In our fast-paced high-tech economy, mergers and acquisitions are fairly common. During these negotiations, the assets of the involved parties are likely scrutinized to determine valuation of intellectual property. A company's Intellectual property assets usually include only patents, as they may be resold. In addition to patents, a company should also list as an asset, the complete documentation package for a given product. In this case, the value is in the quality of all relevant documents and source-code required to produce the product. The quality of content of this 'software package' will determine how much additional resources much be expended (by the purchaser) to successfully produce the embedded system software product. It is therefore recommended that management should require high-quality documentation for all embedded system software products, and that this 'software package' be highly valued as a company asset.

Valuation of embedded product software should also be considered by startup companies. Startups usually rely on investment groups to fund their technology development. A savvy investor will be diligent in their assessment of the startup's software development policy, as it will contribute measurably to their return on investment. Often, a startup will develop their product only to the extent required so that it can be sold to a larger corporation, which has the existing resources to successfully market the product. It therefore follows, that both the startup company and the investors will benefit appropriately by having the embedded system software 'packaged' properly as a company asset.

So what constitutes a quality 'embedded system software package' asset? To answer this question effectively requires some experience in a structured software development environment. Taking over the responsibility of maintaining a software project is often a very frustrating process usually due to missing, incomplete or out-of-date information. This does not need to be the case. If a company considers it's product software to be an asset, it will likely provide the following important software documentation for the product:

1. Software Requirements Specification (SRS)
2. Software Detailed Design Document (SDD)
3. Test Plans and Results
4. Independent Validation and Verification Reports (iV&V)
5. All application source-code

All of this important information can be provided on a CD along with some hardcopy. The value of such an asset is that it minimizes the effort required by the potential 'buyer' to provide product and support to the new and existing customers, thereby increasing the value of the product.

In considering 'software assets' as an objective for new projects, it may be useful to review your company's software development policy, making the necessary adjustments to accommodate these valuable resources. You may also want to consider the Staccato™ Software Design Method and Architecture for your next embedded system project, as it includes the methods to generate the requisite documentation suite.

Remember that the resources expended to produce a safe and effective embedded system should result in both a revenue-generating product and a company asset, ready to be sold to any interested buyer.