Deck 01: Unit 1

Overview of a Computer System

ICT 110: IT for Business

Today's Learning Objectives

By the end of this lecture, you will be able to:

✅ Define a computer system and identify its core components (hardware, software, user).
✅ Explain the four fundamental functions: Input, Processing, Output, and Storage.
✅ Differentiate between system software and application software.
✅ Analyze how different components of a computer system support various business functions like Finance, HR, and Operations.

What is a Computer System?

A computer system is more than just a machine. It's an integrated set of components working together to perform tasks.

Hardware ⚙️

The physical parts you can touch (CPU, monitor, keyboard).

Software 📋

The set of instructions that tells the hardware what to do (OS, Apps).

User 👩‍💼

The person interacting with the system to achieve a business goal.

For business, the goal is not just to have technology, but to use this system to create value.

The Four Core Functions of a System

Every computer system, from a simple POS terminal to a complex server, performs these four basic functions.

1. Input ➡️

Receiving raw data.
(e.g., scanning a product barcode, entering sales figures)

2. Processing 🔄

Transforming data into useful information.
(e.g., calculating total sales, updating inventory levels)

3. Output ⬅️

Presenting the processed information.
(e.g., displaying a sales receipt, generating a financial report)

4. Storage 💾

Saving data and information for future use.
(e.g., storing daily transaction records, archiving employee files)

Hardware: The Physical Foundation

Hardware components are the tangible tools that enable business processes.

    Key Components: CPU (The Brain), RAM (Short-term Memory), Storage (Long-term Memory), Input/Output Devices.
  

Think about your business function...

What is the most critical piece of hardware for an accountant? A supply chain manager? A graphic designer in marketing?

Hardware in Business: Operations & Finance

⚙️ Operations & Supply Chain

Barcode Scanners (Input): For real-time inventory tracking.
RFID Readers (Input): To monitor goods throughout the supply chain.
POS Systems (I/O): To process sales and update stock levels instantly.
Industrial Computers (Processing): To control manufacturing machinery.

💰 Finance & Accounting

High-Speed Servers (Storage/Processing): To run accounting software and store financial data securely.
Secure Data Storage (Storage): For compliance and archiving financial records.
High-Speed Printers (Output): For generating financial statements and invoices.
Dual Monitors (Output): For efficient data analysis and comparison.

Hardware in Business: HR & Marketing

🤝 Human Resources

Biometric Scanners (Input): For accurate time and attendance tracking.
Webcams & Mics (I/O): For remote interviews and virtual training sessions.
Servers (Storage): To securely host employee databases and payroll information.

🎯 Marketing

Powerful Workstations (Processing): For graphic design and video editing.
High-Resolution Displays (Output): For accurate color representation in creative work.
Servers (Processing/Storage): To analyze large customer datasets (CRM data).

Software: The Brains of the Operation

Software provides the instructions that make the hardware useful for business tasks. It's broadly divided into two types.

System Software

        Manages the computer's basic functions. It's the platform on which application software runs.
        
        Examples: Windows, macOS, Linux, Device Drivers.

Application Software

        Designed to perform specific tasks for the user to solve a business problem.
        
        Examples: Microsoft Excel, Tally, SAP, Adobe Photoshop.

Application Software: The Business Toolkit 💼

This is where IT directly solves business problems and creates value across departments.

Finance

Accounting Systems (Tally, QuickBooks)
Spreadsheets for Budgeting (Excel)
Financial Analysis Tools

Operations

ERP Systems (SAP, Oracle)
Supply Chain Management (SCM)
Project Management (Jira, Asana)

Human Resources

HR Information Systems (HRIS)
Payroll Software
Applicant Tracking Systems (ATS)

Connecting the Dots: From Data to Decisions

The computer system works together to turn raw facts into actionable business insights.

Raw Data
(e.g., sales transactions)

➡️

Processing
(Software aggregates data)

➡️

Information
(e.g., "Monthly Sales Report")

➡️

Business Decision
(e.g., "Increase stock of Item X")

⚡ The ultimate purpose of a business computer system is to support better, faster, and more informed decision-making.

The Most Important Component: The User

Technology is only as effective as the people who use it.

A computer system is a tool to enhance human capability, not replace it.
Business success depends on employees having the right skills (digital literacy) to leverage these tools.
This includes everyone from the finance analyst using Excel to the factory worker using a control panel.

Discussion: Can a company have the best hardware and software but still fail? Why?

Practical Application: Computer Systems in Nepal

Let's look at how local companies use computer systems across their business.

eSewa (FinTech) 💰

Relies on powerful, secure servers (hardware) and sophisticated transaction processing software to handle millions of daily payments (Finance/Operations).

Daraz (E-commerce) 🛍️

Uses a vast system of servers, warehouse scanners (hardware), and logistics management software (application) to manage inventory, sales, and delivery (Operations/Marketing).

CG Foods (Manufacturing) 🍜

Implements ERP systems (application software) on robust computers to manage the entire process from raw material procurement to final distribution (Operations/Finance/SCM).

Summary & Key Takeaways

What should you remember from today's lecture?

A computer system is a combination of Hardware, Software, and Users working towards a business objective.
Every business process, from finance to HR, relies on the core functions of Input, Processing, Output, and Storage.
Application Software is the specialized toolkit that empowers different business departments to perform their unique roles.
The true value of IT in business is its ability to transform raw data into actionable information for better decision-making.

Thank You!

Any questions?

Next Topic: Definition and Scope of IT

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