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Unit 3: Computer Software

Choosing the Right Software for Business

ICT 110: IT for Business

Today's Learning Objectives

By the end of this lecture, you will be able to analyze and choose appropriate software solutions for various business needs.
  • ✅ Evaluate software needs across different business functions (Finance, HR, Operations).
  • ✅ Apply key criteria for selecting appropriate business software.
  • ✅ Analyze the Total Cost of Ownership (TCO) beyond the initial purchase price.
  • ✅ Identify suitable software solutions for different business contexts, including in Nepal.

Software: The Engine of Modern Business

Software is the set of instructions that tells computer hardware what to do. In business, it's the "brain" that powers processes and strategy.

It's not just about apps; it's about strategic tools that enable every department to function effectively.

📊
Finance
🤝
Human Resources
⚙️
Operations
🎯
Marketing & Sales

The Two Pillars of Software

System Software

Manages computer hardware and provides a platform for applications to run.

  • Operating Systems (Windows, macOS, Linux)
  • Device Drivers
  • Utilities

Business Analogy: The factory building, electricity, and infrastructure.

Application Software

Performs specific tasks for end-users to achieve business goals.

  • Word Processors (MS Word)
  • Accounting Software (Tally)
  • CRM Systems (Salesforce)

Business Analogy: The specialized machinery and tools used by workers.

Businesses primarily choose and interact with Application Software, but it relies completely on System Software to function.

Application Software Across Business Functions

Different departments need different tools to succeed.

  • 💰 Finance & Accounting:
    • Software: Tally, QuickBooks, SAP FICO
    • Purpose: Bookkeeping, financial reporting, budgeting, tax compliance.
  • 🤝 Human Resources:
    • Software: Workday, PeopleSoft, RealHRsoft (Nepal)
    • Purpose: Payroll processing, recruitment tracking, performance management.
  • ⚙️ Operations & Supply Chain:
    • Software: SAP SCM, Oracle SCM, Asana, Trello
    • Purpose: Inventory management, logistics, production planning, project management.
  • 🎯 Marketing & Sales:
    • Software: Salesforce, HubSpot, Google Analytics
    • Purpose: Customer Relationship Management (CRM), campaign analysis, sales tracking.

How to Choose the Right Software?

A strategic approach to software selection is crucial. Consider these five criteria:

  1. 🔍 Functionality: Does it meet the specific needs of the department? (e.g., Does the accounting software handle Nepal's VAT rules?)
  2. 💼 Scalability: Can the software grow with your business? Will it support 10 employees today and 100 tomorrow?
  3. ⚙️ Integration: Can it connect with your other systems? (e.g., Can your e-commerce site update your inventory software automatically?)
  4. 💰 Total Cost of Ownership (TCO): What is the *full* cost over its lifetime, not just the initial price?
  5. 🤝 Vendor Support & Training: Is reliable help available when you face issues? Is training provided for your staff?
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Deep Dive: Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) is a financial estimate that helps businesses assess the direct and indirect costs of a software product over its full lifecycle.

It's more than just the sticker price!

Visible Costs (Tip of the Iceberg)

  • License or Subscription Fee
  • Initial Purchase Price

Hidden Costs (Below the Surface)

  • Implementation & Data Migration
  • Staff Training
  • Annual Maintenance & Support Fees
  • Customization & Integration
  • Required Hardware Upgrades
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Software in the Nepali Context 🇳🇵

How do local businesses leverage software?

  • FinTech & E-commerce: Companies like eSewa and Daraz use highly customized, powerful platforms to handle millions of transactions securely. This software is a core competitive advantage.
  • Manufacturing & Conglomerates: A large group like Chaudhary Group (CG) uses Enterprise Resource Planning (ERP) systems (like SAP) to manage its vast operations, from supply chain to finance.
  • Small & Medium Enterprises (SMEs): Many rely on Tally for accounting due to its market dominance, suitability for local regulations, and availability of trained accountants.
  • The Shift to Collaboration Suites: There is rapid adoption of cloud-based tools like Microsoft 365 and Google Workspace for email, file sharing, and teamwork.

Summary & Key Takeaways

  • ✅ Software is a strategic asset that drives efficiency and innovation across ALL business functions.
  • ✅ A structured selection process is crucial. Evaluate software based on Functionality, Scalability, Integration, TCO, and Vendor Support.
  • ✅ The Total Cost of Ownership (TCO) includes many hidden costs beyond the initial price, such as training, support, and maintenance.
  • ✅ The right software choice depends on the specific business context, from large enterprises like CG to local SMEs using Tally.

Thank You

Any Questions?


Next Topic: Understanding Software Licensing Models

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