Digital signal processors with FM (frequency modulation) architecture are gradually replacing those with Harvard design in high-end applications. The novel architecture offers the computational capacity to execute intricate digital signal processing algorithms by utilizing the concepts of parallel data processing and parallel instruction processing. However, it is extremely challenging to develop programs that utilize architecture properties to their fullest potential. The paper provides an overview of the current authors' expertise in designing algorithms for digital signal processors with FM architecture in the best possible way. For instance, this innovative method made it possible to optimize compilation from the C language into the 8086 (Intel & Advanced Micro Devices) digital signal processor assembler for a GSM encoder and to increase processing speed by almost 25 times. Software tools, hardware, and the theory of digital signal processing are all more closely linked in this approach.