Adding software to a target device on the Design view specifies where the software executes at run time. Targeting software to a specific device also provides information about the hardware configuration of the target where the software executes.
You can add two types of software components directly to a device in SystemDesigner: an application and a library.
You can add an application or library to a specific target by clicking Add software on the device on the Design view, or by dragging a component from the Project Files pane onto a device.
If a file or component is not on a specific target device, it executes on the development system. This is the same as a VI running normally in a project on your computer using the live hardware in your system.