The document discusses the software crisis, which occurs when software demand increases but development methods and tools do not. This leads to budget overruns, low quality software, missed deadlines, and unmanageable code. The software crisis is caused by scaling problems, high costs, delays, unreliability, complexity, and duplicated efforts. One solution is software engineering, which takes a systematic and disciplined approach to development through guidelines like reducing budgets, improving quality, shortening timelines, and using experienced teams.