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Hardware and Software
As you know, a computer is made up of hardware and software. In some ways the analogy can be made to humans that the hardware is your body and the software is your mind. If the processor is the computer's "brain" then the software is what that brain "thinks". Each and every thing that happens inside the computer is controlled by some form of software: from the high level spreadsheets, games and other applications, to the low-level device drivers that tell your hardware exactly what it has to do to make them work properly.
Continuing the analogy to the human body, it is important to realize that much the way humanity is comprised of both the physical and mental, a computer is nothing without both hardware and software. In fact, even many hardware items have their own controlling software. Software is starting to appear in the most amazing places!