Unit 3: Computer Software

Topic 3.1: Software and its Characteristics

Introduction

Welcome to the world of software, the invisible force that drives modern business. While computer hardware provides the physical foundation, it is software that brings it to life. Think of hardware as the body of a car—the engine, wheels, and chassis. Software is the driver, the GPS, and the engine control unit—the intelligence that tells the car where to go and how to perform. For any business, from a small local shop to a large multinational corporation, software is the engine of efficiency, innovation, and growth. It automates tasks, provides critical insights from data, and connects businesses with their customers. Understanding the types and characteristics of software is essential for any future business leader to make informed decisions about technology investments.

What is Software?

Software is a set of instructions, data, or programs used to operate computers and execute specific tasks. It is the non-tangible component of a computer system that tells the hardware what to do and how to do it. Without software, a computer is merely a collection of electronic parts.

Software can be broadly categorized into two main types: System Software and Application Software.

mindmap
  root((Computer Software))
    System Software
      Operating System
        Windows
        macOS
        Linux
        Android/iOS
      Utility Software
        Antivirus
        File Compression
        Disk Cleanup
      Device Drivers
        Printer Drivers
        Graphics Drivers
    Application Software
      Productivity
        Word Processors
        Spreadsheets
        Presentations
      Business Apps
        ERP Systems
        CRM Systems
        Accounting
      Communication
        Email Clients
        Video Conferencing
        Messaging

Figure: Software Classification - System Software vs Application Software

1. System Software

System Software is the foundational software that manages and controls the computer hardware. It acts as an intermediary between the hardware and the application software, providing an environment for other programs to run. Users do not typically interact with system software directly; it runs in the background.

Types of System Software

  • Operating System (OS)
    • The OS is the most crucial piece of system software. It is the chief manager of all hardware and software resources on a computer.
    • Key Functions:
      • Hardware Management: Manages the CPU, memory, storage devices, and peripherals (like printers and keyboards).
      • File Management: Organizes and keeps track of files and directories.
      • User Interface (UI): Provides a way for users to interact with the computer, either through a Graphical User Interface (GUI) with icons and windows, or a Command-Line Interface (CLI).
      • Application Management: Allows you to install, run, and manage application software.
    • Examples: Microsoft Windows, Apple macOS, Linux, Google Android, Apple iOS.
  • Utility Software
    • Utility software helps to maintain, analyze, configure, and optimize the computer. Think of it as the computer’s maintenance toolkit.
    • Examples:
      • Antivirus Software: (e.g., Windows Defender, Avast) - Protects against viruses and malware.
      • File Compression Tools: (e.g., WinZip, 7-Zip) - Reduces the size of files for easier storage and transfer.
      • Disk Cleanup & Defragmentation Tools: - Optimizes disk space and performance.
  • Device Drivers
    • A device driver is a special program that acts as a “translator” between the operating system and a specific hardware device (e.g., a printer, graphics card, or webcam). When you connect a new printer, you install its driver so the OS knows how to communicate with it.

2. Application Software

Application Software, often called an “app,” is designed to help users perform specific tasks. This is the software that business professionals interact with daily to get their work done.

Types of Application Software

  • General-Purpose (Off-the-shelf) Software
    • This software is designed for a broad audience and serves a wide range of common tasks. It is ready-made and available for purchase or download.
    • Examples:
      • Word Processors: Microsoft Word, Google Docs
      • Spreadsheets: Microsoft Excel, Google Sheets
      • Presentation Software: Microsoft PowerPoint, Google Slides
      • Web Browsers: Google Chrome, Mozilla Firefox
  • Specialized (Custom/Bespoke) Software
    • This software is custom-built to meet the specific needs of a particular business or industry. While more expensive to develop, it provides a perfect fit for the organization’s unique processes.
    • Examples:
      • A bank’s Core Banking System (CBS).
      • A university’s Student Information System (SIS).
      • An airline’s Flight Reservation System.
  • Web-Based and Mobile Applications
    • These are modern forms of application software that run on web browsers or mobile devices. They have become central to how businesses operate and interact with customers.
    • Examples: eSewa, Khalti, Daraz App, Fonepay.

Characteristics of Quality Software

When a business decides to invest in or develop software, it must evaluate its quality. Choosing the right software can significantly impact productivity and profitability. Key characteristics include:

  • Reliability: The software should perform its intended function consistently and without failures. An unreliable e-commerce website that crashes during peak hours will lose sales and customer trust.
  • Usability (User-Friendliness): The software should be easy to learn and use. High usability reduces employee training time and increases adoption rates.
  • Efficiency: The software should perform its tasks quickly and use system resources (like CPU and memory) effectively. Slow, lagging software frustrates users and hampers productivity.
  • Maintainability: It should be easy for developers to fix bugs, make improvements, or adapt the software to new requirements. This lowers the total cost of ownership over time.
  • Security: The software must protect data from unauthorized access, corruption, or theft. This is non-negotiable for any business handling sensitive customer or financial information.
  • Portability: The ability of the software to run on different platforms (e.g., Windows, macOS, Android) with minimal modification. This is important for businesses with diverse IT environments.

Business Applications of Software

Software is integrated into every functional area of a modern business.

Business Function Software Type & Examples How it is Used
Finance & Accounting - Accounting Software: Tally, QuickBooks
- ERP Systems: SAP S/4HANA Finance
- Spreadsheets: Microsoft Excel		 Automating bookkeeping, managing payroll, generating financial statements, financial modeling, and ensuring regulatory compliance.
Human Resources (HR) - HRIS: GreytHR, PeopleSoft
- Applicant Tracking Systems (ATS)
- Collaboration Tools: Slack, Microsoft Teams		 Managing employee records, processing payroll and leave, automating recruitment and onboarding, and facilitating internal communication.
Operations & Supply Chain - Inventory Management Systems
- Supply Chain Management (SCM) Software
- Project Management Tools: Asana, Jira		 Tracking inventory levels, managing procurement and logistics, planning production schedules, and coordinating complex projects.
Marketing & Sales - CRM Software: Salesforce, HubSpot
- Web Analytics Tools: Google Analytics
- Social Media Management Tools: Hootsuite		 Managing customer relationships, tracking sales leads, analyzing website traffic and campaign performance, and scheduling social media posts.

Real-World Examples from Nepal

  1. eSewa and Khalti (Mobile & Web Applications)
    • eSewa and Khalti are leading digital wallet platforms in Nepal. They are prime examples of application software (specifically, mobile and web-based apps) that have revolutionized business operations.
    • Business Impact:
      • Finance: They enable businesses to accept digital payments seamlessly, reducing the need for physical cash and simplifying transaction reconciliation.
      • Operations: They facilitate instant payment for services like internet bills (e.g., for ISPs like WorldLink), utility bills, and e-commerce purchases, streamlining the entire order-to-cash cycle.
  2. Core Banking Software (CBS) in Nepalese Banks (Specialized Software)
    • Commercial banks in Nepal like Nabil Bank, NIC Asia Bank, and Global IME Bank rely on highly specialized, custom application software known as a Core Banking System (CBS). A popular example used by many banks globally is Infosys Finacle.
    • Business Impact:
      • This software is the central nervous system of the bank. It manages all core operations: customer accounts, deposits, loans, and transactions across all branches in real-time. It ensures reliability and security, two critical characteristics for financial software.
  3. Daraz Nepal (Integrated Software Ecosystem)
    • Daraz, a leading e-commerce platform, is not just one piece of software but an ecosystem of interconnected applications.
    • Business Impact:
      • Marketing/Sales: The customer-facing website and mobile app serve as the digital storefront.
      • Operations: The “Seller Center” is a specialized web application for vendors to manage their products, inventory, and view sales data. This is a critical operational tool.
      • Supply Chain: Behind the scenes, Daraz uses sophisticated logistics and warehouse management software to track packages from the seller to the customer’s doorstep.

Key Takeaways

  • Software is the set of instructions that tells computer hardware what to do.
  • The two main categories are System Software (manages the computer, e.g., Windows OS) and Application Software (performs user tasks, e.g., Microsoft Excel).
  • Choosing software for a business involves evaluating key characteristics like reliability, usability, security, and maintainability.
  • Software is not just for IT departments; it is a critical tool used across all business functions, including Finance, HR, Operations, and Marketing, to drive efficiency and strategy.

Review Questions

  1. Explain the difference between System Software and Application Software, providing one business example for each.
  2. Why is security considered a critical characteristic of software for a bank’s mobile banking application?
  3. A small retail business in Kathmandu wants to manage its sales and inventory. Would you recommend a general-purpose software (like Microsoft Excel) or a specialized inventory management system? Justify your answer.
  4. How does an operating system (like Windows or macOS) facilitate the use of application software in a business environment?