Because Hit Uses Hardware and Software in the Management

Learning Objectives

Upon successful completion of this chapter, you will be able to:

define the term software;
depict the 2 primary categories of software;
describe the role ERP software plays in an organization;
depict deject computing and its advantages and disadvantages for use in an organization; and
ascertain the term open up-source and identify its chief characteristics.

INTRODUCTION

The 2d component of an information arrangement is software. Simply put: Software is the set of instructions that tell the hardware what to practise. Software is created through the process of programming (nosotros will cover the cosmos of software in more detail in affiliate 10). Without software, the hardware would not be functional.

TYPES OF SOFTWARE

Software can exist broadly divided into two categories: operating systems and application software. Operating systems manage the hardware and create the interface between the hardware and the user. Awarding software is the category of programs that exercise something useful for the user.

OPERATING SYSTEMS

The operating system provides several essential functions, including:

managing the hardware resources of the computer;
providing the user-interface components;
providing a platform for software developers to write applications.

All computing devices run an operating organisation. For personal computers, the well-nigh popular operating systems are Microsoft'due south Windows, Apple'south Os 10, and different versions of Linux. Smartphones and tablets run operating systems likewise, such as Apple's iOS, Google's Android, Microsoft's Windows Mobile, and Blackberry.

Early personal-reckoner operating systems were elementary by today's standards; they did not provide multitasking and required the user to type commands to initiate an action. The amount of memory that early operating systems could handle was limited as well, making big programs impractical to run. The near popular of the early operating systems was IBM's Disk Operating Arrangement, or DOS, which was actually developed for them by Microsoft.

In 1984, Apple introduced the Macintosh computer, featuring an operating system with a graphical user interface. Though not the first graphical operating system, it was the outset one to find commercial success. In 1985, Microsoft released the beginning version of Windows. This version of Windows was non an operating system, but instead was an application that ran on tiptop of the DOS operating system, providing a graphical environment. It was quite express and had little commercial success. Information technology was not until the 1990 release of Windows three.0 that Microsoft plant success with a graphical user interface. Because of the concur of IBM and IBM-compatible personal computers on concern, it was non until Windows 3.0 was released that business users began using a graphical user interface, ushering us into the graphical-computing era. Since 1990, both Apple and Microsoft take released many new versions of their operating systems, with each release calculation the ability to process more data at once and access more than retentivity. Features such as multitasking, virtual memory, and voice input accept become standard features of both operating systems.

Linux logo (Larry Ewing)

A 3rd personal-calculator operating system family that is gaining in popularity is Linux (pronounced "linn-ex"). Linux is a version of the Unix operating system that runs on the personal computer. Unix is an operating system used primarily past scientists and engineers on larger minicomputers. These are very expensive computers, and software developer Linus Torvalds wanted to observe a mode to make Unix run on less expensive personal computers. Linux was the issue. Linux has many variations and now powers a large pct of web servers in the world. It is also an instance of open up-source software, a topic we will embrace later in this chapter.

MAC VS. WINDOWS

Are you a Mac? Are yous a PC? Ever since its introduction in 1984, users of the Apple tree Macintosh have been quite biased about their preference for the Macintosh operating arrangement (now called Bone 10) over Microsoft's. When Microsoft introduced Windows, Apple sued Microsoft, claiming that they copied the "look and feel" of the Macintosh operating organization. In the finish, Microsoft successfully defended themselves.

Over the past few years, Microsoft and Apple accept traded barbs with each other, each claiming to have a better operating system and software. While Microsoft has always had the larger market place share (see sidebar), Apple has been the favorite of artists, musicians, and the technology elite. Apple tree also provides a lot of computers to elementary schools, thus gaining a following amongst the younger generation.

WHY IS MICROSOFT SOFTWARE SO Ascendant IN THE Business World?

If you lot've worked in the globe of business, y'all may take noticed that almost all of the computers run a version of Microsoft's Windows operating system. Why is this? On almost all higher campuses, you see a preponderance of Apple Macintosh laptops. In unproblematic schools, Apple reigns as well. Why has this not extended into the business world?

As we learned in chapter ane, nearly all businesses used IBM mainframe computers back in the 1960s and 1970s. These same businesses shied away from personal computers until IBM released the PC in 1981. When executives had to make a decision about purchasing personal computers for their employees, they would cull the rubber route and purchase IBM. The saying then was: "No 1 ever got fired for buying IBM." Then over the next decade, companies bought IBM personal computers (or those compatible with them), which ran an operating system chosen DOS. DOS was created past Microsoft, then when Microsoft released Windows as the next iteration of DOS, companies took the safe route and started purchasing Windows.

Microsoft before long plant itself with the dominant personal-computer operating system for businesses. As the networked personal computer began to replace the mainframe figurer every bit the master way of computing inside businesses, information technology became essential for Microsoft to give businesses the power to administrate and secure their networks. Microsoft developed business-level server products to proceed with their personal computer products, thereby providing a complete business concern solution. And so now, the saying goes: "No one ever got fired for ownership Microsoft."

Awarding SOFTWARE

The second major category of software is application software. Application software is, substantially, software that allows the user to accomplish some goal or purpose. For case, if you take to write a paper, you might employ the application-software program Microsoft Give-and-take. If you lot desire to heed to music, you lot might use iTunes. To surf the web, you might use Internet Explorer or Firefox. Even a computer game could be considered awarding software.

The "Killer" App

Visicalc running on an Apple II

VisiCalc running on an Apple II. (Public Domain)

When a new type of digital device is invented, at that place are by and large a small grouping of technology enthusiasts who volition purchase it just for the joy of figuring out how it works. However, for most of us, until a device can really do something useful we are not going to spend our difficult-earned money on it. A "killer" application is one that becomes so essential that large numbers of people will buy a device just to run that awarding. For the personal computer, the killer application was the spreadsheet. In 1979, VisiCalc, the showtime personal-computer spreadsheet packet, was introduced. It was an immediate hit and drove sales of the Apple tree II. It besides solidified the value of the personal estimator beyond the relatively small circumvolve of applied science geeks. When the IBM PC was released, another spreadsheet program, Lotus 1-2-3, was the killer app for business users.

Productivity Software

Along with the spreadsheet, several other software applications have become standard tools for the workplace. These applications, called productivity software, permit part employees to consummate their daily work. Many times, these applications come packaged together, such as in Microsoft's Role suite. Here is a list of these applications and their basic functions:

Word processing: This class of software provides for the creation of written documents. Functions include the power to type and edit text, format fonts and paragraphs, and add, move, and delete text throughout the document. Most modern give-and-take-processing programs also have the ability to add together tables, images, and various layout and formatting features to the document. Discussion processors save their documents every bit electronic files in a variety of formats. By far, the nigh pop word-processing package is Microsoft Discussion, which saves its files in the DOCX format. This format can be read/written by many other word-processor packages.
Spreadsheet: This class of software provides a way to practice numeric calculations and analysis. The working area is divided into rows and columns, where users can enter numbers, text, or formulas. Information technology is the formulas that make a spreadsheet powerful, allowing the user to develop complex calculations that can alter based on the numbers entered. Most spreadsheets also include the ability to create charts based on the data entered. The most pop spreadsheet package is Microsoft Excel, which saves its files in the XLSX format. Just every bit with word processors, many other spreadsheet packages tin read and write to this file format.
Presentation: This class of software provides for the creation of slideshow presentations. Harkening dorsum to the days of overhead projectors and transparencies, presentation software allows its users to create a prepare of slides that can exist printed or projected on a screen. Users tin add text, images, and other media elements to the slides. Microsoft'due south PowerPoint is the almost popular software right now, saving its files in PPTX format.
Some role suites include other types of software. For instance, Microsoft Office includes Outlook, its e-mail package, and OneNote, an data-gathering collaboration tool. The professional version of Office also includes Microsoft Access, a database package. (Databases are covered more in chapter iv.)

Microsoft popularized the idea of the role-software productivity package with their release of Microsoft Office. This package continues to boss the market and most businesses expect employees to know how to use this software. However, many competitors to Microsoft Part do exist and are uniform with the file formats used by Microsoft (encounter table below). Recently, Microsoft has begun to offer a web version of their Part suite. Like to Google Bulldoze, this suite allows users to edit and share documents online utilizing cloud-computing technology. Cloud computing volition exist discussed later in this chapter.

Comparison of part application software suites
Suite:	Word Processing	Spreadsheet	Presentation	Other
Microsoft Office	Word	Excel	PowerPoint	Outlook (e-mail), Access (database), OneNote (information gathering)
Apple tree iWork	Pages	Numbers	Keynote	Integrates with iTunes, iCloud, and other Apple tree software
OpenOffice	Author	Calc	Print	Base (database), Describe (drawing), Math (equations)
Google Drive	Certificate	Spreadsheet	Presentation	Gmail (email), Forms (online class data collection), Draw (cartoon)

Utility Software and Programming Software

Two subcategories of application software worth mentioning are utility software and programming software. Utility software includes software that allows you to fix or modify your computer in some way. Examples include antivirus software and disk defragmentation software. These types of software packages were invented to fill shortcomings in operating systems. Many times, a subsequent release of an operating system will include these utility functions as function of the operating arrangement itself.

Programming software is software whose purpose is to brand more than software. Almost of these programs provide programmers with an environment in which they can write the code, test it, and catechumen it into the format that can then be run on a estimator.

"POWERPOINTED" TO DEATH

As presentation software, specifically Microsoft PowerPoint, has gained acceptance as the primary method to formally nowadays data in a business organisation setting, the art of giving an engaging presentation is condign rare. Many presenters now just read the bullet points in the presentation and immediately bore those in attendance, who can already read it for themselves.
The real problem is not with PowerPoint as much as it is with the person creating and presenting. Author and thinker Seth Godin put it this way: "PowerPoint could be the most powerful tool on your computer. But it's non. Information technology'due south really a dismal failure. About every PowerPoint presentation sucks rotten eggs."^[1] The software used to aid you communicate should not duplicate the presentation yous want to give, simply instead it should support it. I highly recommend the book Presentation Zen by Garr Reynolds to anyone who wants to meliorate their presentation skills.

Software developers are becoming aware of this problem equally well. New digital presentation technologies are being developed, with the hopes of becoming "the side by side PowerPoint." One innovative new presentation application is Prezi. Prezi is a presentation tool that uses a unmarried canvas for the presentation, allowing presenters to place text, images, and other media on the canvas, and and then navigate between these objects every bit they present. Simply as with PowerPoint, Prezi should be used to supplement the presentation. And we must always remember that sometimes the best presentations are made with no digital tools.

I Own THIS SOFTWARE, RIGHT? WELL . . .

When you purchase software and install information technology on your computer, are you the owner of that software? Technically, yous are not! When you install software, you are actually just being given a license to use it. When yous first install a software package, you are asked to agree to the terms of service or the license understanding. In that understanding, you will find that your rights to use the software are limited. For example, in the terms of the Microsoft Office Excel 2010 software license, you will find the post-obit statement: "This software is licensed, not sold. This agreement only gives you some rights to use the features included in the software edition you licensed."

For the nearly role, these restrictions are what you would expect: you cannot make illegal copies of the software and you may not use it to do annihilation illegal. However, there are other, more unexpected terms in these software agreements. For example, many software agreements ask y'all to agree to a limit on liability. Again, from Microsoft: "Limitation on and exclusion of damages. You can recover from Microsoft and its suppliers only directly damages up to the amount you paid for the software. You lot cannot recover any other damages, including consequential, lost profits, special, indirect or incidental damages." What this means is that if a problem with the software causes harm to your concern, you cannot hold Microsoft or the supplier responsible for damages.

Applications for the Enterprise

As the personal computer proliferated within organizations, control over the information generated by the organization began splintering. Say the client service department creates a customer database to keep rails of calls and problem reports, and the sales department likewise creates a database to proceed track of client information. Which 1 should be used as the master list of customers? Every bit another example, someone in sales might create a spreadsheet to calculate sales revenue, while someone in finance creates a different i that meets the needs of their department. However, it is likely that the ii spreadsheets volition come up upwards with different totals for revenue. Which 1 is correct? And who is managing all of this information?

Enterprise Resource Planning

In the 1990s, the demand to bring the organization's data back under centralized control became more credible. The enterprise resource planning (ERP) system (sometimes simply called enterprise software) was developed to bring together an entire organization in one software awarding. Merely put, an ERP system is a software application utilizing a central database that is implemented throughout the entire organization. Allow'due south have a closer look at this definition:

"A software application": An ERP is a software application that is used by many of an organization's employees.
"utilizing a fundamental database": All users of the ERP edit and save their information from the information source. What this means practically is that at that place is just 1 client database, there is only one calculation for acquirement, etc.
"that is implemented throughout the entire organisation": ERP systems include functionality that covers all of the essential components of a business concern. Farther, an organization tin purchase modules for its ERP arrangement that lucifer specific needs, such as manufacturing or planning.

Registered trademark of SAP

ERP systems were originally marketed to large corporations. Even so, every bit more than and more than large companies began installing them, ERP vendors began targeting mid-sized and even smaller businesses. Some of the more well-known ERP systems include those from SAP, Oracle, and Microsoft.

In order to effectively implement an ERP system in an organisation, the organization must be set up to brand a full delivery. All aspects of the system are affected as old systems are replaced past the ERP system. In general, implementing an ERP organisation can accept two to iii years and several million dollars. In most cases, the cost of the software is not the nigh expensive part of the implementation: information technology is the cost of the consultants!

So why implement an ERP organization? If done properly, an ERP system tin bring an arrangement a good render on their investment. By consolidating data systems across the enterprise and using the software to enforce best practices, most organizations see an overall improvement after implementing an ERP. Business processes as a form of competitive reward volition be covered in chapter 9.

Y2K AND ERP

The initial moving ridge of software-application development began in the 1960s, when applications were adult for mainframe computers. In those days, computing was expensive, so applications were designed to take as little infinite equally possible. One shortcut that many programmers took was in the storage of dates, specifically the year. Instead of allocating four digits to concord the year, many programs allocated two digits, making the supposition that the first two digits were "19". For case, to calculate how old someone was, the awarding would take the concluding ii digits of the current year (for 1995, for instance, that would be "95") and then decrease the two digits stored for the altogether twelvemonth ("65" for 1965). 95 minus 65 gives an age of 30, which is right.

However, as the year 2000 approached, many of these "legacy" applications were even so being used, and businesses were very concerned that any software applications they were using that needed to calculate dates would fail. To update our age-calculation example, the application would take the last two digits of the electric current year (for 2012, that would be "12") and then subtract the 2 digits stored for the birthday year ("65" for 1965). 12 minus 65 gives an age of -53, which would cause an mistake. In order to solve this problem, applications would have to be updated to apply four digits for years instead of 2. Solving this would be a massive undertaking, as every line of code and every database would have to exist examined.

This is where companies gained boosted incentive to implement an ERP system. For many organizations that were considering upgrading to ERP systems in the late 1990s, this problem, known as Y2K (year 2000), gave them the extra push they needed to go their ERP installed before the twelvemonth 2000. ERP vendors guaranteed that their systems had been designed to be Y2K compliant – which simply meant that they stored dates using four digits instead of 2. This led to a massive increment in ERP installations in the years leading upwards to 2000, making the ERP a standard software application for businesses.

Customer Human relationship Management

A customer relationship management (CRM) system is a software application designed to manage an organization'due south customers. In today'south environment, it is of import to develop relationships with your customers, and the use of a well-designed CRM tin allow a business to personalize its relationship with each of its customers. Some ERP software systems include CRM modules. An example of a well-known CRM packet is Salesforce.

Supply Concatenation Direction

Many organizations must bargain with the circuitous task of managing their supply chains. At its simplest, a supply concatenation is the linkage between an organization'south suppliers, its manufacturing facilities, and the distributors of its products. Each link in the chain has a multiplying upshot on the complexity of the process: if at that place are 2 suppliers, ane manufacturing facility, and two distributors, for example, then there are 2 x ane x 2 = four links to handle. However, if you add two more than suppliers, another manufacturing facility, and ii more distributors, and then you lot have 4 10 2 10 four = 32 links to manage.

A supply chain management (SCM) system manages the interconnection betwixt these links, likewise as the inventory of the products in their various stages of development. A full definition of a supply concatenation direction system is provided by the Association for Operations Management: "The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, edifice a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring functioning globally."^[2] Near ERP systems include a supply chain direction module.

MOBILE APPLICATIONS

Only equally with the personal computer, mobile devices such as tablet computers and smartphones as well have operating systems and application software. In fact, these mobile devices are in many ways just smaller versions of personal computers. A mobile app is a software application programmed to run specifically on a mobile device.

Every bit we saw in affiliate 2, smartphones and tablets are condign a dominant form of computing, with many more smartphones being sold than personal computers. This means that organizations will have to get smart nigh developing software on mobile devices in order to stay relevant.

These days, most mobile devices run on 1 of 2 operating systems: Android or iOS. Android is an open-source operating arrangement purchased and supported by Google; iOS is Apple tree's mobile operating arrangement. In the fourth quarter of 2012, Android was installed on 70.1% of all mobile phones shipped, followed past 21.0% for iOS. Other mobile operating systems of note are Blackberry (three.two%) and Windows (2.6%).^[3]

As organizations consider making their digital presence uniform with mobile devices, they volition have to decide whether to build a mobile app. A mobile app is an expensive proposition, and information technology will simply run on 1 type of mobile device at a fourth dimension. For example, if an organization creates an iPhone app, those with Android phones cannot run the application. Each app takes several yard dollars to create, so this is non a trivial determination for many companies.

One option many companies have is to create a website that is mobile-friendly. A mobile website works on all mobile devices and costs nigh the same as creating an app. We volition discuss the question of whether to build a mobile app more thoroughly in Chapter 10.