Concepts Chapter 3 – Computers: Faster, Cheaper, Everywhere
Computing hardware continues to become more powerful, efficient, and affordable, but hardware alone does not make a computer useful. Software provides the instructions that tell a computer what to do. Operating systems, applications, cloud services, mobile apps, and AI tools all depend on software to turn computing power into something people and organizations can use.
Software now shapes nearly every part of business. It runs phones, vehicles, websites, payment systems, supply chains, analytics platforms, and workplace tools. It also connects organizations to customers, employees, suppliers, and partners. As software has become more important, the choices available to managers have expanded. Organizations may build their own systems, purchase commercial applications, subscribe to cloud-based services, or combine technologies from multiple providers.
Managers do not need to become programmers, but they do need to understand how software affects business decisions. Software choices influence cost, security, compatibility, flexibility, and organizational agility. This chapter introduces the major types of software and the technologies used to deliver them. It also examines how software is developed, acquired, maintained, and evaluated so that managers can make better decisions about the systems their organizations depend on.
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Updated in 2026 based on overall chapter updates reflecting OpenStax and Information Systems: A Manager’s Guide to Harnessing Technology by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.