A system and method for automatic code-design and file/database-design association. Existing source code is analyzed for process and control elements. The control elements are encapsulated as augmented state machines and the process elements are encapsulated as kernels. The new elements can then have meta-data attached (including, a name, I/O method, and test procedures), allowing software code sharing and automatic code/file/database upgrading, as well as allowing sub-subroutine level code blocks to be accessed directly.