How Computers Work:Three Key Concepts

1. The purpose of computer is to process data into information
     
     Data -  consists of the raw facts and figures that are processed into information 
     Information - is the data that has been summarized or otherwise manipulated for use in decision making

2. You should know the difference between hardware and software
      
      Hardware - consists of all the machinery and equipment in a computer system
      Software - consists of all the instructions that tell the computer how to perform a task

3. Regardless of type and size, all computers follow the same four basic operations

• Input - is whatever is put in to a computer system
• Processing - is the manipulation a computer does to transform data into information
• Storage - is of two types -temporary storage and permanent storage. 

          Temporary Storage - or memory, is the computer circuitry that temporary holds data waiting to be   processed

          Secondary Storage - simply called storage, is the area in the computer where data or information is held permanently.

• Output - is whatever is output from the computer system, the results of processing
• Communications Operation - computers have communication ability which offers an extension capability. With wired or wireless communications connections, data may be input from afar, processed in remote area, stored in several different locations, and output in yet other places.

(Reference: Using Information Technology Fifth Edition by Brian K. Williams and Stacey C. Sawyer, pp 10-11 )