Managing Information with Computers

Discuss why a business needs to manage information and how computers have revolutionized information management.

     Businesses today are faced with an overwhelming amount of data and information about their customers, their competitors, and their own operations. The ability to manage this information can mean the difference between success and failure. Because of their speed; accuracy, storage capabilities, and ability to make comparisons, computers have emerged as a powerful tool for information management.

Identify the five components of a computer system and four major types of business applications programs.

     Every computer system consists of five components: hardware, software, people, control, and data. Four major types of applications programs for business are word processing, electronic spreadsheets, database management, and graphics.

Categorize computer systems by size and structure.

     Computers can be categorized according to their capacity, speed, and cost. The smallest slowest, and least expensive computers are microcomputers. The largest, fastest, and most expensive computers are supercomputers. Minicomputers and mainframes fall in between, but these distinctions are beginning to blur. In contrast, computer systems differ sharply in their architecture In centralized systems, all processing is done from one location, using a centralized database. In decentralized systems, each location handles its own processing and has its own database. Computer networks allow branch computers to communicate, offering some of the advantages of both centralized and decentralized systems.

Trace the history of computers.

     First&-generation computers were large and used vacuum tubes, which made them somewhat unreliable. Second&-generation computers replaced those tubes with more reliable transistors. Third&-generation computers reduced transistors to tiny integrated circuits on silicon chips. Fourth&-generation computers have continued with further miniaturization and have made use of the microprocessor chip. The result has been greater speed, more memory, and the microcomputer revolution.

Discuss trends in business information management.

     The next (fifth) generation of computers promises exciting developments in information management. Recent advances in artificial intelligence expert systems, office automation, and manufacturing&-information systems offer business people assistance in making decisions and solving problems.