Chapter 7: Understanding Software

Vocabulary

Computing Hardware
The physical information on technology. Appears in threefold: Periphirals (storage), Inputs (mouse and keys), and Outputs (monitors and printers)
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Operating Systems
The programs controlling the hardware; the standards for exectutions (ie Windows and MacOS)
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Application
Includes desktop programs, enterprise software, utilities, and other programs that perform specific tasks for users and organizations. (ie Oracle and TikTok)
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Enterprise Resource Planning (ERP) Systems
A software package that performs the many functions of a business.
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Customer Relationship Management (CRM) Systems
Customer related marketing and sales
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Supply Chain Management (SCM) Systems
Managing the supply chain and raw materials. From finish to consumption, oversight and action on every part of the process.
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Business Intelligence (BI) Systems
Support for reporting and analyzing organizational decision making.
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Database Management System (DBMS)
Software used for creating, maintaining, and manipulating data.
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Distributed Computing
Breaks computing tasks down into pieces, with different computing jobs being done in different places
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Middleware
software that goes in the middle AKA SOFTWARE GLUE
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
User Interface & Graphical User Interface (GUI)
A visual way for users to interact with computers and software using elements like icons, menus, and windows, rather than text-based commands.
Citation: Levy, S. (2026). Graphical user interface (GUI) | Britannica. https://www.britannica.com/technology/graphical-user-interface
Server
Two definitions of what "server" could be referring to. 1) Hardware: A program supporting requests from other computers 2) Software: A program supporting requests from clients.
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.
Application Programming Interface
Programming guides that tell other programs how to get X program to do Y task. (ie used by Amazon to connect firm specific orders)
Citation: Gallaugher, J. (2025). Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for Excel). (10.1.4). FlatWorld.

Practice Quiz

1. A UT student uses Microsoft Excel on their laptop to analyze survey data for a class project. The program is installed locally and runs without internet access. Which category BEST describes Excel in this situation?
Answer: B ~ Excel used by an individual on their device is a consumer application, meaning software designed to help a single user complete tasks. Enterprise applications (A) support organization-wide processes. Middleware (C) connects systems rather than performing analysis tasks. DBMS software (D) manages structured databases rather than acting as a spreadsheet tool.
2. A retail startup uses a single shared database for inventory information. Several different applications—purchasing, order management, and warehouse tracking—access this same database to process transactions. What is the MAIN advantage of this shared database approach?
Answer: A ~ Using one database for multiple applications improves consistency and reduces duplicated or conflicting data. The scenario shows different applications accessing the same inventory database, which helps maintain accurate information. Operating system performance (B) is unrelated to database design. Middleware reduction (C) may occur but is not the primary advantage. Hardware speed (D) is unrelated to shared data management.
3. A large company installs a new ERP system. During the first few months, productivity temporarily drops as employees learn the system and workflows change. Which concept BEST explains these additional costs?
Answer: C ~ Total cost of ownership (TCO) includes not just purchase price but also training, implementation, efficiency loss, and support costs. The temporary productivity drop fits this concept. Network effects (A) refer to value increasing with more users. Switching costs (B) relate to moving between competing products. Price elasticity (D) describes how demand changes with price.
4. A software firm releases an application but requires developers to obtain permission before creating compatible add-ons. Which type of standard does this policy represent?
Answer: C ~ Closed standards require permission from the software owner to create compatible software or add-ons. The scenario clearly states that developers must obtain permission. Open standards (A) allow compatibility without approval. Shared (B) and community standards (D) are not standard MIS classifications.
5. A startup evaluates software platforms. One platform allows any developer to create compatible products without approval. Another requires formal licensing agreements before integration. What is the KEY difference between the platforms?
Answer: B ~ The scenario describes open standards vs. closed standards. Open standards allow developers to build compatible tools without permission, while closed standards require approval. Hosted vs. local (A) refers to where software runs. Enterprise vs. consumer software (C) concerns user scope. DBMS vs. flat files (D) refers to data storage structure.