Introduction to Computers

A computer is a mechanical tool used to store, retrieve, and process volume of data. Computers perform mathematical functions more quickly and accurately then any other alternative. They also sort information and print reports which are helpful to management. In the 1950s, generally only the largest businesses could afford to purchase and use computers. In addition to having a high price, early computers required a programming staff to provide the programs which directed the computers to carry out each task. These computers were also very large and required their own specialized facilities and cool, dust-free environments. Today, even a small business can afford a computer and off-the-shelf (ready-to-use) programs are available for many business applications at modest cost. Some computers require only a small amount of space and can be operated by just one person who possesses fundamental computer knowledge. Not all small businesses can justify the use of a computer. If the volume of companys business transactions is very small, even the current availability of computers at low cost might not warrant automation. For such businesses, keeping records and handling data manually would continue to be appropriate. However, a hospitality business today faces a competitive and complex environment. Each businesss economic survival depends on producing and obtaining timely and reliable information at a reasonable cost. Computers are one resource; they are helpful to managers for controlling costs and managing financial and operational resources. Hospitality professionals are expected to have an understanding of computers and their applications. It is not necessary to know how to program the computer, explain its electronic circuitry, or describe the function of silicon chips. What is needed is a basic knowledge of computer terminology, hardware and software options, and computer operation. This chapter provides this essential information and enables readers to intelligently discuss and analyze computer capabilities.1 History of Computers In the 1950s the mainframe computer was the only computer available to business users. It was expensive, and it required a large staff of trained programmers and operators. In addition, large specialized facilities were necessary to house this type of computer. In the early 1970s the minicomputer became an option. Slower and less powerful than the mainframe, the minicomputer was a less expensive alternative, but it still remained unaffordable for the typical small business. In the mid-1970s the microcomputer was introduced. During this period, improvements in computers became possible because of the phenomenal advance of technology, which included developments such as the microprocessor chip and floppy disks. This eras desktop computer had more speed, storage capability, and power than some of the early mainframe computers and became available at a cost that even an individual or the smallest business could afford. Microcomputers are also referred to as personal computers. These computers do not require highly trained operators; generally users can quickly learn how to operate them.

Information Systems An information system is a combination of methods or procedures designed to produce information which management can use in making business plans and decisions necessary in the short-term and long-term administration of a hotel. Some examples of information systems are: Payroll Rooms management Front office accounting General ledger Financial statements Accounts receivable Accounts payable Sales forecasting

Manually performing the procedures which make up the preceding information systems may be satisfactory for small companies. However the handling of a large volume of data and a need to produce information quickly may justify a companys changeover to electronic data processing (EDP), which uses a computers system. The advantages of computerized information systems in comparison with manual systems are as follows: Greater speed Increased accuracy Elimination of duplicated efforts Automatic generation of reports

Computers process data much more quickly than any human is capable of doing; some computers are so fast that their speeds must be measured in millionths of a second. A computer will not make careless mistakes; it will perform repetitive mathematical functions without error. Safeguards can be built into a computer program to produce an alert when unusual conditions occur; for example, a computer program could draw attention if a payroll check is issued over a specified limit. The alert may be in the form of a printed message or monitor display. Duplicated efforts are eliminated because the computer can perform many functions while only handling a record once; for example, it can post a journal entry and automatically update the account balance. Management reports are a by-product of an automated system; computer files can easily be sorted into numerous categories and reports can be generated automatically. A computers system can do more than process routine reports. For many companies, the next step after automating their information systems is to design a management information system (MIS), which integrates the information needs of management with the computers capabilities. A good MIS allows a companys management to: Monitor and measure the hotels performance Identify trends Select alternative actions Make better business decisions

Types of Data The data which is input to a computer system can be classified as one of the following:

Alpha data Numeric data Alphanumeric data

Alpha data consists only of letters, numeric data consists only of numbers, and alphanumeric data consists of both numbers and letters. This classification of data allows a computer program to be designed to check the accuracy of certain input data. For example, a computer can be programmed to reject a users attempt to enter any numeric data which accidentally includes a letter (such as when a user is entering a room number but accidentally types a letter). A computers ability to analyze and classify a users input in this way reduces the number of data entry errors and makes an information processing system more reliable. Computer Hardware The physical computer equipment is called hardware. A computer system is made of the following hardware components: Input / output unit Central processing unit (CPU) External storage device

Exhibit 13.1 illustrates various components of a microcomputer system. Exhibit 13.2 illustrates one of the different kinds of printers (printers are output units) which are available. Input / Output Units An input unit allows the CPU to receive data, and an output unit permits the visual display of information or the storage of information. Disk drives can perform both input and output functions; they provide input of data and record updated data. Typical input units include: Keyboards Touch-screen terminals Computer mouse Disk drives

Typical output units include: Printers Monitors Disk drives

Keyboards. A computer keyboard is similar to typewriter keyboard. The keys allow the input of letters, numbers, and special characters. The keyboard also has keys which control the movement of data and the computers operations. Touch Screen Terminals. A touch-screen terminal allows the input of data without the use of a keyboard. Touching a designated area of the screen automatically creates input

to the computer. Touch-screen terminals are especially useful as order-entry devices in a food service operation. Computers Mouse. A computer mouse is a small device which a computer user rolls or moves on a flat surface. This action moves an on-screen arrow which allows the user to choose commands, move text, and perform other operations. A mouse can be used in place of or in conjunction with a keyboard. Printer. A printer is necessary to produce documentation or reports. Printer speed is usually measured in characters per second (cps). Because laser printers are very fast, their speed is measured in pages per minute (ppm). Monitors. A monitor displays text and graphics on a screen. Monitors look like television screens and are available in monochrome or color units. Exhibit 13.3 Computer Hardware Components

Input/Output Units Keyboards Touch-Screens Display Screens Printers

External Storage Devices Magnetic Tapes Floppy Disks Hard Disks

Central Processing Unit Arithmetic/Logical Unit Control Unit Operating System Internal Memory Information Flow Control Flow

Central Processing Unit The central processing unit (CPU) is the brain of the computer system. It performs all the mathematical and logical operations and directs all the other components of the system. The microprocessor chip is the heart of the CPU. Exhibit 13.3 illustrates the role of the CPU in relation to other computer hardware components. There are two types of internal storage (memory) in the CPU: Read only memory Random access memory

Read Only Memory (ROM). The read only memory (ROM) is preset by the manufacturer of the computer. It is not accessible by the user. ROM contains programmed commands which direct the basic computer operations. For example, a manufacturer may have selected the command START to initiate the running of a program. If the computer user enters GO, the user would get a SINTAX ERROR message because the computer does not recognize the command. However, another computer manufacturer may have used GO as its command to start a program. Computers recognize only their own programmed commands as preset by the manufacturer; this is why one type of software may not work on all brands of computers. Random Access Memory (RAM). The random access memory (RAM) is user accessible. It temporarily stores all the data being processed by the computer. This data can be accessed and altered by the user. Whenever electrical power is lost or the computer is turned off, all user data in RAM is erased. If another program is started, all previous data in RAM is also no longer available. RAM is available only during the operation of a program. For this reason, any information which must be saved for future use is recorded on an external storage device. It is important that the amount of RAM be sufficient to fit the needs of a particular user: RAM capacity is also important because different kinds of applications software have various RAM size requirements. Purchasing a computer with insufficient RAM may severely limit the types of tasks the computer can perform for a business. Bytes. The amount of RAM is measured in bytes. A byte can generally be explained as a single character (a letter, number, symbol, or even a blank space). The number of bytes of RAM is generally measured in thousands of characters, with the symbol K (kilobyte) representing approximately one thousand bytes (1,024 to be precise). Therefore, a 256K machine has a RAM capacity of 256,000 bytes or 262,144 characters. Other symbols used to designate RAM size are MB and GB. A megabyte (MB) represents approximately one million bytes (1,024 kilobytes or 1,048,576 bytes), and a gigabyte (GB) represents approximately one billion bytes (1,024 megabytes or 1,073,741,824 bytes). CPU Speed. Another important consideration in evaluating a CPU is its speed in processing data. Speed is measured in megahertz (MHz); one MHz is equivalent to one million cycles per second. Thus, a 20-MHz CPU is faster than a 12-MHz CPU. External Storage Devices External storage devices permit the recording of data and programs so they can be accessed and updated in the future. For example, employee payroll files contain each employees name, pay rate, and other fixed information. In addition, year-to-date payroll data is updated every time a paycheck is issued. This information must be recorded on an external storage device because it is necessary each time payroll is processed. Three common types of external storage devices are the following: Magnetic tapes Diskettes Hard disks

Magnetic Tapes. Magnetic tapes are similar in construction to the cassette tapes used in tape recorders; their size varies depending on the type of computer used. Magnetic

tape storage is not as popular as disk storage because of the way in which tape provides accessibility to the stored data. Magnetic tapes store data in a sequential access mode, which means the computer must wind and rewind the tape drive to find a particular record. For example, assume a hotel has 100 rooms numbered from 1 to 100. To access the records for Room 65, the records for Rooms 1 to 64 must be passed in the search. If the next transaction is for information on Room 25, it is necessary to rewind the tape until the record for Room 25 is found. Years ago, magnetic tapes were popular because of their superior storage capabilities and cost. This advantage is no longer a factor with the advances which have been made in disk storage capability. However, magnetic tapes can still be useful and economical in large mainframe systems to serve as a backup system for information stored on disks. Diskettes. A diskette (or disk) is made of thin, flexible plastic coated with a magnetized oxide and protected by a covering. Diskettes permit random access of data because data can be recorded in any available space in the disk; therefore, sequential arrangement and access of records is not necessary. The surface of a diskette is divided into tracks and sectors, which are numbered by the computer and related to each record stored on the disk. However, the user need not be concerned with this indexing feature in order to access a record. For example, if a computer user needs the record to Room 65, the user need only key in the digits 65, and the operating system will access that record directly. Diskettes come in different sizes___8-inch, 51/ 4-inch, and 31/2-inch; the latter two are the most popular. The size used depends on the type of computers system. Today, most microcomputers are sold with the 31/2-inch disk as the major disk system. Exhibit 13.4 illustrates the construction of 51/ 4-inch and 31/2-inch diskettes. Hard Disks. A hard disk is made of metal and is not easily removable from a computer by the user. A hard disk has far greater storage capacity than a standard diskette and is faster in operation; however, it is more expensive than a diskette system. Because the hard disk is an integral part of the computer hardware and its records may be accessible to anyone using the computer, the difficulty of maintaining the privacy of the information stored on it is a consideration. Most computer systems today are sold with both a hard disk and one or more diskette drives. Computer Upgrading A computer can be upgraded to increase its capabilities. This upgrading can be accomplished by use of numerous peripheral devices or add-ons. Popular add-on components include the following: Increased memory Modems Fax boards

Increased memory capacity is made possible by the insertion of circuit boards which expand or extend the conventional memory. These add-ons allow the operation of larger programs. A modem allows computer-to-computer communications over telephone lines; data can be transmitted to and received from remote locations. A fax board allows a computer to send or receive documents over telephone lines. Computer Software In order for the computer to perform its tasks, instructions are needed to command and direct the computer. These instructions are called computer programs. A set of

programs is called software. Software instructs the computer step by step through the following: What to do How to do it When to do it

There are two major categories of software: Operating systems software Applications software

Operating Systems Software Operating systems are usually included with a computer when it is purchased. One major function of the operating system is to manage the routine functions of the computer, such as receiving input and producing output. The operating systems software also directs the interactions of the different hardware components of the computer system and the applications software. An operating system is necessary for a computer to carry out the instructions found in the applications software. Applications Software Applications software generally relates to the specific jobs a computer is to perform. For example, a hotel may want a computer to perform applications such as payroll, general ledger, rooms management, or reservations. Applications software programs are developed by trained computer programmers for users who are not computer specialist. Once a program is written, the computer performs its operations by referring to the programs instructions, which can be used repeatedly. Because of the popularity of computers and the extensive demand for them to perform common business tasks, off-the-shelf applications software is widely available today at a low cost. Some applications software can easily be customized to meet an individual companys needs. The following are examples of the types of applications software available. Word Processing. Whit this type of business-writing program, documents are typed on the keyboard, displayed on the monitor, and stored on a disk. The user can easily make revisions without having to retype the entire document. An automatic spell check program enables the computer to proofread documents for spelling errors. Printing is on demand (performed at the users request). Spreadsheet. This package allows figures to be entered once in computerized accounting records and then processed according to user-predetermined procedures of formulas. In addition to performing mathematical functions at electronic speeds, these programs sometimes provide graphic capabilities. Printing is on demand. Database Management. Database management software is useful for cataloging and storing information for future use. A database management is stored electronically. A filing cabinet has many files; so does a database management system. For example, a database management system may contain files for suppliers, customers, inventory, and payroll. The contents of these files can be accessed, changed, and printed on demand.

Reservation System. This software links one hotel to another or to a central reservation service. Information on room rated and availability is accessible on demand and is automatically updated as rooms are sold. Rooms Management. This hotel front office software is an integral part of the guest registration process, and it enhances communication between the front office and housekeeping departments. This software generated information regarding current room status, room and rate assignment, and housekeeping scheduling. Guest Accounting. This hotel front office software performs on-line charge postings and files updating, and prints guest billings on demand. With this software, room charges for every occupied room in the computer file are automatically posted. Point-of-Sale System. This system is composed of a number of point-of-sale (POS) terminals, which are computer terminals linked (interfaced) to a main computer. Electronic cash registers are typical POS devices. The input at one terminal is automatically sent to the main computer for instant file updating. Hotels may place a POS terminal at every revenue source such as the restaurant, bar, gift shop, or recreation area. Guest folios are instantly updated to reflect the guests charged purchases. This improves billings accuracy and reduces or eliminates late charges. Telephone Call Accounting. This software allows a hotel to control its telephone service and sell local and long-distance telephone service at a profit. When this software is used in conjunction with the appropriate front office software, guest telephone charges can instantly be posted to the guest ledger. Telephone call accounting software also makes it possible to charge each department of the hotel for its telephone usage. With this advanced software package, the telephone department can be a profitable revenue center. Menu and Recipe Management. This software stores information in an ingredient file, recipe file, and menu file. It also provides standard recipes, costs, and selling prices on demand. Making changes to the files is simple for users. Accounting. Accounting applications may be operated independently or may be part of an integrated system in which a master file is constantly updated during operations. For example, a computer system can be designed so the businesss general ledger is automatically updated each time a receivables or payables function is performed. Common accounting applications include the following: Accounts receivable Accounts payable Payroll Inventory Depreciation General ledger (including financial statements)

Programming Languages The average computer user need not learn the various programming languages which are used to write computer instructions or applications software. However, a computer user or student should realize that there are different programming languages and understand the characteristics of each. Certain programming languages are more efficient in memory-size demand because they require less space. Also, programming

languages affect the speed of the CPU in processing data and commands. Programming languages are usually classified as low-level languages or high-level languages. Low-Level Languages A low-level programming language is also called machine language because the computers directly understand it without the need for translation. Machine languages vary from one manufacturer to another and may also vary among the different models offered by a single manufacturer. Low-level languages are complicated, and writing a computer program using these languages is tedious. High-Level Languages A high-level programming language is composed of words and symbols which are easy for a programmer to learn and use. This type of language allows the use of simple commands to perform complex or numerous procedures. However, a computer cannot understand a program written in a high-level language until the program has been translated into a form of machine language, which is then used by the computer to execute the program. Therefore, high-level languages are not as memory-size efficient and fast as low-level languages. Exhibit 13.5 Examples of High-Level Programming Languages
FORTRAN (Formula Translator) was one of the first high-level languages and was developed for scientific programming. PASCAL philosopher. Today, PASCAL is a popular programming language, especially in relation to microcomputers. COBOL a (Common Business Oriented Language) permits programs to be written in language close to that used by business people. Although this programming language was developed in the late 1950s, many of todays business programs are still written in COBOL. PL/1 (Programming Language 1) is a general purpose language used for many types of computer processing. It was developed by IBM (International Business Machines Corporation). is a programming language which is relatively easy to learn and use. The name of this programming language is not an acronym. C is considered as powerful as PL/1, yet more efficient. (Beginners All-purpose Symbolic Instruction Code) was developed at Dartmouth College in the mid-1960s and was intended to introduce to computer programming__a purpose which it fulfills quite well even another scientific programming language, was developed in the mid-1970s and was named after Blaise Pascal, a French mathematical and

BASIC students today.

Flowcharts A flowchart is a means of presenting a system or procedure in a schematic form. Flowcharts use special symbols to diagram the flow of procedures, data, or documents

through a system. While narrative descriptions of systems or procedures can be satisfactory, flowcharts are more efficient because they are easier and faster to read and they better highlight the strengths and weaknesses of the procedure or system being studied. Flowchart is used by accounts in designing or explaining accounting procedures. Certified public accountants use flowcharts to document the audit procedures of a business. Computer personnel use flowcharts to design or document programs and computer systems. The symbols used in flowchart are universal to all professions. Exhibit 13.6 illustrates some of the more common flowchart symbols. Exhibit 13.6 Common Flowchart Symbols

INPUT/OUTPUT

PROCESSING

DOCUMENT

ACCOUNTING RECORD

FILE

DECISION

DOCUMENTATION FLOW

INFORMATION FLOW

MERGE

Endnotes

1. For more in-depth information on hospitality industry computer systems,

see Michael L. Kasavana and John J. Cahill, Managing Computers in the Hospitality Industry, 2d ed. (East Lansing, Mich.: Educational Institute of the American Hotel & Motel Association, 1992). Key Terms

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Alpha data Alphanumeric data Central processing unit (CPU) Computer Computer program Flowchart Hardware High-level programming language

Keyboard Low-level programming language Monitor numeric data Random access memory (RAM) Read only memory (ROM) Software

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