Computer Application in Business C.Chandrapriya, M.Sc., M.phil.

Unit-1
Basics of the information technology
Information technology (IT) is a technology which uses computers to gather,
process, store, protect, and transfer information. Today, it is common to use the
term Information and communications technology (ICT) because it is
unimaginable to work on a computer which is not connected to the network.
The computer consists of:
 hardware – physical computer parts, palpable and visible
 software – set of commands that are "understandable" to the computer;
instructions to its palpable parts, giving orders what to do
Basic principle of computers: Data enters the computer through one or more
input devices. The computer then processes the data and transmits the resulting
data to output devices. Output devices can be human interfaces such as a screen
or another electronic device such as a storage device or computer network.
The system unit consists of the following components:
 Motherboard - MBO o a computer "backbone" responsible for
communication between components and transmission of information
• Central Processing Unit - CPU o functions: command execution, data
transmission, computer function control
Basic characteristics:
• speed (in Mega Hertz (MHz), Giga Hertz (GHz))
• amount of memory (Cache in Bytes)
Random Access Memory - RAM o a memory container for programs that are
currently running and data that is being processed
basic characteristics:
• speed (in MHz, GHz)
• capacity (in Bytes)
• data rate class (DDR SDRAM, SDR SDRAM)
Permanent memory:
Hard Disk Drive - HDD - device (memory) used for permanent data storage

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data is stored on magnetic platters; electromagnetic heads are used for

reading and recording data with the exception of the newest disk types called
Solid State Drive (SSD)
basic characteristics:
 disk platters rotation speed (in RPM)
 capacity (in GB)
 connection interface (IDE, SATA)
o Floppy Disk Drive– FDD
o optical disks - CD, DVD
graphics processing units (GPU)
o function: processing and displaying image on the monitor
o it consists of a graphics processor and its own working RAM memory
basic characteristics:
• type of graphics processing units (ATI Radeon, Nvidia GeForce,
or other)
• RAM size
• connection interface/slot type
ports:
o Parallel Port
o Serial Port
o Universal Serial Bus (USB)
Input and output devices
 Input devices:
o keyboard
o scanner
o touchpad
o mouse
o trackball

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o joystick
o microphone
o stylus
o camera (web, digital)
Output devices:
o monitor o projector
o printer
o plotter
o speakers
o earphones
 Device that is both input and output: touchscreen.
Software - a computer program which, as opposed to hardware, is an intangible
part of the computer, written to perform a single or multiple tasks on computer
using the built-in hardware.
Software types:
 operating systems (OS) - the basic program on your computer that is
automatically loaded when computer is started up:
o Linux (Debian, Ubuntu, Fedora, Knoppix...)
o Microsoft Windows (XP, Vista, 7...)
o Mac OS X (Cheetah, Panther, Snow Leopard...)
Computer types:
 Mainframe Computer
 Personal
 Apple Macintosh (Mac)
 Laptop computer (notebook)
 Personal Digital Assistant - PDA (Palm)
• Network connected computer

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Information Definition:
Information is organized or classified data, which has some meaningful values
for the receiver. Information is the processed data on which decisions and
actions are based.
Meaning of Data and Information:
Data is defined as a collection of individual facts or statistics. Data is a raw
form of knowledge and, on its own, doesn’t carry any significance or purpose.

There are two main types of data:

 Quantitative data is provided in numerical form, like the weight,

volume, or cost of an item.
 Qualitative data is descriptive, but non-numerical, like the name, sex, or
eye color of a person.

Information is defined as knowledge gained through study, communication,

research, or instruction. Essentially, information is the result of analyzing and
interpreting pieces of data. Whereas data is the individual figures, numbers, or
graphs, information is the perception of those pieces of knowledge.

Difference between Information and Data:

S.NO DATA INFORMATION

Data are the variables that help to

1 develop ideas/conclusions. Information is meaningful data.

Data are text and numerical Information is refined form of

2 values. actual data.

3 Data doesn’t rely on Information. While Information relies on Data.

Information is measured in
Bits and Bytes are the measuring meaningful units like time,
4 unit of data. quantity, etc.

Data can be easily structured as Information can also be structured

5 the following: 1. Tabular data 2. as the following: 1. Language 2.

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S.NO DATA INFORMATION

Graph 3. Data tree Ideas 3. Thoughts

Information carries a meaning

Data does not have any specific that has been assigned by
6 purpose interpreting data.

It is the second level of

7 It is low-level knowledge. knowledge.

Data does not directly helps in Information directly helps in

8 decision making. decision making.

Data is collection of facts, which Information puts those facts into

9 it self have no meaning. context.

Example of information is
Example of data is student test average score of class that is
10 score. derived from given data.

Need for Information:

A great and urgent need for access and availability of information. The
information need for the various purposes is enumerated below as:

 Information is an aid in decision making, policy making needed for the

policy makers, decision makers, managers etc.
 Information will have a reinforcing/ trans forming effect on human beings
on receiving it. A great deal for change can be perceived in the human
minds/ attitudes on obtaining the information, as it increases the ability of
personal knowledge for the recipient.
 Information generates new information. This is the existing knowledge/
information helps in generating new information; new knowledge; new
theories, etc.

In fact, scientists and scholars’ avail or use information to produce another

document, like research reports, thesis/ dissertations, books, journal articles,
seminar paper etc.

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1. The users of various professions and vocations like doctors, engineers,

scientists, scholars etc. acquire and apply information in order to do their
job more effectively and efficiently. i.e. application of information for
practical purposes.
2. Information supports research in order to obtain effective and fruitful
results.
3. Information helps in better management of manpower, materials,
production, finance, marketing etc.
4. State-of-art kind of information of a subject helps in identifying the gaps/
shortcomings in in the subject field and to identify the research problems
to be explored or undertaken.
5. Information helps in avoiding the duplication of research.
6. Information stimulates the thought process of the users, particularly the
scholars.
7. Information helps the scientists, engineers, scholars, etc. to get well
informed with the current advancements in their subjects, and to keep
them up-to-date.

Component of Information Technology

People: The most important part as they make endusers more productive.

Procedure: Refer to rules or guidelines people follow when using software,

hardware, and data. Documented in manuals written by computer specialists and
provided by software/hardware manufacturers of the product.

Software: It is the term for programs or sets of computer instructions written in

a special computer language that enables a computer to accomplish a given task.
It consists of step-by-step instructions, which the computer can use to convert
data into information.

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Hardware: Refers to physical, touchable pieces or equipment.

Data: Raw, unprocessed facts including text, numbers, images and sounds. Data
describes something that is stored electronically in a file.

Role of Information Technology in Business.

Information technology has become very important in the business world. no

matter small or big business, IT has helped the organization, manager, and
workers in a more efficient management, to inquire about a particular problem,
conceive its complexity, and generate new products and services; thereby,
improving their productivity and output.

Information technology can helps through:

Communication

Inventory management

Management Information Systems

Customer Relationship Management

Communication

In the business world, communication plays an important role in maintaining

the relationship between employees, suppliers, and customers. Therefore, the
use of IT we can simplify the way to communicate through e-mail, video chat
rooms or social networking site.

Inventory Management

Organizations need to maintain enough stock to meet demand without investing

in more than they require. Inventory management systems identify the quantity
of each item a company maintains, an order of additional stock by using a way
of inventory management. It is become more important because organization
need to maintain enough stock to meet customer demand. By using in IT in
inventory management, it also will helps in track quantity of each item a
company maintains, triggering when it comes to managing inventory.

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Management Information Systems

Information data is very important for an organization and a valuable resource

requirement for the safe and effective care. Data used is as part of a strategic
plan for achieving the purpose and mission. then, the company should use the
management information system (MIS) to enable the company to track sales
data, expenditure and productivity as well as information to track profits from
time to time, maximizing return on investment and recognize areas of
improvement.

Customer Relationship Management

Companies are using IT to improving the way of design and manage customer
relationship. Customer Relationship Management (CRM) systems capture every
relations a company has with a customer, so that a more experience gain is
possible. If a customer makes a call to centre and report an issue, the customer
relation officer will be able to see what the customer has purchased, view
shipping information, call up the training manual for that item and effectively
respond to the issue.

Advantages of Information Technology in Business.

Since the computerized system so widely used, it is advantageous to incorporate

information technology into the organization. Information technology provides
tremendous benefits to the business world such as allowing the organization to
work more efficiently and to maximize productivity.

Among the advantages of information technologies in business are:

Storing and Protecting Information

Working away

Automated Processes

Communication

Storing and Protecting Information

Information technology helps in storage systems of important data or document

to protect company's valuable records. Storage systems, such as vaults, it can
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Computer Application in Business C.Chandrapriya, M.Sc., M.phil.,

help via keep information safe by only allowing certain users within your
company to access, withdraw, add or change the documents.

Working Away

Information Technology systems can access the remote network electronics

company. it allows one to work from home or anywhere. From this, it will help
in increasing productivity even physical work has been done in the office.

Automated Processes

Each organization to find ways to do more work in a short amount of

time.Therefore, the efficiency of information technology by developing
automated processes to take the burden off your staff.

Communication

In the business world, communication plays an important role in maintaining

the relationship between employees, suppliers, and customers. Therefore, the
use of IT we can simplify the way to communicate through e-mail, video chat
rooms or social networking site. It means we can communicate with our
employees, supplier and customers in anywhere.

Various Business Application Software

Business software is used in many different operations to streamline
communication, enhance workflow, and save time so employees can invest their
skills in more complex projects. However, there are many other advantages to
implementing management software, including-

 Quality and Consistency - System software ensures that all operations

are performed uniformly, creating consistent results. Therefore,
businesses can ensure their workflow is consistent and expect the same
outcome each time. By eliminating the time it takes to monitor processes
actively, companies can focus on more demanding tasks.

 Time Savings - By automating repetitive procedures, software allows

employees to focus manual labor on more complicated tasks, reducing
time and human error.

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 Metric Availability - Software uses real-time data from various

operations, which can be collected and generated into reports and
analyses to monitor key performance indicators (KPIs).

 Optimized Operational Efficiency - With reduced time, labor costs, and

effort needed to complete standard procedures, operational efficiency is
significantly increased.

 Minimized Turnaround Times - A software solution maintains

consistent results through automation, streamlining processes, and
reducing turnaround times for employees and consumers. This promotes
growing businesses and the satisfaction of internal and external
associates.

 Reduced Labor Costs - Manually performing tasks is time-consuming,

expensive, and can lead to human errors that often require additional
expenses to reconcile discrepancies. Therefore, project management
software ensures that companies are minimizing the resources needed to
conduct basic processes.

Types of Business Application Software

1. Human Resource Information System (HRIS)
2. Inventory Control System
3. Communication Software
4. Accounting Software
5. Service Management Solution
6. Reservation Software
7. Schedule Management System
8. Demand Forecasting Software

Windows Operating Systems

Windows is a graphical operating system developed by Microsoft. It allows

users to view and store files, run the software, play games, watch videos, and
provides a way to connect to the internet. It was released for both home
computing and professional works.

Introduction to Microsoft Windows

The oldest of all Microsoft’s operating systems is MS-DOS (Microsoft Disk

Operating System).
MS-DOS is a text-based operating system. Users have to type commands rather
than use the

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more friendly graphical user interfaces (GUI’s) available today. Despite its very
basic
appearance, MS-DOS is a very powerful operating system. There are many
advanced
applications and games available for MS-DOS. A version of MS-DOS
underpins Windows.
Many advanced administration tasks in Windows can only be performed using
MS-DOS.
Version
1985: Windows 1.0

1987: Windows 2.0 and 2.11

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1990: Windows 3.0

1993: Windows New Technology (NT)

1995: Windows 95

1998: Windows 98

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2000: Windows Millennium Edition (ME)

2001: Windows XP

2006: Windows Vista

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2009: Windows 7

2012: Windows 8

2015: Windows 10

Open-Source Software:
Open source refers to any program whose source code is made available for use
or modification as users or other developers see fit. Open source software is
usually developed as a public collaboration and made freely available.
Open source software refers to applications developed in which the user can
access and alter the "source" code itself.
Advantages of using Open Source
Below are some of the advantages that open source offers:
1. Core software is free
If you're just getting started in online business, cost can be a major factor. Using
Open Source software can really cut down on your initial capital outlay. It's also

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my firm belief that the Open Source community has helped to rein in prices on
commercial software over the years.
2. Evolving software
As mentioned, some Open Source software projects can have huge communities
of programmers involved, allowing for the rapid implementation of new
features and security fixes. The communities of users and programmers are also
invaluable resources for asking questions relating to troubleshooting and
suggesting enhancements.
Encourages hands on
When you're short on cash, you are more than likely to want to make
modifications to software yourself. I'm no programmer, but the use of Open
Source software has encouraged me to go beyond the user interface; to dig into
code to try and understand what it does and to make minor edits. As a business
owner, it doesn't hurt to understand a little of the voodoo that goes on behind the
scenes in the software you use on your site.
4. Not tied to a single vendor
If you purchase a commercial application, you can then become reliant on a
single company to solve your problems and maintain the software - which can
also be very expensive. Some commercial software companies may only
provide support and upgrades for a limited time before you need to fork out for
any further enhancements or assistance.
5. Greater Security & Quality
Open source software is available publicly. A large amount of developers
globally contribute and analyze the code making it more secure and constantly
increasing the quality. The peer review process drive excellence in design.
Disadvantages of using Open Source
There's a flip side to everything, and in the case of Open Source software it all
boils down to the old saying of "there's no such thing as a free lunch". Most of
the disadvantages only apply if you're not somewhat code-savvy and willing to
get your hands dirty:
1. Mostly used commercial applications.
2. Projects can die
3. Support issues
Application of Open Sources
1. Accounting
2. Content Management Systems
3. CRM (Customer Relationship Management)
4. Desktop Environments/ Shell replacements
5. Email Clients
6. Encoding, Conversion & Ripping Tools

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7. ERP
8. Filesharing & FTP
9. Graphics-Design & Modeling Tools
10. Messengers & Communication Clients
11. Project Management
12. Reporting Tools
13. RSS
14. Web Browsers
Tally
Tally accounting software provides a solution around inventory management,
stock management, invoicing, purchase order management, discounting, stock
valuation methodology, etc.

Features of Tally

1. Tally ERP 9 supports multi languages, so it is called as multi-lingual tally

software. Accounts can be maintained in one language and reports can be
viewed in another language.
2. You can create and maintain accounts up to 99,999 companies.
3. Using payroll feature, you can automate employee records management.
4. Tally has feature of synchronization, the transactions maintained in multiple
locations offices can be automatically updated.
5. Generate consolidated financial statements as per requirements of company.
6. Managing single and multiple groups are very important features of tally.

Versions of Tally

1. The first version of Tally was Tally 4.5 and it was released in 1990’s. It is a
MS-Dos based software.
2. The second version of Tally was Tally 5.4 and it was released in 1996. It was a
graphic interface version.
3. The next version of Tally was Tally 6.3 and this Tally version was released in
2001. It is a window based version and supports in printing and implemented
with VAT (Value Added Tax).

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4. The next version of Tally was Tally 7.2 and it was released in 2005. This
version was added with a new features of Statutory complimentary version and
VAT rules as per state wise.
5. The next version of Tally was Tally 8.1 and it was developed with a new data
structure. This version was added with new features of POS (Point Of Sale)
and Payroll.
6. Due to bugs and errors, a new version of Tally 9 was released in 2006. It has
maximum features like Payroll, TDS, FBT, E-TDS filling, etc.
7. Tally.ERP 9 is the latest version of Tally and released in 2009. This latest
Tally ERP 9 package offering maximum features for small business industries
to large business industries. It also updated with new features of GST (Goods
& Services Tax)

SPSS

SPSS stands for “Statistical Package for the Social Sciences”. It is an IBM
tool. This tool first launched in 1968. This is one software package. This
package is mainly used for statistical analysis of the data.

SPSS is mainly used in the following areas like healthcare, marketing, and

educational research, market researchers, health researchers, survey companies,

education researchers, government, marketing organizations, data miners, and

many others.

Features of SPSS

 The data from any survey collected via Survey Gizmo gets easily

exported to SPSS for detailed and good analysis.

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 In SPSS, data gets stored in.SAV format. These data mostly comes from

surveys. This makes the process of manipulating, analyzing and pulling

data very simple.

 SPSS have easy access to data with different variable types. These

variable data is easy to understand. SPSS helps researchers to set up

model easily because most of the process is automated.

 After getting data in the magic of SPSS starts. There is no end to what we

can do with this data.

 SPSS has a unique way to get data from critical data also. Trend analysis,

assumptions, and predictive models are some of the characteristics of

SPSS.

 SPSS is easy for you to learn, use and apply.

 It helps in to get data management system and editing tools handy.

 SPSS offers you in-depth statistical capabilities for analyzing the exact

outcome.

 SPSS helps us to design, plotting, reporting and presentation features for

more clarity.

Versions

 SPSS 1 - 1968
 SPSS 2 - 1983
 SPSS 5 - 1993
 SPSS 6.1 - 1995
 SPSS 7.5 - 1997
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 SPSS 8 - 1998
 SPSS 9 - 1999
 SPSS 10 - 1999
 SPSS 11 - 2002
 SPSS 12 - 2004
 SPSS 13 - 2005
 SPSS 14 - 2006
 SPSS 15 - 2006
 SPSS 16 - 2007
 SPSS 17 - 2008
 PASW 17 - 2009
 PASW 18 - 2009
 SPSS 19 - 2010
 SPSS 20 - 2011
 SPSS 21 - 2012
 SPSS 22 - 2013
 SPSS 23 - 2015
 SPSS 24 - 2016, March[11]
 SPSS 25 - 2017, July[12]
 SPSS 26 - 2018
 SPSS 27 - 2019, June[13] (and 27.0.1 in November, 2020[14])
 SPSS 28 - 2021, May[15]

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