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Summary Business Information Management
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Chapter 13: Understanding SoftwareComputer hardware is defined as physical components of information technology.
Managers who understand software will have several advantages:
1. Understanding possibilities and impact of technology
2. Make better decisions regarding strategic value of IT
3. Appreciate the challenges, costs, security, legal, etc.
4. Appreciate the key role of technology in partnerships, mergers & acquisitions
What is a software?
- Computer program or collection of programs that enables computer devices to perform tasks
given by the hardware
USERS
APPLICATIONS – enterprise software, desktop
applications, utilities
OPERATING SYSTEM – collection of programs that
control the hardware
HARDWARE
1. Operating system: the role is to control the computing hardware. Graphical user interface
items, such as scroll bars and menus, are displayed on the hardware of computer. This is the
mechanism through which users interact with a computing device. Files are saved to the
hardware of a hard drive or other storage device. It also gives programmers a common set of
commands. Operating system makes it easier for users to learn new software which reduces
training costs and operator error.
Small devices with a specific purpose have their operating system installed on a
non-volatile memory. Software’s stored on non-volatile memories are called as
“firmware”.
Embedded systems – special-purpose software designed and included inside
physical product. Software programs that make up embedded systems are often
stored as “firmware”.
Application software – programs that enable the execution of specific task.
Two types of applications exist:
1. Desktop software: application installed on a personal computer that aid a user with executing
certain tasks.
2. Enterprise software: application that aid in the need of multiple users within an organization such
as inventory records, enterprise resource planning, etc.
, Platforms – products allow for the development and integration of software products
Operating system control the hardware meanwhile the application software performs the work that users
and firms are directly interested in.
Apps – small pieces of software that are designed for a specific platform. You can either create an app
from scratch or buy it as a software package.
Some standard categories of software packages are:
1- Enterprise resource planning – this integrates many functions of business by using specific
modules; sales, inventory, manufacturing, human resources, purchasing, order tracking, and
decision support
2- Customer relationship management – system that support customer-related sales and marketing-
related activities
3- Supply chain management – systems that help to manage aspects of value chain of a company,
from raw materials until the end product
4- Business intelligence – this uses data generated by other systems, to aid managers to make
organizational choices
Database management system – stores and retrieves the data that an application creates and uses.
Different systems can be used configured to share the same database system in order to share common
data. Databases be “localized” between the operating system and the application level. This is valuable
for the company’s efficiency because different data from different system is gathered in one.
Thus, software packages enable organizations to work faster and to save money. It is difficult to match
regarding quality with proprietary software developed in-house. Firms with internal systems find it easier
to find partners. The packages are easy to be sold and copy by the competitors.
Chapter 15: Data and competitive advantage
The term of “decision support systems” is starting to lose popularity and being replaced by “business
intelligence”. A new age of data-driven, fact-based, and decision making.
- BI encompasses aspects of reporting, data exploration, ad hoc queries, and advanced data
modelling and analyzing.
- The term “analytics” is used to indicate extensive use of data, statistical and quantitative
analysis, explanatory and predicting models, and fact-based management.
- Both terms are used interchangeably to identify the meaning of “using data for a better decision
making”
Machine learning – category of software applications that leverage massive amount of data to allow
computers to “learn” by themselves with no need for additional programming.
When data is inactive and spread over different formats and systems, it is hard for organizations to
transfer the data into an asset.
Data – encompasses facts and figures. (data with context > information)
Database – list of data
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