Computer Application In Business Essay Sample

Computer Application In Business Pages
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With due respect, we are submitting here with our report on Computer application in business. It is a requirement of BBA program from department of finance, Dhaka University. In spite of a number of limitations we have exerted our best effort to prepare this report and to make it a vivid and comprehensive one for accomplishing our academic requirement So, we request you to accept our report and give us a proper suggestion in this case. We shall always be obliged to furnish our clarification regarding this report, if required. If we did any mistake, we are looking forward to your important advice.

Sincerely yours,
Abdul Hannan khan
On behalf of the group
Department of Finance,
University of Dhaka.
Abdul Hannan Khan
Rafat Khair Rushdi Ahaduzzaman Mohammad Jahidul Islam MD.Tauhidul Islam


First of all we would like to express our gratitude from heart to the Almighty Allah for giving us the strength and patience to prepare this
report within the scheduled time. We would like to acknowledge the contributions of the various Authors, whose textbooks have been instrumental in preparing this Report. Finally, we are especially grateful to our honorable course teacher for giving his valuable suggestions and precious contributions .The applications that he taught us in our course has worked as a beacon while preparing this report

Executive Summary

This report is about computer, Information system and implementation of different computer application. This report was assigned to us by our honorable course teacher Dewan Mostafizur Rahman to show and explain some of the applications of computer in business.

A computer is a device that is electronic, can store data and can store and follow a set of software instruction called a program that tells the computer what to do. It has five main components, Hardware, Software, Stored Data, Procedures and personnel.

An information system is a collection of components that work together to provide information to help in the operation and management of an organization .The users of an information system includes Professional users and End users.

The uses of computer applications in modern business era are increasing day by day. The use of computer application has become important for almost every sphere of business. In our report we have tried our level best to show implementation of different computer application.

Chapter: 1, Introduction

1.1Objectives of the study

Primary objective: the primary objective of preparing this report is to meet the partial requirements for the fulfillment of BBA program.

Specific objective: the specific objectives of preparing this report is to examine how computer applications affect businesses, to get a thorough knowledge of the subject matter of the report and to learn and apply various applications in contextual situations.

1.2 Methodology of the study

During the preparation of this report, we collected the necessary information from various sources. These are briefly discussed below:

A. Primary sources: We collected our primary information from our main text book Business and information system written by Robert C. Nickerson and from internet.

B. Secondary sources: in secondary sources, we tried to collect information from various Computers related Text Books.

1.4 Limitations of the report

Although we were able to prepare the whole report in such a short span of time, we faced a good number of limitations.

Lack of Experience
Lack of knowledge
Time management

In spite of these limitations, we were able to prepare the report successfully.

Chapter: 2, Computer & IT components

A computer is a device that is electronic, can store data and can store and follow a set of software instruction called a program that tells the computer what to do. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem.

A computer has five main components. Each of these five components is connected to each other in one way or the other. The Five components are as follows:

1. Hardware: The term hardware refers to machinery. This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipments. Among the support equipments are input and output devices.

2. Software: The term software refers to computer programs and the manuals (if any) that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of the CBIS to function in ways that produce useful information.

3. Stored Data: Data are facts that are used by programs to produce useful information. Like programs, data are generally stored in machine-readable form on disk or tape until the computer needs them.

4. Procedures: Procedures are the policies that govern the operation of a computer system. “Procedures are to people what software is to hardware” is a common analogy that is used to illustrate the role of procedures in a CBIS.

5. Personnel: Every CBIS needs people if it is to be useful. Often the most over-looked element of the CBIS is the people, probably the component that most influence the success or failure of information systems.
Chapter: 3, Information System

An information system (IS) is a collection of components that work together to provide information to help in the operation and management of an organization. An information system is not one thing, but a group of things that work together. These things are called the components of information system and they include 3.1 TYPES OF INFORMATION SYSTEM

Information Systems can be classified into various types based on their purpose, number of users, geographical distribution etc… Different information systems are as follows 1. Individual Information Systems: Many information systems affect the work of only a single person, so they are called individual or personal information systems. A. MS word

B. Spreadsheet software
C. Graphics Software
2. Workgroup Information System: information system that affect group of individuals to work together, such as the employees of a company is known as workgroup information system. A. Electronic mailing system

B. Information sharing system
3. Organizational Information System: an information system that affects many people throughout an organization is known as organizational information system. A. Payroll system
B. ATM system
4. Inter-organizational Information System: These information systems function among several organizations. A. Electronic Data Interchange (EDI) system
B. Electronic Fund Transfer (EFT) system
5. Global Information System: Information systems that are used across national boundaries are known as global information system. They are usually connected with global WAN. A. A global production scheduling system.


Information systems provide several important benefits to an organization. Computers are fast and accurate, and they process large volumes of data. The real information systems are much more involved.

1. Better Information: One of the main benefits of using information systems is better information. Better information is the principal benefit of many information systems in a business. For example, a customer database system provides better information to a sales representative for deciding when to contact customers.

2. Improved Service: Improved service means that customers may be attracted to a certain business because of its service. In fact, many people have come to expect computerized services, and some types of business cannot complete without them. For example, many gas stations have a computerized system that allows customers to pay at the pump with accredit card. Gas stations that do not offer this service may not attract many customers.

3. Increased Productivity: a third benefit of information systems is increased productivity. Productivity has to do with how much people can accomplish in a given period. For example, a person working in an office with an E-mail system is more productive because it is easy and quick for the person to communicate with other workers.

4. Competitive Advantage: A final benefit of information system is that they can provide a competitive advantage for a business. A business has a competitive advantage when customers clearly prefer its products over those of other business. For example, information systems can help reduce the cost of a production so that a business can have the least expensive product.


As discussed earlier information system are very useful to a business due to its various applications and benefits. Nowadays almost all the activities of an organization are done with the help of IS. The ways in which Information systems are used by a business in its operation are as follows:

A. Customer Order Entry System: A business could use the order entry system to process customer order. This system uses the input data of customer orders and processes them to produce output in the form of a Sales Order.

B. Billing System: A business may apply the billing system to prepare the invoices of the customers electronically. Doing so reduces the cost; time required and thus increases the overall efficiency and productivity. The output in the form invoice is prepared from input data, which is the sales order.

C. Accounts Receivable System: This system could be used by organizations to calculate the amount of money owed to a business and to inform other functions of the amount due. The input data here is the customer’s payment data and data from the invoice whereas the output is the total value of receivables, notices to customers reminding about the debt and reports on total receivables.

D. Inventory Control System: The purpose of this system is to keep track of the inventory held by a business at a time and to place re-orders when the level of stock falls below the reorder quantity. Input data include Inventory receipt records, sales orders whereas output includes the value of inventory held, detailed report on the inventory held, reorder report etc.

E. Purchasing system: The use of purchasing system has greatly the efficiency of an organization, as this system automatically determines which supplier to order from based on certain criteria’s. It uses the re-order report as input data and gives output data in the form of purchase orders

F. Accounts Payable: This system has made keeping track of the amount owed by a business to its suppliers easy. It ensures that no due is mistakenly defaulted and thus contributes in promoting the goodwill of the organization. The system purchase order report, goods receipt report and the suppliers invoice as the input data. Its output include the value of amounts owed by a business, cheque issued to suppliers, reports on the value owed etc.

G. Payroll System: The Payroll systems purpose is to calculate the amount that needs to be paid to its employees. This makes cash management easier and reduces the risk of errors that are involved with human processing of payroll. The system uses employee work report along with the pay rate to compute the total payroll requirement.

H. General Ledger System: This system is used by organizations to record and prepare the financial statements. Preparing financial statements using IS reduces the risk of errors that are involved with human processing and also eliminates the scope of fraudulent activity.


Today information Systems are used In Business so extensively that, special Information System have been developed for particular functions of the business. Some of this systems and the way in which they are applied in a business are discussed below:

A. Accounting Information system: Accounting information systems support the accounting function. Of the information systems discussed previously, billing, accounts receivable, accounts payable, payroll and general ledger are usually considered to be accounting information systems. Several other common accounting information systems are- 1. Budgeting: This system prepares projections of revenues and expenses and compares actual figures with the projected ones. 2. Tax accounting: The purpose of this system is to prepare business tax reports and to pay taxes.

B. Financial Information System: Financial information systems provide the necessary support for the finance function. Some common financial information systems are-

1. Cash management: This system balances the needs of the business for cash with the expected cash availability. 2. Financial forecasting: This system forecasts financial information, such as revenues and expenses.

C. Marketing Information System: Marketing Information system assists in the marketing function. Of the systems discussed previously, order entry is usually considered a marketing information system because customer orders are procured by salespeople working in the marketing function. Other common Marketing Information systems are-

1. Sales forecasting: The purpose of this system is to project future sales. 2. Marketing research: This system analyzes information gathered about consumers and products in order to identify trends.

D. Manufacturing Information System: Manufacturing Information System provide services to support the manufacturing function. Inventory control system is often considered to be a Manufacturing Information System because manufacturing produces the goods for inventory. Other common manufacturing information systems are- 1. Product scheduling: The system schedules the use of manufacturing facilities to produce products most efficiently. 2. Robotics: This system uses computer-controlled robots in this manufacturing process. 3.

E. Human Resource Information System:
The human resource management function is responsible for hiring, training, compensating and terminating employees. Human Resource Information System (HRISs) supports this function. The only system discussed before is payroll system. Some other common human resource information systems are- 1. Performance appraisal: This system analyzes employee performance on the job. 2. Benefit administration: This system manages employee fringe benefit packages.

Chapter: 4, Implementation of different computer application

In this chapter we have tried to show the practical use of the various applications that we have learned during our course in a structured and contextual manner.

Tax Calculation:
Using different function we can find out tax of different companies. For calculating tax we have used different data. The following are earning before tax and tax rates of different companies:


Tax calculation
Formula on Cell F9
After that if we drag the formula, we will be able to find out the tax of different companies in different years. Total tax
Formula on Cell L9
=SUM (F9:K9)
After that we can find out the total tax of different companies by dragging the formula. Profit chart:
We can easily create a profit chart using microsoft excel. In this page there are given some information of some company’s profit during the years of 2009, 2010 and 2011. For creating a chart we have to select the information first. Then we have to go to insert menu. Then we have to click on chart. Then the chart will be created.

Creating A Grade Sheet With Microsoft Excel

Microsoft Excel serves as an excellent tool for tracking grades in your course. But its power is not limited to its ability to organize information in rows and columns. Using formulas and functions in Excel, you can simplify the grading process. With Excel you can sort students by names, grades or whatever characteristics you choose. You can also setup a grade curve in advance and have Excel automatically assign letter grades (not just percentages) to each of your students. When you change the curve, the Grades will change automatically.


2. Business and Information Systems — Robert C. Nickerson

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