoke software valuation
From: omnivorous-ga on 21 Jul 2004 11:10 PDT
 
Ripperie --

Try a Google search for "software valuation."

Here's one example of what's available:
SoftValue
http://www.isst.fhg.de/german/veroeffentlichungen/pdf_dateien/produktblaetter/TDD-SW-Wert-engl.pdf

Note: this is not inexpensive unless the company already has good
metrics in place on its processes.

Best regards,

Omnivorous-GA
Subject: Re: bespoke software valuation
From: ripperie-ga on 21 Jul 2004 11:24 PDT
 
i tried google for software valuation, but as in the case of softvalu,
it places the emphasis on market valuation. in this case the business
process is so unique that the product has neglible value in the
market, however it contributes signicantly to the operational
efficiencies in it's current role.

did u spot anything that was closer to method 2. intrinsic value of the software ?
Subject: Re: bespoke software valuation
From: omnivorous-ga on 21 Jul 2004 11:29 PDT
 
Ripperie --

Try this Google search strategy.  It offers several levels of analysis
and some case studies:
"process improvement" + measurement

Best regards,

Omnivorous-GA

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