CHAPTER 2

Computers and their Business Applications

Learning Objectives:
2-1 Define a computer system and describe its components.
2-2 Discuss the history of computer hardware and software.
2-3 Analyse the impact of the three factors distinguishing the computing power of
computers.
2-4 Summarize the three basic computer operations.
2-5 Discuss the types of input, output, and memory devices.
2-6 Explain how computers are classified and their business applications.
2-7 Apply knowledge of two major types of software and their use in a business
setting.
2-8 List the five generations of computer languages.
2-9 Define object-oriented programming.
Terms to learn in this chapter:
Application software Fourth-generation Output devices
Arithmetic logic unit languages (4GLs) Random access memory
(ALU) Assembly High-level languages (RAM)
language Input devices Read-only memory
Bus Machine language (ROM)
Cache RAM Magnetic disk Redundant array of
Central processing unit independent disks (RAID)
(CPU) Magnetic tape Secondary memory
Class Main memory Server
Cloud storage Motherboard Storage area network
Computer Network-attached (SAN)
storage (NAS)
Control unit Object
CPU case Object-oriented
Disk drive programming
Fifth-generation (OOP)Operating system
languages (5GLs) (OS)

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Defining a Computer
A computer is a machine that accepts data as input, processes data without human
intervention by using stored instructions, and outputs information. The instructions, also
called a program, are step-by-step directions for performing a specific task, written in a
language the computer can understand.
Components of a Computer System include the following:

1. The central processing unit (CPU) is the heart of a computer. It is divided into two
components: the arithmetic logic unit (ALU) and the control unit.
2. The arithmetic logic unit (ALU) performs arithmetic operations (1, 2, ∗, /) as well as
comparison or relational operations (,, ., 5); the latter are used to compare
numbers.
3. The control unit tells the computer what to do, such as instructing the computer
which device to read or send output to.
Some computers have a single processor; other computers, called multiprocessors,
contain multiple processors. Multiprocessing is the use of two or more CPUs in a single
computer system. Another component that affects computer performance is a bus, which
is the link between devices connected to the computer. Other factors that affect
computer performance include the processor size and the operating system (OS).
The history of Computer hardware and software

Source of Information: MIS 10 – Management Information Systems – 10th Edition – Bidgoli -

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Source of Information: MIS 10 – Management Information Systems – 10th Edition – Bidgoli -
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The Power of Computers
Computers draw their power from three factors that far exceed human capacities:
1. Speed - Computers process data with amazing speed. They are capable of
responding to requests faster than humans can, which improves efficiency.
2. Accuracy - Unlike humans, computers do not make mistakes.
3. Storage and retrieval capabilities - Storage means saving data in computer
memory, and retrieval means accessing data from memory. Computers can store
vast quantities of data and locate a specific item quickly, which makes knowledge
workers more efficient in performing their jobs.
Computer Operations
Computers can perform three basic tasks:
1. Arithmetic operations
2. Logical operations
3. Storage and retrieval operations
All other tasks are performed using one or a combination of these operations. Computers
can perform comparison operations by comparing two numbers. They can also store
massive amounts of data in very small spaces and locate a particular item quickly.
Input, Output, and Memory Devices
d process data, three major components are needed:
1. Input (e.g., mouse, keyboard, touch screen, stylus, trackball, barcode reader, etc,)
2. Output (e.g., screen, printers, plotters, sound, etc,)
3. Memory devices (e.g., Main memory devices such as RAM/ROM, Secondary
memory devices such as magnetic disks, magnetic tapes, cloud storage etc,)
A storage area network (SAN) is a dedicated highspeed network consisting of both
hardware and software used to connect and manage shared storage devices, such as disk
arrays, tape libraries, and optical storage devices.
Network-attached storage (NAS) is essentially a network connected computer dedicated
to providing file-based data storage services to other network devices.
Classes of Computers
Usually, computers are classified based on cost, amount of memory, speed, and
sophistication. Using these criteria, computers are classified as:
1. Subnotebooks
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 2. Notebooks
3. Personal computers
4. Minicomputers
5. Mainframes
6. Supercomputers.
Supercomputers are the most powerful; they also have the highest storage capabilities
and the highest price.
What is Software?
Software is all the programs that run a computer system. It can be classified broadly as
system software and application software.
An operating system (OS) is a set of programs for controlling and managing computer
hardware and software. It provides an interface between a computer and the user and
increases computer efficiency by helping users share computer resources and by
performing repetitive tasks for users.
Control programs manage computer hardware and resources by performing the following
functions:
1. Job management
2. Resource allocation
3. Data management
4. Communication
Application software can be commercial software or software developed in-house and is
used to perform a variety of tasks on a personal computer.
Computer Languages
1. Machine language, the first generation of computer languages, consists of a series
of 0s and 1s representing data or instructions. It is dependent on the machine, so
code written for one type of computer does not work on another type of
computer.
2. Assembly language, the second generation of computer languages, is a higher-
level language than machine language but is also machine dependent. It uses a
series of short codes, or mnemonics, to represent data or instructions.
3. High-level languages are machine independent and part of the third generation
of computer languages. Many languages are available, and each is designed for a
specific purpose.
4. Fourth-generation languages (4GLs) use macro codes that can take the place of
several lines of programming. The commands are powerful and easy to learn, even
for people with little computer training.
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 5. Fifth-generation languages (5GLs) use some of the artificial intelligence
technologies, such as knowledgebased systems, natural language processing
(NLP), visual programming, and a graphical approach to programming. These
languages are designed to facilitate natural conversations between you and the
computer.
Object-Oriented Programming: A quick overview
Most popular programming languages in use today such as Java, Ruby, Swift, C#, and
Visual Basic are based on a methodology called object-oriented programming (OOP).
This methodology is further discussed in Module 3 under “Object-Oriented Databases.” It
is increasingly being used for software and application development. An OOP language is
organized around a system of objects that represent the real world as opposed to a
series of computational steps used in traditional languages.

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