601 - Unit 1
601 - Unit 1
SYSTEM
The term system is derived from the Greek word systema, which means an organised relationship
among functioning units or components. A system exists because it is designed to achieve one or
more objectives. We come into daily contact with the transportation system, the telephone system,
the accounting system, the production system, the computer system, etc.
Similarly, we talk of the business system and of the organisation as a system consisting of interrelated
departments (subsystems) such as production, sales, personnel, and an information system. None of
these systems is of much use a single, independent unit. When they are properly coordinated,
however, the firm can function effectively and profitably.
Definition:
A system is an orderly grouping of independent components linked together according to a plan
to achieve a specific objective. The word component may refer to physical parts (engines, wings of
aircraft, wheels of car), managerial steps (planning, organizing, directing & controlling), or a
subsystem in a multilevel structure. The components may be simple or complex, basic or advanced.
They may be a single computer with a keyboard, memory and printer or a series of intelligent
terminals linked to a mainframe. In either case each component is part of the total system and has to
do its share of work for the system to achieve the intended goal.
The study of systems concepts, then, has three basic implications:
1. A system must be designed to achieve a predetermined objective.
2. Interrelationships & interdependence must exist among the components.
3. The objectives of the organization as a whole have a higher priority than the objectives of its
subsystems.
CHARACTERISTICS OF A SYSTEM
Our definition of a system suggests some characteristics that are present in all systems:
1. Organization
Organization implies structure
& order. It is the arrangement of
components that helps to achieve
objectives. In the design of a
business system, for example.
the hierarchical relationships
starting with the president on top
and leading downward on the
blue-collar workers represents
the organization structure. Such
an arrangement portrays a
system-subsystem relationship,
defines the authority structure,
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specifies the formal flow of communication, and formalizes the chain of command. Like-wise
a computer system is designed around an input device, a central processing unit, an output
device, and one or more storage units. When linked together they work as a whole system for
producing information.
2. Interaction
Interaction refers to the manner in which each component functions with other components
of the system. In an organisation, for example, purchasing must interact with production,
advertising with sales, and payroll with personnel. In a computer system the CPU must
interact with the input device to solve a problem. In turn, the main memory holds programs
and data that the arithmetic units uses for computation. The interrelationship between these
components enables the computer to perform.
3. Interdependence
Interdependence means that parts of the
organization of computer system depend
on one another. They are coordinated and
linked together according to a plan. One
subsystem depends on the input of another
subsystem for proper functioning , i.e. the
output of one subsystem is the required
input for another subsystem.
To illustrate these systems the following
figure shows three levels of subsystems.
Each of the top inner circles represents a
major subsystem of a production firm. The
personnel subsystem in turn may be
viewed as a system that consists of
subsystems such as benefits, health, safety
& employment. Health and safety as a key
personnel subsystem consists of lower-
level elements that are considered vital in
personnel operations. In summary, no
subsystem can function in isolation
because it is dependent on the data (inputs)
it receives from other subsystems to
perform its required tasks.
4. Integration
Integration refers to the holism of systems. Synthesis follows analysis to achieve the central
objective of the organization. Integration is concerned with how a system is tied together. It
is more important than sharing a physical part or location. It means that parts of the system
work together within the system even though each part performs a unique function. Successful
integration will typically produce a synergistic effect and greater total impact than if each
component works separately.
5. Central Objective
Objectives may be real or stated. Although a stated objective may be the real objective, it is
not uncommon for an organization to state one objective and operate to achieve another. The
important point is that users must know the central objective of a computer application early
in the analysis for a successful design and conversion.
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ELEMENTS OF A SYSTEM
In most cases, systems analysts operate in a dynamic environment where change is a way of life. The
environment may be a business firm, a business application or a computer system. To reconstruct a
system, the following key elements must be considered:
1. Outputs & Inputs
A major objective of the system is to produce an output that has value to its user. Whatever
the nature of the output(goods, services or information), it must be in line with the
expectations of the intended user. Inputs are the elements (material, human resources,
information) that enter the system for processing. Output is the outcome of processing. A
system feeds on input to produce output in much the same way that a business brings in
human, financial, and material resources to produce goods and services. It is important to
point out here that determining the output is a first step in specifying the nature, amount, and
regularity of the input needed to operate a system. For example, in system analysis, the first
concern is to determine the user’s requirements of a proposed computer system, that is
specification of the output that the computer is expected to provide for meeting user
requirements.
2. Processor(s)
The processor is the element of a system that involves the actual transformation of input into
output. It is the operational component of a system. Processors may modify the input totally
or partially, depending on the specifications of the output. This means that as the output
specifications change, so does the processing.
3. Control
The control element guides the system. It is the decision-making subsystem that controls the
pattern of activities governing input, processing and output. In an organizational context,
management as a decision-making body controls the inflow, handling and outflow of activities
that affect the welfare of the business. In a computer system the OS and accompanying
software influence the behaviour of the system. In systems analysis, knowing the attitudes of
the individual who controls the area for which a computer is being considered can make a
difference between the success and failure of the installation. Management support is required
for securing control & supporting the objective of the proposed change.
4. Feedback
Control in a dynamic system is achieved by feedback. Feedback measures output against a
standard in some form of cybernetic procedure that includes communication & control. After
the output is compared against performance standards, changes can result in the input or
processing and consequently the output. Feedback may be positive or negative, routine or
informational. Positive feedback reinforces the performance of the system. It is routine in
nature. Negative feedback generally provides the controller with information for action.
In systems analysis, feedback is important in different ways. During analysis the user may be
told that the problems in a given application verify his/her initial concerns and justify the need
for change. Another form of feedback comes after the system is implemented. The user
informs the analyst about the performance of the new installation. This feedback often results
in enhancements to meet the user requirements.
5. Environment
The environment is the “supersystem” within which an organization operates. It is the source
of external elements that impinge on the system. In fact it often determines how a system must
function.
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6. Boundaries & Interface
A system must be defined by its boundaries- the limits that identify its components processes,
and interrelationships when it interfaces with another system. Each system has boundaries
that determine its sphere of influence and control. This means that in systems analysis ,
knowledge of the boundaries of a given system is crucial in determining the nature of its
interface with other systems for successful design.
TYPES OF SYSTEMS
The frame of reference within which one views a system is related to the use of the systems approach
for analysis. Systems have been classified in different ways:
1. Physical or Abstract Systems
Physical systems are tangible entities that may be static or dynamic in operation. For example,
the physical parts of the computer center are the offices, chairs, desks that facilitate operation
of the computer. They can be seen and counted; they are static. In contrast a programmed
computer is a dynamic system. Data, programs, output, and applications change as the user’s
demands or priority of the information requested changes.
Abstract systems are conceptual or nonphysical entities. They may be as straightforward as
formulas of relationships among sets of variables or models- the abstract conceptualization of
the physical situations. A model is a representation of a real or planned system. The use of
models make it easier for the analyst to visualize relationships in the system under study. The
objective is to point out the significant elements and the key interrelationships of a complex
system.
2. Open or Closed Systems
Another classification of systems is based on their degree of interdependence. An open system
has many interfaces with its environment. It permits interaction across its boundary; it receives
inputs from and delivers outputs to the outside. An information system falls into this category,
since it must adapt to the changing demands of the user.
In contrast a closed system is isolated from environmental influences. In reality a completely
closed system is rare. In systems analysis, organizations, applications and computer are
invariably open, dynamic systems influenced by their environment.
3. Man-Made Information Systems
Ideally information reduces uncertainty about a state or event. For example information that
the wind is calm reduces the uncertainty that the boat trip will be pleasant. An information
system is the basis for interaction between the user and the analyst. It provides instructions,
commands, and feedback. It determines the nature of the relationships among decision
makers. In fact, it may be viewed as a decision center for personnel at all levels. From this
basis , an information system may be defined as a set of devices, procedures, and operating
systems designed around user-based criteria to produce information and communicate it to
the user for planning, control and performance. In systems analysis it is important to keep in
mind that considering system means improving one or more of these criteria.
Many practitioners fail to recognize that a business has several information systems; each is
designed for a purpose and works to accommodate data flow, communications, decision
making, control, and effectiveness. The major information systems are formal, informal &
computer based.
a. Formal Information System
A formal information system is based on the organization represented by the
organization chart. The chart is a map of positions and their authority relationships,
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indicated by boxes & connected by straight lines. It is concerned with the pattern of
authority, communication and work flow. Information is formally disseminated in
instructions, memos or reports from top management to the intended user in the
organization. This structure also allows feedback up the chain of command for follow-
up. Policies are generalizations that specify what an organization ought to do. Policies
are translated to directives, rules and regulations and transmitted to lower-level
management for implementation. The output represents employee performance.
Categories of information: There are three categories of information related to
managerial levels and the decisions managers make. The first level is strategic
information, which relates to long-range planning policies that are of direct interest
to upper management. The second level of information is managerial information. It
is of direct use to middle management and department heads for implementation and
control, this information is used in short and intermediate range of planning- that is
months rather than years. The third information level is operational information,
which is short-term, daily information used to operate departments and enforce the
day-to-day rules and regulations of the business.
b. Informal Information System
The formal information system is a power structure designed to achieve company
goals. An organization’s emphasis on control to ensure performance tends to restrict
the communication flow among employees, however. As a result and informal
information system develops. It is an employee-based system designed to meet
personnel and vocational needs and to help solve work-related problems. It also
funnels information upwards through indirect channels. In this respect it is a useful
system because it works within the framework of the business and its stated policies.
In doing a systems study, the analyst should have a knowledge of the chain of
command, the power-authority influence network, and how decisions are made to get
a feel for how much support can be expected for a prospective installation.
Furthermore knowledge about the inner workings of the employee-based system is
useful during the exploratory phase of analysis. Employee cooperation and
participation are crucial for preventing sabotage and training users. Since computers
cannot provide reliable information without user staff support, a proper interface with
the informal communication channels could mean the difference between success and
failure of new systems.
c. Computer-Based Information Systems
A third class of information system relies on the computer for handling business
applications. The computer is now a required source of information. Systems analysis
relies heavily on computers for problem solving. This suggests that the analyst must
be familiar with computer technology and have experience in handling people in
organizational context.
i. Management Information System (MIS)
The computer has had a significant impact on the techniques used by
management to operate a business. The level of the manager in the organization
is also a factor in determining the kind of information needed to solve a
problem. Lower-level management needs detailed internal information to make
day-to-day, relatively structured control decisions. Higher-level management,
for whom long-range objectives are the primary concerns, requires
summarised information from a variety of sources to attain goals. In either case
management action is based on information that is accurate , relevant,
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complete, concise & timely. MIS has been successful in meeting these
information criteria quickly & responsively.
MIS is a person-machine system ana a highly integrated grouping of
information-processing functions designed to provide management with a
comprehensive picture of specific operations. It is actually a combination of
information systems. To do the job it should operate in real time, handling
inquiries as quickly as they are received. Management information must also
be available early enough to affect a decision. Operationally, MIS should
provide for file definition, file maintenance & updating, transaction & inquiry
processing, and one or more databases linked to and organizational database.
Within an MIS a single transaction can simultaneously update all related data
files in the system. In doing so, data redundancy (duplication) and the time it
takes to duplicate data are kept to a minimum, thus ensuring the data are kept
current at all times. A key element of MIS is the database- a nonredundant
collection of interrelated data items that can be processed through application
programs and available to many users. All records must be related in some
way. Sharing common data means that many programs can use the same files
or records. Information is accessed through a DBMS. It is a part of the software
that handles virtually every activity involving the physical database. There are
several advantages to a data base system:
Processing time & number of programs written are substantially
reduced.
All applications share centralized files.
Storage space duplication is eliminated.
Data are stored once in the database & are easily accessible when
needed.
The two primary drawbacks of a database are the cost of specialized personnel
and the need to protect sensitive data from unauthorized access.
The primary users of MIS are middle & top management, operational
managers & support staff. Middle & top management use MIS for preparing
forecasts, special requests for analysis, long-range plans & periodic reports.
Operational managers use MIS primarily for short-range planning & periodic
& exception reports. The support staff finds MIS useful for the special analysis
of information and reports to help management in planning & control.
Providing data for use in MIS is the function of most levels of personnel in the
organization. Once entered into the system, the information is no longer owned
by the initiating user, but becomes available to all authorized users.
Today’s typical MIS poses several problems. Most MIS reports are historical
and tend to be dated. Another problem is that many installations have databases
that are not in line with user requirements. This means that many MIS
environments have not been congruent with the real world of the user. Finally,
an inadequate or incomplete update of the database jeopardizes the reliability
for all users. A major problem encountered in MIS design is obtaining the
acceptance and support of those who will interface with the system. Personnel
who perceive that their jobs are threatened may resist the implementation of
MIS.
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ii. Decision Support Systems (DSS)
One reason cited in the literature for management’s frustration with MIS is the
limited support it provides top management for decision making. DSS
advances the capabilities of MIS. It assists management in making decisions.
It is actually a continually evolving model that relies heavily on operations
research.
Decision – emphasizes decision making in problem situations, not in
formation processing, retrieval or reporting.
Support – requires computer-aided decision situations with enough
“structure” to permit computer support.
System – accentuates the integrated nature of problem solving,
suggesting a combined ”man”, “machine”, and decision environment.
MIS is generated when we add predefined managerial reports that are spun out
of the transaction processing, report generation & online inquiry capabilities-
all integrated with a given functional area such as production MIS or personnel
MIS. DSS results from adding external data sources, accounting & statistical
models, and interactive query capabilities. The outcome is a system designed
to serve all levels of management, and top management in particular, in dealing
with “what if” unstructured problem situations. It is a system with the intrinsic
capability to support ad hoc data analysis as well as decision modelling
activities.
Herbert Simon described decision making as a three-phase continuous model
beginning with intelligence and moving toward design and choice. The
process is invoked by the recognition of a problem. The resulting decision is
then directed at solving the problem.
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The design phase of decision making focuses on the evaluation of decision
alternatives. During this phase, computer-based deterministic or stochastic
models may be used for decision design. DSS plays a major role in decision
design under uncertainty. The output of the model(s) is the basis for the choice
phase of decision making.
The technical factor involves the system department's ability to handle a project. Much depends on
the availability of qualified analysts, designers, and software specialists to do the work. This is
especially true in designing data bases and implementing complex systems for large concerns. The
behavioural factor involves (1) the user's past experience with an existing system, (2) the success
record of the analyst, and (3) the influence the user can exert on upper management to finance a
candidate system. Perhaps the most important criterion in selecting a project is the economic factor.
It focuses on the system's potential return on investment.
PROTOTYPING
As can be deduced from the discussion on system development, there are two major problems with
building information systems : (1) the system development life cycle takes too long and (2) the right
system is rarely developed the first time. Lengthy development frustrates the user. Analysts seem to
get bogged down with tedious methodologies for developing systems. The reason they often come up
with the wrong system is that they expect users to define their information requirements. It usually
turns out that what users ask for is not what they want , and what they want is not what they need.
Prototyping recognizes problems of cognitive style and uses advanced computer technology. It
advocates building a simple system through trial and error and refining it through an iterative process.
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Benefits realised from the candidate system do no justify the commitment to implementation.
There is a sudden change in the user’s budget or an increase in design costs beyond the
estimate made during the feasibility study.
The project greatly exceeds the time and cost schedule.
In each case, a system project may be terminated at the user’s request.
In contrast to project termination is new system failure. There are many reasons a new system does
not meet user requirements:
User requests were not clearly defined or understood.
The user staff was not directly involved in the crucial phases of system development.
The analyst, programmer or both were inexperienced.
The systems analyst (or the project team) had to do the work under stringent time constraints.
Consequently, not enough though went into the feasibility study & system design.
User training was poor.
Existing hardware proved deficient to handle the new application.
The new system left users in other departments out of touch with information that the old
system had provided.
The new system was not user friendly.
Users changed their requirements.
The staff was hostile.
The list can be expanded to include many more cases. The important point is that although advances
in computer systems and software make life easier for the analyst, the success of a system project
depends on the experience, creative ability, and knowledge of the analyst and the support from the
user staff.
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Technical skills include:
1. Creativity- helping user's model ideas into concrete plans and developing candidate systems
to match user requirements.
2. Problem solving- reducing problems to their elemental levels for analysis, developing
alternative solutions to a given problem, and delineating the pros and cons of candidate
systems.
3. Project management- scheduling, performing well under time constraints, coordinating team
efforts, and managing costs arid expenditures.
4. Dynamic interface- blending technical and nontechnical considerations in functional
specifications and general design.
5. Questioning attitude and inquiring mind- knowing the what, when, why, where, who, and
how a system works.
6. Knowledge of the basics of the computer and the business function.
System analysis require interpersonal as well as technical skills, although the necessity for both skills
depends on the stages of system development. During analysis, there is greater need for interpersonal
skills - working with the user to determine requirements and translate them into design criteria.
During design, the major thrust is to develop a detailed design of the candidate system - highly
technical procedures and methodologies. Even then, there is some emphasis on the interpersonal
factor - the analyst/user interface and user participation as a step toward training and implementation.
During program construction, coding and testing are carried out with some user participation.
During system implementation, technical and interpersonal skills converge. The technical aspects
focus on "proving" the software and preparing for the final conversion of files and documentation.
The interpersonal aspects deal with user training and selling the user on the benefits and potential of
the candidate system. During the maintenance stage the role of the analyst drops off, except when
unanticipated problems develop.
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2. Getting Information From The Existing Information System
Determining information form an existing application has been called the data analysis
approach. It simply asks the user what information is currently received and what other
information is required. The analyst examines all reports, discusses with the user each piece of
information examined and determines unfulfilled information needs by interviewing the user.
The analyst in primarily involved in improving the existing flow of data to the user. It breaks
down the problem into parts, which allows the user to focus separately on the critical issues. It
also determines policy and organizational objectives relevant to the decision areas identified
and the specific steps required to complete each major decision. Then the analyst and the user
refine the decision process and the information requirements for a final statement of
information requirements.
3. Prototyping
The third strategy for determining user information requirements is used when the user cannot
establish information needs accurately before the information system is built. The reason could
be the lack of an existing model on which to base requirements or a difficulty in visualizing
candidate systems. In this case, the user needs to anchor on real-life systems from which
adjustments can be made. Therefore, the iterative discovery approach captures an initial set of
information requirements and builds a system to meet these requirements. As users gain
experience in its use, they request additional requirements or modifications (iterations), in the
system. In essence, information requirements are discovered by using the system. Prototyping
is suitable in environments where it is difficult to formulate a concrete model for defining
information requirements.
DEFINITIONS
1. Fact Finding - It is the first step in the initial investigation. It includes a review of the written
document, onsite observations, interviews and questionnaires.
2. Fact Analysis – It evaluates the elements related to input & output of a given system.
Input/output analysis identifies the elements that are related to the inputs and outputs of a
given system. Flowcharts and data flow diagrams (DFD) are excellent tools for input/output
analysis. Data flow diagrams and other charts are prepared during this state. The DFD shows
the flow of data, the processes and the areas where they are stored. It is a commonly used
structure tool for displaying the logical aspects of the system under study.
3. Decision Tables – Decision tables are used as a supplement when complex decision logic
cannot be represented clearly in a data flow diagram. As a documenting tool, they provide a
simpler form of data analysis than the flowchart or DFD. When completed they are an easy-
to-follow communication device between technical and non-technical personnel.
4. Initial Investigation – Initial investigation determines whether an alternative system is
feasible or not. The proposal details the findings of the investigation. It initiates a feasibility
study which leads to the selection of the best candidate system.
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