UNIVERSITY OF JUBA

COLLEGE OF COMPUTER SCIENCE AND INFORMATION TECHNOLOGY

SECOND YEAR / 2021-2022

Computer Applications
in Business
1
What is a computer? Or define computer?
In a laymans language, a computer is a fast calculating device that can perform arithmetic operations. Although the
computer was originally invented mainly for doing high speed and accurate calculations, it is not just a calculating
device. The computer can perform any kind of work involving arithmetic and logical operations on data. It gets the data
through an input device, processes it as per the instructions given and gives the information as an output. You can use
a computer to type documents, send email, and browse the Web. You can also use it to handle spreadsheets,
accounting, database management, presentations, games, and more.

We can define computer as follows:

Definitions
1. Computer is an advanced electronic device that takes raw data as input from the user
and processes these data under the control of set of instructions (called program) and
gives the result (output) and saves output for the future use.
2. A computer is a fast electronic device that processes the input data according to the
instructions given by the programmer/user and provides the desired information as an
output.
3. A computer is an electronic device that manipulates information, or data. It has the
ability to store, retrieve, and process data.

Write the characteristics of Computer or what are the features of

computer?
Computers play a vital role for processing of data in an organization. Computer: help in processing the volumes of data
efficiently and accurately within a short time. A computer has the following characteristics which make it so important
for an organization:

1. Speed: Computer is very fast and accurate device. It can process millions of instruction within a few seconds.
2. Accuracy: Computer gives consistently accurate results. Computer results are accurate because it performs
an action according to given instruction.

3. Memory: Computers have enormous amount of memory to hold a very large amount of data. We can store
large amount of date information in the secondary storage device.

4. No intelligence: Computer does not have any intelligence. They perform only those operations, which are
already fed into them by the external sources.

5. Attentiveness: Computer is free from problems like lack of concentration, and confusion etc. It can work
hours and hours without feeling tiredness.
6. Versatility: We can perform much different types of tasks on computer, one movement it might be busy in
calculating the statistical data for annual performance evaluation of a business organization and next movement it
might be working on weather forecast.

7. Power of Remembrance: Unlike humans, computers can store things for unlimited period of time. They
have a great remembering power.

What are the uses or applications of computers in business?

Computer plays an important role in business environment as every organisation adopts it in some form or the other
to perform the tasks in effective manner. In the past few years’ rapid development in IT, particularly in communications,
electronic service networks, and multimedia have opened up new opportunities for corporates. Computers have a
significant impact on everyday life in nearly all areas.
Computers are used in:
 Airline and Railway Reservations
 Medical Diagnosis
 Whether Forecasting
 Payment of telephone and electricity bills
 Banking
 Space research
 Online Education
 Sending and receiving data throughout the world using internet
All these are contributing towards new and effective ways of processing business transactions, integrating business
processes, transferring payments and delivering services electronically.
The uses of computers in business are as follows:
1. Office Automation: Computers have helped automation of many industrial and business systems. They are
used extensively in manufacturing and processing industries, power distribution systems, airline reservation systems,
transportation systems, banking systems, and so on. Computer aided design (CAP) and computer-aided manufacture
(CAM) are becoming popular among the large industrial establishment.

2. Stores large amount of date and information: Business and commercial organizations need to
store and maintain voluminous records and use them for various purposes such as inventory control, sales analysis,
payroll accounting, resources scheduling and generation of management reports. Computers can store and maintain
files and can sort, merge or update as and when necessary.

3. Improves Productivity: With the introduction of word processing software, Computers have recently been
applied to the automation of office tasks and procedures. This is aimed at improving the productivity of both clerical &
managerial staff.

4. Sharing of data and information: Due to networking of computers, where a number of computers are
connected together to share the data and information, use of e-mail and internet has changed the ways of business
operations.

5. Competitiveness: Computers offer a reliable and cost-effective means of doing business electronically.
Routine tasks can be automated. The customers can be provided support round the clock, which is 24 hours a day.
With advancement in IT sector, corporates are spreading business around the world thus, increasing their presence
and entering new markets.

6. Security: To provide security to data and important computer programs, almost every organization has some

security programs to avoid the illegal access of the company’s information by unauthorized persons. The three
fundamental attributor of a security program are confidentially, integrity and availability which allow access to only
authorized persons in an organization.

7. Cost Benefits: The extensive availability of internet based information means that companies have a wider
choice of suppliers which leads to a more competitive pricing. Due to the presence of internet the role of the middleman
becomes less important as companies can sell their product or services directly to the customer.

8. Marketing: Corporates engaged in e-business can take help of their respective websites to create brand

awareness of their products, thus, creating new avenues of promotion of their products. In addition, companies’
websites can also provide better services such as after sales service to the customer.

What are the advantages and disadvantages of computerization of

business activities?
Advantages:
The main advantages of computerizing the activities of business organization are as follows:
1. Speed: Computerisation helps in processing the data placed in several data files in no time. This is possible due
to the high speed of computers for processing data and CPU of the computer works at the speed of electricity which is
the highest ever attainable speed.
2. Accuracy: The data processed by the computer are highly accurate. The programs written on the system checks
and controls data before and during processing. It detects invalid data and ensures high degree of accuracy and
reliability of output reports.
3. Flexibility: The modern digital computers can be used for a variety of purposes. E.g. online processing,
multiprogramming etc.
4. Choice of Configuration: Wide ranges of peripherals are available for many computer systems, which allow
business organization to select those which most suit its processing requirements.
5. Storage capacity: Large volumes of data can be conveniently stored, accessed and altered.
6. Management information: They can be used to provide useful information of management for control and
decision making.
7. Data Processing: Computer has lifted the heavy data processing constraint with the manual system and has
opened up new avenues for planning, control and data experimentation.
8. Volume: Computers can store volumes of data and can retrieve the desired information quickly. This is very useful
in the areas like insurance, bank accounts etc where large number of documents is handled every day.
9. Database: Computer facilities the establishment of database. Such a database integrates data records and
reduces data redundancy.
10. Reduction in paper work: The use of computers for data processing has helped the management of business
organizations to cope with increasing problem of paper handling. The computers have speeded up the process and
have eliminated the paper needs through the storage of data in elaborately constructed data bases and files.
11. Reduced cost: Though the initial investment for installing a computer is high, but it substantially reduces the
cost of each of its transaction. Cost reduction occurs due to processing of huge data and record keeping.
12. Facilitates report preparation: Computer facilitates the preparation of various types of reports required by
organizational executives for the purpose of decision making and control.
13. Reduce the space requirements: The use of computer for office activities reduces the requirements of
office space which otherwise is required.
14. Reduces the manpower requirement: The number of persons required for performing various
organizational activities will be reduced by using a computer system.
15. Increased ability to perform computations: Computers perform computations with a very high speed.
16. Diligence: Being a machine, it does not suffer from boredom, tiredness or lack of concentration, even if millions
of computations are to be performed by a computer. It performs the calculations with same accuracy and speed.

Disadvantages:
The use of computer has also created some problems in society and for business which are as follows.
1. Unemployment: Different tasks are performed automatically by using computers. It reduces the need of people
and increases unemployment in society.
2. Wastage of time and energy: Many people use computers without positive purpose. They play games and
chat for a long period of time. It causes wastage of time and energy. Young generation is now spending more time on
the social media websites like Facebook, Twitter etc or texting their friends all night through smartphones which is bad
for both studies and their health. And it also has adverse effects on the social life.
3. Data Security: The data stored on a computer can be accessed by unauthorized persons through networks. It
has created serious problems for the data security.
4. Computer Crimes
People use the computer for negative activities. They hack the credit card numbers of the people and misuse them or
they can steal important data from big organizations.
5. Privacy violation: The computers are used to store personal data of the people. The privacy of a person can
be violated if the personal and confidential records are not protected properly.
6. Health risks: The improper and prolonged use of computer can results in injuries or disorders of hands, wrists,
elbows, eyes, necks and back. The users can avoid health risks by using the computer in proper position. They must
also take regular breaks while using the computer for longer period of time. It is recommended to take a couple of
minutes break after 30 minutes of computer usage.
7. Impact on Environment: The computer manufacturing processes and computer waste are polluting the
environment. The wasted parts of computer can release dangerous toxic materials. Green computer is a method to
reduce the electricity consumed and environmental waste generated when using a computer. It includes recycling and
regulating manufacturing processes. The used computers must be donated or disposed off properly.

Explain all the generation of computer or Write on the History of

computers?
As in the case with human beings, computers have also evolved through generations. Let’s discuss about them.
Meaning of generations of computers
The history of computer development is often referred to the different generations of computing
devices.The main phases in the evolution
of computer technology are known as
generations. The term ‘Generation’ is
used to distinguish between varying
hardware technologies.
Today’s computer systems come in a variety of
sizes, shapes, and computing capabilities. Rapid
hardware and software developments and
changing end user needs continue to drive the
emergence of new models of computers, from the
smallest hand-held personal digital assistant for
end users, to the largest multiple-CPU
mainframe for the enterprise.
It is important to realize that major changes and trends in computer systems have occurred during the major stages-or
generations-of computing, and will continue into the future. The first generation of computers developed in the early
1950s, the second generation blossomed during the late 1960s, the third generation took computing into the
1970s, and the fourth generation has been the computer technology of the 1980s and 571990s. A fifth generation
of computers that accelerates the trends of the previous generations is expected to evolve as we enter the 21st
century. Notice that computers continue to become smaller, faster, more reliable, less costly to purchase and
maintain, and more interconnected within computer networks.

1. First Generation (1940–56)—Vacuum Tubes

First-generation computers were vacuum tubes/thermionic valves-based machines. These computers used vacuum
tubes for circuitry and magnetic drums for memory. A magnetic drum is a metal cylinder coated with magnetic iron
oxide material on which data and programs can be stored. The input was based on punched cards and paper tape and
the output was in the form of printouts.
First-generation computers relied on binary-coded language, which is also known as the machine language (i.e.
language of 0s and 1s), to perform operations and were able to solve only one problem at a time. Each machine was
fed with different binary codes and hence was difficult to program. This resulted in lack of versatility and speed. In
addition, to run on different types of computers, instructions must be rewritten and recompiled.
Characteristics of First-generation Computers
Following are the characteristics of first-generation computers:
a. Vacuum tube technology
b. Unreliable
c. Supported Machine language only
d. Very costly
e. Generate lot of heat
f. Slow Input/output device
g. Huge size
h. Need of A.C.
i. Non-portable
j. Consumed lot of electricity

Advantages
a. Vacuum tubes were the only electronic component available during those days.
b. Vacuum tubes technology made possible to make electronic digital computers.
c. These computers could calculate data in millisecond.
Disadvantages
a. These computers were very large in size
b. They consumed a large amount of energy
c. They heated very soon due to thousand of vacuum tubes
d. They were not very reliable
e. Air conditioning was required
f. Constant maintenance was required
g. Non-portable
 h. Costly commercial production
i. Limited commercial use
j. Quite slow speed
k. Limited programming capabilities
l. Used Machine language only
m. Used magnetic drums which provide very less facility of data storage
n. Punch cards for input
o. Not versatile
p. Very faulty

Some computers of this generation were:

a. ENIAC
b. EDVAC
c. UNIVAC
d. IBM-701
e. IBM-650
2. Second Generation (1956–63)—Transistors
Second-generation computers used transistors instead of vacuum tubes, which were superior to vacuum tubes. A
transistor is made up of semiconductor material like germanium and silicon. It usually had three leads and performed
electrical functions such as voltage, current or power amplification with low power requirements. Since transistor is a
small device, the physical size of the computer was greatly reduced. Computers became smaller, faster, cheaper,
energy-efficient and more reliable than their predecessors. In second-generation computers, magnetic cores were used
as primary memory and magnetic disks as secondary storage devices. However, they still relied on punched cards for
input and printouts for output.
One of the major developments of this generation includes the progress of machine language to assembly language.
Assembly language used mnemonics (abbreviations) for instructions rather than numbers; for example, ADD for
addition and MULT for multiplication. As a result, programming became less cumbersome. Early high-level
programming languages such as COBOL and FORTRAN also came into existence during this period.
Characteristics of Second-generation Computers
Characteristics of second-generation computers are as follows:
a. Use of transistors
b. Reliable as compared to First generation computers
c. Smaller size as compared to First generation computers
d. Generate less heat as compared to First generation computers
e. Consumed less electricity as compared to First generation computers
f. Faster than first generation computers
g. Still very costly
h. A.C. needed
i. Support machine and assembly languages

Advantages
a. Smaller in size as compared to first generation computers
b. More reliable
c. More energy-efficient
d. Used less energy and were not heated
e. Wider commercial use
f. Better portability
g. Better speed, could calculate data in microsecond
h. Used faster peripherals like tape drives, magnetic disks, printer etc
i. Used Assembly language instead of Machine language
j. Accuracy improved
Disadvantages
a. Air conditioning was required
b. Constant maintenance was required
c. Commercial production was difficult
d. Only used for specific purposes
 e. Costly
f. Not versatile
g. Punch cards were used for input

Some computers of this generation were:

a. IBM 1620
b. IBM 7094
c. CDC 1604
d. CDC 3600
e. UNIVAC 1108

3. Third Generation (1964–Early 1970s)—Integrated Circuits

The development of the integrated circuit was the trait of the third-generation computers. An integrated circuit, also
called IC, consisted of a single chip (usually silicon) with many components such as transistors and resistors fabricated
on it. Integrated circuits replaced several individually wired transistors. This development made computers smaller in
size, reliable and efficient.
Instead of punched cards and printouts, users interacted with third-generation computers through keyboards and
monitors and interfaced with an operating system. This allowed the device to run many different applications at one
time with a central program that monitored the memory. For the first time, computers became accessible to majority of
common people because they were smaller and cheaper than their predecessors.

Characteristics of Third-generation Computers

Third-generation computers have the following characteristics:
a. IC used
b. More reliable
c. Smaller size
d. Generate less heat
e. Faster
f. Lesser maintenance
g. Still costly
h. A.C. needed
i. Consumed lesser electricity
j. Support high-level language

Advantages
a. Smaller in size as compared to previous generation
b. More reliable
c. Less energy used.
d. Produced less heat as compared to previous generation computers
e. More good speed, could calculate data in nine seconds.
 f. Used fan for heat discharge to prevent damage.
g. Maintenance cost was low because hardware failure is rare.
h. Totally general purpose
i. Could be used for high-level languages
j. Good storage
k. Versatile too an extent
l. Less expensive
m. Better accuracy
n. Commercial production increased
o. Used mouse, Keyboard for input
Disadvantages
a. Air conditioning was required
b. High sophisticated technology required for the manufacturing of IC Chips.

Some computers of this generation were:

a. IBM-360 series
b. Honeywell-6000 series
c. PDP(Personal Data Processor)
d. IBM-370/168
e. TDC-316

4. Fourth Generation (Early 1970s–Till Date)—Microprocessors

Fourth generation is an extension of third-generation technology. Although, the technology of this generation is still
based on the integrated circuit, these have been made readily available because of the development of the
microprocessor (circuits containing millions of transistors). The Intel 4004 chip, which was developed in 1971, took the
integrated circuit one step further by locating all the components of a computer (central processing unit, memory, and
input and output controls) on a minuscule chip. A microprocessor is built onto a single piece of silicon, known as chip.
It is about 0.5 cm along one side and not more than 0.05 cm thick.
Fourth-generation computers led to an era of large-scale integration (LSI) and very-large-scale integration (VLSI)
technology. LSI technology allowed thousands of transistors to be constructed on one small slice of silicon material,
whereas VLSI squeezed hundreds of thousands of components on to a single chip. Ultra-large-scale integration (ULSI)
increased that number to millions. This way the computers became smaller and cheaper than ever before.
Fourth-generation computers became more powerful, compact, reliable and affordable. As a result, it gave rise to the
personal computer (PC) revolution. During this period, magnetic core memories were substituted by semiconductor
memories, which resulted in faster random access main memories. Moreover, secondary memories such as hard disks
became economical, smaller, and bigger in capacity. The other significant development of this era was that these
computers could be linked together to form networks, which eventually led to the development of the Internet. This
generation also saw the development of graphical user interfaces (GUIs), mouse and hand-held devices. Despite many
advantages, there is only one disadvantage of this generation, that is, it required complex and sophisticated technology
for the manufacturing of CPU and other components.
Characteristics of Fourth-generation Computers
Following are the characteristics of fourth-generation computers:
a. VLSI technology used
b. Very cheap
c. Portable and reliable
d. Use of PC's
e. Very small size
f. Pipeline processing
g. No A.C. needed
h. Concept of internet was introduced
i. Great developments in the fields of networks
j. Computers became easily available

Advantages
a. Very small in size
b. Less power consumption
c. Less heat generated
d. Fan for heat discharging and this to keep cold
e. No air conditioning is required
f. Best speed to read instructions i.e. one billionth per second
g. Reliable and Powerful
h. Totally general purpose
i. Commercial of repairing
j. Cheapest among all generations
k. All types of high-level languages can be used in this type of computers
Disadvantages
a. High sophisticated technology required for manufacturing microprocessors

Some computers of this generation were:

a. DEC 10
b. STAR 1000
c. PDP 11
d. CRAY-1 (Super Computer)
e. CRAY-X-MP (Super Computer)

5. Fifth Generation (Present and Beyond)—Artificial Intelligence

The dream of creating a human-like computer that would be capable of reasoning and reaching at a decision through
a series of 'what-if-then' analyses has existed since the beginning of computer technology. Such a computer would
learn from its mistakes and possess the skill of experts. These are the objectives for creating the fifth-generation
computers. The starting point of the fifth-generation computers had been set in the early 1990s. The process of
developing fifth-generation computers is still in the development stage. However, the 'expert system' concept is already
in use. The expert system is defined as a computer system that attempts to mimic the thought process and reasoning
of experts in specific areas.

Characteristics of Fifth Generation Computers

Three characteristics can be identified with the fifth-generation computers. These are as follows:
a. ULSI technology
b. Development of true artificial intelligence
c. Development of Natural language processing
d. Advancement in Parallel Processing
e. Advancement in Superconductor technology
f. More user friendly interfaces with multimedia features
g. Availability of very powerful and compact computers at cheaper rates

Some computers types of this generation are:

a. Desktop
b. Laptop
c. NoteBook
d. UltraBook
e. ChromeBook

Distinguish between different Computer Generations in short?

Criteria First Second Third Fourth Fifth

Generation Generation Generation Generation Generation
Computers Computers Computers Computers Computers

Technology Vacuum Transistor Integrated Very Large Scale Ultra Large Scale
Tube Circuit Integration(VLSI) Integration(ULSI)

Speed Slowest Slow Medium Faster Fastest

Size Largest Large Medium Smaller Smallest

Reliability Unreliable Less Reliable More Most Judge Most Judge

Reliable

Availability Out-dated Out-dated Out-dated Current Just to enter

Operating None None Yes Yes Yes

System

Language Machine Assembly High Level High Level High Level

Language Language Language