Application Software with Its Definition, Functions, and Types

The vast majority of SMB (Small and Medium Business) owners accepted that use of technology proved beneficial for their businesses to grow faster. The business application software helps the owners to improve the performance of their businesses and remain in the competition. According to a survey, around 99% of SMBs said that they used at least one digital tool for their day-to-day operations.

So, there is a correlation between businesses and application software. It is because different apps fasten the business process and are more likely to reach customers 5 times quicker. People can buy a package or subscription from the existing application software as per the requirements of their businesses. However, many research to find the right mobile app development company to build a customized app from scratch as per the business requirements. So that they don’t have to buy a package.

If you run a business, you will also need some operating systems. Today, you will get to know the benefits of system software for your business, some popular examples, types, and business application software. Let’s begin with the application software definition.

What Is an Application Software?

Application software is a computer program. It is designed to perform some specific tasks. This program is a collection of various computer programs. Developers use specific programming languages to write the program and ultimately build a software application with the set of programs.

People define application software differently, for example, application software is a task-specific program that is built to assist education, communication, finance, food, real estate, and many other businesses. Another definition is, that application software is a type of program that assists in taking most financial decisions for a company and for an individual.

Moreover, it is a group of instructions and data for a computer system to perform specific tasks. Now you know what is application software, so move to the next section and read more about computer software.

Difference Between System Software and Application Software

System and application software differ in terms of purpose, design, and development. System software is related to the sources of the system. Without system software, you can’t run application software on a computer. Whereas, application software is installed on the computer for specific tasks like Microsoft Word is used for writing. If Microsoft Word is not in your computer software, still the computer will work. But if your system doesn’t have computer software (System software), your computer will not work.

You can better understand the differences by reading the below table.

System Software Application Software
System software serves as the platform to run application software Built for a specific purpose and perform functions.
It starts running automatically once the system is turned on. And stops when the system is turned off or shut down. It runs when the users request or give commands.
Without system software, a computer can’t start Application software is not used to run the computer. It is user-specific.
Low-level language is required for the development of system software A high-level language is required for the development of application software.
It is developed for a general purpose It is developed for a specific purpose
Examples: Windows, macOS, Chrome OS, Linux, and Unix Examples: Microsoft Word, Spreadsheet, VLC media, Google Chrome, Firefox, and many more.


Why is custom software development important_


Benefits of Business Application Software

Many businesses use Microsoft Word and Microsoft Excel application software and different mobile apps. Why do they need to use the software? Scroll down to know that there are various business benefits of using mobile apps or application software.

  • Improve Customer Satisfaction
  • Quick Response
  • Increase Productivity
  • Data Management and Security
  • Increase Sales Potential
  • Simplifies Decision Making
  • Reliable Data
  • Save Time
  • Reduce Errors

1. Improve Customer Satisfaction

To run any business smoothly, you need to address the problems and requirements of the customers from time to time. For example, you can access information about apparel quickly, from the many choices of dresses, and for this, you will not have to go to market. You just need to place an order and you will get your product at your doorstep. Moreover, if you have any complaints, you can again use the mobile app, and chat, email, or call to complain. So, you can get the solutions in seconds. It improves customer satisfaction.

2. Quick Response

Whether it is an Android or iPhone application software, customers can get a response from the concerned business quickly. Because AI assistance is working like a wonder for the chat process. It is quick and effective. Moreover, customers will not have to take out a separate time to buy anything by going physically to the shop. They can use their mobile devices and order what they want in seconds. Even, they can know where is their order online. It makes the work of the company also easy. So, application software can fasten the responses to and forth.

3. Increase Productivity

Integration of custom application software enables the company to increase productivity. It uses the same data sources to improve operations’ productivity. Many companies want custom application software because it is built according to the business needs and helps to meet the business objectives soon and effectively. The processing of the data is also simple and quick which is ultimately good for the company’s growth.

4. Data Management and Security

The risk of data loss can be addressed by using the right systems software. Thereby, you can manage the data easily. Likewise, you can add, remove, edit, and delete any data as per the need of your business. As a result, you can manage data and make better decisions.

Moreover, you can secure customer data in one unified system. Many businesses keep backups for any uncertain future situation. For this, application software is the best platform. Many app development companies emphasize making productivity application software.

5. Increase Sales Potential

Integrating systems software for the most popular web browsers increases the sales potential. You can go for the Android app development if you want to develop software for Android users. You can increase the sales potential quickly because Android is the popular Operating system and has 2.5 billion users.

Although iPhone app development is also getting popular among various businesses because you get a filtered audience or iPhone community, Android provides more customers. Billions of people can use your app and improve the sales potential.

6. Simplifies Decision Making

Often, you can’t decide what is correct or incorrect for your business. But when you use a specific app, it stores data and provides you with information from its database management system. In addition, you can get market analysis and insight into the market to simplify the decision-making. You have the related data which is more meaningful and powerful. Use this data from an app to analyze the market instead using different application software.

7. Reliable Data

Using the systems software eliminates the conflicting data values and you can have reliable data. Application software programs make software that stores related data that you can use to analyze your customers. It saves your time to find from different sources and assemble data.

From project management to enterprise resource planning, reliable data is vital. The consistent data on the multiple records improves the chance of staying in the competition in the market because trustworthy data helps in various ways. Many businesses use database management systems software to secure and handle data.

8. Save Time

Technology improves productivity and fastens the processing of anything in a business. For example, automatic time tracking and time management can be analyzed with software. Application software automates many tasks that could otherwise consume a lot of time.

You can integrate your app with other apps through API development and fetch the information you need for your customers without letting them leave your app. For example, Uber customers can know the location of the driver and track it with the help of the Google Maps app. It provides quick information and is cost-effective for the app owner as well.

9. Reduce Errors

The software can reduce human errors. A computer program is written with focus and considering the business requirements. So, the app can handle many tasks and produce the desired result that otherwise could have errors if handled manually. For example Spreadsheet software. When you calculate a long number yourself you can make mistakes and even end up wasting all your time for the right answer.

But when you use a Spreadsheet or Calculator there is no chance of errors in the data. Moreover, when you write on Microsoft Word, spell check automatically warns you with a red line that you have written the wrong spelling. You can quickly remove the mistakes and produce an error-free document.

What Are Application Software Examples?

Some businesses use application software already available in the market while some customize it as per their business. For this, they search how to create an app from scratch and hire a development team. In this section, I will let you know some most important and popular examples of application software that most companies want in their systems (Mobile or computer). An example of an application program can help you understand what is exactly an application software.

  • Microsoft Products
  • Music Applications
  • Team Collaboration Software
  • Real-time Online Communication
  • Multimedia Software
  • Internet Browser

Let’s explore the examples of these application software types in the space below.

1.  Microsoft Products: Office, PowerPoint, Outlook, Excel, Word Processing Software, etc.

2. Team Collaboration Software: Flowdock, Slack, GoToMeeting, WebEx, Asana, Proofhub, etc.

3. Music Applications: Spotify, Pandora, YouTube Music, Google Play Music, Tidal. etc.

4. Real-time Online Communication: Google Meet, Zoom, Skype.

5. Multimedia Software: MX Player, VLC Media Player, Adobe Photoshop, TikTok, etc.

6. Internet Browser: Firefox, Chrome, Safari, Opera, Internet Explorer, etc.

Most businesses use business application software. That is why the demand for computer systems and web browsers will keep on increasing which is why the revenue also. Have a look at the image below to know the changes in the revenue (In Billions) in the application development software from 2016 to 2027.





Types of Application Software

The type of application software depends on the needs of the business. Different businesses use different types of application software. Many are custom application software to match the need of the business. I have highlighted 12 types of application software in the space below with a few examples.

1. Web browser software: Chrome, Firefox.

2. Word processing software: WordPad, MS word, Notepad

3. Presentation software: Powerpoint, Google presentation software, Zoho powerpoint

4. Freeware application software: Adobe PDF, Yahoo Messenger, MSN Messenger

5. Shareware software: Winzip, Adobe Dreamweaver, Getright

6. Document exchange systems: Click up, Smartsheet, Teawork,, Hubspot.

7. Spreadsheet software: Microsoft Excel, Google Sheets, Zoho Sheets

8. Multi-Media Software: VLC Media Player, MX player

9. Educational software: MATLAB, Google classroom

10. Open-source software: Gimp, OpenOffice, MySQL

11. Closed source software: Google earth, Skype, Adobe Flash, Adobe Reader

12. Simulation software: VLSI simulation, PCB software



1. Web Browser Software

You can find and view information over the internet using a web browser. This type of software program enables the user to browse the internet. The widely used web browsers are Firefox and Chrome.

2. Word Processing Software

This type of software provides a platform to write text documents like articles, resume, report, story, and others. You can format, beautify, or manipulate the text. Moreover, you can improve the quality of the doc with synonyms and antonyms, grammar, and error checking. You can also, change the color, font style, and size, adjust the paragraphs, and more.




3. Presentation software

You must have understood already what it is “Powerpoint”. It’s communication software through visuals and diagrams. You can add pictures, beautify the text, use effective images and shapes, give an attractive look to the text, and more using presentation software. Likewise, you can add videos, charts, and graphs, to make beautiful slides.

4. Freeware application software

This type of application software is available free of cost. It means you can download and install this application software for business processes. But, you can’t make changes to its source code. Adobe Reader and Skype are examples of free application software.

5. Shareware software

Shareware is available to users free only for a trial. They can use it for a limited time and decide whether to buy it or not. This type of distributed software is designed for monetization purposes. The best example of shareware software is Winzip.

6. Document exchange systems

As the name implies, this system software is used to exchange documents. Many big companies and individuals also use PDF files and share them online. Click Up, Smartsheet, and teamwork are examples of application software. Moreover, it is considered the best for ERP and CRM Systems.

7. Spreadsheet software

There are different types of data and to store it you need specific mobile apps. The spreadsheet software application is used for table format information and performing calculation. The spreadsheet has intersecting cells that are made up of rows and columns. Moreover, you can keep the various data fields like date, text, number, and time. Microsoft Excel is the best example of this type of application software program.

8. Multi-Media software

You can record videos, audio, and image files in the Multimedia software. Many people and enterprises use this type of computer system for editing videos, graphics, and animations. So, it is also called graphics software. VLC player, MX player, and the windows media player are common examples of application software.

9. Educational software

You can guess the name of the software type. It is also called academic software. This type of application is popular on mobile devices and is designed to facilitate learning. Mind Play, Kid Pix, and EDX are popular examples of educational software. There are many tutorial software that students and many other people use to learn.

10. Open-source software

Open-source software means the source code of the software is available for everyone to inspect. It helps to improve the software because anyone can make changes, remove errors, and enhance it. Many types of application software like Apache web server, Mozilla Firefox, VLC media player, and VNC are free for the users.

11. Closed source software

Closed software is the opposite of open-source software and has intellectual property rights. The owner has the patient over the source code of the software. So, this type of software is paid one. If you want to use this type of software, you will have to comply with its restriction and rules.

12. Simulation software

It is a monitoring program that allows users to observe an operation without performing it. When the existing software doesn’t work accurately, is not predictable, and is dangerous, simulation software is used. It works effectively to complete many types of tasks in engineering, robotics, flight systems, weather forecast, testing education, and video games. MATLAB is one of the best examples of application software types.

Functions of Application Software

The different types of application softwares are built to execute a large variety of roles. So keeping the requirement of the user, the software performs functions. Many functions are common while many operate on a specific task. Have a look at the list of the important functions of application software.

  • Managing information
  • Manipulating data
  • Coordinating resources
  • Calculating figures
  • Constructing visuals
  • Writing reports
  • Keeping reports
  • Creating spreadsheet
  • Manipulating images
  • Calculating expenses
  • Developing websites



What Is a Business Application Software?

As the name implies, this type of software application is built specifically for business processes. So, mainly organizations and companies use this type of software to process the work occurring within and outside of the organization. It improves productivity, efficiency, and periodic reports for the growth of the business. Almost all organizations from large to small use the business processes in one way or other. Here is the list of the popular business functions.

  • Customer Relationship Management (CRM)
  • Project Management Software
  • Business Process Management
  • Enterprise Resource Planning (ERP)
  • Database
  • Resource Management Software
  • Educational Software
  • Productivity Software
  • Time Management Software
  • Custom Application Software

Read about all the types of application software for business purposes.

1. Customer Relationship Management

A company can know about its potential and current customers and make good relationships with them using Customer Relationship Management or CRM software. In addition, this type of software helps the company to collect information about the customers to analyze it and use for the growth of the company.

2. Project Management Software

Project management software is used for project planning, change management, resource allocation, and scheduling. Moreover, various organizations use project management software for managing budgets and costs, reporting results, assigning tasks, and documentation.

3. Business Process Management

It is one of the popular types of application software and is also known as BPM software. You can use it for your business to define reports and automate the processes and optimize the processes in the business.
Enterprise Resource Planning:

This type of software is useful to manage all the core activities in an organization. Enterprise Resource Planning (ERP) automates and simplifies business activities which are crucial for the smooth run of the business. These activities are procurement, accounting, project management, risk management, compliance, and supply chain management.

4. Database

Database software is also called Database Management System (DBMS). It is used to store the relational database or the information important for the organization to make decisions. The software allows you to add, remove, edit, and delete data from the database. Thereby, organizations use it for data handling.

5. Resource Management Software

It helps to plan resources, capital, and staff for effective project completion. So, Resource Management Software is widely used by organizations to manage multiple projects and allocate tasks effectively.

6. Educational Software

Educational software facilitates learning and teaching. Students can use applications to learn from videos and tutorials online. Various types of application software were developed for the students to help them to continue their studies even during the Pandemic also.

7. Productivity Software

Efficient and on-time tasks lead to productivity. So, to improve the productivity of the employees, companies adopt productivity application software. The criteria in this type of software are time management, collaboration, database management, and document creation.

8. Time Management Software

Time management is crucial to completing any tasks effectively. This type of software tracks the users to show how much time is needed to complete a particular task and how an individual spends time. It helps to manage deadlines, resources, productivity, and milestones.

9. Custom Application Software

Custom application softwares are built as per the need of the particular business. An organization and individual can have custom apps for the need of their businesses. It is a popular type of application software to work according to the desire of the owner. You can have various types of custom system software to accomplish any task.

Application Software Development Cost

Application software development cost depends on various factors. These factors are responsible for the variation in the price of the application software. The most important factors are as follows.

  • Type of the business
  • Requirements
  • Development platform
  • Development team
  • Tech stack

A simple application software costs around $10,000-$40,000. Custom application softwares cost somewhere from $20,000 to $70,000. Remember, sometimes you can find a variation in the price due to the factors mentioned above.

Wrapping Up

Here is the end of the blog. Now you know what is application software, the types of application softwares, its functions, and more. If you also have an app idea and looking for experienced developers to build software, Technource can help. It is the top app development company. Moreover, you can know the exact price of your application software by discussing your project with the experts in Technource.




Yogesh Kumar works at a top WordPress development company, Technource as a Digital Marketing Manager. He is a passionate individual who has in-depth knowledge of SEO and uses natural search expertise to attain and sustain maximum marketing share for organic search across the industry. With his passion for writing, he delivers many informative articles and blogs on software development, that help many people to improve their knowledge of emerging technologies, and website & app development. He is featured on Hackernoon, Dzone, Newsbreak, Enlear Academy, Articlesfactory, and much more websites. He likes to cook in his free time and discover new recipes.

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