--:-- --
↓ Scroll for more

Unit 3: Computer Software

Software Characteristics & System Software

ICT 110: IT for Business

Today's Learning Objectives 🎯

By the end of this lecture, you will be able to apply your knowledge of software to real-world business scenarios.
  • ✅ Differentiate between System and Application software and their roles in a business.
  • ✅ Analyze the key characteristics of high-quality business software for strategic decision-making.
  • ✅ Explain the crucial role of Operating Systems in ensuring business continuity and security.
  • ✅ Evaluate how specific software choices impact the efficiency of various business functions like Finance, HR, and Operations.

What is Software?

The "Brain" of the Business Machine

Software is a set of instructions, data, or programs used to operate computers and execute specific business tasks. It turns hardware potential into business value.

Hardware (The Body ⚙️)

  • Tangible, physical components
  • CPU, RAM, Storage, Keyboard
  • The "potential" to do work

Software (The Brain 🧠)

  • Intangible instructions
  • Tells the hardware what to do
  • The "intelligence" that creates value

The Two Pillars of Software

1. System Software

The foundational layer that manages and controls the computer hardware.

  • Manages computer resources (CPU, Memory)
  • Provides a platform for Application Software
  • Analogy: A building's foundation, electrical wiring, and plumbing.
  • Examples: Windows 11, macOS, Linux, Android

2. Application Software

Programs designed to perform specific tasks for the end-user to achieve business goals.

  • What you interact with daily
  • Solves specific business problems
  • Analogy: The appliances and tools inside the building (oven, computer, desk).
  • Examples: Microsoft Excel, Tally, SAP, Slack

Deep Dive: System Software

The Unsung Hero of Business Operations

Operating System (OS)

The "CEO" of the computer. It manages all hardware and software, and provides the user interface.

Ex: Windows Server managing a company's network.

Utility Programs

The "Maintenance Crew". They perform system maintenance and housekeeping tasks.

Ex: Antivirus software protecting financial data; Backup utility for disaster recovery.

Device Drivers

The "Translator". They allow the OS to communicate with hardware like printers or scanners.

Ex: A specific driver to make the office's new high-speed printer work.

Why the Operating System Matters for Business 💼

The OS is more than a startup screen; it's a critical platform for business operations.

  • Security & Access Control: Manages employee logins and permissions, protecting sensitive HR and financial data.
  • Stability & Reliability: Ensures that critical applications, like the company's accounting software or ERP system, run smoothly without crashing.
  • Multitasking: Allows an operations manager to analyze inventory reports while simultaneously video-conferencing with a supplier.
  • Resource Management: Efficiently allocates memory (RAM) and processing power, ensuring the system doesn't slow down during peak business hours.

Application Software: The Tools for the Job

Application Software is designed to perform a group of coordinated functions or tasks to solve a specific business problem.

General Purpose (Off-the-shelf)

Software with broad functionality used across many industries.

  • Word Processors: Microsoft Word
  • Spreadsheets: Microsoft Excel
  • Presentation: PowerPoint

Customized (Bespoke)

Software developed for a specific organization’s unique needs.

  • A custom inventory system for CG Foods.
  • A unique CRM for Ncell's customer plans.
  • A proprietary trading algorithm for a bank.

Software in Action: A Cross-Functional View

Software is the engine that drives every department in a modern business.

💰 Finance & Accounting

  • Tally/QuickBooks: Day-to-day bookkeeping, invoicing.
  • SAP FICO: Enterprise-level financial management.
  • Excel: Financial modeling and budgeting.

⚙️ Operations & Supply Chain

  • Oracle SCM: Managing supply chain logistics.
  • Jira/Trello: Project and task management.
  • ERP Systems: Inventory and production planning.

🤝 Human Resources (HR)

  • Workday/PeopleSoft: HR information systems (HRIS).
  • Keka: Payroll and attendance management.
  • LinkedIn/MeroJob: Recruitment platforms.

📊 Marketing & Sales

  • Salesforce: Customer Relationship Mgt (CRM).
  • Google Analytics: Customer behavior analysis.
  • Mailchimp: Email marketing campaigns.

Choosing the Right Software: Key Characteristics 🔍

Selecting software is a major business investment. Here's what to look for:

  • Functionality: Does it meet the specific needs of your business process? (e.g., Does the accounting software handle Nepal's tax laws?)
  • Reliability & Stability: Is it dependable? System downtime means lost revenue and productivity.
  • Usability (Ease of Use): Is it intuitive for employees? High usability reduces training costs and increases adoption.
  • Scalability: Can it grow with your business from 100 to 10,000 customers without failing?
  • Security: How well does it protect sensitive customer and company data from cyber threats?
  • Support & Maintenance: Is professional help available when things go wrong? Who will install updates?

The Licensing Dilemma: Owning vs. Renting

Proprietary / Licensed

  • Owned by a company; you buy a license to use it.
  • Restrictions on copying and modification.
  • Pros: Professional support, polished user experience.
  • Cons: Can be expensive, vendor lock-in.
  • Examples: Microsoft Windows, Adobe Photoshop, Tally.

Free & Open-Source (FOSS)

  • Source code is freely available to view and modify.
  • Often free of charge.
  • Pros: High flexibility, no license cost, strong community.
  • Cons: Support can be community-based, may require in-house technical expertise.
  • Examples: Linux OS, Apache Web Server, WordPress.
The choice impacts Total Cost of Ownership (TCO) and business agility.

The Cloud & Mobile Revolution ☁️📱

Software is no longer just on your desktop. It's everywhere.

Web-Based Software (SaaS)

Accessed via a web browser. Hosted by the vendor in the cloud.

  • Business Impact: Lower IT overhead, access from anywhere, predictable subscription costs (OpEx).
  • Examples: Google Workspace, Microsoft 365, Salesforce.

Mobile Applications

Designed for smartphones and tablets, leveraging device features like GPS and camera.

  • Business Impact: Empowers a mobile workforce (sales, delivery), provides a direct channel to customers.
  • Examples: A bank's mobile app, a delivery tracking app for an e-commerce company.

Practical Application: Software Powering Nepali Businesses 🇳🇵

FinTech 💳

eSewa / Khalti use mobile & web applications to process millions of digital payments, transforming Nepal's financial landscape. This is Application Software for the finance function.

E-Commerce & Logistics 🚚

Daraz relies on custom Supply Chain Management (SCM) and CRM software to manage inventory, track orders, and analyze customer data, impacting Operations and Marketing.

Core Banking 🏦

Banks like Nabil Bank use specialized Core Banking Software (e.g., Finacle) as the central nervous system for all transactions, loans, and accounts. A mission-critical application.

Summary & Key Takeaways ⚡

  • Software is categorized into System Software (the foundation, like an OS) and Application Software (the tools that do the work).
  • The Operating System is a critical business asset that manages security, stability, and resources for the entire organization.
  • Application software is essential to ALL business functions, from finance (Tally) and HR (Keka) to operations (SAP). It's not just about marketing.
  • Choosing the right software involves evaluating its functionality, reliability, security, and scalability to ensure it delivers real business value.
  • The shift to web (SaaS) and mobile platforms has fundamentally changed how businesses acquire, use, and pay for software.

Thank You!

Any Questions?

Next Topic: Application Software and Industry Applications

Back to Start