Computer Applications

According to The History of Computing Project, the prototype of the first microcomputer was introduced by the aptly named Micro Computer Inc., Los Angeles, in 1968. ARPANET, a defense contractors' information exchange and the precursor of the Internet, was born a year later. Commercial microcomputers (Apple, Commodore, Tandy, Sinclair, and Texas Instruments) appeared in 1977. Apple Computer introduced the first graphical interface with the Macintosh; Microsoft followed with the first version of Windows in 1985. The Internet evolved from ARPANET over a period of 18 years and, by 1987, it was a world-wide network. By 1990 it was beginning to appear in small businesses, usually in text mode. The first well-known microcomputer software applications were the VisiCalc spreadsheet and the word processors Applewriter and WordStar, all dating to the 1978—1979 period.

A few small businesses used computers before the micros appeared, but primarily in professional applications rather than as business tools. Minicomputers like the Honeywell (used in engineering) and the Wang (a dedicated word processor much used by law-firms and here and there by a successful author) were in the small business price range. Since then the three related strands of computing—hardware, software, and networks—have produced something of an avalanche of change in business administration and communications, every year bringing changes. Not surprisingly, four months before 2006 began, PC Magazine published a forecast entitled "2006: The Year Everything Changes." More or less the same theme has been sounded every year since 1980. But changes in computing and related software applications have shifted toward cell-phone-sized devices. In the traditional areas of office computing, the emerging issues of the mid-2000s are 1) centralization and decentralization: should the information technology (IT) staff have more or less control; 2) renewal or adaptation: should aging applications be brought up to date or should the business intelligently integrate old and new and save money; and 3) Web-related expansion and exploitation.

Small business has taken an active part both in the use and provision of computer applications. Once computers became affordable, they have been widely deployed in small business and, whether stand-alone or networked, have provided much the same administrative support service they do in larger enterprises. Small businesses have also participated actively in providing computer services, the production of custom software, the writing of such software for their own operations, in consulting with clients and systems integration, and in Web-consulting and Web-page design and development. By the very nature of the small business environment, small operations have found it easy to adapt and to respond rapidly to change in what was a dynamic environment.

CATEGORIES OF APPLICATIONS

Operating Systems

All computers run under the control of operating system software (OS) designed for the hard-ware platform. The OS provides the basic environment in which everything takes place. Windows is the most widely-used OS on small computers followed by the Apple's Mac OS; only a small minority of small computers run on Unix, developed in 1969 at Bell Laboratories, or its derivates, e.g., LINUX. The choice of operating systems in small businesses is often driven by the type of work done and/or the operating systems used by clients. Many operations based on the graphic arts use Macintosh computers; in other cases the need easily to exchange data with clients may dictate choice of the OS. All else being equal, small businesses will tend to use the most cost-effective system in-house, typically a Windows-based or a Macintosh system.

Office Applications

Word processing for written communications, spreadsheets for analysis, databases for inventory control, bookkeeping software for accounting, and software for tax preparation have become reasonably priced for even small businesses that have only one computer. Payroll software has now emerged for smaller operations too, sometimes free-standing and sometimes as extensions of popular bookkeeping packages. In the mid-2000s, most small businesses were computerized and, in addition, enjoyed data management at levels of sophistication unimaginable in the mid-1990s.

Professional Software

Computer-assisted software development, design, and manufacturing systems (CAS, CAD, and CAM) are perhaps the best-known examples of professional software. Such systems, however, are also available for just about any professional activity that is based on symbol manipulation, data storage, and data processing. The Apple Macintosh, an early entrant into the graphical environment, continues to dominate graphic arts operations. Computer-based page design and typesetting packages have become affordable and are widely used in the small organization. Virtually all medical practices use computer-based patient scheduling and billing systems; the goal of completely automated and digitalized patient record-keeping, however, is still in the future; systems are being installed here and there but are not yet widely used.

Business Communications and Outreach

The introduction of computer faxes and especially e-mail systems has revolutionized the way that businesses communicate with one another and employees interact within the company. Long-distance telephone costs and postage costs are saved in the process, and faster communications also speed up decision-making. Of greatest importance, perhaps, for the small business is its ability to communicate with potential customers through its own Web-site. Web-based marketing is very widespread.

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