2.3. Software

Systems software is the set of programs designed to coordinate the activities and
functions of the hardware and various programs throughout the computer system. A
particular systems software package is designed for a specific CPU design and class of
hardware.

Different types of system software include operating systems and utility programs.

The primary function of application software is to apply power of the computer to give
individuals, workgroups and the enterprise the ability to solve problems and perform
specific tasks. The computer uses one more application program to perform a particular
task. The application programs interact with systems software, and the systems software
then directs the computer hardware to take necessary actions.

2.3.1 Types of Application Software

Application Software gives organizations the ability to solve problems and perform
specific activities and tasks.

Application software can be categorized as proprietary (bespoke) and off-the-shelf
(packaged) software. .

1. Proprietary software – Proprietary application software solves a unique or specific
problem. Normally the software is developed and owned by the company or
organization that will use the software. In some cases if there are not adequate
resources within the company, the development of software may be outsourced
to another company based on a contract. This is called contract software.

Advantages of proprietary application software are,
• software usually meets the user requirements
• provides flexibility in making modifications
• offers more control over the results.
Disadvantages of proprietary application software are,
• can take a long time and significant resources to develop (costly)
• has more risk concerning the features and performance

2. Off-the-shelf software – Application software already developed and available in
the market is known as off-the-shelf software. These applications are not written
for a specific company only. They provide standard functions. Some of the factors
to be considered when selecting off-the-shelf software are,

• will the software run on the OS and hardware that have been selected?
• does the software meet the essential business requirements that have
been defined?
• is the software manufacturer financially solvent and reliable?
• does the total cost of purchasing, installing and maintaining the software
compare favourably to the expected business benefits?

Off-the-shelf application software may be purchased, leased, or rented from a
software company. Off-the-shelf application software can be customized to a
certain extent to better fit company specific needs.

Advantages of Off-the-shelf application software are,
• lower initial cost
• lower risk that the software will fail
• higher quality usually without bugs and well tested
Disadvantages of Off-the-shelf application software are,
• may pay for features never used
• may lack important features
• may not match current work processes

An application service provider (ASP) is another approach of obtaining a customized
software package. ASP is a company that can provide software, end-user support and
the computer hardware on which to run the software from the user’s facilities.

2.3.2. Application Software (based on usage)

2.3.2.1 Personnel Application Software

There are thousands of computer applications which help the individuals at schools,
home and work. Not only are the general-purpose programs (Example: Spreadsheet,
Database, Project management, Financial management) but also there are thousands of
other personal computer applications to perform specialized tasks (Example: To help to
do the taxes, get in shape, loose weight, get medical advice) available under this
category. These types of software are user software or personal productivity software.

Example:Word Processing

These types of software has transformed the process of writing. In most of the personal
computers word processing applications are installed. With the help of these applications
it is possible to create, edit, print, check spelling, create tables, insert formulas, create
graphics, and printing documents (letters, memos, reports) by electronically processing
your text data (words, phrases, sentences).

Word processing programs can be used with a team or group of people collaborating on
a project.

Examples: MS Word, Lotus WordPro, Corel WordPerfect

Spreadsheet Analysis

Useful for business analysis, planning and modelling. People use spreadsheets to
prepare budgets, forecast profits, summarize and analyse data. When numbers and
calculations are involved spreadsheet is a good approach to use. Developing a
spreadsheet involves designing its format and developing the relationships (formulas)
that will be used in the work sheet. The spreadsheet performs necessary calculations
based on the formulas defined and displays results immediately. Graphics, limited
database capabilities, statistical analysis, built–in business functions, optimization are
some of the important features in spread sheets. Optimization allows the spreadsheet to
maximise or minimize a quantity subject to certain constraints.

Example: A small furniture manufacturer might want to maximise the profits of his
organisation. Using an optimization feature such as Solver, he is able to determine
number of chairs and tables needed to produce with labour and material constraints in
order to maximize profits.

Examples of spreadsheet applications are MS Excel, LOTUS 1-2-3

Database Applications

Database applications are used to store, manipulate and retrieve data. These are
appropriate when it is needed to manipulate large amount of data and produce reports
and documents. Manipulating involves merging, editing and sorting data. Database
applications can be used to keep a track of a CD collection, tax records and expenses.
In business, a database can be used for various operations.

Example: MS Access, DBASE

Graphics Program

Graphics program can be use to develop presentations, illustrations and drawings.
Graphics packages can also help you convert numeric data into graphic displays such as
line charts, bar charts, pie charts and many other types.

Graphics programs are useful when developing advertising brochures, announcements
and full-color presentations.

Graphics are not only easier to comprehend, and communicate than numerical data,
multiple colour and multiple media displays but also can more easily emphasize key
points, and important trends in the data.

Example: MS Powerpoint, Lotus Freelance, Corel Presentations

Personal Information Managers

Personal information managers (PIM) help individuals. Groups and organizations store
useful information such as a list of tasks to complete or a list of names and addresses.
They provide an appointment calendar and a place to take notes. The information in a
PIM can be linked.

PIM allow people to schedule and coordinate group meetings. When a computer or
handheld device is connected to a network, the PIM data can be uploaded and
coordinated with the calendar and schedule of others using the same PIM software on
the network.

Most PIMs now include the ability to access the World Wide Web and provide e-mail
capability. PIM is a popular software application for Personal Digital Assistants (PDA)
hand held devices.

Examples: Lotus Organizer, Microsoft Outlook

Online Information Services

Online Information Services allow connect a personal computer to the outside world
through phone lines, cable, satellite or power lines in some cases. By the online
information services it is possible to get investment information, make travel plans, check
news from around the world, get prices and features for most consumer items, learn
about companies, send e-mails to friends and family, find details about degree programs
offered by colleges and universities around the world and search for job openings.

Software suites and Integrated Software packages

Software suite is a collection of single application programs packaged in a bundle. These
may include word processors, spreadsheets, database management systems, graphics
programs, personal information managers etc. Some suites support the development of
Web pages, note taking and speech recognition. There are number of advantages in the
software suite. The software programs have been designed to work similarly, so once
you learn the basics for one application, the other applications are easy to learn and use.
It’s cost-effective also.

Examples for general-purpose software: Microsoft Office, Lotus SmartSuite, Sun
Microsystems’ Star office, Corel WordPerfect Office.

A software suite, such as Corel Word Perfect Office 2002, offers a collection of powerful
programs including word processing, spreadsheet, database, graphics and other
programs. The programs in a software suite are designed to be used together. In
addition, the commands, icons, and procedures are the same for all the programs in the
suite (look and feel the same). As mentioned earlier, this feature allows faster learning.

Other Personal Application Software

There is personal application software which is used for special purposes.
Example: TurboTax – This is a popular tax preparation program
Software packages for training and distance education
Computer-aided design (CAD) software used to design and develop
buildings, electrical systems and plumbing systems

2.3.2.2 Workgroup Application Software

This category of software is designed to support groupwork, whether the group members
are within the same location or spread around the world. Groupware is a category of
general-purpose application software that combines a variety of software features and
functions to facilitate collaboration.

Example: Lotus Notes, MS Exchange, Novell Groupware supports collaboration through
electronic mail, discussion groups and databases, scheduling, task management and so
on.

Collaborative capabilities are also being included in other software products to give them
groupware features. An example is MS Office Software Suite. MS Word keeps track of
who made revisions to each document, Excel tracks all changes made to a spreadsheet,
and Outlook lets you keep track of tasks you delegate to other team members.

2.3.2.3 Enterprise Application Software

Enterprise application programs aim to benefit an entire organization by improving
cooperation and interaction between all departments such as product planning,
purchasing, manufacturing, sales and customer service.

Many organizations are moving to integrated enterprise software that supports supply
chain management (movement of raw materials from suppliers through shipment of
finished goods to customers).

Examples include Enterprise Resource Planning (ERP) software.

ERP software is a set of integrated programs that manage a company’s critical business
operations. The scope of an ERP system may vary from vendor to vendor. However,
most ERP systems provide integrated software to support manufacturing and finance. In
addition to these core business processes, some ERP systems may be capable of
supporting additional business functions such as human resources, sales, and
distribution.

Some ERP software provides support for global operations. This means, support for
languages, legal entities, and currencies is included.

Although previously ERP systems were largely used by global corporations, these
applications are becoming popular even among SMEs (Small to Medium Enterprises).
ERP software can either be purchased from the market or developed according to
specific requirements. In some cases where ERP applications are purchased from a
vendor, they are customized according to the requirements of the customer.
Benefits of ERP systems include elimination of inefficient systems, improved data access
for decision making, facilitate the adoption of improved work processes and enable the
implementation of supply chain management. Supply chain management (SCM) is a
cross-functional interenterprise system that uses information technology to help support
and manage the links between some of a company’s key business processes and those
of its suppliers, customers, and business partners. The goal of SCM is to create a fast,
efficient, and low-cost network of business relationships of the supply chain to get a
company’s concepts to market .

Drawbacks of ERP systems include high implementation costs and employee resistance
to change due to changes in the business process.


2.3.2.4 Application Software for Decision Support and Specialized Purposes

Specialized application software for information, decision support and other purposes is
available in every industry. Applications of specialized purposes include expert systems
as well as artificial intelligence applications.

Example: One Music producer in Barcelona said that the Hit Song Science software
product picked Norah Jones as a success before she won a number of Grammy Awards.
Sophisticated decision support software is now being used to increase the cure rate for
cancer by analyzing about 100 different scans of the cancer tumor to create a 3-D view
of the tumor.