This document defines software engineering as the cost-effective development of software applications and programs through various engineering disciplines and processes. It discusses that software engineering is concerned with all aspects of software production, including time, budget, custom development, and electronic or printed formats. Software engineering also manages software development, maintenance, project management, tools, and processes like specification, design, development, testing, and validation. Key challenges for software engineering include maintenance, upgrading, architecture, tools, heterogeneous systems, delivery constraints, and complexity.