Software Components

Let us now discuss each of these components.

Software component: Programs

Programs are sets of instructions that provide the desired functionality when executed by the computer. They are written using specific languages that computers can read and execute, such as assembly language, Basic, FORTRAN, COBOL, C, and C++. Programs can also be generated using program generators.
A common perception is that software consists only of programs. However, programs are not the only component of software. Let us see the other, equally important components of software

Software component: Data

comprehensive definition of software is important because it explicitly lists components that may otherwise be forgotten or overlooked. An important component of software that is often forgotten is data.
Programs provide the required functionality by manipulating data. They use data to exercise appropriate control on the processing done. Maintenance and testing of programs also require data. The program design assumes the availability of data structures such as databases and files to contain data.

Software component: Documents

In addition to programs and data, users also need an explanation of how to use the programs.
Documents such as user manuals and operations manuals are necessary to enable users to operate the programs. These documents are usually available in electronic form such as help files or Web based information.
Documents are also required by the people maintaining the software to understand the internals of the software and modify it, if required. Some examples are documents that capture the design of the software, describe how it can be tested, or state the customer requirements on which the software is based.

Types of software

Now that you understand the components of software, let us discuss the different types of software.

Software can be divided into two broad categories. These are:

• Application software - Application software is used to provide services to customers and run businesses more efficiently. The application software can be a small system or a large integrated system. Some examples of application software are an accounting system, a management information system (MIS), and an enterprise resource planning (ERP) system.
• System software - System software is used to operate and maintain a computer system. It enables customers to use the computer resources directly and through other software. Some examples of system software are operating systems, compilers, and system utilities.

Software may be embedded

At times, software is embedded as part of a more complex system. For example, control systems are embedded software in which the software is integrated with hardware devices such as sensors. In such a case, the integrated system performs the required functions.
Some examples of embedded software are aircraft navigation systems, medical diagnostic equipment, surgical tools, automotive fuel controls, and braking systems.

Software as a differentiator

Software is often the key element that makes a product superior or special because it provides features that customers find useful. Software is used to implement the 'intelligence' that makes a product or service 'smart'. Customers often make purchase decisions based on software functionality, even if they do not understand the role of the software in providing the functionality.
Often, software is used as a means to provide functionality that customers obtain in products and services that they may not associate with software. For example, an investment firm may use custom software to provide its customers with instant stock quotes and a hospital may use sophisticated software and advanced tools to provide superior diagnostic information. The use of data mining software can enable a dot com retailer to suggest new purchases to customers.

Examples of software being used as a differentiator

Some more examples of software as a differentiator are:

• A navigation system for a car: Software can present information in an understandable way and provide features (for example, information about local restaurants) that customers want.
• The control panel for a microwave oven: Software can be used to provide specific timing for specific food items and display information in a readily understandable manner.
• A mobile phone: Software can provide an array of features that a buyer wants, such as Internet access.
• An auto insurance business: Software can help to provide prompt service to existing customers and to enable brokers to quickly provide accurate quotes to potential new customers.
• An ATM network: Software can enable rapid transfer of data to and from the bank and member banks and provide adequate security and record keeping.

Software is business-strategic

Organizations often use software to obtain a business advantage by offering products and services that are different from and better than those of their competitors. In other words, software is business-strategic.

Software is considered strategic for business because:

• Product sales are often a function of the software features provided.
• Product or system acceptance is often a function of the software interface.

Product enhancement and extension are often software-based.