Business Computer Systems

Computers continue to revolutionize business. Managers, for example, use information from expert systems to help in the decision-making process and market analysts use complex computer databases to analyze and forecast consumer behavior. In fact, computer technology is the most important aspect of the late twentieth-century information revolution. This technology has led to the development of the new high-tech industries, such as microelectronics and robotics.

Speed, a high degree of accuracy, and the ability to manipulate and store large amounts of data led to the early specialization of computers in data processing. More recently, the smaller personal computers (microcomputers) have become affordable, and software packages have been developed to support numerous business functions. Increasingly used as managerial tool, personal computers have become an integral part of many manager’s offices.

Computers and their applications have resulted in more efficient and productive business operations. They perform routine functions such as payroll preparation and inventory control and more complex ones such as sales forecasting and preparation of “what if” questions for market analysis.

Computer technology is developing so rapidly that it is difficult to foresee exactly what roles computers will play in business In the future. However numerous computer applications are currently performing vital roles in business operations. Some of these include:
  • Word processing—using the computer to create, store, edit, and print text. Examples of texts include letters, memos, reports, and other written business  communications. Replacing the traditional typewriter, word processors are usually the first step in office automation.
  • Networking—the integration of computer systems, workstations, and communications links. Computer networks are designed to meet business requirements by allowing users rapid and simultaneous access to key business infomation. Computer applications such as electronic mail and teleconferencing are only possible in a net worked computer environment.
  • Database—a collection of information that is integrated and can be accessed for a variety of business applications. In this electronic filing system, businesses can store, update, and manipulate information related to operations such as sales and customer demographics more efficiently than in older generations of computer programs (e.g., FORTRAN and COBOL). .
  • Spreadsheet—a collection of numbers, formulas, and worksheets. The electronic spreadsheet contains rows and columns and is used for sales forecasts, reports, income statement and balance sheet preparation, and many other numerical analyses.
  • Expert system—a sophisticated computer program that applies specialized knowledge drawn from human experts in order to solve problems. By applying symbolic logic and a series of rules, an expert system simulates the behavior of human expert in solving problems in similiar situations.
The increasing power and affordability of computer hardware and software have led to an even wider use of computers in business. As a result of the development of the microprocessor, which is really a computer on a chip, it is possible to have a portable electronic office. For a salesperson in the field, a computer that fits in a briefcase has quickly given way to one that can be held in the palm of the hand (palmtop). Equipped with a modem, the portable office allows instantaneous  communications with the home office for solving customer problems.

Computer technology and software applications are providing numerous opportunities for business. The challenge is to recognize these opportunities and manage them in a creative and knowledgeable way.

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