SYSTEM CONCEPTS

A system is a set of interacting or interdependent components forming an integrated whole or a set of elements (often called'components' ) and relationships which are different from relationships of the set or its elements to other elements or sets.

What is a SYSTEM? A system is a group of interrelated components

working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. Components and their attribution

Systems structure: relationship between components Subsystems

Environment and Boundary Input and Output

CHARACTERISTICS . Organization: It says the Structure or

order of built. 2. Interaction: Procedure in which the components interact. 3. Interdependence. 4. Integration 5. Central Objective

System concepts

Environment and boundaries :Systems theory views the world as a complex system of interconnected parts. We scope a system by defining its boundary; this means choosing which entities are inside the system and which are outside - part of the environment. We then make simplified representations (models) of the system in order to understand it and to predict or impact its future behavior. These models may define the structure and/or the behavior of the system.

Natural and human-made systemsThere are natural and human-made (designed) systems. Natural systems may not have an apparent objective but their outputs can be interpreted as purposes. Human-made systems are made with purposes that are achieved by the delivery of outputs. Their parts must be related; they must be “designed to work as a coherent entity” - else they would be two or more distinct systems.

Process and transformation processA system can also be viewed as a bounded transformation process, that is, a process or collection of processes that transforms inputs into outputs. Inputs are consumed; outputs are produced. The concept of input and output here is very broad. E.g., an output of a passenger ship is the movement of people from departure to destination.

A subsystem is a set of elements, which is a system itself, and a component of a larger system.

System Architecture A system architecture, using one single integrated model for the description of multiple views such as planning, requirement (analysis), design, implementation, deployment, structure,behavior, input data, and output data views, is a kind of system model.

Elements of System

Inputs and Outputs Processor Control Environment Feedback Boundaries and Interface

Types of systems

Conceptual or empirical systems. Open or Closed systems. Natural and artificial Information systems. Social and machine Information systems. Adaptive & nonadaptive Information systems. Computer Based Information systems. Transaction Processing System (TPS) 

b. Management Information System (MIS)c. Decision Support System (DSS)d. Office Automation System (OAS)

Real Time System. Probalistic& deterministic systems Permanent and temporary systems

System analyst System analyst is a person who

conducts the system study & identifies the activities & objectives, formulate a set of rules to achieve the objects. His main activities are

 Problem identification, which a crucial part.  Data gathering Develop a solution for the problem Co-ordinate to develop all possible solutions. Develop plans to meet management objectives System Designing Co-ordinate the testing procedures.

He should have following Qualities. 1. Knowledge of people 

2. Knowledge of Business functions3. Knowledge of data processing principles4. Ability to communicate5. Flexibility6. Analytical Mind7. Well educated with sharp mind

SYSTEM MANAGEMENT STAGES

System determination System design and creation System operation and control System review and evaluation

Systems theory “Systems Theory: the transdisciplinary

study of the abstract organization of phenomena, independent of their substance, type, or spatial or temporal scale of existence

Transdisciplinary Physical, Physiological, Chemical, Sociology, Psychology, Financial, Mathematical,

Philosophical, Etc

Systems can be broken down into Sub-systems, and sub-systems further broken down into sub sub systems

Subsystems interact and respond to each other E.g. the sub divisions of any business –

Marketing Sales Production Finance Etc

An organisation can be said to consist of three major subsystems:

An Organisational Structure A technological System (including MIS) A Social System

Cybernetics Cybernetics essentially deals with the

ability of systems (technological, biological and social) to exercise control over themselves to reach a goal. It is the science of communication and control. System embodying feedbackcontrol are commomnly called as cybernetic systems.

TYPES OF CONTROLS

1. FORWARD CONTROLS: THEY FOCUS ON OPERATIONS BEFORE THEY BEGIN.THEIR GOAL IS TO

PREVENT ANTISIPATED PROBLEMS.eg. scheduled maintenance on auto mobiles and machinery. regular maintenance feed forward to prevent problems.

2. CONCURRENT CONTROLS: APPLY TO PROCESS AS THEY ARE HAPPENING.CONCURRENT CONTROLS

ENACT WHILE WORK IS BEING PERFORMED AND INCLUDE ANY TYPE OF STEERING OR GUIDING MECHANISM SUCH AS DIRECT SUPERVISION , AUTOMATED SYSTEMS.

3. FEEDBACK CONTROL: THIS TYPE FOCUSSES ON THE RESULTS OF THE OPERATIONS .THEY GUIDE

FUTURE PLANNING, INPUTS AND PROCESS DESIGNS.eg.timely ( weekly , monthly , quaterly , annual) reportes so that almost instataneous adjust ments can be made.

CONTROL IN SYSTEM Information systems controls To ensure secure and efficient operation

of information systems, an organization institutes a set of procedures and technological measures called controls. Information systems are safeguarded through a combination of general and application controls.

SECURING INFORMATION As a security measure, each legitimate user has a

unique name and a regularly changed password. Another security measure is to require some form of physical authentication, such as an object (a physical token or a smart card) or a personal characteristic (fingerprint, retinal pattern, hand geometry, or signature). Many systems combine these types of measures—such as automatic teller machines, which rely on a combination of a personal identification number (PIN) and an identification card. Security measures placed between an organization’s internal networks and the Internet are known as firewalls.

FEEDBACKLOOPS The section of a control system that allows for

feedback and self-correction and that adjusts its operation according to differences between the actual output and the desired output.

A feedback loop is a common and powerful tool when designing a control system. Feedback loops take the system output into consideration, which enables the system to adjust its performance to meet a desired output response.

Negative feedback Negative feedback occurs when the result

of a process influences the operation of the process itself in such a way as to reduce changes. Negative feedback tends to make a system self-regulating; it can produce stability and reduce the effect of fluctuations. In systems controlled by a negative feedback loop, the level of some measured parameter is compared to a reference value, and any difference triggers an action that reduces the gap between the two levels

Feedback that seeks to dampen and reduce fluctuations around a norm or standard .

Positive feedback It causes the system to repeat or amplify

an adjustment or action . Positive feedback tends to cause system instability.

A key feature of positive feedback is thus that small disturbances get bigger. When a change occurs in a system, positive feedback causes further change, in the same direction.

Types of control system Open loop system which is also called as

Manual control system. Closed loop system which is also named

as automatic control system.

Advantages:

Simplicity and stability: they are simpler in their layout and hence are economical and stable too due to their simplicity.

Construction: Since these are having a simple layout so are easier to construct.

Disadvantages: Accuracy and Reliability: since these systems do not have

a feedback mechanism, so they are very inaccurate in terms of result output and hence they are unreliable too.

Due to the absence of a feedback mechanism, they are unable to remove the disturbances occurring from external sources.

Closed Loop System:Advantages:

Accuracy: They are more accurate than open loop system due to their complex construction. They are equally accurate and are not disturbed in the presence of non-linearities.

Noise reduction ability: Since they are composed of a feedback mechanism, so they clear out the errors between input and output signals, and hence remain unaffected to the external noise sources.

Disadvantages: Construction: They are relatively more complex

in construction and hence it adds up to the cost making it costlier than open loop system.

Since it consists of feedback loop, it may create oscillatory response of the system and it also reduces the overall gain of the system.

Stability: It is less stable than open loop system but this disadvantage can be striked off since we can make the sensitivity of the system very small so as to make the system as stable as possible.

Systems development life cycle (SDLC), or Software development

 is a process of creating or altering information systems, and the models and methodologies that people use to develop these systems.

SDLC is a cycle to develop software, basic steps are 1* . Preliminary Investigation

  Request clarification   Feasibility Study  a. Technical feasibility b. Economical c. Operational

( Request Approval) 2. Determination of system requirements

3. Design system4. Development of software5. System testing6. Implementation, evaluation & maintenance   Operational Evaluation  Organizational Impact   User Manager   Development performance.

SDLC OBJECTIVES

SDLC has three primary business objectives:

- Ensure the delivery of high quality systems;

- Provide strong management controls; - Maximize productivity. In other words, the SDLC should ensure

that we can produce more , with higher quality, in less time, with less resources and in a predictable manner.

Selection of System projects Depends on:

1. Capability2. Control3. Communication4. Cost5. Competitiveness

Utility of information:

There are four utilities of information that are identified: 1)Form Utility: As the form of information more closely matches

therequirement of the decision maker, its value increases. 2)Time Utility: Information has greater value to the decision maker if it

isavailable when needed. 3)Place Utility (Physical accessibility): Information has greater value if it can be accessed or delivered

easily. Online systems maximize bothtime and place utility. 4)Possession Utility (Organizational location): The possession of information strongly affects its value by

controlling its dissemination toothers.

WHAT IS LAW OF REQUISITE VARIETY?

THE law was propounded by Ross Asbhy , which states that complete control of a system can be acheived only when the control system has much variety in response as the number of ways the system can go wrong .

There must be atleast as many variations of control as there are ways for the system go go out of control. Law of requisite variety is one of the basic notation of system control theory, to obtain control. The idea is to control each possible state of system.

The law of requisite variety means that for a system to be controlled , every controller must be provided with:

* Enough control responses to meet any situation .

* Decision rules for generating all possible control responses .

* The authority to become a self organising system in order to generate control responses.

STRUCTURE OF MIS

CHAPTER********* 3

STRUCTURE OF MIS( multiple approaches)

Structure of MIS is a difficult concept to understand b ecause thereis no standard or universally acceptedis no standard or universally acceptedframework for describing management informationframework for describing management informationsystem. For example , A car may be perceived in a system. For example , A car may be perceived in anumber of different way; by describe the physicalnumber of different way; by describe the physicalcharacteristics, i.e. its shapes, colour, seating capacity,characteristics, i.e. its shapes, colour, seating capacity,door etc. MIS structure be described by following adoor etc. MIS structure be described by following avariety of different approaches:variety of different approaches:

Physical component Information system processing functions Decision support  Levels of management activities Organizational functions

Structure of MIS may be understood through physical components of the information system in an organization. The physical components of an organizational information system may be :

hardware, software, database, manual procedures and operating persons.

MIS STRUCTURE - BASED ON ORGANISATIONAL FUNCTIONS

Production Subsystem Marketing Subsystem Human Resource Subsystem Logistics Subsystem The logistic subsystem includes activities

like purchasing, receiving, inventory control & distribution. The transactions to be processed are purchase requisitions, manufacturing orders, receiving reports & shipping orders.

Information Processing Subsystems It’s the responsibility of the info

processing subsystem to provide the necessary info processing services & resources. 

Information system processing functions

Information system structure can also be understood interm of its processing functions. The main processingfunctions of information system are described below:

To process the transactions To maintain the master files To produce the reports Processing inquiries Process interactive support applications

Decision Support

Decision situation are broadly classified ionto structured and unstructured on the basis of whether the procedure can be well defined or not.

Decision vary with respect to the structure that can be provided for making them .

In case of unsructured decisions the users cannot even anticipate their information requirements.

Level of MGT ACTIVITIESSTRATEGIC PLANNING( informntn on industry ,

economic, political, current performance, new investment activities ,,,& so on)

MANGEMENT CONTROL(acquisition of resources, plant location, new pdt developmnt,,,etc)

OPERATIONAL CONTROL( efficient & effective use of resources , with in the budget constraints)

TRANSACTION PROCESSING

Types of information system An information system is the basis for

interaction between the user and the analyst. It is an open system that allows the inputs and facilitates the interaction with the user. It can be defined as a set of devices, procedures and operating systems designed around the user to produce information and communicate it to the user for planning, control and performance.

FORMAL & INFORMAL INFORMATION SYSTEM Formal Information System This system defines very clearly the work-flow system, communication

flow-down and the authority. The information flows in terms of policies, goals, strategies, rules and regulations from the top level management to the bottom level of management.. The information also flows from the bottom level management to the top level in terms of feedback, results of work done etc.

There are three categories of information related to the Formal Information Systems:

1. Strategic Information - relates to long-range planning policies. This information is achieved using the Decision Support System

2. Managerial Information - helps the middle level management in policy implementation and control. This information is achieved using the Management Information System

3. Operational Information -is the daily information needed to operate the business. This information is achieved using the Data Processing System

Informal Information System

The informal information system should be employee based and cater to their development and solve their work related problem. Employee co-operation and the knowledge of the informal communication should help one to get a good Informal Information Systems in place.

Public & private information system

Private information can only be released to the subject of the information and to those within the university who have a legitimate need-to-know, outside entities with the subject's written permission, and others as allowed by law. Some private information, like protected health information (PHI) and electronic PHI, is protected by law.

Public information is available to anyone who requests it,but certain files are not available to others in the organisation and certain files may be shared with trusted persons discriminatingly.

FORMS OF INFORMATION Informal public information system In addition to the public formal system ,there also exist informal

public system in order to provide benefits to all persons in the organization who really need such information .strict rules and procedures may not befound in such systems .Electronic mails ,telephone calls ,conversation at public places in the organization etc are examples of public informal information system.

Formal private information system Besides these formal and informal public information system , there

are also formal and informal private system in an organization. In the case of formal private system information is under the custody of the individual owner and his staff.

For example ,a marketing manager might have been collected information regarding sales data relating to a purticuler sales district through his sales staff .In addition to that the secretary to the manager may also collect and maintain information relating to sales from some private sources .This information is available only to the marketing manager and anybody else.

Private informal information system Many individuals may maintain their own private

informal information system for discharging their duties more effectively and efficiently .It is normally found that certain exicutives in an organization may collect valuable information from informal sources to make their decisions more accurate .They collect such type of information through their personal contacts with people .Such information might be very important and useful for decision making in certain occasions.

Formal private information system Besides these formal and informal public information system , there are also

formal and informal private system in an organization. In the case of formal private system information is under the custody of the individual owner and his staff.

For example ,a marketing manager might have been collected information regarding sales data relating to a purticuler sales district through his sales staff .In addition to that the secretary to the manager may also collect and maintain information relating to sales from some private sources .This information is available only to the marketing manager and anybody else.

Private informal information system Many individuals may maintain their own private informal information

system for discharging their duties more effectively and efficiently .It is normally found that certain exicutives in an organization may collect valuable information from informal sources to make their decisions more accurate .They collect such type of information through their personal contacts with people .Such information might be very important and useful for decision making in certain occasions.

Synthesis of MIS Structure Davis and Olson combined all the approaches to

MIS Structure into a conceptual structure for an organizational MIS. Conceptually each functional subsystemishaving its own files. The organizational MIS is having a database, models forplanning, decision and investment in the model base and commonly sharedapplication software. The common database is manage by database managementsoftware (DBMS).Conceptually it is a federation of subsystems integrated throughthe database software.

Physical components Hardware All physical components of a computer system compose the computer hardware.

Important components include the central processing unit, input/output devices, storage units and communication devices. Communication can be over fiber-optic cables or wireless networks.

Software Software provides the interface between users and the information system.

Software can be divided into two generic types: system software and applications. The system software comprises of the operating system, utility programs and special purpose programs. Applications are developed to accomplish a specific task. For users of MIS it is much more important to understand the software than the hardware. Software maintenance can take 50 to 70 percent of all personnel activity in the MIS function. When the organization moves to implement an advanced information system the hardware and software environment becomes more complex.

Database A database is a centrally controlled collection of organized data.

Central control reduces redundancy and duplication of data. Data is stored in an organized and structured way to facilitate sharing and improve availability to those who need it. The database improves efficiency of storage by elimination of redundant files and improves efficiency of processing by providing all required data in a single file rather than separate files. This also improves efficiency of information retrieval.

Procedures Three types of procedures are required for an MIS to operate

effectively: user instructions, instructions for input preparation and operating instructions for MIS personnel who maintain the MIS.

 DBMS Database Management System (DBMS)

is a set of programs that enables you to store, modify, and extract information from a database, it also provides users with tools to add, delete, access, modify, and analyze data stored in one location.

 DBMS’s also provide the method for maintaining the integrity of stored data, running security and users access, and recovering information if the system fails. 

ADVANTAGES IN DBMS 1. Controlling Data Redundancy  2. Elimination of Inconsistency  3. Better service to the users 4. Flexibility of the System is Improved  Standards can be enforced Security can be improved  Organization's requirement can be

identified  Overall cost of developing and

maintaining systems is lower

Data mining Data mining (sometimes called data or knowledge

discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.

ELEMENTS Data mining consists of five major elements: Extract, transform, and load transaction data

onto the data warehouse system. Store and manage the data in a

multidimensional database system. Provide data access to business analysts and

information technology professionals. Analyze the data by application software. Present the data in a useful format, such as a

graph or table.

Data Warehousing

Data Warehouses Dramatic advances in data capture, processing power,

data transmission, and storage capabilities are enabling organizations to integrate their various databases into data warehouses. Data warehousing is defined as a process of centralized data management and retrieval. Data warehousing, like data mining, is a relatively new term although the concept itself has been around for years. Data warehousing represents an ideal vision of maintaining a central repository of all organizational data. Centralization of data is needed to maximize user access and analysis. 

Personnel The personnel in the MIS function include computer

operators, programmers, systems analysts and managers. Human resource requirements should be assessed by considering both the present system needs and the future system growth. The quality of MIS personnel is a key factor in its effectiveness. An MIS manager needs a combination of both managerial and technical skills.

The structure of MIS has been explained in terms of decision making, management activity,organisational functions and operating elements. These different approaches of MIS can be combined to get an overall perspective of MIS structure. This process of combining these different approaches of MIS is called SYNTHESIS OF MANAGEMENT INFORMATION SYSTEM. This can be of two ways

Conceptual structure Physical structure

CONCEPTUAL STRUCTURE

The conceptual structure of a MIS is a federation of functional systems niz, production, finance,personnel and marketing. Each of these subsystems of information system is supported to provide information support to executives for operational control, management control and strategic planning

Different operational functions have different information requirements. Their information requirements vary not only in current but also in characteristics. In fact the content of information depends upon the activities to be performed under an operational functions, in turn, influences the characteristics, which particular information possesses.

The levels of management activity also influence the characteristics of information. Strategic planning requires more external information. On the other hand management control level requires more accurate, precise, and repetitive information. Operation management needs very detailed information for performing the day- to-day activities.