System Analysis & Design

Unit No.1 Introduction to System Concepts

Unit No.1 Introduction to System Concepts

What is a System?

• The term system is derived from the Greek word Systema, which means an organized relationship

among functioning units or components.

Examples of System:

1. Computer System:

Examples of System:

The process by which passengers or goods are moved or delivered from on place to another.

Four Basic Types Of Transportation System:

1) Land 2) Water 3) Air 4) Space

2. Transportation System:

Examples of System:

3. Accounting System:Organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data for management decisions.

Examples of System:

4. Production System:The methods, procedure or arrangement which includes all functions required to gather the inputs, process the inputs, and deliver the marketable output (goods).

What is a System?

• System is an orderly grouping of interdependent components linked together according to a plan to achieve a specific objective.Ex. Business System

What is a System?

Three basic Implications in System Concepts:

• A System must be designed to achieve a predetermined objective.

• Interrelationship and interdependence must exit among the components.

• The objectives of the organization as a whole have a higher priority than the objectives of its subsystems.

Characteristics of a System:

• Organization• Interaction• Interdependence• Integration• Central Objective

Elements of a System

• Outputs and inputs• Processor• Control• Feedback• Environment• Boundaries and interface

Types of Systems

1. Physical or Abstract Systems

2. Open or Closed Systems

3. Man-Made Information systems

Types of Systems

1. Physical or Abstract Systems

• Physical systems:Physical systems are tangible entities that may be static or dynamic in operation.

Static- FixedDynamic- Vibrant

Types of Systems

1. Physical or Abstract Systems

• Abstract system:Abstract systems are conceptual or nonphysical entities.The abstract conceptualization of physical situations. A model is a representation of a real or a planned system.

Types of Systems

2. Open or Closed System

• Open System:

– An open system has many interfaces with its environment.

– It permits interaction across its boundary.

– It receives inputs from and delivers output to the outside.

– Open systems are influenced by their environment.

Types of Systems

Open System:

Characteristics of Open System:

• Input from outside:

Open systems are self-adjusting and self – regulating.

• Entropy: A measure of the amount of energy in a physical system not available to do work.

Types of Systems

• Process, output and cycles

• Differentiation

• EquifinalityThe term implies that goals are achieved through

differing courses of action and a variety of paths.

Types of Systems

2. Open or Closed System

• Closed System:

A closed system is isolated from environmental influences.So completely closed system is rare.

Man-Made Information Systems

•Man Made – Artificial•Information –

Data that is • (1) accurate and appropriate, • (2) Specific and organized for a purpose, • (3) Presented within a context that gives it meaning and

relevance, and • (4) Can lead to an increase in understanding and

decrease in uncertainty.

Man-Made Information Systems

•Information is valuable because it can affect behaviour, a decision, or an outcome.

• For example, if a manager is told his/her company's net profit decreased in the past month, he/she may use this information as a reason to cut financial spending for the next month.

Man-Made Information Systems

•A piece of information is considered valueless if, after receiving it, things remain unchanged.

•Information System-

A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization.

Man-Made Information Systems

•Types of Information System-

1)Formal Information Systems

2)Informal Information Systems

3)Computer based Information Systems

Man-Made Information Systems

•1) Formal information System-

A formal information system is based on the organisation represented by the organization chart.

The chart is a map of position and their authority relationship, indicated by boxes and connected by straight lines. it is concerned with the pattern of authority, communication and work flow

Man-Made Information Systems

Categories of Information

1)Strategic Information2)Managerial Information3)Operational Information

Man-Made Information Systems

1)Strategic InformationWhich relates to long range planning policies that are of direct interest to upper management.

It is the process of specifying the objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives.

Man-Made Information Systems

Ex.1)Population Growth2)Trends in financial investment

1) Managerial Information  It is of direct use to middle management and department heads for

implementation and control. Ex.2) Sales Analysis3) Annual Financial Statements

Man-Made Information Systems

1)Operational Information

Which is short term, daily information used to operate departments and enforce the day to day rules and regulations of the business.

Ex.

1)Daily employee absence sheets2)Current stock available for sale3)Overdue purchase orders

Man-Made Information Systems

2) Informal information System-

• The informal information system is employee based system

• Design to meet personnel and vocational needs

• To help in the solution of work-related problems

• It also funnels information upward through indirect channels.

In this way, it is considered to be a useful system because it works within the framework of the business and its stated policies.

Man-Made Information Systems

3) Computer Based information Systems-

• computer-based information systems use computer technology to process raw data into meaningful information.

• Electronic computers and related software programs are the technical foundation, the tools and materials, of modern information systems.

• Computers provide the equipment for storing and processing information.

Man-Made Information Systems

• Computer programs, or software, are sets of operating instructions that direct and control computer processing.

• Knowing how computers and computer programs work is important in designing solutions to organizational problems, but computers are only part of an information system.

MIS 715 Eaton Fall 2001 30

Data, Information, and Systems

• Generating Information– Computer-based ISs take data as raw material, process it, and

produce information as output.

Figure 1.1 Input-process-output

Man-Made Information Systems

The MIS has more than one definition, some of which are give below.

• 1. The MIS is defined as a system which provides information support for decision making in the organization.

• 2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.

• 3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.

• 4. The MIS is defined as a Computer based Information System.

Man-Made Information Systems

• MIS and the user:Every person in the organization is a user of the MIS. The people in the organization operate at all levels in the hierarchy.

• The following are the list of MIS users in any organization.

1. Clerk2. Assistant3. Officer4. Executive or a Managers.

Man-Made Information Systems

• Each of them has a specific task and a role to play in the management of business. The MIS caters to the needs of all persons.

Man-Made Information Systems

• The figure given below shows the movement of information among various users of MIS.

Man-Made Information Systems

Impact of the Management Information System:

The following are the impact of MIS on any organization.

• MIS improves the performance and productivity of the organization.

• It helps in the management of marketing, finance, production and improves the skills of the employees.

• It helps the employees to monitor the various department functions.

• It gives the  reports regarding progress, achievements and the errors in the day to day functioning.

Man-Made Information Systems

• It is used to control the various operations involved in the smooth functioning of the organization.

• It helps to improve the discipline of the employees.

• It helps to regulate the operations which complicates the day to day functioning.

• It helps to yield good results by experimentation and modeling.

• It motivates employees to spend more time for achieving efficiency in their departments.