Chapter 1: Computers in Our Daily Business Life
Learning Objectives
Welcome to the first step of your journey! This chapter introduces the essential role of computers in the business world. After studying this chapter, you will be able to:
- Explain the four key reasons why computers are essential for modern business: speed, accuracy, reach, and decision-making.
- Identify the five main categories of computer users: Home, SOHO, Mobile, Power, and Enterprise.
- Provide examples of how different types of users interact with technology in various business and personal settings.
Introduction
Think about your day so far. Did you use an app to wake up? Did you check your messages on WhatsApp or Telegram? Maybe you paid for your nasi lemak this morning by scanning a DuitNow QR code. Or perhaps you browsed Shopee or Lazada to look for a new pair of shoes.
All these activities, communicating, shopping, and banking, are possible because of computers. Computers are not just the desktops or laptops we see in an office. They are in our phones, in the ATMs we use, and in the cash registers at the supermarket.
In the business world, computers are everywhere. From a small local kedai runcit (sundry shop) that uses a simple system to track its sales, to a large company like Petronas that uses powerful computers to find oil, technology is essential. Understanding how computers work is no longer just for IT experts; it is a basic skill for everyone in business today. This chapter will be our starting point to understand these amazing tools.
Why Computers are Essential for Business
In today’s world, it is almost impossible for a business to survive, let alone succeed, without using computers. They are no longer just a helpful tool; they are a fundamental part of a company’s operations. Let’s explore in more detail the four main reasons why computers are so essential.
Speed
The most obvious advantage of a computer is its incredible speed. A modern computer can process millions of instructions every second, a task that would be impossible for a human. For a business, this speed translates directly into efficiency and better customer service.
Scenario: Think about a busy GrabFood rider. When an order comes in, the app on their phone instantly calculates the fastest route, processes the customer’s payment, and updates the restaurant, all in a matter of seconds. If this process were manual, it would be too slow to work, and the entire food delivery industry would not be possible. In an office, tasks that used to take hours, like sending a physical letter, can now be done in seconds with an email.
Accuracy
Humans make mistakes, especially when they are tired or have to repeat the same task many times. Computers, on the other hand, do not. When given the correct instructions, a computer will perform calculations with 100% accuracy, every single time. This is critical in business, where small errors can lead to big problems.
Scenario: When you transfer money using an online banking app like Maybank2u, the system calculates your new balance perfectly every time. Imagine if a bank employee had to do this by hand for thousands of customers a day; mistakes would be unavoidable. This guaranteed accuracy is what gives us the confidence to trust digital banking and what allows businesses to manage complex finances without costly errors.
Reach
Before the internet, a business’s customers were usually limited to the people who lived in the local area. Computers and the internet have completely changed this.
Scenario: Consider a small business in Labuan that makes beautiful handmade pearl jewelry. In the past, they could only sell to tourists or local residents. Today, by setting up a simple online store on Instagram or a platform like Shopee, they have a global reach. They can use their computer to market their products, communicate with customers, and ship their jewelry to someone in Kuala Lumpur, Singapore, or even London. The computer has turned their small local shop into a potential international business.
Decision-Making
Successful businesses make smart decision-makings based on good information. Computers are incredibly powerful tools for helping managers make these decisions.
Scenario: Let’s go back to the coffee shop owner. At the end of the month, the owner can use their point-of-sale (POS) system to analyze all the sales data. The computer can quickly create a simple chart that shows that Iced Lattes are the best-selling drink, but that sales of cakes are very low on Mondays. This is valuable information. Based on this, the owner can make smart decisions, like creating a “Monday Cake Combo” promotion to increase sales on that slow day, or ordering more milk because they know Iced Lattes are so popular.
Check Your Understanding: Q1
Check Your Understanding: Q2
Categories of Computer Users
Not everyone uses a computer in the same way or for the same reasons. The type of computer and software a person needs depends heavily on the tasks they perform. We can group computer users into five general categories, each with different needs and goals.
Home User
A home user is anyone who uses a computer for personal activities at home. This is perhaps the most common category. Their computer is a central tool for managing their personal life, for entertainment (watching movies, playing games), and for learning (helping children with homework).
A home user might pay their electricity or water bills online through a banking website, help their children with school homework using online resources, or use social media like Facebook to connect with friends and family. They also use their computers for entertainment, such as watching movies on Netflix, listening to music on Spotify, or playing games. They usually have a standard desktop computer, an all-in-one PC, or a laptop that is powerful enough for everyday tasks but not necessarily for highly demanding professional work.
Small Office/Home Office (SOHO) User
This category includes individuals who run a business from their home or a very small office. A SOHO user can be a small business owner, a freelancer (like a writer, graphic designer, or social media manager), or an employee who works remotely. Their computer is their primary tool for earning an income.
SOHO users perform a wide range of basic business tasks. They use software like Microsoft 365 (Word, Excel) to write invoices and track finances, and email to communicate with clients. They might also use social media for marketing their business or a simple cloud-based accounting software to manage their accounts. For example, a person in Labuan who runs a small online business selling local snacks from home is a perfect example of a SOHO user. They use their laptop to manage their Shopee store, reply to customer messages on WhatsApp, design promotional images using a tool like Canva, and keep a record of their sales in a spreadsheet.
Mobile User
A mobile user is a professional who needs to work while on the move, away from a main office. They rely on portable devices like smartphones, tablets, and lightweight laptops to stay connected and productive from any location. Constant access to the internet via 4G/5G or public Wi-Fi is essential for them.
A mobile user needs to check emails, join online meetings on platforms like Zoom or Google Meet, and access company information stored in the cloud (e.g., Google Drive or Microsoft OneDrive). For example, a sales agent visiting different clients is a mobile user. They use a tablet to show product presentations and take new orders directly from the client’s office. As a university student who brings a laptop to class to take notes and access the e-learning portal, you are also a mobile user.
Power User
A power user requires a high-performance computer for very demanding and specialized tasks. Standard computers are often not fast or powerful enough for their work, which usually involves processing huge amounts of data or creating complex graphics.
Their work often involves 3D modelling, video editing, or complex scientific calculations. They need top-of-the-line hardware, such as the fastest CPUs, a large amount of RAM (often 32GB or more), and powerful, dedicated graphics cards. For example, an engineer using AutoCAD software to design a detailed 3D model of a bridge is a power user. Their computer must be powerful enough to render the complex graphics without slowing down. A video editor working on a 4K movie or a data scientist training an Artificial Intelligence (AI) model are also power users.
Enterprise User
An enterprise user is an employee who works for a large organisation, which is often called an enterprise. This can be a large company like a bank or Petronas, a university, or a government department.
An enterprise user performs their job on a computer that is connected to the company’s large and complex network. They often use specialized, custom-built software that is not available to the public. For example, a bank employee will use a special banking system to manage customer accounts, and a university staff member will use a student information system to manage student records. The main difference is that an enterprise user works as part of a very large system with hundreds or even thousands of other users. Their computer is managed by the company’s IT department, and there are usually strict security rules about what software they can install and what websites they can visit.
Check Your Understanding: Q3
Check Your Understanding: Q4
Check Your Understanding: Q5
Chapter Summary
In this chapter, we explored why computers are an essential part of our daily business lives. We learned that businesses depend on computers for their speed, accuracy, global reach, and ability to help with decision-making. We also identified the five main categories of computer users, from the home user managing their personal life to the enterprise user working within a large corporate network. Understanding this context is the first step to learning how we can apply computer skills in a business environment.
Review Questions
- List the four main reasons why computers are essential for business, as discussed in the chapter.
- Provide a real-world example of how a business uses computers for “Decision-Making.”
- In your own words, what is the main difference between a Mobile User and a Power User?
- Explain how a computer helps a small business in a place like Labuan achieve a global “Reach.”
- Think of a large company in Malaysia (like Petronas or Maybank). Which category of computer user would its employees fall into, and why?
References
Laudon, K. C., & Laudon, J. P. (2023). Management information systems: Managing the digital firm (17th ed.). Pearson.
Schneider, G. (2022). Electronic commerce (13th ed.). Cengage Learning.
Statista. (2024). Digital economy in Malaysia – statistics & facts. Statista. https://www.statista.com/topics/8451/digital-economy-in-malaysia/
Vermaat, M. E., Sebok, S. L., Freund, S. M., Campbell, J. T., & Frydenberg, M. (2021). Discovering computers: Digital technology, data, and devices (2021 ed.). Cengage Learning.
World Bank Group. (2021). Malaysia economic monitor: Weathering the surge. World Bank. https://openknowledge.worldbank.org/handle/10986/36736
The ability of a computer to process millions of instructions every second, which translates into business efficiency and better customer service.
The ability of a computer to perform calculations with 100% accuracy, which is critical for financial tasks
The ability of a business to connect with customers and partners globally through the internet.
The process of using computer-analyzed information to make smarter business choices.
A person who uses a computer for personal activities at home, such as managing personal life, entertainment, and learning.
An individual who runs a business from home or a small office, using a computer as their primary tool for earning an income.
A professional who works while on the move, relying on portable devices like smartphones and tablets to stay connected and productive.
A user who requires a high-performance computer for demanding and specialized tasks, such as 3D modelling or scientific calculations.
An employee who works for a large organisation on a managed company network, often using specialized, custom-built software.
