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Software applications

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There are now thousands of different software packages available from different manufacturers. However, many perform the same or very similar functions, and can be grouped under common headings. The main types of software packages in use in business include:

Wordprocessing (WP). WP software applications are used for letter writing and basic report writing and have replaced typewriters in most businesses. The latest versions of many wordprocessors, like Word for Windows and WordPerfect, are very like desktop publishing packages (DTP).

Desktop publishing (DTP). DTP allows users to design a variety of complex page layouts using columns, boxes, diagrams and pictures, in the same way as a newspaper or magazine. DTP programs usually contain a wide variety of fonts (typefaces) and also a picture library to be used in documents. DTP now means that even the smallest firms can produce high-quality publicity and marketing materials using programs such as Aldus PageMaker, AmiPro, and Microsoft Publisher.

Databases. Databases are programs used to organise and store information. Their special feature is that they allow the user to ask quite complicated questions or queries of the information. Databases are often used to hold customer details such as names, addresses, and information about previous purchases, which is often sold on to other organisations. Databases can be linked with word-processing programs to allow the mailmerge of information. A mailmerge is a mailshot to a large number of people. The same letter is sent to all, but with a personalised name and address taken from database lists. Mailmerge provides a powerful and cheap means of marketing, and is made possible by the use of powerful computer databases.

CD-DVD databases. Increasingly computer software is being supplied on CD-DVD. CD-DVDs can store vast quantities of information on a single disk, The Microsoft Encarta encyclopaedia, for example, holds the equivalent of 28 volumes on one CD. CD-DVDs are particularly useful for storing databases, such as telephone directories and reference books. On computers equipped with sound cards and speakers, they also enable information to be more attractively presented, using sound, animated graphics, and video. This format is known as multimedia.

Spreadsheets. A spreadsheet is like a large piece of squared graph paper on a computer screen. Each square is called a cell. Cells can be filled with numbers, words, or formulas. Spreadsheets can be created so that the sheet will automatically sort data and make calculations with the numbers entered. This ability makes them very useful for asking 'What if' questions, or questions designed to show the impact of - say -employing more staff, or spending more on advertising on final figures such as profit or cash flow.

Spreadsheets are often used for budgeting and statistical analysis. Many spreadsheets, such as LOTUS 123 and Excel, can also convert numbers into graphs and charts, making them a very powerful means of processing numerical information.

Graphics packages. Graphics packages are designed to allow users to draw and make new designs quickly. Combined with a new generation of high-quality DeskJet and LaserJet colour printers, graphics packages such as Harvard Graphics and Freelance Graphics provide even the smallest of firms with the means to produce high-quality reports, logos, and publicity materials.

Computer-aided design (CAD). CAD packages allow the user to produce high-quality, detailed design drawings on computer. The best CAD packages allow 3D designs to be rotated and viewed from a variety of angles. Today many new products are designed using CAD packages.

In some high-technology factories, CAD packages are linked directly to Computer Numerically Controlled (CNC) machines, such as robots and automated production lines, which automatically produce what has been designed in the factory. This is known as computer-aided manufacture (CAM).

Multi-purpose and single-purpose systems. In the early days of computing, some computers could only be used for a single purpose, for example, word-processing or running a computerised payroll. These single-purpose machines were called dedicated computers.

Today, because of technological advances in hardware and software production, computers can be used for a variety of purposes. Most office information processing systems are used during the course of the week to write memos and letters, run the payroll, to produce budgets, design publicity material, and many other tasks.

This multi-purpose nature of computing has been assisted by the development of modular software packages. These comprise separate computer programs for different functions such as sales, purchases, cashbook, payroll, stock control, and VAT. Each program does its own job, but each also shares its information with the others and keeps them all updated. This enables all departments to share the same information. Popular modular accounts packages in use include Sage and Pegasus.

Electronic Data Interchange. Computer software can also be purchased to enable fast communication between computer users. This kind of software is called electronic mail or E-mail. Using E-mail, a memo or letter can be created and be simultaneously sent to any number of other staff on a computer network. It is possible to ‘clip’ a file produced using a word-processing package or any other software package to an E-mail message and then send it on.

The electronic transfer of information, known as Electronic Data Interchange (EDI) is a fast-growing computer application. EDI can replace all human involvement and transfer documents in seconds. Tesco has automated its business chain to such an extent that orders, invoices, and payments are all triggered off by shoppers passing through supermarket checkouts. No other human intervention is required. There are clear benefits of this in terms of speed and in reducing the time needed to get orders placed and delivered.

Information Technology: positive and negative effects

The introduction of new technology to assist in the processing of information has had the following impacts on business:

Increased speed (and productivity). Information technology can perform mundane repetitive tasks, such as ordering and filing information in a fraction of the time it would take under a manual system. In theory this can free up staff to undertake more creative work. In practice, it may lead to job losses.

Wider access to information. In the past, staff wishing to share information stored in different departments would have to request a copy of the information on paper. This could take time if another person was already using it. With a computerised system, authorised staff can access useful information from other departments across the firm, or even information from other organisations, simply by calling it up on a networked computer. Furthermore, the information can be imported into a variety of computer applications and be subjected to further processing if need be.

Improved communications. Computerised information processing systems mean that firms can be immediately and constantly in touch with their markets and branches world-wide. The use of Information Technology means that information can be shared more easily among those who need it and decisions can be made more quickly.

Cost reductions and improved accuracy. The cost of computer hardware and software has fallen rapidly over time as technology has improved and sales increased, making mass-production possible. However, purchasing the hardware and software needed to set up even a small network still involves a significant cost, and business managers need to weigh the costs against the expected benefits. The rapid growth in the use of computerised information processing suggests that, for most firms, the long-term benefits of quick access to accurate information which is capable of further processing more than outweigh the short-term costs of purchase. Computerised information processing systems will also allow employees greater flexibility in their work, and provide them with the information needed to innovate and develop better products and services for customers. Technological improvements such as voice recognition and generation software, Braille printers and a host of other software has also enabled blind people and others with disabilities to gain access to more information. Accuracy is also likely to be improved because networked computers allow managers to monitor very closely the quantity and quality of work produced by employees in a way which has never been possible before.

Training and health & safety implications. Information processing systems based on new technology require staff to be trained with the skills to operate the technology efficiently. A firm that fails to provide employees with sufficient training will find that their new computer system may be less efficient than their old manual systems, simply because staff cannot use it efficiently. New technology can bring significant benefits. However, if not introduced properly, it can lead to increased stress among employees, ill health, and lower productivity. Any large-scale change in working practices is stressful, and some staff will cope better than others. Careful management of the process can assist the introduction of new technology. An increasing number of computer users are complaining of repetitive strain injury (RSI) – disorders in the joints and muscles in the fingers, hands and arms, caused by repeated actions in using the keyboard, or by sitting in a particular way. To overcome this, many firms now issue guidelines on how long staff should work at a computer screen without a break, and provide anti-glare screens to fit over monitors to protect users’ eyesight. Some manufacturers are also re-designing keyboards which have for a long time been based on the so-called QWERTY layout of old typewriters. For example, Apple Macintosh and a number of other companies have produced alternative keyboards with keys arranged in a broad circle around the outstretched hand of the user.

 


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