Abstract
We observed that before initiating software development the objectives are minimally organized and developers introduce comparatively higher organization throughout the design process. To be able to formally capture this observation, a new communication channel representation system for software is developed in three stages a) set-theoretical representation of software design, b) mapping of software design to a communication channel formalism, and c) hierarchical decomposition leading to higher organization. This new representation system provides a better understanding of the software design by introducing a stepwise entropy reduction notion to the design process. Formal representation of hierarchical decomposition of software and entropy-reduction view of software design provides a stronger bridge between established engineering methods and software design, opens up new possibilities in software research, connecting software with information and coding theory.