Fundamental Information System Teaching

JIGJIGA UNIVERSITY
Fundamental information
system
Teaching material for
Business
Minyahil Assefa (MSc)
minyahil04@gmail.com
2/5/2020
Chapter 1: Fundamentals of Information Systems
After reading this chapter, you will be able to:
1. Understand the parts of an information system;
Learning Objectives
2. Distinguish between data, information and knowledge;

3. Describe and evaluate information quality in terms of itscharacteristics;
4. Classify decisions by type and organizational level;
5. Identify the information needed to support decisions made atdifferent
organizational levels;
1.1Introduction
Dear Learners! The general aim of this chapter is to introduce you to the basic concepts needed
to gaina thorough understanding of business information systems (BIS). However, before
looking at BIS, it is important to understand something of the nature of information. For BIS to
be effective, the quality of information provided is vital. In this chapter, we lookat how we can
assess and improve the quality of data and information. The topics coveredare intended to give
you an understanding of:
 the nature of data, information and knowledge;

 the value of information;
 the characteristics that can be used to describe information quality;
 information in the context of the e-business environment;
 managerial decision making, including the characteristics of decisions at different
organizational levels;
 the information needed to support decision making.
Information systems are the combination of people, information technology, and business
processes to accomplish a business objective. Every information system (IS) has people,
processes, and information technology. In fact, many IS professionals add most of their value
working with people and processes. They manage the programmers but typically avoid
programming themselves. We can represent an information system as a triangle with people,
Fundamentals of Information Systems, minyahil04@gmail.com 1

processes, and information technology (computers) on the three vertices. The three parts of an
information system are often referred to as the information systems triangle.
The three parts of the information systems triangle must interact in concert to realize business
objectives. The job of the IS professional is to ensure that a balance is maintained and enhanced
for the good of all the actors and the business as a whole.
Figure 1.1 Information Systems Triangle
1.2Data and Information

Much of a manager’s work involves using information to make decisions and ensuring that
information flows through the organization as efficiently as possible. Increasingly, technology is
used to capture, store and share information throughout the organization and with business
partners. Many organizations are keenly aware that using information – and information

technology – effectively can have animpact on every aspect of their operations, from reducing
running costs to dealing withcompetition in the marketplace.
‘Information technology and business are becoming inextricably interwoven. I don’t think
anybody can talk meaningfully about one without talking about the other.’
Bill Gates (2001)
Russell Ackoff’s ‘DIKW’ model (Rowley, 2007: 176) provides a good framework forhelping to
understand the relationships between data, information, knowledge and wisdom.As can be seen
in Figure 1.2, these concepts can be shown as a hierarchy. The hierarchysuggests three important
ideas. The first is that data becomes information, informationbecomes knowledge and knowledge
ultimately becomes wisdom. In other words, there is aprogression from one level to the next. The
second idea is that knowledge and wisdom aresomehow more valuable, desirable or important
than data and information. This is becausewisdom and knowledge sit at the top of the triangle. In
turn, this leads to the third idea, thatdata are relatively common while knowledge and wisdom
are less so.
Figure 1.2The ‘DIKW’ Model

What is meant by data?
Data are raw facts or observations that are considered to have little or no value until theyhave
been processed and transformed into information. A single piece of data is called adatum.
Unrelated items of data are considered to be essentially without meaning and areoften described
as ‘noise’. It is only when data have been placed in some form of context thatthey become
meaningful to a manager.
There are several definitions for data that are in common use:
 a series of non-random symbols, numbers, values or words;

 a series of facts obtained by observation or research and recorded;
 a collection of non-random facts.
Examples of data include:
 today’s date;
 measurements taken on a production line;
 records of a business transaction, such as a sale or purchase.
Data can exist naturally or can be created artificially. Naturally occurring data need onlyto be
recorded. In business, organizations often establish procedures to make sure data arerecorded
properly. When a customer makes a telephone enquiry, for example, staff maybe instructed to
ask for up-to-date contact details and make sure they are recorded in the company’s database.
Artificial data are often produced as a by-product of a business process. Processingan

organization’s accounts, for example, might produce the number of sales made in aparticular
month.
What is information?
As with the concept of data, there are several definitions of information that are in common use:
 data that have been processed so that they are meaningful;
 data that have been processed for a purpose;
 data that have been interpreted and understood by the recipient.
Three important points can be drawn from these definitions.

1. There is a clear and logical process that is used to produce information. This process
involves collecting data and then subjecting them to a transformation process in order to
create information.
2. Information involves placing data in some form of meaningful context, so thatthey can be
understood and acted upon.
3. Information is produced for a purpose, toserve an information need of some kind.
Some examples of information include:
 a bank statement;
 a sales forecast;
 a telephone directory;
 graphs of trends in visitor numbers to a web site.
A somewhat different view of information can be examined by introducing an additional

definition:
Information acts to reduce uncertainty about a situation or event.
Although uncertainty can never be eliminated entirely, it can be reduced

significantly.Information can help to eliminate some possibilities or make others seem more
likely.Managerial decision making can be improved by using information to reduce
uncertainty.Information is said to influence decision behavior, the way in which people make
decisions.Managerial decision making is dealt with in more detail in a later section.
To summarize the key points made in the preceding section. Information:
 involves transforming data using a defined process;

 involves placing data in some form of meaningful context;
 is produced in response to an information need and therefore serves a specific purpose;
 helps to reduce uncertainty, thereby improving decision behavior.
Creating Information

Processing data is necessary to place them into a meaningful context so that they canbe easily
understood by the recipient. Figure 1.3 illustrates the conversion of data intoinformation.A
number of different data processes can be used to transform data into information.Data processes
are sometimes also known as ‘transformation processes’.
• symbol Process • bank statements

• words • sales forcast
• numbers • transformation
processes • graphs of trends
• values
• observations, etc. • (data processes)
Data Information
Figure 1.3 Transforming data into information using a data process
Data processes
Some examples of data processes are include the following:
 Classification – this involves placing data into categories, for example categorizing
anexpense as either a fixed or a variable cost.
 Rearranging/sorting – this involves organizing data so that items are grouped together
orplaced into a particular order. Employee data, for example, might be sorted according
tosurname or payroll number.
 Aggregating – thisinvolves summarizing data, for example by calculating averages, totalsor
subtotals.
 Performing calculations – anexample might be calculating an employee’s gross pay
bymultiplying the number of hours worked by the hourly rate of pay.

 Selection – this involves choosing or discarding items of data based on a set of
selectioncriteria. A sales organization, for example, might create a list of potential customers
byselecting those with incomes above a certain level.
It is worth noting that any action that serves to place data into a meaningful context can be
considered a valid data process. In addition, several processes may be used in combination to
produce information.
Activity 1.1 Data vs. Information

From the point of view of a student at university, which of the following might be examples
of information? Which might be examples of data?
(a) the date;
(b) a bank statement;
(c) the number 1355.76;
(d) a National Insurance number;
(e) a balance sheet;
(f) a bus timetable;
(g) a car registration plate.
Value of information
It is often possible to measure the value of information directly. The tangible value
ofinformation is often measured in terms of financial value. An example might be the use of
inventory information to improve stock control procedures. A simple calculation can be used to
determine the value of a given item or collection of information:
Value of information – Cost of gathering information

However, in many cases, it is not possible to calculate the value of information directly.
Although it is certain that the information is of benefit to the owner, it is difficult – oreven
impossible – to quantify its value. In such cases, the information is said to haveintangible value.
A good example might involve attempting to measure the extent towhich information can
improve decision behavior. Such a calculation might appear asshown below:

Improvements in decision behavior – Cost of gathering information
Activity 1.2 Tangible and Intangible Information

When information is used effectively, it can bring about many of the improvements listed
below. State and explain why each of the items listed illustrates a tangible or intangiblevalue of
information:
(a) improved inventory control;
(b) enhanced customer service;
(c) increased production;
(d) reduced administration costs;
(e) greater customer loyalty;
(f) enhanced public image.
Sources of information
Information can be gathered through both formal and informal communication.
Formalcommunications can include reports and accounting statements. Informal
communicationscan include conversations and notes.
Formal communication
Information transmitted by formal communication tends to be presented in a consistentmanner.

Company reports, for example, will often use the same basic format. This allowsthe recipient to
locate items of interest quickly and easily. Since formal communicationstend to be presented in a
more structured manner, they are also more likely to present amore comprehensive view of the
situations or circumstances they describe. In addition, theinformation transmitted in this way is
likely to be accurate and relevant, since it is normallycreated for a specific purpose.
However, formal communication also has several disadvantages. The structure imposedon
information is often inflexible, sometimes limiting its type, form and content. In addition,formal
communications often overlook information obtained by informal means. This canaffect the
decision-making process, reducing the quality and accuracy of any decisionsmade. Finally,

formal communications often ignore group and social mechanisms. A formalreport, for example,
might marginalize or ignore staff opinions, causing offence and leadingto reduced morale.
Informal communication
Informal communication is always present in an organization, regardless of its size or

nature.Information of this kind can be considered a valuable resource and one of the aims of
knowledge management is to harness it to work for the benefitof the organization. Perhaps the
most common means by which informal communicationtakes place is by word of mouth. This
kind of communication is sometimes known as water-cooler conversation.
Informal communication tends to offer a high degree of flexibility since there is more freedom to
choose how information is structured and presented. Information obtained in this way also tends
to be highly detailed, although it may often contain inaccuracies and may not be entirely
relevant.
One of the major disadvantages of informal communication is that it cannot deal with large
volumes of information. Furthermore, as a means of communication, it is relatively slow and
inefficient. Informal communication can also be highly selective, for example a person taking
part in a conversation may be able to restrict what information is transmitted and who is able to
receive it. Perhaps a more serious disadvantage is that informalcommunication is often ignored
in favor of formal communication.
1.3Attributes of Information Quality

Information can be said to have a number of different characteristics that can be used todescribe
its quality. The differences between ‘good’ and ‘bad’ information can be identifiedby
considering whether or not it has some or all of the attributes of information quality.Attributes of
information quality is a group ofcharacteristics by which the quality of information can be
assessed,normally grouped intocategories of time,content and form(O’Brien and Marakas 2006).
Table 1.1 summarizes informationcharacteristics that can be used to assess quality. Note that
each column is independent;reading down each column lists the attributes associated with a
particular factor.

Table 1.1 Summary of attributes of information quality
Time Dimension
The time dimension describes the time period that the information deals with and the frequency
at which the information is received.
 Timeliness – the information should be available when needed. If information is provided

too early, it may no longer be current when used. If the information is supplied too late, it
will be of no use.
 Currency – the information should reflect current circumstances when provided. One can go
further and suggest that as well as being up-to-date the information should also indicate
those areas or circumstances liable to change by the time the information is used.
 Frequency – in addition to being available when needed, information should also be
available as often as needed. This normally means that information should be supplied at
regular intervals, for example some organizations may require weekly sales reports whilst
others need only monthly reports.
 Time period – the information should cover the correct time period. A sales forecast, for
example, might include information concerning past performance, current performance and
predicted performance so that the recipient has a view of past, present and
futurecircumstances.
Content Dimension
The content dimension describes the scope and contents of the information.
 Accuracy – information that contains errors has only limited value to an organization.

 Relevance – the information supplied should be relevant to a particular situation and should
meet the information needs of the recipient. Extraneous detail can compromise other
attributes of information quality, such as conciseness.
 Completeness – all of the information required to meet the information needs of therecipient
should be provided. Incomplete information can compromise other attributesof information
quality, such as scope and accuracy.
 Conciseness – only information relevant to the information needs of the recipient should be
supplied. In addition, the information should be provided in the most compact formpossible.
As an example, sales figures are normally provided in the form of a graph ortable – it would
be unusual for them to be supplied as a descriptive passage of text.
 Scope - the scope of the information supplied should be appropriate to the information needs
of the recipient. The recipient’s information needs will determine whether the information
should concern organizational or external situations and whether it shouldfocus on a specific
area or provide a more general overview.
Form Dimension
The form dimension describes how the information is presented to the recipient.
 Clarity – the information should be presented in a form that is appropriate to the intended
recipient. The recipient should be able to locate specific items quickly and should be able to
understand the information easily.
 Detail – the information should contain the correct level of detail in order to meet the
recipient’s information needs. For example, in some cases highly detailed information will be
required whilst in others only a summary will be necessary.
 Order – information should be provided in the correct order. As an example, management
reports normally contain a brief summary at the beginning. This allows a manager to locate
and understand the most important aspects of the report before examining it at a higher level
of detail.
 Presentation – the information should be presented in a form that is appropriate to the
intended recipient. Different methods can be used to make information clearer and more

accessible to the recipient, for example it is common to present numerical information in the
form of a graph or table.
 Media – information should be presented using the correct medium. Formal information, for
example, is often presented in the form of a printed report, whereas a presentationmight make
use of a video projector.
Additional Characteristics
 Confidence – recipients are more likely to accept and trust the information they obtain if it is
received from a source that has been accurate and reliable in the past.
 Reliability – it can be argued that recipients should be confident that they can rely upon
information being available when required and that the information will be of a consistent
quality in terms of other attributes of information quality, such as accuracy and conciseness.
 Appropriate – the widespread use of computer-based information systems raises a number of
issues related to the security and pure quantity of information that is freely available via
sources such as the Internet. Information provided should be appropriate to the recipient’s
activities. This might restrict information from being supplied if it is of a confidential nature
orbeyond the duties or responsibilities of a person’s role.
 Information often needs to be formatted correctly, according to its intended use. Data to be
processed by computer often needs to be placed in a specific format – usually following one
or more standards – before it canbe used.
Knowledge and Wisdom

Although there are numerous definitions of knowledge, many tend to agree that it
involvesharnessing a person’s unique abilities, such as his or her perceptions, experiences,
intuitionand analytical skills. When these abilities are combined with the information the
personholds, this represents knowledge. In other words, knowledge can be thought of as
thecombined result of a person’s experiences and the information he or she possesses. This
ideacan be seen clearly in common definitions, such as this one proposed by Wang,
Hjelmervikand Bremdal (2001):

Knowledge is the full utilization of information and data, coupled with the potential of
people’s skills, competencies, ideas, intuitions, commitments and motivations
Rainer and Cegielski’s(2011):
Knowledge consists of data and/or information that have been organized and processed
to convey understanding, experience, accumulated learning, and expertise as they apply
to a current business problem.
In general, knowledge can be described as explicit or tacit. It may help to think of explicit
knowledge as ‘know-what’ and tacit knowledge as ‘know-how’.
Explicit knowledge is easily captured and stored within documents and other media.This type of
knowledge tends to be highly detailed, formal and systematic. It is often storedin the form of
manuals, documents, procedures and database files. Examples of explicitknowledge include
minutes of meetings, employee handbooks and user manuals. Sinceexplicit knowledge tends to
be structured, it is easy to transmit to others.
Tacit knowledge is ‘the intangible, internal, experiential, and intuitive knowledge that
isundocumented and maintained in the human mind. It is a personal knowledge containedin
human experience’ (Waltz, 2003). Tacit knowledge is characterized by factors such
asperceptions, beliefs, values, intuition and experience. Since a great deal of tacit knowledgemay
be held unconsciously, it is difficult to elicit, describe or record. Examples of tacitknowledge
include skills (e.g. riding a bike), knowing how to respond in social situationsand knowing how
to respond to management reports.
Knowledge Management
Knowledge management is a fairly new term that describes a range of activities intendedto make
sure an organization uses its information resources as effectively as possible.Bergeron (2003),
defines knowledge management like this:
Knowledge Management (KM) is a deliberate, systematic business optimization strategy that
selects,distils, stores, organizes, packages, and communicates information essential to the business of a
company in a manner that improves employee performance and corporate competitiveness.

Many organizations have been enthusiastic about adopting knowledge management because of
the potential benefits it brings. For example, CIO’s online magazine suggests that an effective
knowledge management programme will bring about one or more of the following benefits
(Levinson, 2007):
 foster innovation by encouraging the free flow of ideas;

 improve customer service by streamlining response time;
 boost revenues by getting products and services to market faster;
 enhance employee retention rates by recognizing the value of employees’ knowledge and
rewarding them for it;
 streamline operations and reduce costs by eliminating redundant or unnecessary
processes.
In addition, tangible and intangible benefits associated with effective KM programs are:
 an improved ability to sustain competitive advantage, leading to increased market

shareand market leadership;
 increased profit margins leading to increased shareholder satisfaction;
 the ability to identify best practices and better approaches towards problem solving;
 formalized system for transferring knowledge, allowing knowledge to be
transferredbetween employees more easily and more efficiently;
 increased collaboration with customers;
 increased customer satisfaction, loyalty and retention;
 reduced costs through streamlining of internal processes and improved efficiency;
 higher staff morale and satisfaction, leading to lower staff turnover, increased
innovationand greater productivity;
 increased organizational stability.
Wisdom
Wisdom combines the characteristics of knowledge with the ability to apply such knowledge to
newsituations and problems. Wang, Hjelmervik and Bremdal (2001: 43), for instance, define
wisdom as ‘sufficiently generalized approaches and values that can be applied in numerousand

varied situations’. Spitzer (2007: 106) offers a fairly similar definition: ‘Wisdom is deep,rich
understanding and insight that usually develops through a combination of extensiveknowledge
(knowing) and personal experience (doing) over time.’
A good way of thinking about wisdom involves the journey many people take as theymove from
being beginners to experts in many different areas. In engineering, for instance,an apprentice
spends several years learning a wide range of skills before becoming acraftsman. We might
argue that the difference between an apprentice and a craftsman is thatthe latter has greater
knowledge, experience and understanding.
1.4Business Information System

What is a business information system?
Having examined concepts related to information, systems theory and decision making, itis
possible to combine these to suggest a basic definition of a business information system:
A business information system is a group of interrelated components that work collectively to

carry out input, processing, output, storage and control actions in order to convert data into
information products that can be used to support forecasting, planning, control, coordination,
decision making and operational activities in an organization.
Resources that Support BIS
BIS typically rely on five basic resources: people, hardware, software, communications and data.
1. People resources– it include the users of an information system and those who develop,
maintain and operate the system. Examples of people resources mightinclude managers, data
entry clerks and technical support staff.
2. Hardware resources – the term ‘hardware resources’ refers to all types of machines, not just
computer hardware. Telephones, fax machines, switchboards are all valid examples of
hardware. The term also covers any media used by these machines, such as compactdiscs or
paper. (These resources are described in Chapter 2.)
3. Software resources – in the same way, the term ‘software resources’ does not only refer to
computer programs and the media on which they are stored. The term can also be used to

describe the procedures used by people. Within this context, examples of software include
instruction manuals and company policies. (These resources are described inChapter 2.)
4. Communications resources – resources are also required to enable different systems
totransfer data. These include networks and the hardware and software needed to
supportthem.
5. Data resources – ‘Data resources’ describes all of the data that an organization has accessto,
regardless of its form. Computer databases, paper files and measurements taken bysensors on
a production line are all examples of data resources.
Information technology
The terms ‘information systems’ (IS) and ‘information technology’ (IT) are often used
interchangeably. This is an error, because the scope of the terms is different. The stress in IT is
on the technology while IS not only refers to the technology, but also incorporates how it is
applied and managed to contribute to the business.
E-business
Modern organizations rely heavily upon information and communications technology(ICT) to

manage internal communications with external agencies, such as customers andsuppliers. This
reliance upon, particularly the Internet, has given rise to the e-business concept. The European
Commission describes e-business like this:
The term ‘e-business’ covers both e-commerce (buying and selling online) and the
restructuring of business processes to make the best use of digital technologies.
According to former IBM CEO Lou Gerstner, e-business is
The process of using Web technology to help businesses streamline processes,

improveproductivity and increase efficiencies. Enables companies to easily communicate
withpartners, vendors and customers, connect back-end data systems and transact
commerce ina secure manner.
Hence, e-business involves several key activities: improving businessprocesses, enhancing

communications and providing the means to carry out business transactions securely. Three areas
of business are enhanced by adopting an e-business approach.These are:

 Production processes – including procurement, ordering stock, payment processing,
linkswith suppliers and production control.
 Customer-focused processes – including marketing, selling via the Internet,
customersupport and processing of customer orders and payments.
 Internal management processes – including training, recruitment, internal
informationsharing and other employee services.
Moreover, e-business can be defined as the use of theinternet to network and empower business
processes, electroniccommerce, organizational communication and collaboration within
acompany and with its customers, suppliers, and other stakeholders.E-businesses utilize the
internet, intranets, extranets and other networks to support their commercial processes.
Electronic commerce(e-commerce) is the buying and selling, marketing and servicingof products
and services via computer networks. Since e-businessincludes the process of transacting with
suppliers and customers thereis an overlap in activities with e-commerce.
Although the terms ‘e-business’ and ‘e-commerce’ are often usedsynonymously, the distinction
between them lies in the broader rangeof processes in e-business that incorporates internal
transactionswithin an organization. These include transactions relating toprocurement, logistics,
supply chain management, payments, stockcontrol and order tracking. As Chaffey (2004) notes,
e-commercecan best be conceived as a subset of e-business. Where the twoconcepts overlap is in
the buying and selling of products and services.
Types of e-business
E-business varies in scope and type of activities undertaken.The entire supply chain of many
industries has been radicallytransformed by the development of the internet and related
technologies.Types of e-business include the following:
 Business-to-business (B2B) –transactions take place between companies. Approximately
80% of all e-commerce is of this type.
 Business-to-consumer (B2C) – companies sell products directly to consumers. B2C can involve
activities such as product research (where consumers gather information and compare prices) and
electronic delivery (where information products are delivered toconsumers via e-mail or other
means).

 Consumer-to-consumer (C2C) – transactions take place between private individuals.
Perhaps the best examples of C2C commerce are online auction sites and peer-to-
peersystems.
 Business-to-government (B2G) – transactions take place between companies and public-
sector organizations.
 Mobile commerce (m-commerce) – m-commerce is a relatively new development
andinvolves selling goods or services via wireless technology, especially mobile
phonesand PDAs.
1.5Information and Managerial Decision Making

In order for an organization to function effectively, all activities must be planned and monitored
by managers according to well-informed decisions. The roles of BIS in supporting different
aspects of managerial decision making are follows:
 An introduction to how managers use information, including their decision behavior.
 The three key levels of managerial decision making – operational, tactical and strategic.
 A description of the decision-making process, assessing how BIS can assist at different
stages of this process.
 Decision-making theory, showing how structured decisions can be formally described in
order to incorporate them into BIS.
The information requirements of managers
The success of all of the manager’s works (activities) depends upon access to high-quality
information. It is here that BIS have a role, as a meansof supporting the manager’s work by
providing the information he or she needs (H. Fayol’sdefinition).
As organizations growin size or complexity, importance of effective and efficientmanagement

increases. In turn, greater reliance is placed upon the BIS used by theorganization. Put simply, as
an organization becomes larger, effective information systemsbecome critical to continued
survival.
Decision behavior
The ways in which managers make decisions, and the factors that influence those decisions,are
often described as decision behavior.Decisions can be classed as structured or unstructured

(sometimes referred to as‘programmable’ and ‘non-programmable’ decisions). In reality,
however, many decisionsfall somewhere in between the two extremes and are known as semi-
structured decisions.
Structured decisions tend to involve situations where the rules and constraints governingthe
decision are known. They tend to involve routine or repetitive situations where thenumber of
possible courses of action is relatively small. A good example involves stockcontrol. The
decision to reorder a given item will be governed by a fairly simple set of rulesand constraints.
When the amount of stock held falls below a certain point, a fixed quantityof new stock will be
ordered. Structured decisions are often described as programmable,meaning that they are easily
automated.
Unstructured decisions tend to involve more complex situations, where the rules governing the
decision are complicated or unknown. Such decisions tend to be madeinfrequently and rely
heavily on the experience, judgment and knowledge of the decisionmaker. A good example of an
unstructured decision might be whether or not an organizationshould open a new branch in a
particular area.
The behavior of a manager will influence the way in which he or she absorbsinformation and
reaches a decision. This is often referred to as a person’s cognitive style. Amanager’s cognitive
style will fall between analytical and intuitive styles.
Levels of managerial decision making
The characteristics of the decisions taken in an organization vary according to the level atwhich
they are taken. Figure 1.4 shows the distribution of managerial responsibility within atypical
organization. As can be seen, the largest proportion of managers tends to be locatedat the
operational level of the organization. The smallest proportion of managers, typicallyless than
10%, is located at the strategic level.

Figure 1.4 Levels of managerial decision making
 At the strategic level, managers are largely concerned with long-term organizational
planning. Decisions tend to be unstructured and are made infrequently. However, the
decisions made at this level are likely to have a large impact on the organization as awhole
and cannot be reversed easily. An example of a decision taken at the strategic levelmight be a
choice of new markets to move into.
 At the tactical level managers are largely concerned with medium-term planning.Managers
monitor the performance of the organization, control budgets, allocateresources and set
policies. Decisions taken at this level are used to set medium-termgoals that form stages
leading to the accomplishment of the organization’s strategicobjectives. An example of a
decision taken at the tactical level might be setting adepartmental budget.
 At the operational level managers deal with short-term planning and the day-to-day controlof
the organization’s activities. The decisions taken at this level direct the organization’sefforts
towards meeting the medium-term goals, abiding by the budgets, policies andprocedures set
at the tactical level. Operational decisions tend to be highly structured andhave little impact
on the organization as a whole. An example of a decision taken at theoperational level might
be setting a daily or weekly production schedule.

Table 1.2 Decision characteristics and management level
Example of decision types
Structured decisions: operational planning
 How should we process a sales order?
 What level of discount shall we give our customer on this order?
Semi-structured decision: tactical planning
 How do we target our most profitable customers and what are their characteristics?
 Which foreign markets should we target?
 What is the best pricing structure for this product?
Unstructured decision: strategic planning
 Which business area should the organization be in?
 How should the organization be structured?
 What should our distribution channels be?
Activity 1.3 Organization-level decisions
 Classify the following decisions by type (structured, semi-structured, unstructured)
andorganizational level (strategic, tactical, operational).
Organizational
No. Decisions Decision type level
(a) At what level should we set the budget for next year?
(b) Does this customer qualify for a discount on a large order?
(c) How should we deal with a takeover bid?
(d) Should we employ more staff to cope with an urgent order?
(e) Should we expand abroad?
(f) Should we launch an advertising campaign?
(g) Should we take a short-term loan to help our current cash flow position?
(h) What new markets should we move into?

(i) What should we do about a faulty machine?
………………………………………………………………………………………………
Summary

 Data can be described as a collection of non-random facts obtained by observation or
research.
 Information can be described as data that have been processed so that they are meaningful.
An alternative view of information suggests that it acts to reduce uncertainty about a situation
or event.
 Information can have tangible or intangible value. One view suggests that the value of
informationcan be measured in terms of the improvements it brings to managerial decision
making.
Self-assessment exercises
1. What are the three dimensions of information quality?
2. How can the value of information be measured?
3. What are the functions of management?
4. What are the stages involved in making a decision?
5. How will a manager’s cognitive style affect the decisions he or she makes?
6. Explain how the concept of knowledge management relates to data and information.
7. What differences in perspective about managerial decision making are introduced by the
e-business concept?
8. In brief, what is knowledge?

Chapter 2: Hardware and Software Fundamentals

1. Recognize the different components of a computer;
2. Explain the purpose of software applications in different categories;
Learning Objectives
3. Describe the features found in a variety of modern applications software

packages;
4. Identify some of the advantages and disadvantages associated with a variety of
common applications;
5. Describe some of the ways in which applications software supports the activities
of a business organization.
2.1Introduction
Dear Learners! The aim of this chapter is to provide you with basic issues of the computer
hardware which is part of informationsystems, and an overview of the common software
packages used in business. The chapter addresses two separate themes: a review of the features
commonto a range of modern software applications, and the way in which software can be used
tosupport the business activities of an organization.
Components of a Computer System
A computer systemis a number of interrelatedcomponents that work together with the aim of
converting data into information. Ina computer system, processing is carried out electronically,
usually with little or nointervention from a human user. The components of a computer system
include hardwareand software.
2.2Hardware Fundamentals
Hardware describes the physical components of a computer system. The hardware of acomputer
system can be said to consist of different elements whose relationship is shownfrom a systems
theory perspective in Figure 2.1.The physicalcomponents of a computer system includes: input
devices, memory,central processing unit,output devices andstorage devices.Data are input, and
then processed according tosoftware instructions, then output to the screen, for example, as
information. Informationthat needs to be stored permanently will be placed in storage.

 Input devices – input devices are used to capture or enter data into the computer. Before data
can be used within a computer system, it is usually necessary to convert them into a format
that supports processing by computer. Most data are held in human-sensible form, that is, in a
format that makes them directly accessible to human beings. A bank statement, for example,
contains text and numbers that are relatively easy for a human to understand. However, such
data are almost meaningless to the electronic components of a computersystem. Input devices
convert data into a form that makes them machine-sensible.
Hardware
• Input Devices
• CPU
• Memory
• Storage Devices
• Output Devices
Figure 2.1 Basic hardware components of a computer system

 Central processing unit or processor – the central processing unit (CPU) performs
processing by carrying out instructions given in the form of computer programs. In a
personal computer, the CPU is usually housed within the tower (or base unit)_to whichthe
mouse, keyboard and monitor are attached.
 Primary storage or memory – memory is used as a temporary means of storage data
andinstructions. Memory is used to store:
(a) data awaiting processing,
(b) instructions loaded from software which are used to process data or control the
computer system,
(c) data or information that has been processed.
 Storage devices – provide a means of storing data and programs permanently until they are
required. As an example, a program can be stored on a hard disk drive until it is needed.
When the program is activated, it is transferred from the storage device into the computer’s
memory. When the program has ended or is no longer needed, it can be removed from
memory so that other programs or data can be used.

 Output devices – translate the results of processing – output – into a human-readable form.
The results of a calculation, for example, might be displayed on a screen or sent to a printer.
An output device may also transfer data requiring furtherprocessing to a storage device.
Input Devices
Input devices are used to enter data or instructions. ‘Device’ is used in thiscontext to refer to an
individual piece of hardware with a specific function. The mouse andthe keyboard are examples
of input devices. Before looking at some of the devices available,it is worth making some
observations:
 It should be noted that modern computers make use of a wide variety of input devicessince
data flowing in to the organization may take a number of different forms.
 The choice of an input device will often depend upon the quantity of data to be entered.
 A computer-based information system will seldom make use of only a single input device.
Even a typical personal computer will often feature several different methods fordata entry,
such as keyboard, mouse, joystick and microphone.
There is a wide variety of types of input device; note the business applications of the following.
Keyboard/keypad
The keyboard remains the most common input device and its basic design has remainedlargely
unchanged for more than a century.A common criticism of the keyboard is that inexperienced
users find it difficult anduncomfortable to use. In answer to this, new keyboard designs have
appeared that attemptto make them easier to use. Natural (or ergonomic) keyboards have the
keys arranged sothat users can locate them more quickly and easily and is shaped to make
prolonged usemore comfortable.
The keys on the keyboard are as follows:
S/N Keys Description

These keys include the letter keys (A-Z) and digit keys (0-9) which
1 Typing Keys
generally give same layout as that of typewriters.
It is used to enter numeric data or cursor movement. Generally, it
Numeric
2 consists of a set of 17 keys that are laid out in the same configuration
Keypad
used by most adding machines and calculators.

The twelve function keys are present on the keyboard which is
Function
3 arranged in a row at the top of the keyboard. Each function key has
Keys
unique meaning and is used for some specific purpose.
These keys provide cursor and screen control. It includes four
directional arrow keys. Control keys also include Home, End, Insert,
4 Control keys
Delete, Page Up, Page Down, Control(Ctrl), Alternate(Alt),
Escape(Esc).
Special Keyboard also contains some special purpose keys such as Enter,
5
Purpose Keys Shift, Caps Lock, Num Lock, Space bar, Tab, and Print Screen.
Figure 2.2 Keyboard

Mouse
Mouse is apointing devicefound on most modernpersonal computers.Computers featuring a

graphical user interface (GUI) often require the use of a mouse orother pointing device.
Although there are many different kinds of mouse, all use the samebasic method of operation:
moving the mouse over a flat surface causes a correspondingmovement to a small pointer on the
screen. The operating system software translates direction and rate of movement of the mouse to
movement of the on-screen cursor.
Figure 2.3 Mouse (wire and wireless)
Left Clicking and Right Clicking

With the Left Mouse Button You With the Right Mouse Button You
Can: Can:
 Single-click to select or highlight  Click once to view options.
text or objects.  Click on various features or within
 Double-click to open a file or start programs to view the available
a program from the Desktop. options like Cut, Copy, Paste,
Double-click to select a word. Preferences, Delete, Rename, etc.
 Click and drag to move a file to
another location or copy it.  Click on different icons, files, and
 Click and drag the cursor to mark programs to view their various
a block of text. options.
 Click outside the selected or
highlighted block of text to
unselect it.
 Click to manipulate the scroll bar On the Internet
or access menus.  To open a new window, click on a
hypertext link and select the option to
On the Internet open that link in a new window.
 Click to follow a hypertext link.  Click on a picture to save or copy the
image or set it as the Windows
 Click to navigate the various toolbars desktop wallpaper. Can also access
and menus on the browser or other options such as Copy, Save,
displayed on a web page. Save Target As, Copy Shortcut,
Add to Favorites, and View
Properties.
Remember!
 The left button tells the computer to do  The right button gives you the options
something. available at a particular place.
Stylus and graphics tablet
Devices with touchscreens, such as smartphones, tablets and some laptop computers,often allow
the use of a stylus. A traditional stylus appears similar to a pen and offers moreprecision than a
fingertip. A stylus often replaces a mouse where space is limited or a smallscreen is being used.
Many recent devices have started to include a smart stylus, a stylus thatoffers more functionality
and features when coupled with the right hardware and software.Samsung’s S Pen, for instance,
offers features like ‘Easy Clip’, where the stylus can be usedto draw around part of picture so
that it can be cut, copied or manipulated in other ways.
Applications involving graphics, such as drawing packages, often involve graphics tablets
(sometimes called drawing tablets or digitizers). With a graphics tablet, a stylus isused to draw
an image onto a pressure-sensitive flat surface, just like using a pencil andpaper. The image is
shown on the computer’s screen as the user works. Graphics tabletscan also be used to replace

other pointing devices, like the mouse. Tablets are often usedinstead of drawing directly onto a
touch sensitive screen because they usually offer greaterprecision and flexibility. As an example,
a graphics tablet makes it easy to trace drawings ordiagrams. Graphics tablets are also useful for
entering text in languages where charactersare often drawn, e.g. Chinese.
Trackball
A trackball is a pointing device that is controlled by rotating a small ball with the fingertipsor the
palm of the hand. Moving the ball causes corresponding movement to a small pointeron the
screen. Buttons are used to select items in the same way as with the mouse. Trackballsare often
used when space is limited; in portable equipment they are often used to replacea mouse.
Figure 2.4 Trackball
Joystick
The joystick is one of the most common input devices available and is primarily used forleisure
activities, such as playing computer games. There are, however, a number of moreserious
applications for joysticks, in areas such as medicine and engineering. The joystick can be moved
in all four directions. The function of joystick is similar to that of a mouse. It is mainly used in
Computer Aided Designing (CAD) and playing computer games.
Figure 2.5 Joystick

Optical scanner
Optical scanner is an input device usedto capture graphicsand text from printeddocuments.The
optical scanner is now widely used in business for capturing graphics and text fromprinted
documents. Images captured in this way are normally incorporated into wordprocessing or
desktop publishing documents or are part of workflow management systems.
Optical scanners can also be used to perform data entry by converting printed documentsinto text
files that can be used by word processing packages and other programs. Opticalcharacter
recognition (OCR) involves using software that attempts to recognize individualcharacters. As a
scanned image is processed, the program creates a text file containing all ofthe characters
recognized. This file can then be edited further using a word processor, texteditor or some other
suitable program since recognition is not always 100 per cent accurate.For example, the letter ‘i’
is sometimes recognized as ‘l’.
Optical scanners often form the basis for document image processing (DIP) systems.A DIP
system allows users to convert paper documents into their electronic equivalents.This makes it
easier to organize, store and process large numbers of documents. Typicalapplications for DIP
systems are found in areas such as medicine, insurance and law. Forinstance, hospital records are
often stored electronically, allowing medical staff to accessthem via a network from anywhere in
the hospital.A variation on optical character recognition is optical mark recognition (OMR),
whichinvolves detecting and recognizing simple marks made on a document.
Bar code reader
A bar code is a means of displaying a unique identification number as aseries of thick and thin
lines. The sequence and width of the lines in the bar code can betranslated into a sequence of
digits. Bar code numbers are normally produced according to a specific method. The Universal
Product Code, for example, is a standard method for creating and using bar codes.
A bar code reader measures the intensity of a light beam reflected from the printed bar code to
identify the digits making up the unique identification number. The digits makingup the
identification number are also printed at the foot of the bar code.
The most common example of the use of the bar code reader in industry is thesupermarket
checkout. However, bar codes are also used in a variety of other situationsincluding manual

inspection and update of stock levels on inventory control systems;identification of patients in
hospitals by bracelets to enable retrieval of patient information;bar codes on magazines and
newspapers are used to record sales of particular titles,which helps vendors, distributors and
publishers to monitor trends and plan possiblepromotions.
Many industry experts believe that bar codes will eventually be replaced by RFID(Radio-
Frequency Identification) tags. These are often called smart bar codes and are small,fairly
inexpensive tags that can be attached to a wide variety of objects. The informationstored on each
tag is transmitted when a request is received from an electronic reader.Depending on the power
source used by the tag, the reader can be located from a few metersto a few hundred meters
away. RFID has many applications, ranging from monitoringcomponents as they move through a
production process, to locating lost livestock. As anexample, supermarkets have been
experimenting with RFID for a number of years withthe aim of eliminating the need for
customers to pack and unpack their groceries at thecheckout. Using RFID tags, as a customer
walks past a special scanner, every item in thebasket or trolley can be automatically identified
and the total cost calculated. While suchtechnology is likely to bring significant benefits to the
retailing industry, there remain manyproblems to resolve.
Figure 2.6 bar code reader and bar code

Touch screen
The touch screen is a transparent, pressure-sensitive covering that is attached to the screenof the
monitor. Users make selections and control programs by pressing onto the screen.Although touch
screens are simple to use, they are comparatively expensive to produce,especially at large sizes.
However, touch screens have become popular as a means ofcontrolling many different devices,
from smartphones to kitchen appliances.

Leaving aside tablets, smartphones and touch-enabled computers, common business applications
for touch screens include interactive kiosks and bookings systems. An interactive kiosk allows a
user to purchase items or browse through a list of products by pressing buttons or other controls
shown on the screen. Such kiosks are often found in banks, music stores, supermarkets and large
catalogue stores. Many bookings systems, such as those used by airlines, theatres and travel
agents, also make use of touch screens.
Video capture card
The video capture card records and stores video sequences (motion video) when connected to a
digital video camera or other device. Video capture devices are often used for security
applications. The device can be connected to multiple cameras, automatically capturing,
combining and storing video on a digital video recorder. This reduces the storage space needed
to keep large amounts of video and makes it easier to review the data quickly.
Microphone/sound card
Microphone is an input device to input sound that is then stored in digital form. The microphone
is used for various applications like adding sound to a multimedia presentation or for mixing
music. A sound card can be used to capture sound, music and speech from a variety of
sources.Sound can be captured at a very high quality; even the most inexpensive sound cards are
capable of producing results at CD quality. A business application is the use of voice recognition
software to dictate text directly into a word processing document.
Advances in Voice over IP (VoIP) technology now allow users to make and receive
telephonecalls via the Internet. Services such as Skype allow users to make free or low-cost calls
usinga microphone or headset connected to a PC. It is also possible to buy special
telephonehandsets that connect directly to a computer. The very latest handsets connect directly
to ahub, allowing users to make and receive calls without needing the computer to be switched
on.VoIPis a technology thatenables users to make and receive telephone calls via the Internet.
In many cases, a special microphone is required in order to ensure that the user’s voice is
notobscured by background noise. In addition, the software used normally requires ‘training’so
that it can adapt to a user’s accent or the way in which they pronounce particular words.Voice

recognition packages also provide limitedcontrol over a graphical user interface, for example
allowing people to control a webbrowser or a word processing program.
Figure 2.7 Microphones

Web camera
Web cameras (webcams) allow the real-time capture of images and sound. The information
captured by a webcam is usually compressed so that it can be transmitted via the Internet.This
enables three basic applications: video e-mail, video conferencing and webcammonitoring.
Video e-mail (v-mail) involves sending an e-mail message to which a video clip has
beenattached. The video clip is usually accompanied by a viewer program that runs when the
userclicks on a button or link in the e-mail message.
Video conferencing allows a group of users to communicate with each othersimultaneously. Each
person taking part in the conversation is able to see and hear theother participants in real-time.
Many applications provide a range of additional featuresthat support collaborative working, such
as shared whiteboards.
Webcam monitoring involves setting up one or more webcams to watch a given personor place.
The images captured by the camera can be viewed at a web site using a normalbrowser.
Magnetic Ink Character Recognition (MICR)
MICR involves capturing data that havebeen printed using a special magnetic ink. This
technology is normally associatedwith the banking industry, especially cheque processing. Some
of the details on a cheque,such as the cheque number, are printed in a special typeface using
magnetic ink. The shapeof each character means that it can be recognized by its magnetic field.
The bank's code number and cheque number are printed on the cheques with a special type of ink
that contains particles of magnetic material that are machine readable. This reading process is
called Magnetic Ink Character Recognition (MICR). The main advantage of MICR is that it is

fast and less error prone.As the use of chequesdeclines, it is likely that many organizations will
also move away from MICR.
Figure 2.8 Magnetic Ink Character Recognition
Output Devices
Output devices display the results of computer processing. Before looking atsome of the devices
available, it is worth making some observations:
 The output produced by some devices is temporary in nature. A display shown on a
monitor, for example, is lost when a new image is shown or the computer system is
switched off. On the other hand, a report produced on a printer is more permanent
andmay last for many years.
 Some forms of output may be used as the input for another process. Photographs, sounds
and video sequences, for example, might be combined during the production ofa training
package or demonstration programme.
 Business organizations have a wide range of requirements in terms of the form of
theinformation they produce. These requirements mean that there are a large variety
ofspecialized output devices available.
 A computer-based information system will seldom make use of only a single
outputdevice. Even a typical personal computer will often feature several different
outputdevices, such as monitor, sound card and printer.
Display devices
The most common output device is almost certainly the monitor that is attached to allpersonal
computer systems.Most modern monitors feature a Liquid Crystal Display (LCD), making them
morereliable and energy efficient than their predecessors. Better energy efficiency can
beobtained if LEDs (Light Emitting Diodes) are used to provide the backlight needed

toilluminate the display. The latest OLED (Organic Light Emitting Diode) technology doesnot
need a backlight, allowing for better quality images and thinner screens. While allmodern
monitors are essentially liquid crystal displays, they may sometimes be known asLED or OLED
monitors, depending on the technology being used.
The monitor has several advantages over other forms of output device:
 Information can be shown instantly with only a negligible delay between the
informationbecoming available and its being displayed. In addition, the monitor is one of
only asmall number of devices that allows users to view the progress of an activity as it
occurs.
 As standard components of a computer system, monitors are relatively inexpensive
topurchase, repair or replace.
 The monitor is particularly suited to displaying certain kinds of information, for
examplecharts and graphics.
 The cost of using the monitor as an output device is very low. Unlike printers, forexample, a
monitor does not require consumables, such as paper. In turn, this means thatwastage does
not occur.
Another way of producing a large display for presentations is by making use of a data orvideo
projector. A computer system can be connected directly to a projector so that outputis directed to
a projection screen.
Printers and Plotters
A plotter uses a number of different colored pens to draw lines upon the paper as it
movesthrough the machine. Although capable of producing characters, the quality of the
textcreated is often very poor. Plotters are primarily used to create technical drawings, such
asengineering diagrams and to record the progress of continuous monitoring.
A printer is a device used to output text and images from the computer onto a paper. Therefore
unlike monitors, printers produce hardcopy.

Figure 2.9 Printers
Other output devices
In addition to the items described above, a wide variety of other output devices arealso available.
Some examples include the following:
 Sound – in addition to music and sound output via speakers, a sound card can be used to
output information in a variety of other forms. Two common examples are voice annotations
and speech synthesis.
 MIDI devices – the ability to link devices to a personal computer via MIDI (musical
instrument digital interface) connections allows users to send information directly to oneor
more musical instruments.
 Microfilm – Computer Output to Microfilm (COM), also known as ‘computer output
microform’, is often used to archive large quantities of information for future reference.
Information is processed via a personal computer and sent directly to a device that produces
microfilm negatives. COM has largely been replaced by more modern document image
processing systems, which tend to be less expensive to operate and offermore flexibility in
terms of how information can be used.
Storage Devices
Storage devices are used to store programs, data waiting processing and theinformation resulting
from computer processing. Storage devices are categorized as primary storage when the data are
loaded into computer memory or secondary storage when thedata are stored on a separate device
where the information will be retained even if themachine is switched off. This distinction is
similar to that between human short-term andlong-term memory.
Units of data measurement
The capacity of a storage device is often measured in terms of kilobytes, megabytes and
gigabytes. The following may help you to understand these units.
 A bit is a single binary digit and represents a 0 (zero) or a 1. The bit is the smallest unit of
measurement.
 A byte is made up of eight bits and represents a value between 0 and 255. A byte can be thought
of as the amount of space required to hold a single character.

 A kilobyte (kb) is approximately 1000 bytes, or the equivalent of 1000 characters.
 A megabyte (MB) is approximately 1000 kb, or the equivalent of one million characters.
 A gigabyte (GB) is approximately 1000 MB, or the equivalent of one billion characters.
 A terabyte (TB) is approximately 1000 GB.
The list below puts these numbers in context:
One character such as ‘a’? A byte
A typewritten page? 2 kilobytes (kilobyte = 1000 bytes)
A low-resolution photograph? 100 kb (kilobyte = 1000 bytes)
The complete works of Shakespeare? 5 megabytes (megabyte = 1,000,000 bytes)
A standard CD-ROM? 700 megabytes (megabyte = 1,000,000 bytes)
A pickup truck filled with documents? 1 gigabyte (gigabyte = 1,000,000,000 bytes)
The works of a musician in digital audio 50 gigabytes
format?
50,000 trees made into paper and printed as Terabyte (terabyte = 1,000,000,000,000 bytes)
documents?
All printed material?200 petabytes (petabyte = 1,000,000,000,000,000
bytes)
All words ever spoken by human beings? 5 exabytes (exabyte = 1,000,000,000,000,000,000
bytes)
Words possibly spoken by all beings in the Zettabyte = 1,000,000,000,000,000,000,000 bytes
Universe? Yottabyte = 1,000,000,000,000,000,000,000,000 bytes
Source: Roy Williams of Caltech
Secondary storage – hard disks
Hard disk drives are a standard feature of a modern personal computer. They are used tostore the
computer’s operating system, application software and data.These are usually referred to as the
‘C: drive’ on PCs. On servers, network drives basedon hard disks are typically denoted by a
letter in the range F to Z.A hard disk drive stores data upon a number of rigid platters that are
rotated at veryhigh speeds.
The major advantages of the hard disk drive are as follows:
 Hard disk drives tend to have large storage capacities, with typical capacities
varyingfrom 160 GB to more than 3TB, easily capable of holding billions of pages of
text.
 A hard disk drive is considered a fast means of storing and retrieving data, for examplea
modern drive can be hundreds of times faster than a DVD drive. New hybrid driveshave a

relatively small amount of flash memory that can be used to speed up operationssuch as
loading the operating system.
 The hard disk drive is a standard component of a personal computer system. As suchthey
are relatively inexpensive to purchase or replace.
The major disadvantages of the hard disk drive are as follow:
 Hard disk drives are seen as delicate devices that are easily damaged. They are
particularlysusceptible to damage from sudden shocks and excessive vibration.
 In general, a hard disk drive is considered to be a fixed part of a computer system andis
not portable. However, it should be noted that portable hard disk drives exist and
arerelatively inexpensive.
Secondary storage – flash memory
Data are stored in flash memory, in an EEPROM (electrically erasable programmable read-only
memory) chip that can retain its contents for as long as ten years before it begins to degrade.
Since the flash drive appears to the operating system as a removable drive, userscan copy, move
or delete files just as if they are working with a hard disk. Like a rewritabledisc, data can be
written or erased many times and the drive can be locked to prevent filesfrom being erased
accidentally. Flash memory is in two main forms of a memory card (asused in a digital camera)
and as a USB drive. USB drives connect to a personal computervia a standard USB port and
require no special software to work.
A flash drive is aportable storage devicethat connects to acomputer via a standardUSB port.
Flash driveshave no moving parts, soare reliable and robust.
Secondary storage – optical discs
The data on an optical disc are encoded as a series of dips and raised areas. These twostates
represent binary data – the same number system used by microprocessors.Optical discs come in
two main formats. Compact discs (CD) typically store 700 MB ofdata. Digital versatile discs
(DVD) offer higher storage capacities, typically 4.7 GB per side.

Primary Storage – Memory
Computer memory can take a number of different forms and is found within many of thedevices
that go to form part of a computer-based information system. Computers, printers,graphics cards,
modems and many other devices all make use of various kinds of memory‘chips’. Although
relatively expensive, memory is the fastest form of storage available. There are two broad
categories of computer memory: volatile and non-volatile. Thecontents of volatile memory are
lost when the power to the device is switched off. On theother hand, non-volatile memory retains
its contents until changed in some way.
Examples
 A digital camera is just one device that makes use of non-volatile memory.
 The memory found in a personal computer is considered volatile, that is, anything held in
memory islost once the power to the computer system is switched off.
 Random access memory (RAM) is used as volatile, working storage by a computer,
holding instructions and data that are waiting to be processed.
o A typical computer system will feature 4 GB, 8 GB or more of RAM. In general,
the more RAM a computer system is equipped with, the faster it will operate and
the more powerful it will be in terms of the complexity of the programs it can run.
 The contents of read-only memory (ROM) are fixed and cannot be altered. ROM is non-
volatile, making it ideal as a means of storing the information needed for a deviceto
function properly.
Central Processing Unit or Processor
The central processing unit (CPU) or processor found within a computerconsists of two
components: a control unit and an arithmetic logic unit (ALU). The controlunit fetches
instructions from software that has been loaded into memory, decodes themand then executes
them. The control unit controls the operation of all hardware, includingall input/output
operations. The ALU carries out arithmetical calculations, for exampleaddition, and can also
make comparisons between values. An often-used analogy is tocompare the processor to the
human brain – which has a similar control function over theother parts of the body. The brain
controls bodily function according to stimuli monitoredby different sensory organs of the body.

The analogy is not entirely appropriate sincethe human brain is of course a very complex part of
the human system, also containingpermanent and volatile memory functions for example!
2.3Software Fundamentals
Software can be defined as a series of detailed instructions that control the operation of
acomputer system. Software exists as programs which are developed by computer
programmers.Software is less tangible than hardware – the instructions that make up a program
aretranslated into binary instructions (a series of 0 and 1 digits) for the processor hardware.There
are two major categories of software: systems software and applications software.
Figure 2.10 Categories of computer software
Systems Software
Systems software manages and controls the operation of the computer system as itperforms tasks
on behalf of the user. Systems software consists of three basic categories:operating systems,
development programs and utility programs.
Operating System
The operating system (OS) interacts with the hardware of the computer by monitoring
andsending instructions to manage and direct the computer’s resources.The basic functions of the

operating system include: allocating and managing systemresources, scheduling the use of
resources and monitoring the activities of the computersystem.
Examples of these functions include the following:

 controlling access to storage devices, for example disk drives;
 coordinating and controlling peripheral devices, for example printers;
 allowing users to input data and issue instructions, for example by allowing data to be
entered via the keyboard;
 coordinating and controlling the operation of programs, for example by scheduling
processor time;
 managing the computer’s memory;
 performing file management and access control, for example by allowing certain users to
create, view or delete files;
 dealing with errors, for example by displaying a message to the user if a fault is detected
within a hardware component.
Operating systems can be controlled by either a text-based or a graphical interface. A text based
interface uses a command line interpreter (CLI) to accept instructions from the user.MS-DOS
(Microsoft Disk Operating System) and some versions of Linux are examples ofoperating
systems that use a CLI.CLI passes instructions from a user to a computer program in the form of
brief statements entered via the keyboard.
A graphical user interface (GUI) allows users to enter instructions using a mouse.The mouse is
used to issue instructions using menus and icons. The term WIMP (windows, icons, mouse, and
pull-down menus) is often used to describe this kind ofenvironment. Examples of operating
systems using a GUI are Windows 8 and someversions of Unix.
Utility programs
Utility programs provide a range of tools that support the operation and management of a
computer system. Programs that monitor system performance or provide security controlsare
examples of utility programs.
Development programs

Development programs allow users to develop their own software in order to carry outprocessing
tasks using programming languages. Programming languages can be described in terms of their
historical position in thedevelopment of computer programming systems. Table 2.1 shows how
programminglanguages have become more accessible to business users over time.
Table 2.1The development of different programming languages

Applications software
Applications software can be defined as a set of programs that enable users to performspecific
information-processing activities. Applications software can be divided into twobroad categories:
general-purpose and application-specific.
General-purpose applications
General-purpose applications are programs that can be used to carry out a wide rangeof common
tasks. A word processor, for example, is capable of producing a variety ofdocuments that are
suitable for many different purposes. This type of application is oftenreferred to as productivity
software since it helps improve the efficiency of an individual.
Productivity softwaredescribes acategory of computersoftware that aimsto support users

inperforming a variety ofcommon tasks.
The following are some general-purpose applicationssoftware in business that is carried out in an
office:
 Document production and graphics software

o This involves the creation of various internal and external documents, including
letters, reports, invoices, notes and minutes of meetings. Various types of software
can be used to support these activities, includingtext editors, word processors and
desktop publishing packages.
 Spreadsheets – software for processing numerical information
o All organizations require the means to store, organize and analyze numerical data.
The spreadsheet programrepresents the most common means of carrying out these
tasks.
 Databases – software for storage and retrieval of information
o All organizations require the means to store, organize and retrieve information.
Electronic database packages representthe most common means of carrying out these
tasks.
 Multimedia software

o Multimedia involves the user interacting with a computer using media such as text,
sound, animation and video. Its main business applications arecomputer-based
training and customer service in retail applications.
 Software for using the Internet
o This describes activities involving internal and external communications. Significant
examples include electronic mail (e-mail) and the use ofweb browsers to find
information on the World Wide Web (WWW).
 Management applications of productivity software
o Software for personal informationmanagement and team working.
Application-specific software
Application-specific software comprises programs intended to serve a specific purposeor carry

out a clearly defined information processing task. Software designed to carry outpayroll
processing or manage accounts are examples of application-specific programs. Some examples
are:
Groupware is software that enables information to be shared by people collaboratingon solving

problems. This could include activities such as the scheduling and runningof meetings, sharing
documents and communicating over a distance. Groupware assiststeams of people in working
together because it provides the ‘three Cs’ of communication,collaboration and coordination.
Materials requirements planning (MRP) software – is used to plan theproduction of goodsin a

manufacturing organization byobtaining components,scheduling operationsand
controllingproduction.
Summary
 A computer system consists of a number of interrelated components that work together with
the aim of converting data into information. In a computer-based information system,
processing iscarried out electronically, usually with little or no intervention from a human
user.
 Hardware is the physical components of a computer system. The hardware of a computer
system can be said to consist of input devices, memory, central processing unit, output
devices and storage devices.

 The main hardware components of a computer system are the following:
o Input devices are used to enter data, information or instructions.
o Output devices display the results of computer processing.
o Storage devices are used to store programs, data waiting processing and the information
resulting from computer processing.
o The processor, which is used to execute software instructions and perform calculations.
 A personal computer consists of a number of components, including: microprocessor
(CPU),graphics card, motherboard and casing.
 Software can be defined as a series of detailed instructions that control the operation of a
computersystem. There are two major categories of software: systems software and
applications software.
 Systems software manages and controls the operation of the computer system as it performs
taskson behalf of the user. Operating systems interact with the hardware of the computer at a
very lowlevel in order to manage and direct the computer’s resources.
 Applications software can be defined as a set of programs that enable users to perform
specificinformation processing activities. Applications software can be divided into two
broad categories:general-purpose productivity software and application-specific.
 Productivity software describes general-purpose applications that aim to support users
inperforming a variety of common tasks. In business organizations, productivity software is
oftenused to reduce the time needed to complete routine administrative tasks, such as
producingdocuments or organizing meetings. Computer-based information systems used in
this way aregenerally referred to as ‘office automation systems’.
 The three main types of productivity software are:
o A word processor provides the ability to enter, edit, store and print text. In addition,
word-processing packages allow users to alter the layout of documents and often provide
a varietyof formatting tools.
o Spreadsheet programs are designed to store and manipulate values, numbers and text in
anefficient and useful way.
o Databases.

1. Which input device is best suited to the following tasks?
(a) entering the details of bank cheques
(b) entering data from multiple-choice test papers
(c) entering data from labels or price tags
(d) entering a diagram, picture or photograph
(e) entering the text of a letter.
2. What is the meaning of each abbreviation or acronym listed below? Provide a brief
explanationfor each of the items listed.
(a) MICR
(b) OCR
(c) RAM
(d) COM
(e) PDA
(f) CD-ROM
(g) ROM
(h) CPU
(i) DVD

3. Produce your own definitions of the following terms:
(a) software
(b) operating system
(c) graphical user interface
(d) productivity software
(e) personal information manager.
4. What are some of the benefits of flash drives?
5. List at least three common pointing devices.
6. Describe the different approaches to file processing. What are the major
characteristics, advantages and disadvantages of each?
Fundamentals of Information Systems 47

Chapter 3: Basic Application Software – Microsoft Word
Starting up Word: On your marks, get set, Go!
Are you relaxed and sitting comfortably? Did you come with a desire to learn?
Then I’d like to begin by showing you how to start up Word!
Correct use of the mouse
Whenever we talk about clicking , you should screw up your courage

and click the left mouse button ONCE. To double-click, click the left
button twice in quick succession.
Whenever you’re supposed to use a mouse button other than the

left one, I’ll tell you!
Starting Word
Ready? Then I’ll show you how to start Microsoft Word:
1. Click the Start button - the Start menu appears
2. Point to the entry for All Programs
3. Click on the entry for Microsoft Office – Word 2007
The Microsoft Word program will load, and a blank document will appear on your
screen.
When you need help
At the top right corner of your MS Word screen, you’ll see a small blue
circle containing a question mark; just click on the question mark to open
the MS Word Help window.
You can also access the Help window by pressing the [F1] key on your keyboard.
To get help on a specific topic, type a word or phrase in the blank area at the top
of the window and then click the Search button; alternatively, you can click on
any of the Help topics listed in the window. Click the X in the top right corner to
close the Help window.
An overview of Word

Now it’s time for an overview of Word 2007!
The MS Word 2007 window
If you’ve used previous versions of Word, you’ll notice that the old menu
system has been replaced by the Ribbon and the Office button.
The Office button contains a menu of file-related commands. Click the Office
Button to see the available commands. Select a command by clicking on it.
The Quick access toolbar provides a set of frequently used commands. The
default options are to save a file, to undo the last action, and to repeat your most
recent action.
The Ribbon tabs provide you with a set of tools that are relevant to what you are
currently doing. In the example above, the Home tab contains formatting and
editing options.
The Title bar displays the name of the program and the name of the current
document. If you haven’t named the document yet, then it will be called
something like Document1.
Window controls are used to change the size of a window, or to close it.
The Vertical scrollbar is used to scroll up and down the page. You can also click
on the little down arrow below the scrollbar to move down the page. If your page
is wider than the screen display, then you will also see a Horizontal scrollbar
across the bottom of the window.
The Status and information bar displays useful information about your
document, such as the page count and number of words.
Options for viewing a document in Word
Word offers you five different views of your “virtual
piece of paper”: Print layout
Full screen reading
Web layout Outline
view
Draft view
For our purposes, Print layout is the best document view to work with. In Print
layout, the piece of paper on your screen looks almost exactly as it will appear
when printed. You’ll be able to see precisely where the page breaks and the
edges of the paper fall.
It’s easy to switch between the different page views:

1. Look at the right end of the status and information bar at the bottom of
the window. Here you’ll find a set of five miniature buttons.
2. The Print layout button is the first button on the left.
3. You can click on any of the other buttons to change to the corresponding view.
Showing non-printing characters
Non-printing characters are characters that are used to format your document, but
that aren’t displayed as text on your screen. For example, when you press the
[TAB] or [ENTER] key, a formatting character is stored at the corresponding
point in your document.
Here’s how to display the non-printing characters in your document:
1. Click the Show/Hide button on the Home ribbon.
2. Now the non-printing characters will appear in your
document. Each time you press [ENTER], you’ll see the
paragraph symbol ¶ Spaces are indicated by dots ·
3. Click the Show/Hide button again to hide the non-printing characters from
view.
Try it and see for yourself!
These symbols can be very useful when you are looking for formatting errors
inyour document. Deactivate them if you want to see what your document will
look like when printed.
Writing right away – some important buttons and guidelines
When you start Word, you effectively roll a new, empty page into your Word
“typewriter”. In addition, the cursor (the writing-mark) blinks contentedly and
waits for your text. So what are you waiting for then? Start typing! Write down
whatever comes into your head!
Typing upper-case letters
You want to type UPPER-CASE letters? Just hold down the [SHIFT] key, and
type the letters that you’d like in upper case. You’ll find the [SHIFT] key in two
places on your keyboard.
Are you typing only upper-case letters? Then you probably pressed the [CAPS LOCK]
key by mistake. It’s usually located just above the [SHIFT] key on the left-hand side. To
deactivate this function, simply press [CAPS LOCK] again.
On most keyboards, you’ll recognise such “toggle keys” immediately, since

they control a series of little lights (usually green) on the upper right side of
your keyboard.

Rules for entering text
Please type the following text. Do not press [ENTER] until the end of the paragraph.
This is a short note to tell you briefly about my experiences on my first day at
university. I was very excited but I was also a bit scared and wasn’t sure whether I
was going to find my way around. In fact it all went very well. There were lots of
people I could ask, and all the other new students were just as confused. I am still
having a problem finding all my lecture venues though.
You’ll notice that in Word, line breaks occur automatically. You should only
press [ENTER] if you really want to start a new paragraph. You’ll also press the
[ENTER] key if you want to move on to a new line after writing only a few
words. For example, you might want to do this if you’re making a list or typing a
short passage of text. Whatever you do, don’t press [ENTER] after each line of
continuous text! That makes it very difficult to edit your writing. But do leave a
space after every punctuation mark – that is, after full stops, commas, or
exclamation marks.
Correcting mistakes
You made a mistake? That’s not so bad! There is a wonderful key that helps you
correct your mistakes, called the [BACKSPACE] key. You’ll find it directly
above the [ENTER] key. Each press of the [BACKSPACE] key deletes one
character to the left of the cursor.
Undoing steps
Instead of erasing one word, you’d like to undo several steps at once? No problem!
1. Each press of the Undo button (on the Quick Access toolbar)
takes you one step backwards.
2. If you click the little down arrow next to the Undo button, you’ll see a
list of all the steps you’ve taken so far. Using this list, you can select the
specific step(s) that you want to undo.
Safety first: saving documents

Hey! You’re writing and writing, but have you saved your document? Currently
the document exists only in your computer’s memory, which means that it could
get lost at any second. Your computer’s memory is a fleeting electronic
storehouse. If there’s a power failure, or your computer crashes (the system
hangs), then all the data in memory will be lost!

The solution to the problem? Save your work as soon (and as often) as you possible can.
Saving data for the first time
Here’s what to do if you’re saving a file for the first time:
1. Click the Save button on the Quick Access toolbar . You’ll
recognize it by the picture of a diskette on it.
2. The Save As window will appear.
Normally, the MY DOCUMENTS folder is already selected. This is NOT
where you are to save! The MY DOCUMENTS folder is on the C: drive,
and to prevent it accumulating files for lots of students, it is cleared out
daily. (Even if it wasn’t cleared out, to access it you would have to use the
exact same computer every time you wanted to work on a file.)
3. Instead, click the drop-down arrow next to Save In.
4. Click on the drive (F:) that shows your student number.

5. Now look at the File name field. Word has already entered a
placeholder name for you, usually based on the first few words that you
typed. But you don’t want this name!
6. Overwrite the placeholder name by typing your own file name in the
field, eg My First File.
7. Click the Save button. Your document will be saved with the name you
gave it, in the F: drive that you selected. Note that the new file name is
now displayed on Word’s title bar.
Saving regularly
Now you’ve saved your file for the first time, but that’s not enough! You need to
keep saving your work at regular intervals.
1. To save, click the Save button on the Quick Access toolbar from time to time.
2. Or you can use the keyboard shortcut: press [CTRL] + [S].
3. Your file will be saved without a lot of fuss.
Why doesn’t the first dialogue box appear any more? The answer to this
question is simple. You gave the file a name and specified its location the first
time you saved it. Now Word just saves the file under the same name and in the
same place!
Using files and folders

Opening your documents
You’d like to work more on a document that you previously started? Just open the
appropriate folder and haul your work out again. There are two different
approaches you can use for opening existing Word documents.
To open a document directly from Word:
1. Click the Office button. A list of your most recent documents is displayed
on the right of the file menu. Click any file name to open it.

2. If the file you want is not on the list, then select the Open
command. The button looks like a folder that’s being
opened.
3. The Open dialog box will appear.
o Click on the down arrow beside the Look In field and select the
file location (probably your F: drive).
o Then choose your file by clicking its entry on the list.
4. Click the Open button in the lower right corner of the
dialog box. Alternatively, you can double-click on the
file name to open it.
5. The contents of your file will be displayed on the screen. Note that several
documents can be open simultaneously – just repeat this process.
To open a document from inside My Computer:
1. Select MY COMPUTER from the Start menu or by double-clicking its desktop
icon.
2. Double-click on the drive containing the required folder and file (this
could also be a flash drive).
3. Double-click the folder you saved your document in, to see the files that it
contains.
4. Double-click the required file name, or else select it and press [ENTER].
The file will open in Word.

A new empty document
You need a new, empty document? Nothing could be easier! If you already have a
document open on your screen, then you don’t even have to close it (although this
might be a good time to save it!).
1. Click the Office button and select the New option,

followed by BlankDocument.
2. Alternatively, you can select the Insert tab on the ribbon and click the
Blank Page button on the extreme left. You’ll recognize it by the icon of
a dog-eared white page.
3. A new “sheet” will appear in your Word typewriter. Look at the title
bar. You’ll know the new document by its placeholder file name, for
example Document2.
4. In addition, if you look at the Windows taskbar at the bottom of the
screen, you’ll see a new button for your new document.
Don’t forget to save your new document with your own file name, and in the correct
location!
If you’d like to move from one document to another, then all you have to do
is to click the corresponding button on the Windows taskbar.
Creating a new folder
You’d like to have a new folder in which you can save your work? You can create
a new “data area” even from within Word. You do this using the Save As dialog
box.
1. Click on the Office button and select the Save As option.
2. Click the Create New Folderbutton .
3. Now you’ll see a dialog box where you’ll name your new folder. Type
the new name in, for example Training.
4. Click OK.
5. Great service! Word will automatically switch over to your new folder.
6. Give your file a name (the previous name that you entered was the folder
name) and click on the Save button.
Save or Save As?
By now you’ve probably noticed that the Office button offers you both a Save
and a Save As command. So what’s the difference? Well, when you save a file
for the first time, it makes no difference whatsoever! Really – it doesn’t matter
whether you click on the Save icon, or whether you select Save or Save As from
the Office button. Word will display the Save As dialogue box so that you can
specify a file name and location.
Only if you save the file again will you notice a difference:
If you want to keep the same file name and location, then the Save icon
and the Save menu option will both save the file with no further comment.
If you’d like to save an existing document under a new name, or in a

different location, then you need to use the Save As command. This will
display the Save As dialogue box so that you can specify another file
name and/or a new folder.

Saving a file on to a flash drive or diskette
Would you like to save your file to a flash drive or diskette? You might want to do
this to make a backup copy, or to continue working on your file using another
computer.
WARNING: you should never save your documents only on a diskette or flash drive. These can
be easily corrupted and your data may be lost. It’s safer to store your work on the network drive.
We are assuming that you want to save a document that’s already been saved
to the network drive, and so it already has a file name. Here’s what to do:
1. Click the Office button and select the Save As command.
2. In the dialog box, click the down arrow next to the Save In field.
3. From the list, select the device on which you want to save
your file. oStiffly disk drives are typically drive A:.
o Flash drives have a letter allocated by the operating system,
and may be labeled by the device name or as a Removable
Disk.
4. Click the Save button.
Closing a document
You’d like to close the current document without quitting Word?
Just click the Office button and select the Close command
You’ll see the Word screen without any document.
Closing Word
There are several methods you can use to end Word:
Click the Office button, and then click the Exit Word
button in the bottom right corner.
Alternatively, close the window by clicking on the X at the far right
edge of the title bar.
If you’ve made any changes since you last saved your document, then you’ll be
asked whether you want to save your changes. You can return to your document
by pressing [ESC] or clicking the Cancel button.
Comfortable navigation: moving around in Word

Moving with the mouse
How do you move around the text most easily? Use your mouse!

Have you already typed a few lines of text? Then move the mouse over your
virtual page and observe the shape of the mouse pointer.
When the mouse pointer is completely outside the document, it looks
like a hollow arrow facing to the left.
When the mouse pointer is in the document margin area, it looks like a
hollow arrow facing to the right.
When you move the mouse pointer over text, it looks like a capital “I” –
this is called the insertion point.
To enter or edit text, you need to position the insertion point at the place in the
text where you want to type, and then click the left mouse button. The text cursor
(a thin vertical line) will blink to show that it is ready for you to start typing at this
point.
If you want to add text below the end of your document, you can either press
[ENTER] after the last paragraph to move the text cursor lower down the page;
or else you can position the insertion point where you would like to type, and do
a double click. Word will automatically fill in any blank lines for you!
Using the cursor keys
The mouse isn’t always the fastest way to move through text. Sometimes it saves
time to use the keyboard as a clever alternative! Have a look at the cursor keys
(arrow keys), which are found on the right of the normal keyboard. These provide
you with flexible options for navigation. Note that if you hold down an arrow
key, it will rapidly repeat its action.
Moves one cursor space to the left
Moves one cursor space to the right

Moves the cursor up one line
Moves the cursor down one line
Moving word by word

You’d like to move a bit faster through your text? In order to move one whole
word at a time, hold down the [CTRL] key while you press either the left or right
arrow key.
Beginning and end of the line
It can be difficult to get to the beginning or end of a line using the mouse. The
keyboard offers you two keys intended specifically for this task!
moves the cursor to the beginning of the current line
moves the cursor to the end of the current line
Beginning and end of the document

You’d like to jump immediately to the beginning of your document? Nothing
could be easier! Just hold down the [CTRL] key and press [HOME].
To jump to the end of the document, hold down [CTRL] and press [END].

Bigger steps
If you’d like to move through the document using bigger steps, try using the following
keys:
moves the cursor one screen upwards
moves the cursor one screen downwards
Jumping to a particular page

You’ve already written a number of pages and now you’d like to return to a
particular page? Here’s what to do:
1. Press the function key [F5]. This key calls up the Find and Replace dialog
box. You’ll find yourself automatically in the Go To tab.
2. You don’t have to click anywhere; the cursor will be waiting for you in the
Enter PageNumber field. Just type the number of the page that you’d like
to jump to.
3. Click on the Go To button or press [ENTER], and you’ll
find yourself transported to the page you wanted to see.
There’s another way that you can jump to a particular page, which uses the
mouse and the vertical scroll bar.
1. Click the box on the vertical scroll bar and hold the left mouse button down.
2. Now drag the scroll box in the desired direction. You’ll see the actual page
location in an information box on the left of the scroll bar.
3. When you’ve reached the page you want to see, release the mouse button!
The view on the screen
Setting the zoom factor

Did you know that you can adjust the size of the text onscreen to suit your taste?
Just use the zoom function! Here’s how you find out what the zoom factor is, and
set it as you like it:
1. You’d like to find out what the zoom factor is? Just look on the Zoom
button, which is located towards the right end of the status and
information bar at the bottom of the Word window.
1. The picture is too big or too small? Then drag the slider at the right

of the Zoom button, or else click the button to open the Zoom dialog
box.
2. The dialog box lets you choose a preset zoom factor, or else you can type
your own value in the Percent field.
4. Click OK, and the screen will immediately appear as you want it.
Viewing a document with Print Preview
Word has a cool feature that you’ll definitely want to know about. I’m
talking about print Preview. To call it up:
1. Click the Office button, select Print and then Print Preview. The Print
Preview icon shows a dog-eared page with a magnifying glass.
2. Now you’re in Print Preview mode. You see the document exactly as
it will look when printed.
3. Once again, you can adjust the zoom factor to suit yourself. There is a
Zoom button on the Print Preview ribbon, as well as the usual zoom
controls on the status bar. Note that the Many Pages option in the Zoom
dialogue box allows you to display several pages at once, depending on
the resolution of your screen.
4. To close Print Preview, click the Close Print Preview button on the
right of the ribbon.
Selecting text
Before you can do anything to your text, you need to select the parts you
want to act on. Selected text passages are easy to manipulate. You can cut
them out and paste them in elsewhere in your document. You’ll find out
more about this on the next few pages.
Selecting a word
You want to select just one word? No problem!
1. Position the mouse pointer directly over the word.
2. Double-click the left mouse button. It’s that easy!
If you want to de-select text that you’ve selected, just click anywhere outside
the selected text.

Selecting a group of words
Selecting a group of words isn’t hard either.
1. Position the mouse pointer before the first word in the passage to be selected.
2. Click the left mouse button and hold it down.
3. Now, while holding the left mouse button down, drag the mouse over the text.
4. Release the mouse button only when you’ve selected all the text you want.
Selecting longer sentences
The text you’d like to select extends over multiple lines? For example, it begins
on the upper right side of the screen but ends far below on the left?
1. Start by positioning the mouse at the beginning of the first sentence.
Hold the left mouse button down, and don’t release it until you’ve
selected the entire area you want.
2. Now drag the mouse directly downwards. This way you select an entire
line at a time. Don’t let go of the mouse button!
3. Have you selected too much text? Don’t let go of the mouse button
yet! Just drag backwards to unselect, until you’ve reached the word
that ends your selection.
If you accidentally moved some of your text around while you were
selecting it, then click the Undo button on the Quick Access toolbar.
Occasionally Word’s drag and drop feature can play tricks on you!
Selecting line by line
You can even highlight entire lines of text at a swoop.
1. Position the mouse in the margin to the left of the first line you’d like
to select. The mouse pointer will look like a hollow arrow facing to the
right.
2. Click the left mouse button and don’t let go. The first line will be selected
immediately.
3. Now, holding the left mouse button down, drag the mouse down the side
of the page. Let the mouse button go when you’ve highlighted as much
text as you want to select.
Quick tip: you can select a single line by clicking once in the left margin;
select the whole paragraph by clicking twice on the left margin; and select the
entire document by clicking three times in the left margin.
Selecting precisely what you want
Is clicking and dragging the mouse too clumsy for you? Then here’s another approach:
1. Click wherever you’d like the selection to begin. (Just click, don’t keep on
holding the mouse button down.)
2. Press the [SHIFT] key and hold it down.
3. While still holding the [SHIFT] key down, click wherever you’d like
the selection to end. Release the [SHIFT] key. All the text between
these two points is selected!
Selecting with the keyboard

By the way, you don’t have to use the mouse to select text. You can also use
the cursor (arrow) keys on the keyboard.
Try holding down the [SHIFT] key and using the arrow keys to expand your selection.
Selecting everything
You’d like to select the whole document at once? That’s easy! At the right end
of the Home ribbon, click the down arrow next to the word Select, and then

click Select All.
Deleting and adding text

Now it’s finally time to reveal the secrets of deleting and adding text!
Deleting individual characters
In Word there are two ways that you can delete your text, character by
character, step by step.
You’ve already met the [BACKSPACE] key; use it to delete characters
to the left of the cursor.
There’s also a key that deletes characters ahead of the cursor. It’s
the [DEL] (delete) key. Go ahead and try it!
I’ve come across people who first use the right arrow key so that they can then
delete with the [BACKSPACE] key - and the other way around. This stupid habit
will cost you an extra key press each time you erase a character. If you erase 100
characters a day, then that could add up to 20,000 unnecessary key presses in a
year!
Removing larger blocks of text
You’d like to remove several sentences at once? And you’re going to do this by
pressing the [BACKSPACE] key until you’ve erased everything? I’d like to
know where you find so much time! Instead, I’d advise you to select the text that
you want to remove, and then press the [DEL] key. It’s really that easy!
Adding text
One of the best things about word processing is that it’s so easy to add
something to your text.
1. Click the point where you’d like to add to your text.
2. Type the new text.
3. The line breaks will automatically adjust themselves to accommodate the
addition to your text.
If the line breaks don’t adjust themselves, then you may have pressed
[ENTER] instead of using Word’s automatic line breaks. Display the non-
printing characters and delete any unnecessary ¶’s.
Overtype mode
While you’re working, you may notice that your previous text is being deleted
character by character as you type. This happens if you’ve accidentally turned
on Overtype Mode. Press the [INSERT] key to turn this mode off and return to
Insert mode.
If Insert / Overtype mode isn’t visible on your status bar, then you can do a
right click in the blank area of the status bar, and check the Overtype option.

Using the clipboard
Cutting, copying, and pasting are some of the most practical features of a word processor.
Cutting and pasting
You’d like to move some text from one place to another in your document?
It couldn’t be easier! Here’s how it’s done:
1. Select the relevant text.

2. Click the Cut button on the Home ribbon – its icon is a pair of scissors.
3. Whoops! Where did the selected text go? It’s been moved to the
Clipboard, which is an (invisible) storage area.
4. Place the cursor at the point where you’d like to add the text.
5. Now click the Paste button – its icon is a picture of a clipboard.
6. If necessary, add an extra space at the end of the pasted text.
Copying instead of cutting
So how does copying work? It’s very similar! Select your text, and then
click Copy (the icon shows two sheets of paper) instead of Cut.
When you copy, the selected text remains in its original position in the document,
and a copy of it is placed on the clipboard. You can paste the copied text
anywhere else in your document (or in another document).
Text that has been cut or copied to the clipboard can be inserted as many times as
you want to. Only when you cut or copy again will the contents of the clipboard
be erased.
Some keyboard shortcuts
There are also some easy-to-remember key combinations to cut, copy and paste!
Just hold down the first key [CTRL] while you type the second one.
[CTRL] + [X] : Cut
[CTRL] + [C] : Copy
[CTRL] + [V] : Paste
Character formatting
Word provides an amazing range of tools to help you create professional-looking
documents! Characteristics that affect the appearance of one or more characters
are called character formats.
Changing the font

The style of typeface that you use is called the font, and there are literally
hundreds to choose from!
To change your font:
1. First, select the relevant text. This can be anything from a single
character to the entire document.
2. Find the Font field on the Home ribbon.

3. Click the drop-down arrow next to the Font field.
4. You’ll see a list with countless font choices. Scroll through the list until
you’ve found the font you want to use. As you move the mouse over a
particular font, your document will show what that font would look like
– this is called Live Preview.
5. Select the font you want by clicking its name.

Changing the font size
You can change the size of the font to suit your needs:
1. Once again, first select the relevant text.
2. Find the Point Size field on the Home ribbon, and click the drop-
down arrow next to it.
3. On the list, find the font size that suits you and click it.
You can also specify your own font size. Just click in the Point Size field and type inthe
size that you’d like, then press [ENTER]. The size must be between 1 and 1638, and can
include “half sizes” such as 12.5.
Changing the default font
The default font is what Word uses every time you start a new document. By
changing this, you can ensure that all new documents will use your choice of
font and point size!
1. Find the Font category label on the Home ribbon, and click the arrow on its right.
2. The Font dialog box will appear.

3. Select the font and size that you’d like to use as your default. Leave
the style as Regular.
4. When you’re happy with your selection, be courageous and click the
Default button.
5. Word will inform you that you’re about to change the default font,
which will update the NORMAL template. Go ahead and click Yes.
Bold, italic, and underline

Would you like your text to be bold, italic or underlined? It’s very easy! As
usual, you start by selecting the text that you want to format, since otherwise
Word won’t know where the new formatting should be applied.
1. Select the relevant portion of your text.
2. Click the appropriate character formatting button on the Home ribbon.
forBold
forItalic
forUnderline
The arrow next to the underline button offers you a choice of underlining styles.
3. To turn a character format off, click the same button again.

You can select multiple formatting characteristics at the same time, for example by
clicking Bold and then Italic.
Different colors
Colors can really make life worth living! And Word gives you the ability to make
your texts as colorful as you wish! The general rule applies here too: first select
your text, and then act:
1. Find the Font Color button on the Home ribbon, and click the drop-down arrow.
2. You’ll see a palette containing all the text colors available to you.
3. Choose the text color that you’d like by clicking on it.

The complete selection
But wait – there’s more! Would you like your text to appear in small caps? Do you have a thing for shadowed text? You can
access the complete set of options through the font window.
1. Select the required text.
2. Click the arrow to the right of the Font category label on the Home ribbon - or even simpler, click the right mouse button
and select Font. The Font window will be displayed.
3. Use the drop-down arrows to select colour or underlining options.
4. Check any effects that you want to apply, like Shadow or Small Caps. The Preview field let’s you see what your choices
will look like.
5. Confirm your settings with OK when you’ve finished making your selection.
Paragraph formatting
Paragraph formatting applies to a complete paragraph - that is, all the text between two occurrences of [ENTER]. And you don’t
even need to select the text first, unless you want to format more than one paragraph. Just position your cursor anywhere inside
the paragraph that you want to format. It’s as simple as that!
Right, left, or in the middle? Please arrange!
By default, paragraphs are usually left-aligned: the left margin is straight, but the right margin is jagged (like in this manual).
Word provides you with a number of other
options though. Just position your cursor anywhere in the paragraph, and click one of the text alignment buttons
on the Home ribbon.
Align left: text is aligned at the left margin but jagged on the right.

Center: text is centred within each line, with jagged margins on both left and right.
Align right: Text is aligned at the right margin but jagged on the left.
Justify: text is aligned at both the left and right margins (Word does this by adjusting the amount of space between words).
Using bullets
Here’s how you can create a nifty bulleted list!
1. First, type the points that you want to bullet, one under another. Make sure you create them as individual paragraphs by
pressing [ENTER] after typing each point.
2. Select the paragraphs that you’d like to bullet.
3. Click the Bullets button in the Paragraph section of the Home ribbon.
4. Look! The selected paragraphs have been formatted as bullet points.
The drop-down arrow on the right of the Bullets button allows you to choose from different bullet styles.
Creating a numbered list
In much the same way, you can create a neatly numbered list. Instead of clicking the Bullets button, you should click the
Numbering button just next to it.
The best thing about Word numbering is that the numbers adjust themselves automatically when you edit the text!
To end a bulleted or numbered list, just press [ENTER] twice.
Borders and shading
You want to place a border around an entire paragraph? That’s no problem either!
1. Place the cursor anywhere in the paragraph that you’d like to frame.
2. Click the Outside Borders button in the Paragraph section of the Home ribbon. (Note: if the Outside Border button
doesn’t show a “frame” icon, then click the drop-down arrow to select it.)
For more complex borders and shading, select the Borders andShading option at the bottom of the Outside
Borders drop-down list.This will open the Borders and Shading dialogue box. Effects can be applied to the
whole paragraph, or to selected words.
Using the Borders tab, you can select a border setting, style, colour and width. The Apply To field lets you specify whether this should be
applied to the whole paragraphor to selected text. Click OK to see the effect. (And then Undo if you don’t like it!)

Using the Shading tab, you can select a background colour and/or pattern. The Apply To field lets you specify whether this should
be applied to the whole paragraphor to selected text. Click OK to see the effect.
Working with indents

If you are working with a long document, you might want to consider setting off certain sections of text by using indents. Indents
allow you to set text within a paragraph at different margins.

There are 4 different types of indents:
First Line: Use this option to move the first line of your paragraph to the right
Hanging: Use this option to control the left margin of every line in your
paragraph except the first one
Left: Use this option to move the left margin of your paragraph to the right.
Right: Use this option to move the right margin of your paragraph to the left
First Line Indent
1. Click in front of the line that you want to indent.
2. On the Page Layout tab, click Paragraph, and then Indents and Spacing
3. In the Special list under Indentation, click First line, and then in the By box, set the amount of space that you want the
first line to be indented.
Hanging Indent
1. Select the paragraph in which you want to indent all but the first line of the paragraph
3. In the Special list under Indentation, click Hanging, and then in the By box, set the amount of space that you want for the
hanging indent.
Setting left and right indents
1. Select the paragraph that you want to change.
3. Click the arrows next to Indent Left / Right to increase / decrease the left / right indentation of the paragraph.
Working with line spacing
Change the spacing before and after selected paragraphs
By default, paragraphs are followed by a blank line, and headings have extra space above them.
1. Select the paragraph before or after which you want to change the spacing.
2. On the Page Layout tab, in Paragraph, click arrow next to Spacing Before or Spacing After and enter the amount
of space required.

Line spacing options
Single Default option - sets line spacing to one line

1.5 lines This option is one-and-one-half times that of single line spacing.
Double This option is twice that of single line spacing.
At least This option sets at minimum amount of space between lines
Exactly This option sets fixed line spacing, expressed in points.
Multiple Sets the line spacing to accommodate multiple lines
Change the line spacing for paragraphs
1. Select the paragraphs for which you want to change the line spacing.
2. On the Home tab, in Paragraph, click Line Spacing
3. Click on Line Spacing Options, and select options you want under Spacing.
Using tabs
Use tabs to align text in your documents. It’s great for aligning columns of text! By default, Word has tab stops sert
every 0.5” on the ruler.
Tab stop types:
There are five types of tab stops available which do the following:
Left-aligned Text flows to the right
Centered The text centers on this position as you type
Right-alighned Text flows to the left
Decimal-aligned Text aligns on the decimal point when using numbers
Bar Inserts a vertical line at tab stop
Setting tabs using the ruler
This is the easiest way to set tabs!

If you can’t see the ruler, click View Ruler at the top of the vertical scroll bar. Click anywhere on the ruler, and you will have set a
tab stop.
Setting custom tabs

1. On the Page Layout tab, click Paragraph.
2. In Paragraph, click Tabs.
Arranging text with tables

If you need to include structured text in your document, then using a table is the easiest way to make sure that it will remain
neatly formatted, even when you edit it.
Creating a table
It’s really easy to create a table. Here’s what you need to do:
3. Click at the point in your document where you’d like to add a table.
4. Click on the Insert ribbon tab.
5. Click on the Table button just below the Insert tab.
6. A blank table grid will appear.
7. Position the mouse pointer in the top left square of the table grid. Click the left button, and hold
it down while dragging the mouse down and to the right. This is how you specify the number of
columns and rows you’d like in your table.
8. Release the left mouse button, and the framework of your table is included in the document.
After you create a table, the Design ribbon will be displayed giving you a choice of standard table styles.
Or use the Borders and Shading buttons to design your own!
Adding text to your table
You want to fill the table in? Nothing could be easier!
1. After you’ve created the table, the cursor will be blinking in the first cell. You can begin typing here.
2. To move on to the next cell, just press the [TAB] key.
3. When you want to move to the next line, just press [TAB] again. Don’t press [ENTER] – that will create a new line inside the

current cell.
What if you’ve reached the end of the table and you need another row? Pressing the [TAB] key will automatically add it.
Deleting rows and columns
You’d like to delete a row? Or a column? Here’s how:
1. Position the cursor in the row or column that you want to get rid of.
2. Click on the Layout ribbon tab.
3. Click on the Delete button, and a drop-down menu will appear.
4. Select an option to delete cells, columns, rows, or even the entire table.
Adding rows and columns

You need to have the Layout ribbon visible for this too.
1. Position the cursor in the row (column) next to which you want add another row (column).
2. Click on one of the Rows & Columns options (located on the right of the Delete button). The new row
or column will be included in your table.
Adding ClipArt to documents
You can add pizzazz to your documents with ClipArt, the ready-made pictures that come with Word!
Adding ClipArt graphics
Here’s what you need to do to add ClipArt graphics to your document:
1. Click at the point in your document where you’d like to add a ClipArt graphic.
2. Click on the Insert ribbon tab.
3. Click on the ClipArt button.
4. A ClipArt pane will open on the right of your document.

5. Type a descriptive term in the Search For field, for example sport. Then click Go or press [ENTER].
6. The ClipArt Gallery will show you all the available graphics related to this theme.
7. Clicking on a picture will insert it in your document.
To remove a graphic from your document, click on it and then press the [DEL] key.
Moving graphics
It’s easy to move a graphic wherever you want it:
1. As you move the mouse pointer over the graphic, it will change into a four-headed arrow.
2. Hold down the left mouse button, and drag the graphic to wherever you’d like it.
Scaling graphics
You’d like to change the size of the image? Simple!
1. Click on the graphic to select it. You’ll know it’s selected when you see eight small selection marks around it.
2. Move the mouse to one of the corners. The mouse pointer changes to a double arrow.
3. Hold down the left mouse button, and drag the corner of the graphic until it’s the size you’d like it to be.
Text flow around graphics
When you add a graphic, it will probably obstruct some of your text. That isn’t good! So let’s make the text flow around the
graphic instead:
1. As soon as you click on a graphic, a Format ribbon tab appears at the top of the screen.
2. Click the Format ribbon tab.
3. Click on the Text Wrapping button.
4. Select a position for the graphic relative to the text around it. For example, if you’d like the text to flow around the
contours of the graphic, select Through.)

Controlling Page Layout
You’d like to add page numbers, or perhaps a header or footer, to your document? That’s not hard! (Headers and footers are
elements of a document that are repeated on every page.)
Adding page numbers
Let’s start by adding page numbers to your document:
1. Select the Insert ribbon tab, and click on the Page Number button.
2. From the drop-down menu, select the position you’d like for your page numbers, and one of the built-in
formats. It’s as simple as that!
3. Page numbers will be inserted into your document, and the Design ribbon will replace the Insert ribbon above the document
window.
4. If you want to adjust the page numbering style or sequence then click the PageNumber button again, and select
Format Page Numbers.
5. Finally, click Close Header & Footer to return to your document text.
Adding a header
Headers and footers aren’t automatically included in a new document. But that’s easily remedied! Let’s start with a header:
1. On the Insert ribbon, click the Header button.
2. The Header menu will drop down, offering you a choice of built-in header layouts. Select a layout by clicking on
it.
3. The header area will appear above your document text (which will be greyed out). The Design ribbon will replace the
Insert ribbon above the document window.
4. You’ll see a text placeholder in the header area. Click on it and then type the text that you want to appear in the header.
5. When you’ve finished creating your header, you can either
Click the Close Header and Footer button, or
If you’d like to add a footer as well, then click the Footer button.
To edit an existing header, just double-click anywhere in the header area. To remove a header, click the Header button and
then select Remove Header from the bottom of the drop-down menu.

Adding a footer
Adding, editing or removing a footer follows the same steps as described above for a header. Just click the Footer button
instead of the Header button!
Setting page orientation
You can decide on the orientation of your page ie. portrait or landscape by selecting PageLayout, then Orientation.
Setting page margins
To change the margins of your document, select Page Layout, then Margins . The most common margin width to use is the
Normal option. You are also welcome to select your own margin settings by selecting Margins, Custom Margins.
Inserting a manual page break

You will often need to insert a manual page break to add a blank page to your document. You do this by clicking on Insert and then
selecting the Blank Page option.
Deleting a page break
1. Select Print Layout.
2. Click on the page break in Print Layout view and hit the delete key
Spelling and grammar checking
Have you sometimes noticed a wavy red line appearing beneath your typing? This indicates a typo, or a word that Word doesn’t
recognize. Note that Word also regards a missing space after a comma or a period, or the doubling of a word (the the), as a mistake!
Proofing while you type
Now I’ll show you how to use the nifty spell checker!
1. Mistype a word so that the wavy red line appears.
2. Click the right mouse button on the underlined word. A context-sensitive menu will open up.
3. Click with the left mouse button on the correct suggestion, and the mistyped word will automatically be replaced.
What if Word doesn’t make any suggestions? Then check whether maybe you left out a space after a period or comma.

Please note that there are many proper nouns and specialist terms that Word doesn’t recognize. A wavy red line doesn’t always mean that
you’ve made a mistake!
Spell checking the entire document

Maybe you’d rather get your thoughts down on paper without stopping to make corrections as you go? Word also has an option to
spell check the entire document or selected passages of text.
1. Position the cursor at the point where you’d like to begin spell checking.
2. Click on the Review ribbon tab, and then on the Spelling & Grammar button. The Spelling and Grammar
dialogue box will open.
3. The first spelling or grammar error will be highlighted and a list of suggestions provided.
4. Click the correct suggestion and then Change, or click the Ignore Once button to skip over it.
5. Each subsequent problem will be highlighted in turn.

6. Press OK when the spelling and grammar check is complete.
If you want Word to proof grammar as well as spelling, then make sure that the Check Grammar option in the Spelling and
Grammar dialog box is ticked.
Automatic error correction
Did you know that Word is already looking for errors while you are still typing a word? Try it – for example, type adn instead of
and, or teh instead of the. You can’t do it! The force behind this is an intelligent function called Auto-Correct.
Printing a document
Now it’s finally time to see your words on paper!
The Print dialog box
This is the approach that I recommend:
1. Click the Office button and select the Print command.
2. The Print dialog box will appear.
3. If you have more than one printer to choose from, they will be available in the Printer area. Click the drop-down arrow
next to the Name field to select your preferred printer.
4. Would you like to print selected pages only? Find the Page Range area, and type the page numbers that you’d like printed
in the Pages field.

5. If you’d like more than one copy of the document, then enter the required number of copies in the Number of Copies field.
6. If you’d like to print more than one page per sheet (compressed printing), then select the required number in the Pages per
Sheet field.
7. Click OK when you’re satisfied with your settings. The specified document pages will be sent to the printer.
Word tips and tricks
Now we’re almost at the end of this manual. Almost – but I still have a few tricks for you hidden up my sleeve!
Beginning on a new page
You’d like to begin a piece of text on a new page? Perhaps you’ve tried to do this by repeatedly pressing [ENTER] until you reach
the right position? And then when you changed something on the previous page, the entire line count became scrambled! Here’s a
trick to ensure this will never happen to you again.
1. Click just before the text that you’d like to place on a new page.
2. Hold down the [CTRL] key and press [ENTER].
3. Word will automatically add a hard page break to your document.
Text following a hard page break will always start on a new page, even if you insert or delete other text before it.
Searching for text
You’re working on a long document, and looking for a particular item of text?
4. Click the Find button at the left end of the Home ribbon.
5. The Find and Replace dialog box will appear. Click the Find tab.
6. Type in the word or phrase you’re searching for and click Find Next.
7. Word will display and highlight the next occurrence of the specified word or phrase.
8. You can continue pressing Find Next to locate all occurrences of the specified word or phrase, or click Cancel to close the
window.
9. Word will tell you when all occurrences of the word or phrase have been displayed.

The Replace tab allows you to replace occurrences of one word or phrase with another.
Text effects with WordArt
How would you like to create cool text effects with shadows and 3D? Check out the WordArt functions!
1. Select the text to which you want to add WordArt effects.
2. Click the WordArt button on the Insert ribbon.
3. A selection of WordArt design options will appear.
4. Click on a design option to select it.
The Edit WordArt Text dialog box will allow you to change the
font style and size. Click OK to accept the settings.
Your selected text will be transformed by the WordArt you have chosen!
That’s all for now! Have fun using the skills that you’ve learned. And remember that Word has hundreds of other exciting features,
so don’t be afraid to experiment with the options that you see on the various ribbons. You can always call on that great standby, the
Undo button!

Chapter 4: Basic Application Software – Microsoft Excel
Excel is a spreadsheet program in the Microsoft Office system. You can use Excel to create and format workbooks (a collection of
spreadsheets) in order to analyze data and make more informed business decisions. Specifically, you can use Excel to track data, build
models for analyzing data, write formulas to perform calculations on that data, pivot the data in numerous ways, and present data in a
variety of professional looking charts.
The Ribbon
Understanding the Ribbon is a great way to help understand the changes between Microsoft 2003 to Microsoft 2010. The ribbon holds all
of the information in previous versions of Microsoft Office in a more visual stream line manner through a series of tabs that include an
immense variety of program features.
Home Tab
This is the most used tab; it incorporates all text and cell formatting features such as font and paragraph changes. The Home Tab
also includes basic spreadsheet formatting elements such as text wrap, merging cells and cell style.
Insert Tab
This tab allows you to insert a variety of items into a document from pictures, clip art, and headers and footers.
Page Layout Tab
This tab has commands to adjust page such as margins, orientation and themes

Formulas Tab
This tab has commands to use when creating Formulas. This tab holds an immense function library which can assist when creating
any formula or function in your spreadsheet.
Data Tab
This tab allows you to modifying worksheets with large amounts of data by sorting and filtering as well as analyzing and grouping data.
Review Tab
This tab allows you to correct spelling and grammar issues as well as set up security protections. It also provides the track changes
and notes feature providing the ability to make notes and changes someone’s .document
View Tab
This tab allows you to change the view of your document including freezing or splitting panes, viewing gridlines and hide cells.

Getting Started
Opening Outlook
You may have a shortcut to Word on your desktop, if so double click the icon and excel
will open. If not follow the steps below:
1. Click on the Start button

2. Highlight Programs
3. Highlight Microsoft Office
4. Click on Microsoft Excel 2010
5.
Create a New Workbook
1. Click the File tab and then click New.

2. Under Available Templates, double click Blank Workbook or Click Create.
Find and Apply Template

Excel 2010 allows you to apply built-in templates and to search from a variety
of templates on Office.com. To find a template in Excel 2010, do the following:
1. On the File tab, click New.
2. Under Available Templates, do one of the following:
a. To reuse a template that Recentyou’ve Templates, recently click the template used, that you
want, and then click Create.
b. To use your own template that you already have installed, click My Templates,
select the template that you want, and then click OK.
c. To find a template on Office.com, under Office.com Templates, click a template
category, select the template that you want, and then click Download to
download the template from Office.com to your computer.
3. Once you click on the template you like it will open on your screen as a new document.
Enter Data in a Worksheet

1. Click the cell where you want to enter data.
2. Type the data in the cell.
3. Press enter or tab to move to the next cell.
Select Cells or Ranges
In order to complete more advanced processes in Excel you need to be able to highlight or select
cells, rows and columns. There are a variety of ways to do this, see the table below to understand
the options.
To select Do this
A single cell Click the cell, or press the arrow keys to move to the cell.
A range of cells Click the first cell in the range, and then drag to the last cell, or hold down

SHIFT while you press the arrow keys to extend the selection.
A large range of cells Click the first cell in the range, and then hold down SHIFT while you click the
last cell in the range. You can scroll to make the last cell visible.
All cells on a worksheet Click the Select All button or press CTRL+A.
Nonadjacent cells or cell
ranges Select the first cell or range of cells, and then hold down CTRL while you select
the other cells or ranges.
NOTE: You cannot cancel the selection of a cell or range of cells in a
nonadjacent selection without canceling the entire selection.
NOTE: To cancel a selection of cells, click any cell on the worksheet. This is not applicable to
cells withformulas in it.
Modifying Spreadsheets
In order to create an understandable and professional document you will need to make
adjustments to the cells, rows, columns and text. Use the following processes to assist when
creating a spreadsheet.
Cut, Copy, and Paste Data
You can use the Cut, Copy, and Paste commands in Microsoft Office Excel to move or copy entire
cells or their contents. NOTE: Excel displays an animated moving border around cells that have
been cut or copied. To cancel a moving border, press ESC.
Move/Copy Cells
When you move or copy a cell, Excel moves or copies the entire cell,
including formulas and their resulting values, cell formats, and
comments.
1. Select the cells that you want to move or copy.
2. On the Home tab, in the Clipboard group, do one of the following:
a. To move cells, click Cut .
b. To copy cells, click Copy .
3. Click in the center of the cell you would like to Paste the information too.
4. On the Home tab, in the Clipboard group, click Paste .
NOTES: Excel replaces existing data in the paste area when you cut and paste cells to move
them.When you copy cells, cell references are automatically adjusted. If the selected copy or paste
area includes hidden cells, Excel also copies the hidden cells. You may need to temporarily unhide
cells that you don't want to include when you copy information.
Move/Copy Cells with Mouse
1. Select the cells or a range of cells that you want to move or copy.
2. To move a cell or range of cells, point to the border of the selection. When the pointer
becomes a move pointer , drag the cell or range of cells to another location.

Column Width and Row Height
On a worksheet, you can specify a column width of 0 to 255 and a row height of 0 to 409. This
value represents the number of characters that can be displayed in a cell that is formatted with the
standard font. The default column width is 8.43 characters and the default row
height is 12.75 points. If a column/row has a width of 0, it is hidden.
Set Column/Row Width/Height
1. Select the column(s) or row(s) that you want to change.

2. On the Home tab, in the Cells group, click Format.
3. Under Cell Size, click Column Width or Row Height.
4. A Column Width or Row Height box will appear.
5. In the Column Width or Row Height box, type the value
that you want your column or row to be.
Automatically Fit Column/Row Contents

1. Click the Select All button
2. Double-click any boundary between two column/row
headings.
3. All Columns/Rows in the entire worksheet will be
changed to the new size
NOTE: At times, a cell might display #####. This can occur when the cell contains a number or a
datethat exceeds the width of the cell so it cannot display all the characters that its format requires.
To see the entire contents of the cell with its current format, you must increase the width of the
column.
Set Column/Row Width/Height with Mouse
To change the width of one column/row
1. Place you cursor on the line between two rows or columns.
2. A symbol that looks like a lower case t with arrows on the
horizontal line will appear
3. Drag the boundary on the right side of the column/row heading
until the column/row is the width that you want.
To change the width of multiple columns/rows
1. Select the columns/rows that you want to change
2. Drag a boundary to the right of a selected column/row heading.
3. All selected columns/rows will become a different size.
To change the width of columns/rows to fit the contents in the cells
1. Select the column(s) or row(s) that you want to change
2. Double-click the boundary to the right of a selected column/row heading.
3. The Column/Row will automatically be size to the length/height of the longest/tallest text.
Merge or Split Cells

When you merge two or more adjacent horizontal or vertical cells the cells become one larger cell
that is displayed across multiple columns or rows. When you merge multiple cells, the contents of
only one cell appear in the merged cell.
Merge and Center Cells
1. Select two or more adjacent cells that you want to merge.

2. On the Home tab, in the Alignment group, click Merge and Center.
3. The cells will be merged in a row or column, and the cell contents will be centered in the
merged cell.
Merge Cells
To merge cells only, click the arrow next to Merge and Center, and then click
Merge Across or Merge Cells.
Split Cells
1. Select the merged cell you want to split
2. To split the merged cell, click Merge and Center .
The cells will split and the contents of the merged cell will appear in the upper-left cell of the range of
split cells.
Automatically Fill Data

To quickly fill in several types of data series, you can select cells and drag the fill handle . To
use the fill handle, you select the cells that you want to use as a basis for filling additional cells, and
then drag the fill handle across or down the cells that you want to fill.
1. Select the cell that contains the formula that you want to be brought to other cells.
2. Move your curser to the small black square in the lower-right corner of a selected cell also
know as the fill handle. Your pointer will change to a small black cross.
3. Click and hold your mouse then drag the fill handle across the cells, horizontally to the
right or vertically down, that you want to fill.
4. The cells you want filled will have a gray looking border around them. Once you fill all of
the cells let go of your mouse and your cells will be populated.
Formatting Spreadsheets
To further enhance your spreadsheet you can format a number of elements such as text,
numbers, coloring, and table styles. Spreadsheets can become professional documents used for
company meetings or can even be published.
Wrap Text
You can display multiple lines of text inside a cell by wrapping the text. Wrapping text in a cell
does not affect other cells.
1. Click the cell in which you want to wrap the text.

2. On the Home tab, in the Alignment group, click Wrap Text.
3. The text in your cell will be wrapped.
NOTE: If the text is a long word, the characters won't wrap (the word won't be split); instead, you can

widen the column or decrease the font size to see all the text. If all the text is not visible after you
wrap the text, you might have to adjust the height of the row. On the Home tab, in the Cells group,
click Format, and then under Cell Size click AutoFit Row
Format Numbers
In Excel, the format of a cell is separate from the data that is stored in the cell. This display
difference can have a significant effect when the data is numeric. For example, numbers in cells
will default as rounded numbers, date and time may not appear as anticipated. After you type
numbers in a cell, you can change the format in which they are displayed to ensure the numbers in
your spreadsheet are displayed as you intended.
Click the cell(s) that contains the numbers that you want to format.
On the Home tab, in the Number group, click the arrow next to the Number Format box, and then
click the forma that you want.
If you are unable to format numbers in the detail you would like that you can click on the More
Number Formats at the bottom of the Number Format drop down list.
1. In the Category list, click the format that you

want to use, and then adjust settings to the right of
the Format Cells dialog box. For example, if you’re
using the Currency format, you can
select a different currency symbol, show more or

fewer decimal places, or change the way negative
numbers are displayed.
Cell Borders
By using predefined border styles, you can quickly add a border around cells or ranges of
cells. If predefined cell borders do not meet your needs, you can create a custom border.
NOTE: Cell borders that you apply appear on printed pages. If you do not use cell borders but want
worksheet gridline borders for all cells to be visible on printed pages, you can display the gridlines.
Apply Cell Borders

1. On a worksheet, select the cell or range of cells that you
want to add a border to, change the border style on, or
remove a border from.
2. Go to the Home tab, in the Font group
3. Click the arrow next to Borders
4. Click on the border style you would like
5. The border will be applied to the cell or cell range
NOTE: To apply a custom border style, click More Borders. In the

Format Cells dialog box, on the Border tab, underLine and
Color,click the line style and color that you want.
Remove Cell Borders
2. Click the arrow next to Borders
3. Click No Border .
NOTES: The Borders button displays the most recently used
border style. You can click the Borders button (not the arrow)
to apply that style.
Cell Styles
You can create a cell style that includes a custom border, colors and accounting formatting.
1. On the Home tab, in the

Styles group, click Cell
Styles.
2. Select the different cell
style option you would
like applied to your
spreadsheet.
NOTE: If you would like to

apply a cell fill and a cell
border, select the cell fill color
first the ensure both formats
are applied.
Cell and Text Coloring
You can also modify a variety of cell and text colors

manually. Cell Fill
1. Select the cells that you want to apply or remove a fill color from.
2. Go to the Home tab, in the Font group and select
one of the following options:
a. To fill cells with a solid color, click the arrow

next to FillColor , and then under Theme
Colors or Standard Colors, click the color that
you want.
b. To fill cells with a custom color, click the arrow next
to FillColor , click More Colors, and then in the
Colors dialog box select the color that you want.
c. To apply the most recently selected color, click Fill Color

.
NOTE: Microsoft Excel saves your 10 most recently selected

custom colors. To quickly apply one of these colors, click the arrow
next to Fill Color , and then click the color that you want under
Recent Colors.
Remove Cell Fill
1. Select the cells that contain a fill color or fill pattern.
2. On the Home tab, in the Font group, click the arrow
next to FillColor, and then click No Fill.
Text Color
1. Select the cell, range of cells, text, or characters that you want to format with a different text
color.
2. On the Home tab, in the Font group and select one of the following options:
a. To apply the most recently selected text color, click Font Color .
b. To change the text color, click the arrow next to Font Color , and then under
ThemeColors or Standard Colors, click the color that you want to use.
Bold, Underline and Italics Text
1. Select the cell, range of cells, or text.

3. Click on the Bold (B) Italics (I) or Underline (U) commands.
4. The selected command will be applied.
Customize Worksheet Tab
1. On the Sheet tab bar, right-click the sheet tab that you want to customize
2. Click Rename to rename the sheet or Tab Color to select a tab color.
3. Type in the name or select a color you would like for your spreadsheet.
4. The information will be added to the tab at the bottom of the spreadsheet.
Formulas in Excel
Formulas are equations that perform calculations on values in your worksheet. A formula always
starts with an equal sign (=). An example of a simple is =5+2*3 that multiplies two numbers and then
adds a number to the result. Microsoft Office Excel follows the standard order of mathematical
operations. In the preceding example, the multiplication operation (2*3) is performed first, and then 5
is added to its result.
You can also create a formula by using a function which is a prewritten formula that takes a value,
performs an operation and returns a value. For example, the formulas =SUM (A1:A2) and
SUM(A1,A2) both use the SUM function to add the values in cells A1 and A2.
Depending on the type of formula that you create, a formula can contain any or all of the following
parts

Functions A function, such asPI() or SUM(), starts with an equal sign (=).
Cell references You can refer to data in worksheet cells by
includingcell references in the formula. For example, the cell
reference A2 returns the value of that cell or uses that value in the
calculation.
Constants You can also enter constants, such as numbers (such as
2) or text values, directly into aformula.
Create a Simple Formulas

1. Click the cell in which you want to enter the formula.
2. Type = (equal sign).
3. Enter the formula by typing the constants and operators that you want to use in the calculation.
4. Press ENTER.
EXAMPLE WHAT IT DOES FORMULA
=5+2 Adds 5 and 2
=5-2 Subtracts 2 from 5
=5/2 Divides 5 by 2
=5*2 Multiplies 5 times 2
=5^2 Raises 5 to the 2nd power
Create a Formula with Cell References
1. The first cell reference is B3, the color is blue, and the cell range has a blue border with square
corners.
2. The second cell reference is C3, the color is green, and the cell
range has a green border with square corners.
To create your formula:
1. Click the cell in which you want to enter the formula.
2. In the formula bar, at the top of the Excel window that you use, , type = (equal
sign).
3. Click on the 1st cell you want in the formula.
4. Enter an Operator such as +, or *.
5. Click on the next cell you want in the formula. Continue steps 3 –5 until the formula is
complete
6. Hit the ENTER key on your keyboard.
EXAMPE WHAT IT DOESFORMUA
=A1+A2 Adds the values in cells A1 and A2
=A1-A2 Subtracts the value in cell A2 from the value in A1
=A1/A2 Divides the value in cell A1 by the value in A2
=A1*A2 Multiplies the value in cell A1 times the value in A2
=A1^A2 Raises the value in cell A1 to the exponential value specified in A2

Create a Formula with Function
1. Click the cell in which you want to enter
the formula.
2. Click Insert Function on the formula bar .

Excel inserts the equal sign (=) for you.
3. Select the function that you want to use. NOTE: If you're
not sure which function to use,type a question that describes
what you want to do in the Search for a function box (for
example, "add numbers" returns the SUM function), or
browse from the categories in the
4. Or Select a category box.
5. Enter the arguments.
6. After you complete the formula, press ENTER.
Use Auto Sum
To summarize values quickly, you can also use AutoSum.
1. Select the cell where you would like your formulas solution to appear.
2. Go to the Home tab, in the Editing group,
3. Click AutoSum, to sum your numbers or click the arrow next to
AutoSum to select a function that you want to apply.
Delete a Formula
When you delete a formula, the resulting values of the formula is also deleted. However, you can
instead remove the formula only and leave the resulting value of the formula displayed in the cell.
To delete formulas along with their resulting values, do the following:
1. Select the cell or range of cells that contains the formula.
2. Press DELETE.
To delete formulas without removing their resulting values, do the
following:
1. Select the cell or range of cells that contains the formula.
2. On the Home tab, in the Clipboard group, click Copy .
3. On the Home tab, in the Clipboard group, click the arrow below Paste , and then click
PasteValues.

Avoid common errors with formulas
The following table summarizes some of the most common errors that you can make when
entering a formula and how to correct those errors:
MAKE SURE THAT MORE INFORMATION YOU…
Match all open and

close parentheses Make sure that all parentheses are part of a matching pair. When you
create a formula, Excel displays parentheses in color as they are entered.
Use a colon to
indicate a range When you refer to a range of cells, use a colon (:) to separate the
reference to the first cell in the range and the reference to the last cell in
Enter all the range. For example, A1:A5.
required
arguments Some functions have required arguments. Also, make sure that you
have not entered too many arguments.
Nest no more
than 64 You can enter, or nest, no more than 64 levels of functions within a
functions function.
Enclose other sheet If the formula refers to values or cells on other worksheets or
names in single workbooks, and the name of the other workbook or worksheet contains
quotation marks a non-alphabetical character, you must enclose its name within single
quotation marks ( ' ).
Enter numbers
without Do not format numbers as you enter them in formulas. For example,
formatting even if the value that you want to enter is $1,000, enter 1000 in the
formula.

Charts in Excel
Microsoft Excel no longer provides the chart wizard.
Instead, you can create a basic chart by clicking the
chart type that you want on the Insert tab in the Charts
group. Charts are used to display series of numeric
data in a graphical format to make it easier to
understand large quantities of data and the
relationship between different series of data.
To create a chart in Excel, you start by entering the
numeric data for the chart on a worksheet. Then you
can plot that data into a chart by selecting the chart
type that you want to use on the Insert tab, in the
Charts group.
Worksheet data
Chart created from worksheet data
Getting to know the elements of a chart
A chart has many elements. Some of these elements are displayed by default, others can
be added as needed. You can change the display of the chart elements by moving them to
other locations in the chart, resizing them, or by changing the format. You can also
remove chart elements that you do not want to display.
1. The chart area is the entire chart and all its elements
2. The plot area is the area of the chart bounded by the axes.
3. The data points are individual values plotted in a chart represented by bars,
columns, lines, or pies.
4. The horizontal (category) and vertical (value) axis along which the data is
plotted in the chart.
5. The legend identifies the patterns or colors that are assigned to the data series
or categories in the chart.
6. A chart and axis title are descriptive text that for the axis or chart.
7. A data label provides additional information about a data marker that you
can use to identify the details of a data point in a data series.

CREATE A CHAR
On the worksheet, arrange the data that you want to plot in a chart. The data can be
arranged in rows or columns — Excel automatically determines the best way to plot the
data in the chart.
Select the cells that contain the data that you want to use for the chart.
NOTE: If the cells that you want to plot in a chart are not in a continuous range, you can
selectnonadjacent cells or ranges as long as the selection forms arectangle. You can also
hide the rows or columns that you do not want to plot in the chart.
Go to the Insert tab, in the Charts
Click the chart type, and then click a chart subtype from the drop menu that will
appear.
Click anywhere in the embedded chart to activate it. When you click on the chart,
Chart Tools will be displayed which includes the Design, Layout, and Format
tabs.
The chart will automatically be embedded in the worksheet. A chart name will
automatically be assigned.
Move Chart to New Sheet
1. On the Design tab, in the Location group, click Move Chart.

2. Under Choose where you want the chart to be placed, click on the New
sheet bubble
3. Type a chart name in the New sheet box.
Change Chart Name

4. Click the chart.
On the Layout tab, in the Properties group, click the Chart Name
text box.
Type a new chart name.
Press ENTER.
Change Chart Layout

1. Click anywhere in the chart.
2. Go to the Chart Tools, the Design group
3. In the Chart Layouts, click the chart layout that you want to use. To
see all available layouts, click More .
Change Chart Style

1.Click anywhere in the chart.
2.On the Design tab, in the Chart Styles group, click the chart style that you
want to use. To see all predefined chart styles, click More .
Chart or Axis Titles

To make a chart easier to understand, you can add titles, such as chart
and axis titles. To add a chart title:

2. On the Layout tab, in the Labels group, click Chart Title.
3. Click Centered Overlay Title or Above Chart.
4. In the Chart Title text box that appears in the chart, type the text that you want.
5. To remove a chart title, click Chart Title, and then click None.
NOTE: You can also use the formatting buttons on the ribbon (Home tab, Font
group). To format thewhole title, you can right-click it, click Format Chart Title,
and then
select the formatting options that you want.
To add axis titles:

2. On the Layout tab, in the Labels group, click Axis Titles.
3. Do one or more of the following:
To add a title to a primary horizontal (category) axis, click Primary Horizontal Axis
Title, and then click the option that you want.
To add a title to primary vertical (value) axis, click Primary Vertical Axis Title, and
then click the option that you want.
1. In the Axis Title text box that appears in the chart, type the text that you want.
2. To remove an axis title, click Axis Title, click the type of axis title to remove, and
then click None.
Data Labels
1. On a chart, do one of the following:
a. Click on the chart area to add a data label to all

data points of all data series
b. Click in the data series to add a data label to all
data points of a data series
c. Click on a specific data point to add a data label
to a single data point in a data series
2. On the Layout tab, in the Labels group, click Data

Labels, and then click the display option that you
want.
3. Text boxes will appear in the area of your chart based on your selection.

4. Click on the text box to modify the text.
5. To remove data labels, click Data Labels, and then click None.
NOTE: Depending on the chart type that you used,
different data labeloptions will be available.
Legend
When you create a chart, the legend appears, but you can hide the legend or
change its location after you create the chart.
1. Click the chart in which you want to show or hide a legend.
2. On the Layout tab, in the Labels group, click Legend.
3. Do one of the following:
a. To hide the legend, click None.
b. To display a legend, click the display option that you want.
c. For additional options, click More Legend Options, and then select
the display option that you want.
NOTE: To quickly remove a legend or a legend entry

from a chart, you canselect it, and then press DELETE.
You can also right-click the legend or a legend entry, and
then click Delete.
Move or Resize Chart
You can move a chart to any location on a worksheet or to a
new or existing worksheet. You can also change the size of
the chart for a better fit.
To move a chart, drag it to the location that you want.
To resize a chart, click on one of the edges and drag towards the center.
Advanced Spreadsheet Modification
Once you have created a basic spreadsheet there are numerous things you can do to make
working with you data easier. Some of these elements are hiding, freezing and splitting
rows. You can also sort and filter data, these features are quite helpful when working
with a large amount of data.
Hide or Display Rows and Columns
You can hide a row or column by using the Hide command or when you change its row
height or column width to 0 (zero). You can display either again by using the Unhide
command. You can either unhide specific rows and columns, or you can unhide all
hidden rows and columns at the same time. The first row or column of the worksheet is
tricky to unhide, but it can be done.
Hide Rows or Columns
1. Select the rows or columns that you want to hide.
3. Under Visibility, point to Hide & Unhide,
and then click HideRows or Hide Columns.
NOTE: You can also right-click a row or column (or a selection of multiple rows or
columns), and then click Hide.
Unhide Rows or Columns
1. Select the rows, columns or entire sheet to unhide.
3. Under Visibility, point to Hide & Unhide, and then click Unhide
Rows or Unhide Columns.

TIP You can also right-click the selection of visible rows and
columns surrounding the hidden rows and columns, and then click Unhide.
Freezing/Splitting Rows and Columns
To keep an area of a worksheet visible while you scroll to another area of the
worksheet, you can either lock specific rows or columns in one area by freezing panes.
Freezing vs. splitting
When you freeze panes, Microsoft Excel keeps
specific rows or columns visible when you scroll in
the worksheet. For example, if the first row in your
spreadsheet contains labels, you might freeze that
row to make sure that the column labels remain
visible as you scroll down in your spreadsheet. A
solid line indicates that the row is frozen to keep
column labels in place when you scroll.
When you split panes, Excel creates either two or four separate worksheet areas that
you can scroll within, while rows or columns in the non-scrolled area remain
visible. This worksheet has been split into four

areas. Notice that each area contains a separate
view of the same data. Splitting panes is useful
when you want to see different parts of a large
spreadsheet at the same time.
NOTE: You cannot split panes and freeze panes at the same time.
Freeze Panes
1. On the worksheet, select the row or column that you want to keep visible when
you scroll.
2. On the View tab, in the Window group, click the arrow below Freeze Panes.
3. Then do one of the following:
To lock one row only, click Freeze Top Row.
To lock one column only, click Freeze First Column.
To lock more than one row or column, or to
lock both rows and columns at the same time,
click Freeze Panes.

NOTE: You can freeze rows at the top and columns on the left side of the worksheet
only. You cannotfreeze rows and columns in the middle of the worksheet.
Unfreeze panes
1. On the View tab, in the Window group, click the arrow below Freeze Panes.
2. Click Unfreeze Panes.
Split Panes
1. To split panes, point to the split box at the top of the vertical scroll bar or at the
right end of the horizontal scroll bar.
2. When the pointer changes to a split pointer or , drag the split box down or to
the left to the position that you want.
3. To remove the split, double-click any part of the split bar that divides the panes.
Moving or Copying Worksheets
Sometimes you may need to copy an entire worksheet instead of copying and pasting
the data which may or may not paste properly, you can use the steps below to achieve
a must better result.
Move or Copy Worksheets
1. Select the worksheets that you want to move or copy.
2. On the Home tab, in the Cells group, click Format, and then under Organize
Sheets, click Move orCopy Sheet. You can also right-click a selected sheet tab,
and then click Move or Copy.
3. A Move or Copy dialog box will appear
4. To move a sheet, in the Before sheet list:
Click the sheet that you want to insert the moved or copied
sheets directly in front of.
Click move to end to insert the moved or copied
sheets after the last sheet in the workbook and before
the InsertWorksheet tab.
To copy the sheets, in the Move or Copy dialog box, select the
Create a copy check box.

NOTE: When you create a copy of the worksheet, the work sheet is
duplicated in the workbook, and the sheet nameindicates that it is a
copy — for example, the first copy that you make of Sheet1 is
named Sheet1 (2).
NOTE: To move sheets in the current workbook, you can drag the selected sheets along
the row ofsheet tabs. To copy the sheets, hold down CTRL, and then drag the sheets;
release the mouse button before you release the CTRL key.
Sorting Data
Sorting data is an integral part of data analysis. You might want to arrange a list of
names in alphabetical order, compile a list of product inventory levels from highest to
lowest, or order rows by colors or icons. Sorting data helps you quickly visualize and
understand your data better, organize and find the data that you want, and ultimately
make more effective decisions.
Sort Data in Single Column

1. Select a column of data in a range of cells
2. On the Data tab, in the Sort & Filter group, do one of the following:
To sort in ascending or smallest to largest order, click Sort A to Z.
To sort in descending or largest to smallest order, click Sort Z to A.
To reapply a sort after you change the data, click a cell in the range or table and
then, on the Data tab, in the Sort & Filter group, click Reapply.
Sort Data in Multiple Columns or Rows

You may want to sort by more than one column or row when you have data that you want
to group by the same value in one column or row, and then sort another column or row
within that group of equal values.
Select a range of cells with two or more columns of data.
1. On the Data tab, in the Sort & Filter group, click Sort.
2. The Sort dialog box will appear.
3. Under Column, in
the Sort by box,
select the first column
that you want to sort.
4. Under Sort On, select the type of sort.
To sort by text, number, or date and time, select Values.
To sort by format, select Cell Color,
Font Color, or Cell Icon.
1. Under Order, select how you want to sort.
For text values, select A to Z or Z to A.
For number values, select Smallest to
Largest or Largest to Smallest.
For date or time values, select Oldest to Newest or Newest to Oldest.
To sort based on a custom list, select Custom List.
2. To add another column to sort by, click Add Level, and then repeat steps four
through six.
3. To copy a column to sort by, select the entry and then click Copy Level.
4. To delete a column to sort by, select the entry and then click Delete Level.
5. To change the order in which the columns are sorted, select an entry and then
click the Up or Down arrow to change the order
To reapply a sort after you change the data, click a cell in the range or table and then, on
the Data tab, in the Sort & Filter group, click Reapply.

Chapter 5: Introduction to Internet

Learning Objectives
1. Explain the basic components and terminology of networks, including the Internet;
2. Explain the broad implications of the Internet on themarketplace.
3. M
4. N
5.
5.1Introduction
What is the Internet?
The Internet refers to thephysical network thatlinks computers acrossthe globe. It

consistsof the infrastructure of network servers andcommunications linksbetween them
thatare used to hold andtransport informationbetween the client PCsand web servers.The
Internet allows communication between millions of connected computers
worldwide.Information is transmitted from client PCs whose users request services to
servercomputers that hold information and host business applications that deliver the
services inresponse to requests.
Figure 5.1 Infrastructure components of the Internet

Internet service provider (ISP) is a provider enablinghome or business usersa connection
to access the Internet. They canalso host web-basedapplications.
5.2Development of the Internet

The simplest way in which the Internet can be described is as a global network system
madeup of smaller systems. The history and origin of the Internet as a business tool is
surprisingsince it has taken a relatively long time to become an essential part of business.
The Internetwas conceived by the Defense Advanced Research Projects Agency
(DARPA), an Americanintelligence organization, in 1969. The Internet began to achieve
its current form in 1987, growing from systems developed by DARPA and the National
Science Foundation (NSF).
Source: Based on Kampas (2000)

Table 5.1 Six stages of advances in the dissemination of information
The role of the Internet in restructuring business relationships
The relationship between a company and its suppliers and customers can be dramatically
altered by the opportunities afforded by the Internet. This occursbecause the Internet
offers a means of bypassing some of the channel partners. This processis known as
disintermediation or ‘cutting out the middleman’.Disintermediation isthe removal
ofintermediaries suchas distributors orbrokers that formerlylinked a company to
itscustomers.

Figure 6.2 illustrates disintermediation in a graphical form for a consumer
distributionchannel.The benefits of disintermediation to the producer are clear – it is able
to remove the sales and infrastructure cost of selling through the channel. Some of these
cost savings can be passed on to the customer in the form of cost reductions.
Figure 5.2 Disintermediation of a consumer distribution channel
In fact, although disintermediation has occurred, the creation of new

intermediariesbetween customers and suppliers, termed re-intermediation, has also
occurred. Forexample, in the travel industry sites such as Trip-advisor
(www.tripadvisor.com) provideinformation regarding destinations and hotels and then
provide links to hotel providers.
What are the implications of re-intermediation for the e-commerce manager?
1. it is necessary to make sure that your company, as a supplier, is represented with

thenew intermediaries operating within your chosen market sector. This implies the
need tointegrate, using the Internet, databases containing price information with
those of differentintermediaries.

2. it is important to monitor the prices of other suppliers within this sector(possibly
by using the intermediary web site for this purpose).
3. it may be appropriate to create your own intermediary.
5.3Intranets and Extranets

The majority of Internet services are available to any business or consumer that has
accessto the Internet. However, many e-business applications that access sensitive
companyinformation require access to be limited to favored individuals or third parties.
Ifinformation is limited to those inside an organization, this is an intranet. Intranetisa
private network within a single company using Internet standards to enable employees to
share information using e-mail and web publishing.
Figure 5.3 The relationship between intranets, extranets and the Internet
If access isextended to some others, but not everyone beyond the organization, this is an
extranet. Extranet formed by extending the intranet beyond a company to customers,
suppliers and collaborators. Therelationship between these terms is illustrated in Figure
6.3 above. Extranets can be accessed byauthorized people outside the company such as
collaborators, suppliers or major customers,but information is not available to everyone
with an Internet connection – only those withpassword access. Note that the term
‘intranet’ is sometimes loosely used to refer to anextranet.
Intranet applications
Intranets are used extensively for supporting the marketing function. They are also usedto
support core supply-chain management activities. A marketing intranet has the following
advantages:
 reduced product lifecycles – as information on product development and

marketing campaigns is rationalized– we can get products to markets faster;
 reduced costs through higher productivity, and savings on hard copy;
 better customer service – responsive and personalized support with staff
accessingcustomer information via the web;
 distribution of information through remote offices nationally or globally.
Intranets are also used for sharing the following types of information:
 staff phone directories;

 staff procedures or quality manuals;
 information for agents such as product specifications, current list and discounted
prices,competitor information, factory schedules and stocking levels – all this
informationnormally has to be updated frequently and can be costly;
 staff bulletin or newsletter;
 training courses.
Extranet applications
Extranets are used extensively to support supply chain management as resources

areordered from suppliers and transformed into products and services delivered to
customers.To enable different applications within a company, such as a sales ordering
system andan inventory control system that interoperate with each other and databases in
othercompanies, requires an internal company intranet to be created that can then
communicateacross an extranet with applications on another company intranet.
Firewall is a specialized software application mounted on a server at the point where the
company is connected to the Internet. Its purpose is to prevent unauthorized access into
the company from outsiders.

5.4World Wide Web
What is the World Wide Web?
The World Wide Web provides a standard method for exchanging and publishing
information on the Internet. The medium is based on standard documentformats such as
HTML (Hypertext Markup Language) which can be thought of as similar toa word-
processing format such as that used for Microsoft Word documents. This standardhas
been widely adopted because:
 it offers hyperlinks which allow users to readily move from one document or web
site toanother – the process known as ‘surfing’;
o Hyperlink is a method of moving between one web-site page and another,
indicated to the user by an image or text highlighted by underlining and/or a
different color.
 HTML supports a wide range of formatting, making documents easy to read on
differentaccess devices;
 graphics and animations can be integrated into web pages;
 interaction is possible through HTML-based forms that enable customers to
supply theirpersonal details for more information on a product, perform searches,
ask questions ormake comments.
It is the combination of web browsers and HTML that has proved so successful
inestablishing widespread business use of the Internet. The use of these tools provides a
rangeof benefits including the following:
 It is easy to use since navigation between documents is enabled by clicking on

hyperlinks or images. This soon becomes a very intuitive way of navigation which
is similar acrossall web sites and applications.
 It can provide a graphical environment supporting multimedia which is popular
withusers and gives a visual medium for advertising.
 The standardization of tools and growth in demand means information can be
exchangedwith many businesses and consumers.
5.5Web Browsers and Servers
Web browsers are software used to access the information on the WWW that is storedon
web servers. Web servers are used to store, manage and supply the information on

theWWW. The main web browsers are Microsoft Internet Explorer, Mozilla Firefox,
GoogleChrome, Apple Safari and Opera. Browsers display the text and graphics accessed
from websites and provide tools for managing information from web sites.Web browsers
communicate with web servers in the following way:
A request from theclient PC is executed when the user types in a web address, clicks on a
hyperlink or fillsin an online form such as a search. This request is then sent to the Internet
Service Providers (ISP) and routed acrossthe Internet to the destination server using the
mechanism described in the section onprotocols. The server then returns the requested web page
if it is a static (fixed) page, or if it requires reference to a database, such as a request for product
information, it will pass the query on to a database server and will then return this to the
customer as a dynamically created web page.
TCP/IP
The Transmission Control Protocol(TCP) is atransport-layer protocolthat moves

databetween applications. The Internet Protocol (IP) is a network-layerprotocol that
moves data between host computers.These four ground rules highlight the operation of
the TCP/IP protocol:
 Distinct networks would be able to communicate seamlessly with other networks.

 Communications would be on a best-effort basis, i.e. if a data packet didn’t reach
thefinal destination, it would be retransmitted from the source until successful
receipt.
 Black boxes would be used to connect the networks; these are the gateways and
routersproduced by companies such as Cisco and 3Com. There would be no
informationretained by the gateways in order to keep them simple.
 There would be no global control of transmissions; these would be governed by
therequester and sender of information.
IP address
IP address is theunique numericaladdress of a computer. The IP address of areceiving

server is usually in the form 10.226.5.17, which is a numerical representationof a better-
known form such as www.microsoft.com. Each IP address is unique to a
givenorganization, server or client, in a similar way to postal codes.

5.6The HTTP Protocol
HTTP, the hypertext transfer protocol is a standard used to allow web browsers and
serversto transfer requests for delivery of web pages and their embedded graphics. When
you clickon a link while viewing a web site, the web browser you are using will request
informationfrom the server computer hosting the web site using the HTTP protocol. Since
this protocolis important for delivering the web pages, the letters http:// are used to prefix
all webaddresses. HTTP messages are divided into HTTP ‘get’ messages for requesting
and webpage and HTTP ‘send’ messages. The web pages and graphics transferred in this
way aretransferred as packets, which is why web pages do not usually download
smoothly, but comein jumps as different groups of packets arrive.
The inventor of HTTP, Tim Berners Lee, describes its purpose as follows (Berners
Lee,2000):
HTTP rules define things like which computer speaks first, and how they speak in turn.
When two computers agree they can talk, they have to find a common way to represent
their data so they can share it.
Uniform Resource Locators (URLs)
Web addresses refer to particular pages on a web server which is hosted by a companyor
organization. The technical name for web addresses is uniform or universal resource
locators (URLs). URLs can be thought of as a standard method of addressing similar
topostcodes that make it straightforward to find the name of a site.
Web addresses are usually prefixed by ‘http://’ to denote the http protocol that isexplained
above. Web addresses always start with ‘http://’, so references to web sites in thisbook
and in most promotional material from companies omit this part of the URL. Indeed,when
using modern versions of web browsers, it is not necessary to type this in as part ofthe
web page location since it is added automatically by the web browser. Although the
vastmajority of sites start with ‘www’, this is not universal, so it is necessary to specify
this.Web addresses are structured in a standard way as follows:
http://www.domain-name.extension/filename.html
Domain Names

The domain name refers to the name of the web server and is usually selected to be
thesame as the name of the company, and the extension will indicate its type. The
extension isknown as the global top-level domain (gTLD). There are also some 250
country-code top-level domains (ccTLD).Some common gTLDs are:
 .com represents an international or American company such as www.travel-

agency.com
 .co.uk represents a company based in the UK such as www.thomascook.co.uk
 .org is for not-for-profit organizations (e.g. www.greenpeace.org).
Summary
 The Internet is a global communications network that is used to transmit the

information published on the World Wide Web (WWW) in a standard format
based on Hypertext MarkupLanguage (HTML) using different standard protocols
such as HTTP and TCP/IP.
 Companies deliver e-business services to employees and partners through web
servers which are often hosted at third-party companies known as Internet service
providers (ISP). Web servers willbe linked to applications servers, database
servers and legacy applications to deliver these services.
 Consumers and business use these e-business services through web browser
software withconnections to the Internet also managed by an ISP through which
they can access web servers.
 Intranets are private networks used inside companies to share information.
Internet-based tools such as e-mail, FTP and the World Wide Web are all used as
the method of sharing this information. Not all Internet users can access intranets
since access is restricted by firewalls and password controls. Extranets are similar
to intranets, but they are extended beyond the companyto third parties such as
suppliers, distributors or selected customers.
 Standards to enable delivery of information include:
o communications standards such as TCP/IP and HTTP;
o text information standards such as HTML, XML and WML;
o graphical information standards such as GIF and JPEG;
o multimedia standards such as Shockwave, Flash and streaming audio and
video.
1. What is the difference between the Internet and the World Wide Web?
2. Describe the two main functions of an Internet service provider (ISP). How do ISPs
differfrom applications service providers?
3. Distinguish between intranets, extranets and the Internet.
4. Describe the standards involved when a web page is served from a web server to a
user’sweb browser.

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2. Distinguish between data, information and knowledge;

 the nature of data, information and knowledge;

Fundamentals of Information Systems, minyahil04@gmail.com 1

Figure 1.1 Information Systems Triangle

1.2Data and Information

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Figure 1.2The ‘DIKW’ Model

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 a series of non-random symbols, numbers, values or words;

Artificial data are often produced as a by-product of a business process. Processingan

Fundamentals of Information Systems, minyahil04@gmail.com 4

Some examples of information include:

A somewhat different view of information can be examined by introducing an additional

Information acts to reduce uncertainty about a situation or event.

Although uncertainty can never be eliminated entirely, it can be reduced

To summarize the key points made in the preceding section. Information:

 involves transforming data using a defined process;

Fundamentals of Information Systems, minyahil04@gmail.com 5

• symbol Process • bank statements

Figure 1.3 Transforming data into information using a data process

Some examples of data processes are include the following:

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Activity 1.1 Data vs. Information

Value of information – Cost of gathering information

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Activity 1.2 Tangible and Intangible Information

Information transmitted by formal communication tends to be presented in a consistentmanner.

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Informal communication is always present in an organization, regardless of its size or

1.3Attributes of Information Quality

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 Timeliness – the information should be available when needed. If information is provided

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Knowledge and Wisdom

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Rainer and Cegielski’s(2011):

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 foster innovation by encouraging the free flow of ideas;

 an improved ability to sustain competitive advantage, leading to increased market

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1.4Business Information System

A business information system is a group of interrelated components that work collectively to

Resources that Support BIS

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Modern organizations rely heavily upon information and communications technology(ICT) to

According to former IBM CEO Lou Gerstner, e-business is

The process of using Web technology to help businesses streamline processes,

Hence, e-business involves several key activities: improving businessprocesses, enhancing

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1.5Information and Managerial Decision Making

The information requirements of managers

As organizations growin size or complexity, importance of effective and efficientmanagement

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Levels of managerial decision making

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Fundamentals of Information Systems, minyahil04@gmail.com 20

(h) What new markets should we move into?

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After reading this chapter, you will be able to:

3. Describe the features found in a variety of modern applications software