Abstract View of Computer System
A system is a set of principles or procedures following an organized scheme to process a set of inputs and produce a desired and reproducible output.
"A computer system is a dynamic entity used to solve problems and interact with its environment. It includes hardware, software, people working with it or using it and the immediate environment."
Software the manages a computer system at a more fundamental level. It provides the tools and an environment in which application software can be created and run. Operating system is the core of its system software.