Computer Application in Business

II [Link]. - III Semester

21UBCMS35 - COMPUTER APPLICATION IN BUSINESS
UNIT -I
Syllabus:
Introduction to Computer – Characteristics of a Computer – History of Computer – Computer generation
- Hardware – Software – System Software and application software.
1.1 Introduction
 A computer is a programmable machine designed to perform arithmetic and logical operations
automatically and sequentially on the input given by the user and gives the desired output after
processing.
 Computer components are divided into two major categories namely hardware and software.
Hardware is the machine itself and its connected devices such as monitor, keyboard, mouse etc.
 Software is the set of programs that make use of hardware for performing various functions.
1.2 Characteristics Of Computers
The characteristics of computers that have made them so powerful and universally useful are speed,
accuracy, diligence, versatility, and storage capacity.

Speed
 Computers work at an incredible speed.
 A powerful computer is capable of performing about 3-4 million simple instructions per
second.
Accuracy
 In addition to being fast, computers are also accurate. Errors that may occur can almost always be
attributed to human error (inaccurate data, poorly designed system, or faulty instructions/programs)
Diligence

[Link] Kumar, M.C.A.,[Link]. 1

Computer Application in Business

 Unlike human beings, computers are highly consistent.

 They do not suffer from human traits of boredom and tiredness resulting in lack of concentration.
 Computers, therefore, are better than human beings in performing voluminous and repetitive jobs.
Versatility
 Computers are versatile machines and are capable of performing any task as long as it can be
broken down into a series of logical steps. The presence of computers can be seen in almost every
sphere – Railway/Air reservations, Banks, Hotels, Weather forecasting, and many more.
Storage
 Capacity Today’s computers can store large volumes of data. A piece of information once recorded
(or stored) in the computer, can never be forgotten and can be retrieved almost instantaneously.
1.3 Computer Organization
 A computer system consists of mainly four basic units; namely input unit, storage unit, central
processing unit, and output unit.
 Central Processing unit further includes Arithmetic logic unit and control unit,
 A computer performs five major operations or functions irrespective of its size and make. These are
 It accepts data or instructions as input,
 It stores data and instruction
 It processes data as per the instructions,
 It controls all operations inside a computer, and
 It gives results in the form of output.
1.3.1 Functional Units:
a) Input Unit: This unit is used for entering data and programs into the computer system by the user
for processing
b) Storage Unit: The storage unit is used for storing data and instructions before and after processing.
c) Output Unit: The output unit is used for storing the result as output produced by the computer after
processing.
d) Processing: The task of performing operations like arithmetic and logical operations is called
processing. The Central Processing Unit (CPU) takes data and instructions from the storage unit and
makes all sorts of calculations based on the instructions given and the type of data provided. It is
then sent back to the storage unit. CPU includes the Arithmetic logic unit (ALU) and control unit
(CU)
e) Arithmetic Logic Unit: All calculations and comparisons, based on the instructions provided, are
carried out within the ALU. It performs arithmetic functions like addition, subtraction,
multiplication, division, and also logical operations like greater than, less than, equal to, etc.

[Link] Kumar, M.C.A.,[Link]. 2

Computer Application in Business

f) Control Unit: Controlling of all operations like input, processing, and output is performed by the
control unit. It takes care of the step-by-step processing of all operations inside the computer.
1.3.2 Memory
Computer memory can be classified into two types; primary memory and secondary memory
a) Primary Memory can be further classified as RAM and ROM.
 RAM or Random Access Memory is the unit in a computer system. It is the place in a computer
where the operating system, application programs, and the data in current use are kept temporarily so
that they can be accessed by the computer’s processor. It is said to be ‘volatile’ since its contents are
accessible only as long as the computer is on. The contents of RAM are no more available once the
computer is turned off.
 ROM or Read Only Memory is a special type of memory that can only be read and contents of
which are not lost even when the computer is switched off. It typically contains the manufacturer’s
instructions. Among other things, ROM also stores an initial program called the ‘bootstrap loader’
whose function is to start the operation of the computer system once the power is turned on.
b) Secondary Memory
 RAM is volatile memory having a limited storage capacity. Secondary/auxiliary memory is storage
other than the RAM.
 These include devices that are peripheral and are connected and controlled by the computer to
enable permanent storage of programs and data.
 Secondary storage devices are of two types; magnetic and optical. Magnetic devices include hard
disks and optical storage devices are CDs, DVDs, Pen drive, Zip drive etc.
1.4 History of computer
The history of the computer goes back several decades however and there are five definable
generations of computers.
Each generation is defined by a significant technological development that changes fundamentally
how computers operate – leading to more compact, less expensive, but more powerful, efficient
and robust machines.
First Generation (1940-1956)
The first-generation computers had the following features and components −
Hardware
The hardware used in the first generation of computers was: Vacuum Tubes and Punch Cards.
Features
Following are the features of first-generation computers −
 It supported machine language.

[Link] Kumar, M.C.A.,[Link]. 3

Computer Application in Business

 It had slow performance

 It occupied a large size due to the use of vacuum tubes.
 It had a poor storage capacity.
 It consumed a lot of electricity and generated a lot of heat.
Memory
The memory was of 4000 bits.
Data Input
The input was only provided through hard-wired programs in the computer, mostly through punched
cards and paper tapes.
Examples
Examples of first-generation computers are −
 ENIAC
 UNIVACTBM 701
Second Generation (1956-1963)
Several advancements in first-gen computers led to the development of second-generation computers.
Following are various changes in features and components of second-generation computers −
Hardware
The hardware used in the second generation of computers was −
 Transistors
 Magnetic Tapes
Features
It had features like −
 Batch operating system
 Faster and smaller in size
 Reliable and energy efficient than the previous generation
 Less costly than the previous generation
Memory
The capacity of the memory was 32,000 bits.
Data Input
The input was provided through punched cards.
Examples
Examples of second-generation computers are –
- Honeywell 400 - CDC 1604 - IBM 7030

[Link] Kumar, M.C.A.,[Link]. 4

Computer Application in Business

Third Generation (1964-1971)

Following are the various components and features of the third-generation computers −
Hardware
The hardware used in the third generation of computers was −
 Integrated Circuits made from semiconductor materials
 Large capacity disks and magnetic tapes
Features
The features of the third-generation computers are –
 Supports time-sharing OS
 Faster, smaller, more reliable, and cheaper than the previous generations
 Easy to access
Memory
The capacity of the memory was 128,000 bits.
Data Input
The input was provided through keyboards and monitors.
Examples
Examples of third-generation computers are –
 IBM 360/370
 CDC 6600
 PDP 8/11
Fourth Generation (1972-2010)
Fourth-generation computers have the following components and features −
Hardware
The Hardware used in the fourth generation of computers was −
 ICs with Very Large-Scale Integration (VLSI) technology
 Semiconductor memory
 Magnetic tapes and Floppy
Features
It supports features like −
 Multiprocessing & distributed OS
 Object-oriented high-level programs supported
 Small & easy to use; hand-held computers have evolved
 No external cooling is required & Affordable
 This generation saw the development of networks and the internet

[Link] Kumar, M.C.A.,[Link]. 5

Computer Application in Business

 It saw the development of new trends in GUIs and mouse

Memory
The capacity of the memory was 100 million bits.
Data Input
The input was provided through improved handheld devices, keyboards, and mice.
Examples
Examples of fourth-generation computers are −
 Apple II
 VAX 9000
 CRAY 1 (supercomputers)
Fifth Generation (2010-Present)
These are modern and advanced computers. Significant changes in the components and operations have
made fifth-generation computers handy and more reliable than the previous generations.
Hardware
The Hardware used in the fifth generation of computers is −
 Integrated Circuits with VLSI and Nanotechnology
 Large capacity hard disk with RAID support
 Powerful servers, Internet, Cluster computing
Features
It supports features like −
 Powerful, cheap, reliable, and easy to use.
 Portable and faster due to the use of parallel processors and Super Large Scale Integrated Circuits.
 Rapid software development is possible.
Memory
The capacity of the memory is unlimited.
Data Input
The input is provided through CDROM, Optical Disk, and other touch and voice-sensitive input devices.
Examples
Examples of fifth-generation computers are −
 IBM
 Pentium
 PARAM

[Link] Kumar, M.C.A.,[Link]. 6

Computer Application in Business

1.5 Hardware
 The term hardware refers to the tangible parts of a computer system, that is, the physical equipment of
the computer.
 A keyboard, disk drive, and monitor are examples of computer hardware.
 Understanding the various physical components of a computer system will help you understand how
the system works as a whole.
 The general model of a computer consists of an input system, storage system, process system, and
output system.
1.5.1 Input System
An input system comprises one or more devices that the user employs to enter data or instructions into the
memory of the computer so that the CPU can subsequently process them.
Keyboard:
 The keyboard is one of the most common input devices.
 In addition to keys that represent letters, numbers, and special characters, keyboards often contain
function keys, to which the user can assign personalized commands, and special- purpose keys, such as
the enter key.
 Some keyboards contain a numeric keypad (a set of keys in the form of a calculator keypad) that is
used for entering numbers conveniently and easily.
 Keyboards may also have Internet keys, CD/DVD controls, and multimedia keys.
 While most keyboards are connected to the computer by a cable, there are wireless keyboards that
transmit their input by means of infrared signals.
Mouse:
 Connected to many modern microcomputers is a hand-sized input device called a mouse, or pointing
device.
 A mechanical mouse contains a ball that rolls along a flat surface, moving a cursor (pointer) on the
computer screen.
 An optical mouse uses light signals to detect the movement of the mouse and thereby move the pointer
on the screen.
 The mouse is a convenient and effective way to interact with the graphical user interfaces (GUIs) that
dominate the current computer environment.
Touchpad:
 This input device is a small rectangular surface that operates by means of pressure and motion, and
allows the user to perform all of the functions of a mouse by touch.
 Moving the fingertip across the touchpad moves the cursor across the screen.

[Link] Kumar, M.C.A.,[Link]. 7

Computer Application in Business

 Tapping the touchpad acts as clicks and double-clicks.

 Touchpads are most commonly found on laptop computers.
Pointing Stick:
 Like the touchpad, this pressure-sensitive input device fills the role of the mouse in some laptops.
It is shaped like a pencil eraser and fits between keys in the keyboard.
 Moving the pointing stick moves the cursor. This device is mostly found on laptop
computers.
Trackball:
 The trackball is basically an upside-down mouse.
 Instead of rolling the ball on a surface as with the mouse, the user rotates the trackball with the hand
directly to position the cursor on the screen.
Touch Screen:
 This input device is often used in public places, such as shopping centers, hotels, and airports, where
users may not have much experience working with computers.
 The user simply touches the screen for the desired menu item.
Light Pen:
 This light-sensitive device is used for entering data by writing on a computer screen. Engineers,
designers, and architects use light pens to draw and modify shapes on the screen.
Graphics Tablet:
 A graphics tablet is a flat rectangular board used to input drawings or other graphical data.
 The user draws on the graphics tablet with an electronic pen or a mouse-like device (called a puck).
 The drawing movements are converted into digital signals that are sent to the computer as input.
Architects and mapmakers commonly use this input device.
Speech Recognition Devices:
 These devices recognize the words spoken by users. Sample voice patterns are analyzed, digitized, and
stored in a database. Later, during operations, actual voice inputs are compared with the stored voice
pattern.
 Speech or voice recognition technology is best suited to structured input applications in work
environments where the user’s hands are occupied.
 For example, a receiving clerk may enter data about items received using voice commands.
1.5.2 Storage system
 Inputs are sent to either memory or storage, waiting for subsequent processing by the computer. With
regard to computers, there is a commonly accepted distinction between the term memory (or primary
memory) and storage (or secondary storage).

[Link] Kumar, M.C.A.,[Link]. 8

Computer Application in Business

 Memory refers to the instructions, information, and data waiting for immediate processing. For this
reason, memory is also referred to as working memory.
 Memory is saved electronically on memory chips. Storage, information, and instructions are saved on
magnetic or optical media.
 It is faster to access data and instructions from primary memory than from secondary storage media,
but the information in memory is usually volatile; i.e., it disappears when the computer’s power is
turned off.
 Storage systems have two components: the storage medium (e.g., a disk or a tape) that contains the
saved information and the storage device or drive that reads from and writes onto the storage medium.
 Permanent, non-volatile storage media include floppy diskettes, installed hard disks, compact disks
(CDs), magnetic tape cartridges, removable hard disks, and super floppies.
Floppy diskettes:
Employ magnetic storage technology. The disks are 3.5-inches in diameter and are easily portable. A
single floppy can hold 1.44 MB.
Hard disks:
 They are also magnetic-based storage media.
 Both the hard drive and the hard disks are usually installed inside the computer. Portable external hard
drives are connected to the computer by a cable.
 Current PC hard disks typically have a capacity from 2 to 50 GB.
 Hard drives have a faster data access time than floppy disks.
 Data access time is the time required to locate a piece of stored information in storage and retrieve it
into primary memory or the CPU.
Compact disks:
 Compact disks are optical storage media that employ laser technology. CDs are 4.75 inches in
diameter and can hold up to 680 MB (the equivalent of 450 floppies).
 CDs are often read-only, although many PCs are now equipped with CD drives that allow the user to
record information on the CD.
 Some writable CDs can be recorded only once. These are designated as CD-R (compact disc-
recordable). Others CDs can be recorded multiple times and are designated as CD-RW (compact disc-
rewritable).
 Video data (e.g., movies) can be stored on a specialized type of CD called CD—DVDs (digital video
discs).
Magnetic tape cartridges:
 Use magnetically treated plastic ribbons to store information.

[Link] Kumar, M.C.A.,[Link]. 9

Computer Application in Business

 Tape cartridges can hold large amounts of information, up to 80 GB. One disadvantage of tape storage
is that information must be accessed sequentially.
 For example, to retrieve information stored in the middle of the tape, the entire first half of the tape
must be run. Disks, on the other hand, allow for direct (or random) access, which means that a piece of
information may be located immediately.
Removable hard disks:
 Removable hard disks are magnetic-based hard disks that can be removed from the hard disk drive and
easily transported.
 The disk drive that reads from and writes onto the removable hard disk is either installed in the
computer or attached to the computer by a port.
 The portable hard disk is encased in a plastic or metal container for protection. The disks typically can
store up to 2 GB. The Jaz disk by Iomega is a popular example.
1.5.3 Output System
 Like the input system, the output system provides an interface through which computers and humans
can interact with one another.
 Output devices are used to display input data that has been processed by the computer into useful
output information.
 Probably the most common output devices are monitors for producing temporary displays (soft copies)
and printers for producing paper copies of documents (hard copies).
Monitors:
 A monitor, or screen, can display graphics, text, and video output.
 To display video in the monitor, the computer needs a video card (or graphics card) for converting the
digital signal (i.e., data in the form of 0s and 1s) from the processor to an analog signal (i.e., data in the
form of a continuous electrical wave) that the monitor can interpret.
 Monitors are described in two ways. The first is by the number of colors that the screen can display.
This can range from 4 to 65,536. The second is by the quality, or resolution, of the screen, which is
measured in picture elements (pixels). Pixels are tiny dots of light that combine to form images on the
screen. Typical screens have 320 × 220 pixels, 640 × 480 pixels, or 1,024 × 768 pixels.
Printers:
 To produce a hard copy, a computer must be connected to a printer. This is typically done through a
parallel port, which enables the computer to communicate with the printer one byte at a time.
 the most popular type of printer was the dot-matrix printer, which can still be found in service today.
These inexpensive printers are appropriate for tasks that do not require high-quality images.
 As its name implies, the dot-matrix printer produces a series of dots in a matrix to form both characters

[Link] Kumar, M.C.A.,[Link]. 10

Computer Application in Business

and images. A print head containing 9, 18, or 24 tiny pins strikes an inked ribbon to create the dots that
make up the image on paper.
 The number of pins determines the quality of the output; the greater the number, the smoother the
output.
Projectors:
 Projectors are used to display graphics, text, and video output from a computer. In the case of
projectors, the output is displayed onto a screen for an audience to view instead of on a monitor for a
single user's viewing.
 Like monitors, projectors are attached to the computer through a parallel port. Projector technology
varies widely, but the two most common types are LCD projectors and digital light processing (DLP)
projectors.
1.6 Software
Software instructions are programmed in a computer language, translated into machine language, and
executed by the computer. Between the user and the hardware (specifically, the memory), generally stand
two layers of software: system software and application software.
1.6.1 System Software
System software manages the computer’s resources, enables the various components of the computer to
communicate, runs application software, and makes the hardware respond to the user’s needs. When the
system software operates efficiently, the difficult operations of controlling the hardware are transparent to
the user. System software includes four main types:
 The operating system provides an interface between the computer hardware and the user or the
application software. Because of its central importance, the operating system will be discussed in more
detail below.
 Language translators convert application programs and any other software programs into the
machine language (discussed below) that actually controls the computer's operations.
 Network and communications software operate the communications hardware in a computer so that
it can transmit and receive information from other computers. Network and communications software
require two types of software: software for the PC operating system and software for the network
operating system. In some cases, the latter comes built-in the former.
 Utility programs perform various specialized "housekeeping" tasks, such as file management, virus
protection, disk defragmentation, program installation and uninstallation, file and disk back up, disk
formatting, and providing screen saver programs. This list is far from exhaustive. The user directly
controls most utility programs, although some utility programs can be set to run automatically (e.g.;
screen savers and anti-virus scanning).

[Link] Kumar, M.C.A.,[Link]. 11

Computer Application in Business

1.6.2 Application Software

 Application software enables the user to direct the computer’s processing system in the tasks of
manipulating and transforming input data into useful output information.
 Furthermore, it allows the user to alter the information generated by the processing system; e.g., how
the information is presented.
 Application software can be written for a specific user’s application (custom software), or it can be
mass-produced for general use (commercial or packaged software).
 Application software comes in an incredible variety. It is available for business, personal, educational,
communication, and graphic design purposes—to name the more usual categories.

[Link] Kumar, M.C.A.,[Link]. 12

Computer Application in Business

Question Bank
PART – A
1. Define a computer.
2. List out the advantages of computers.
3. What is software?
4. What is hardware?
5. Define RAM.
6. What is ROM?
7. What is CD?
8. What is system software?
9. What is application software?
10. List out any two characteristics of a computer.
11. What is a control unit?
12. What is an input device? Give an example?
13. What is a storage device?
14. Write short notes on a computer printer.
15. Give an example of a storage device in the computer system.
16. What is the magnetic tape?
17. Write short notes on the keyboard.
18. Define Monitor.
PART – B
1. Explain characteristics of computer in detail
2. Describe the computer organization shortly.
3. Explain input device in detail.
4. Explain output system in detail.
5. Discuss the storage system in detail
PART – C
1. Discuss the computer software and its type in detail.
2. Explain in history of computer in detail
3. Explain function component of a computer system in detail. Explain computer hardware in detail.

[Link] Kumar, M.C.A.,[Link]. 13