An Introduction to Information Systems - Principles of Information Systems - page 13

Software
Software consists of the computer programs that govern the operation of the computer. These
programs allow a computer to process payroll, send bills to customers, and provide managers
with information to increase profits, reduce costs, and provide better customer service. With
software, people can work anytime at any place. Software that controls manufacturing tools,
for example, can be used to fabricate parts almost anywhere in the world. For example, Fab
Lab software controls tools such as cutters, milling machines, and other devices. 16 One Fab
Lab system, which costs about $20,000, has been used to make radio frequency tags to track
animals in Norway, engine parts to allow tractors to run on processed castor beans in India,
and many other fabrication applications.
The two types of software are system software , such as Microsoft Windows Vista, which
controls basic computer operations including start-up and printing, and applications soft-
ware , such as Microsoft Office 2007, which allows you to accomplish specific tasks including
word processing or creating spreadsheets. 17 Software is needed for computers of all sizes,
from small handheld computers to large supercomputers. 18 Although most software can be
installed from CDs, many of today's software packages can be downloaded through the
Internet. 19
Sophisticated application software, such as Adobe Creative Suite 3, can be used to design,
develop, print, and place professional-quality advertising, brochures, posters, prints, and
videos on the Internet. 20

software
The computer programs that govern
the operation of the computer.

Adobe Creative Suite is an example
of sophisticated application
software, and is designed for
producing professional-quality
graphics for the Web, print, and
video.
(Source: Courtesy of Adobe Systems
Incorporated.)

Databases
A database is an organized collection of facts and information, typically consisting of two
or more related data files. An organization's database can contain facts and information
on customers, employees, inventory, competitors' sales, online purchases, and much more.
Most managers and executives consider a database to be one of the most valuable parts of a
computer-based information system. 21 A number of health insurance companies are now
making their databases available to their customers through the Internet. 22 Aetna, for exam-
ple, provides important health data to millions of its customers. Aetna customers can also
place their own health information, such as blood pressure measurements taken at home, on
the comprehensive database. However, making databases accessible can pose risks. The De-
partment of Education decided to limit access to its database of college student loan
information to banks and financial institutions. 23 The database contains over 50 million
records on student loans that could be inappropriately used to market financial products to
students and their families.

database
An organized collection of facts and
information.

Telecommunications, Networks, and the Internet
Telecommunications is the electronic transmission of signals for communications, which
enables organizations to carry out their processes and tasks through effective computer net-
works. The Associated Press was one of the first users of telecommunications in the 1920s,
sending news over 103,000 miles of wire in the United States and almost 10,000 miles of
cable across the ocean. 24 Today, telecommunications is used by organizations of all sizes and

telecommunications
The electronic transmission of
signals for communications, which
enables organizations to carry out
their processes and tasks through
effective computer networks.