How does software differentiate instruction for different learning styles?

By using computer software students with different learning styles can work on improving their problem-solving abilities at their own pace. Students can use different strategies, but must apply their problem-solving skills in ordert to get full advantage of the software. Students with visual or auditory impairments can use technology to their advantage as well. They can use the software as an aid, for example to use of technology the translates the information into spoken word or visual text.

Software can always be used to assist students with advanced-learning. They can use certain software programs to challenge their cognitive thinking, and "out their thinking caps on."

I have attached two videos. Both showing different ways technology and software can be used as computer assisted instruction.
Video one displays how SMART notebook software can allow students to work in their own way, and gives simple instruction on and ideas on how to use it.

Video two is slightly lengthy, but is simply displays how technology and software could be used for notes in class, and as instruction for a lesson on the human endocrine system.

Does the use of software increase skills in knowledge, reinforcement, concept development, and/or problem solving? How?

The use of software does increase skills in knowledge, reinforcement, concept development, and/or problem solving. It is beneficial because students are entitled to use thinking skills, and cognitive learning strategies. The use of software programs allows student to apply their previously learning knowledge to new life situations. Learning to apply their knowledge not only helps them comprehend the objective better, but it increases their skills in knowledge, reinforcement, concept development, and problem solving.

How to use computer software in the classroom?

There are thousands of different ways to use this software int he classroom. All it takes is a little bit of creativity. You can use an online sources, which can provide you with ideas for a lesson and also student based learning games and activities. That was students can apply their knowledge. 
Examples:
A great example would be the Kid Pix program. I often used it in quite frequently in elementary school. Whether it was the apply my knowledge of shapes, objects, colors, etc. It is a bitmap drawing program aimed for elementary children. Macintosh published it in 1989, and is designed to be a more simple way to use paint through technology. 

MacKiev Software Company published Kid Pix, but it was originally designed by a man named Craig Hickman. He designed it after watching son struggle with MacPaint.