A business application in the computer. It is made up of the database, application programs and manual and machine procedures. It also encompasses the computer systems that do the processing.
Processing the Data
The database stores the subjects of the business (master files) and its activities (transaction files). The application programs provide the data entry, updating, query and report processing.
The manual procedures document how data are obtained for input and how the system's output is distributed. Machine procedures instruct the computer how to perform scheduled activities, in which the output of one program is automatically fed into another.
The daily work is the online, interactive processing of the business transactions and updating of customer, inventory and vendor files (master files).
At the end of the day or other period, programs print reports and update files that were not updated on a daily basis. Periodically, files must be updated for routine maintenance such as adding and deleting employees and making changes to product descriptions. See transaction processing