Business Software Packages

SoftwareGeneric term for organized collections of data and instructions.

1. System Software 2. Application Software

Two Basic Types of Software

System Software performs certain fundamental tasks that all users of a particular computer require.

These are tasks that relate to the hardware and not to the applications that the firm performs

There are three (3) basic types of System Software:1. Operating Systems 2. Utility Programs 3. Language Translators

System Software

The Operating System manages the computer’s processes, functioning as an interface connecting the user, the software that processes the firm’s data and the hardware

Examples are:- UNIX - Windows - Linux - Mac OS

Operating System

1. Schedule Tasks2. Manage Hardware and Software Resources3. Maintain System Security

Password – a group of characters that identifies users as being authorized to have access to the system

4. Enable Multiple user Resource SharingMultitasking – an OS feature that handles the scheduling and execution of programs for many users at the same time

5. Handle InterruptsInterrupt – a technique used by OS to suspend temporarily the processing of one program to allow execution of another program

Basic Functions of an OS

A utility program is a routine that enables the user to perform certain basic data processing operations that are not unique to a particular user’s applications.

Utilities enable users to copy files, erase files, sort the contents of files, merge two or more files together, and preapre removable storage media for use.

Other utilities allow lost or bad files recovery, monitor system performance and even control the flow of data bet. Users and computers.

Utility Programs

Translators, programming languages that translate the programmer’s instructions into those of the computer, were developed to proved a more friendly way to instruct the computer.

Examples are: COBOL, C, C++, Java and Visual Basic

Language Translators

A fourth-generation language is one that expresses what is to be done by the computer without explicitly defining how the tasks will take place.

Database Management System software contains 4GL in the form of query languages and report generator languages.

Fourth Generation Languages (4GL)

Application Software processes the firm’s data.

Two basic types: 1. Prewritten2. Custom

Application Software

Prewritten Application Packages also known as off-the-shelf application software, are produced by suppliers and sold to users.

To use it, the users need only to install the software on their hardware, with little or no modification.

Two important benefits: 1. It is available NOW2. Less expensive than custom software

Prewritten Application Software

Custom Application Software, as it name suggests, are software written by business’ own computer programmers or consulting group of programmers to meet its needs.’

Custom Application Software

Computer software that is simple and intuitive to use is frequently said to be user friendly.

The term may elicit a negative connotation in that it implies that the application has been made very simplistic so that anyone can use it.

Actually, it means that the application has been carefully engineered so that the varied talents and skills ofa wide range of users can be accommodated.

The Role of User-Friendly Software

Accounting SoftwareInformation System

Data Processing (DP) is the manipulation or transformation of such symbols as numbers and letters for the purpose of increasing their usefulness.

Transaction Processing (TP), is data processing applied in business data.

The two terms can be used interchangeably.

What is Data Processing?

A firm’s data processing tasks are performed by an accounting information system (AIS) that gathers data describing the firm’s activities, transforms the data into information and makes the information available to users both inside and outside the firm.

Accounting Information System

The AIS performs four basic data processing tasks:1. Data Gathering2. Data Manipulation3. Data Storage4. Document Preparation

Data Processing Tasks

As the firm provides products and services to its environment, each action is described by a data record. When the action involves an environmental element, it is called a transaction, hence the term transaction processing.

The data processing system gathers the data that describe each of the firm’s internal actions and its environmental transactions.

Data Gathering

It is necesarry to manipulate the data to transform it into information. Data manipulation operations include:

1. Classifying2. Sorting3. Calculating4. Summarizing

Data Manipulation

In a small firm there can be hundreds of transactions and actions each day; in a large firm there are thousands.

Each transaction is described by several data elements. All of this data must be kept somewhere until it is needed., and that is the purpose of data storage.

Data Storage

The AIS produces outputs for individuals and organizations both inside and outside the firm. The output is triggered in two ways:

• By an actionOutputs are produced when something happens. An

example is the bill that is prepared each time a customer order is filled.• By a time schedule

Outputs are produced at a particular time. An example is a payroll check that is prepared each Friday.

Document Preparation

There are several characteristics of data processing that clearly distinguish the AIS from other Computer Based Information Systems:

1. Performs necessary tasks2. Adheres to relatively standardized procedures 3. Handles detailed data4. Has a primarily historical focus5. Provides minimal problem-solving information

Characteristics of the AIS

A good example of an AIS is the one that is used by distribution firms – firms that distribute products or services to their customers.

We call the system the distribution system.

A Sample Accounting Information System

System Overview

Distribution System

Customers

Suppliers

Management