Extra Credit Study Guide

Chapter 7 – Software for Managers

Vocabulary

Software (Textbook, Ch. 7): A set of instructions that tells hardware what to do, including operating systems and applications. Example: Microsoft Excel.

Application (Textbook, Ch. 7): Software that performs specific tasks users or firms care about. Example: Using Excel to create a budget.

Operating system (OS) (Textbook, Ch. 7): Software that manages hardware resources and provides a platform for applications. Example: Windows or macOS.

Open source software (Textbook, Ch. 7): Software whose source code can be viewed, modified, and distributed by anyone. Example: Linux.

Closed source (proprietary) software (Textbook, Ch. 7): Software whose source code can only be modified by the owning firm. Example: Microsoft Windows.

Database management system (DBMS) (Textbook, Ch. 7): Software that creates, stores, and manages databases for multiple applications. Example: A bank storing account balances.

Middleware (Textbook, Ch. 7): Software that connects different applications so they can communicate. Example: Linking a retail app to a legacy inventory system.

Enterprise application (Textbook, Ch. 7): Software designed to support many users across an organization. Example: ERP or CRM systems.

Enterprise resource planning (ERP) system (Textbook, Ch. 7): An integrated system that coordinates core business functions using a single database. Example: Automatically updating inventory after a sale.

Customer relationship management (CRM) system (Textbook, Ch. 7): Software that supports sales, marketing, and customer service. Example: Viewing a customer’s full service history.

Supply chain management (SCM) system (Textbook, Ch. 7): Software that manages the flow of materials and goods between suppliers and firms. Example: Coordinating parts delivery to a factory.

Business intelligence (BI) system (Textbook, Ch. 7): Systems that analyze data to support managerial decision‑making. Example: Analyzing holiday sales trends.

Distributed computing (Textbook, Ch. 7): A computing model where multiple computers work together on a task. Example: Search engines using thousands of servers.

Konana’s model of the software ecosystem (Textbook, Ch. 7): A layered model showing how hardware, OS, databases, middleware, and apps depend on one another, creating lock‑in. Example: Apps dependent on a specific operating system.

User interface (UI) / graphical user interface (GUI) (Textbook, Ch. 7): The means by which users interact with software, often using visual elements. Example: Clicking icons on a desktop.

Total cost of ownership (TCO) (Textbook, Ch. 7): The full cost of owning software, including purchase, training, support, and maintenance. Example: IT support costs after buying new software.

Scalability (Textbook, Ch. 7): A system’s ability to handle growth in users or workload. Example: A website handling a Black Friday traffic spike.

Quiz

Question 1

Why did a firm underestimate the true cost of new software?

  • A. Price elasticity
  • B. Total cost of ownership (TCO)
  • C. Switching costs
  • D. Economies of scale
Question 2

What enables different hospital systems to exchange data automatically?

  • A. Operating system
  • B. Database application
  • C. Middleware
  • D. User interface
Question 3

What technology supports shared organizational data?

  • A. Flat‑file storage
  • B. DBMS
  • C. Local applications
  • D. GUI
Question 4

Linux is best described as:

  • A. Proprietary software
  • B. Enterprise application
  • C. Open source software
  • D. Middleware
Question 5

Why do firms implement ERP systems?

  • A. Support one user
  • B. Reduce hardware costs
  • C. Enable firm‑wide coordination
  • D. Improve graphics

Answer Key

Q1: B
Q2: C
Q3: B
Q4: C
Q5: C

Sources