Application software consists of programs that support day-to-day business functions and provide users with the information they require. Application software can
serve one user or thousands of people throughout an organization. Examples of company-wide applications, called enterprise applications, include order processing systems,
payroll systems, and company communications networks. On a smaller scale, individual
users increase their productivity with tools such as spreadsheets, word processors, and
database management systems.
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Application software includes horizontal and vertical systems. A horizontal system
is a system, such as an inventory or payroll application, that can be adapted for use in
many different types of companies. A vertical system is designed to meet the unique
requirements of a specific business or industry, such as a Web-based retailer, a medical
practice, or a video chain.