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February 9, 2016
System Concept
`System a word used in many ways in our day-to-day life. To mention a few, we
know transportation system, the economic system, educational system, and for
over three decades, the computer system.
A system is a fundamental concept of system theory, a way of thinking about the
world, a model. We determine a system by choosing the relevant interactions we
want to consider, and Choosing the system boundary or equivalently, providing
membership criteria to determine which entities are part of the system, and which
entities are outside of the system and are therefore, part of the environment of
the system.
System Concept
The term system is derived from the Greek word `systema which means an
organized relationship among functioning units or components.
or in other words,
A system is an orderly group of independent components linked together
according to a plan to achieve a common objective.
The word component may refer to physical parts (engines, wings of aircraft,
wheels of car), managerial steps (planning, organizing, directing, and controlling)
or a subsystem in a multilevel structure.
For example A business is also a system. Its components marketing,
manufacturing, sales, research, shipping, accounting and personnel all work
together to create profit that benefits the overall organization.
Even though there are many types of systems that may appear to be quite
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different, they turn out to have many similarities. There are common principles
and philosophies and theories that apply remarkably to virtually all kinds of
systems.
Thus, if we understand something of general systems theory, it can help us to
better understand the computerized information system.
A definition of the basic term system is as follows
1. A regularly interacting or interdependent group of items forming a unified
whole.
2. An organized set of doctrines, ideas or principles usually intended to explain
the arrangement of a systematic whole.
3. An organized or established procedure.
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Features of a System
FEATURES OF A SYSTEM
System has the following features :
People : People include all those who are directly or indirectly related to the
Infrastructure : Include all the physical facilities provided by the system.
Rules, Policies & Regulations : Various procedures carried out to conduct a
meaningful activity.
Objective : It is the ultimate purpose of all the activities related to the
system. If the features above mentioned exist, then we can say that a system
exists. For exampleAn Educational System.
People : Faculty, student, administrative staff etc.
Infrastructure : Building, furniture, library etc.
Rules and Regulations : Dress code, admission procedure, time table etc.
Objective : For teachers, teaching and earning money. For students, to. gain
The study of system concept has 3 basic implementation :
A system must be designed to achieve a predetermined objective.
Interrelationship and interdependence must exist among the components.
The objective of the organization as a whole have a higher priority than the
objective of its sub-system.
Therefore, system should be :
Interdependent
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Interactive
Organized
Functioning
have common objective.
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Characteristics of a System
CHARACTERISTICS OF A SYSTEM
1. Organization : Organization implies structure and order. It is the
arrangement of components that helps to achieve the objectives. Likewise, a
system i.e., a computer system is designed around an input device, .a central
processing unit, an output device andone or more storage units. When
linked together, they work as a whole system for producing information.
2. Interaction : It refers to the manner in which each component functions
with other component of the system.
3. Interdependence : It means that part of the organization depends on one
another. One subsystem depends upon the input of another subsystem for
proper functioning e., output of one subsystem is the required input for the
another subsystem.
4. Integration : It is concerned with how a system is tied together. It means
that parts of the system work together within the system even though each
part performs a unique function.
5. Central Objective : The last characteristic of a system is its central objective.
The important point is that user must be know about the central objective of
theorganization.
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February 9, 2016
Types of System
TYPES OF SYSTEM
System has been classified in different ways. Some popularly known
classificationsare
1. Physical and Abstract System
2. Open and Closed System
3. Formal and Informal Information System
4. Computer Based Information System
Management Information System (MIS)
Decision Support System (DSS)
1. Physical and Abstract System
Physical systems are tangible entities that may be static or dynamic in operation.
Static systems are those systems in which each entity has its own physical
existence, which can be seen, touched and counted. For example, the physical
parts of the computer center are the offices, desks and the chairs that facilitate
the operation of the computer. They can be seen and counted.
In contrary, Dynamic system responds to various demands made by the user.
Data, program, output and specification changes as the user demands.
Abstract system are conceptual and non-physical entities. Or in other words,
Abstract systems are used for describing data and data relationships in
accordance with concept. They may be straight forward as formula of relationship
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among the set of variables. The main objective of abstract model is that it seems
to be easier for the analyst to visualize relationship among the system under
study and point out the components and interrelationship among them.
Open and Closed System
An open system is a state of a system, in which a system continuously interacts
with its environment. Open systems have many interfaces with environment. It
permits interaction across boundary. It receives input from and delivers output to
the outside world. It visualizes organizations taking inputs such as raw material,
labour, capital and competitive information from the larger environment.
Operations are performed on the input and combined with the managerial
process to produce desirable results which are distributed back to the
environment.
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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 boundaries and
framework of the business and stated policies.
COMPUTER BASED INFORMATION SYSTEM (CBIS)
These days information system relies on computer for the storage, retrieval of
data. Computer are used to make business application. These days system
analysis heavily relies on computer to solve the business problem.
Major categories of CBIS available these days are :
Management Information System (MIS)
Decision Support System (DSS)
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February 9, 2016
System Analyst
SYSTEM ANALYST
System Analyst is a specialist who studies the problems and needs of an
organization to determine how people, data, processes, and information
technology can best accomplish improvements for the business.
System analyst understand both business and computing. They study both
business problems and opportunities and then transform business and
information requirements into specification for information systems that will be
implemented by various technical specialists including computer programmers.
System analyst initiates changes within an organization. Every new system
changes the business.
System analyst is basically a problem solver. Problems may be either real or
anticipated that require corrective action.
Skills to be possessed by System Analyst
An analyst must possess various skills to effectively carry out the job. They may be
divided into 2 categories interpersonal and technical skills. Interpersonal skills
deal with relationship and the interface of the analyst with people in business.
They are useful in establishing trust and resolving conflicts. Technical skills focus
on procedures and techniques for operation analysis, system analysis and
computer science.
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A system analyst must develop or possess other skills, knowledge and traits to
complete the job. These include :
Computer programming experience and expertise : It is difficult to imagine
how systems analysts could adequately prepare business and technical
specification for a programmer if they didnt have some programming
experience. Most syStem analysts need to be proficient in one or more highlevel programming languages.
General problem solving skills : The system analyst must be able to take a
large business problem, break down that problem into its parts, determine
problem causes and effects and then recommend a solution. Analyst must
avoid the tendency to suggest the solution before analyzing the problem.
Good Interpersonal Communication Skills : An analyst must be able to
communicate effectively, both orally and in writing. Communication is not
just reports, telephone conversations and interviews. It is people talking,
listening, feeling and reacting to one another, their experience and reactions.
Flexibility and Adaptability : Successful system analysts learn to be flexible
and to adapt to unique challenges and situations.
Act as a Motivator : A system should be designed and acceptable to the
user. System acceptance is achieved through user participation in its
development, effective user training, and proper motivation to use the
system. Analyst plays an important role in acting as a motivator.
General Business Knowledge
There are few general principles that are of particular interest to people building
automated information systems. They include the following :
The more specialized the system is, the less able it is to adapt to different
The more general purpose a system is, the less optimized it is for any
particular
The larger a system is, the more of its resources that must be devoted to its
everyday maintenance.
Participants to System Development
User
Management
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how to work with all of them and gain their confidence. Analysts must have
sharp mind to learn quickly how people do their jobs and develop ways for
them to do better.
6. An analytical mind : It takes an unusual person to see through problems
facing an organisation and develop solutions that will work. It requires an
analytical mind to select pertinent data and concentrate on them in defining
problems and forming solutions.
7. Knowledge of people : Since a systems analyst works with others so closely,
he or she must understand their needs and know what motivates them to
develop systems properly.
Skills of Analyst
Architect : The architects primary function as liaison between the clients
abstract design requirements and the contractors detailed building plan
may be compared to the analysts role as liaison between the users logical
design requirements and the detailed physical system design.
Investigator and Monitor : In defining a problem, the analyst places
together the information gathered to determine why the present system
does not work well and what changes will correct the problem.
To undertake and successfully complete a project the analyst must monitor
programs in relation to time, cost, and quality.
Sales person : Selling system can be as crucial as initiating change. Selling
system actually takes place at each step in the system life cycle, however.
Sales skills and persuasiveness, then, are crucial for the success of the
system.
Politician : Related to the role of motivator is that of politician. Diplomacy
and finesse in dealing with people can improve acceptance of the system. In
as much as a politician must have the support of his/her constituency, so is
the analysts goal to have the support of the users staff. He/she represents
their thinking and tries to achieve their goals through computerization.
Change Agent : The analyst may be viewed as an agent of change. The
system designs to introduce change and reorientation in how the user
organisation handles information or makes decisions.
Motivator : Analysts role as a motivator becomes obvious during the first
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few weeks after implementation and during times when turnover results in
new people being trained to work with the candidate system.
Psychologist : The analyst plays the role of a phychologist in the way he/she
reaches people, interprets their thoughts, assesses their behaviour, and
draws conclusions from the interactions. Understanding interfunctional
relationships is important.
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February 9, 2016
Types of Information
TYPES OF INFORMATION
Data is processed to obtain information. Further, the same data may be
processed in different ways to obtain different types of information. A fair amount
of data is processedmanually, particularly when the organization is small and the
amount of data to be processed is small. For example, a small retail grocery store
owner. In order to run his business efficiently he would need different types of
information.
As long as his store is small and his volume of sales is small, all information may
be obtained manually be employing one or more clerks. The information required
by the store owner may be classified into the following categories :
Strategic Information : This is the information needed for long range
planning and directing the course the business should take. The store owner
may like, for example, to decide whether to expand his business by stocking
new varieties of items, in his store, whether to work on a small profit margin
to expand sales, whether to open a new branch etc. He has to obtain
information on trends, effect of reduction in price of some items, impact of
advertising etc. This type of information is less structured. Further, the
volume of important information in strategic planning is small and is difficult
to obtain.
Tactical Information : This type of information is needed to take short
range decisions to run the business efficiently. For instance, the information
on fast and slow moving items may be used to take the tactical decision to
stock more of the former and give discount on the latter. Information on the
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Qualities of Information
QUALITIES OF INFORMATION
The qualities of the information to be provided to managers are as follows :
The information should be It should be given to the manager when he needs
it. Delayed information may sometimes be of no value.
It should also be The processing should not hide some vital information
which may, for example, point out the inefficiency of some individuals.
The information must be inother words, the correctness of the input data
and that of the processing rules should be ensured so that the resulting
information is accurate.
Information should be tailored to the needs of the user and should be
relevant to Massive volumes of irrelevant information would waste a lot of
managers time and there is a danger of his missing important relevant
information.
The information should be That is, it should include all data and must not
exclude any.
The information should be presented when he needs it and where he needs
it in such a way that he may immediately perceive its For example,
presentation of information in a graphical form such as bar carts, pie charts,
etc., ensures quick recognition of the significance of the information. It is also
essential to present the information in an attractive format which a user can
immediately understand.
It is essential to give brief summarized information to ensure quick action.
Information should also be up to date. It should include all data available at
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Information System
INFORMATION SYSTEM
An arrangement of people, data, processes and information technology that
interact to collect, process, store and provide as output, the information needed
to support an organisation. Information System
Information system in organizations capture and manage data to produce useful
information that supports an organization and its employees, customers,
suppliers and partners. Many organizations consider information system to be
essential to their ability to complete or gain competitive advantage. Therefore,
information system development is relevant.
Transaction Processing Systems (TPS) process business transactions such as
orders, time cards, payments and reservations.
Management Information System (MIS) use the transaction data to produce
information needed by managers to run the business.
Decision Support System (DSS) help various decision makers to identify and
choose different options or decisions.
Executive Information System (EIS) are tailored to the unique information needs
of the executives who plan for the business and assess performance against those
plans.
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Expert System (ES) capture and reproduce the knowledge of an expert problem
solver or decision maker and then simulate the thinking of that expert.
Office Automation Systems (OAS) helps employees to create and share
documents that support day-to-day office activities.
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Advantages of MIS
An MIS provides the following advantages :
1. It Facilitates planning : MIS improves the quality of plan by providing
relevant information for sound decision making . Due to increase in the size
and complexity of organizations, managers have lost personal contact with
the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of data
in to summarized form and there by avoids the confusion which may arise
when managers are flooded with detailed facts.
3. MIS Encourages Decentralization : Decentralization of authority is possibly
when there is a system for monitoring operations at lower levels. MIS is
successfully used for measuring performance and making necessary change
in the organizational plans and procedures.
4. It brings Co-ordination : MIS facilities integration of specialized activities by
keeping each department aware of the problem and requirements of other
departments. It connects all decision centers in the organization .
5. It makes control easier : MIS serves as a link between managerial planning
and It improves the ability of management to evaluate and improve
performance . The used computers has increased the data processing and
storage capabilities and reduced the cost
6. MIS assembles, process, stores, Retrieves, evaluates and Disseminates
theinformation.
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doesnt matter, however itis this process of taking raw or unstructured data,
containing and collecting it and then using it to help aid decision making.
It is important to note that the field of DSS does not have a universally accepted
model, meaning that there are many theories vying for supremacy in this broad
field. Because of there are many working theories in the topic of DSS, there are
many ways to classify DSS.
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Today, the application of EIS is not only in typical corporate hierarchies, but also at
personal computers on a local area network. EIS now cross computer hardware
platforms and integrate information stored on mainframes, personal computer
systems, and minicomputers. As some client service companies adopt the latest
enterprise information systems, employees can use their personal computers to
get access to the companys data and decide which data are relevant for their
decision makings. This arrangement makes all users able to customize their
access to the proper companys data and provide relevant information to both
upper and lower levels in companies.
Components of EIS
The components of an EIS can typically be classified as:
1. Hardware : When talking about hardware for an EIS environment, we should
focus on the hardware that meet the executives needs. The executive must
be put first and the executives needs must be defined before the hardware
can be selected.
The basic computer hardware needed for a typical EIS includes four components:
Input data-entry devices. These devices allow the executive to enter, verify,
and update data immediately;
The central processing unit (CPU), which is the kernel because it controls
the other computer system components;
Data storage files. The executive can use this part to save useful business
information, and this part also help the executive to search historical
business information easily;
Output devices, which provide a visual or permanent record for the
executive to save or read. This device refers to the visual output device or
printer. In addition, with the advent of local area networks (LAN), several EIS
products for networked workstations became available. These systems
require less support and less expensive computer hardware. They also
increase access of the EIS information to many more users within a
company.
2. Software : Choosing the appropriate software is vital to design an effective
EIS. Therefore, the software components and how they integrate the data
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into one system are very important. The basic software needed for a typical
EIS includes four components:
3. Text base software. The most common form of text is probably documents;
4. Heterogeneous databases residing on a range of vendor-specific and open
computer platforms help executives access both internal and external data;
5. Graphic base. Graphics can turn volumes of text and statistics into visual
information for executives. Typical graphic types are: time series charts,
scatter diagrams, motion graphics, sequence charts, and comparisonoriented graphs (i.e., bar charts);
6. Model base. The EIS models contain routine and special statistical, financial,
and other quantitative analysis.
Perhaps a more difficult problem for executives is chosing from a range of highly
technical software packages. Ease of use, responsiveness to executives requests,
and price are all reasonable considerations. Further, it should be considered
whether the package can run on existing hardware.
3. User Interface : An EIS needs to be efficient to retrieve relevant data for
decision makers, so the user interface is very important. Several types of
interfaces can be available to the EIS structure, such as scheduled reports,
questions/answers, menu driven, command language, natural language, and
input/output. It is crucial that the interface must fit the decision makers
decision-making style. If the executive is not comfortable with the
information questions/answers style, the EIS will not be fully utilized. The
ideal interface for an EIS would be simple to use and highly flexible, providing
consistent performance, reflecting the executives world, and containing help
information.
4. Telecommunication : As decentralizing is becoming the current trend in
companies, telecommunications will play a pivotal role in networked information
systems. Transmitting data from one place to another has become crucial for
establishing
a reliable network. In addition, telecommunications within an EIS can accelerate
the need for access to distributed data.
Applications of EIS
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EIS enables executives to find those data according to user-defined criteria and
promote information-based insight and understanding. After realizing its
advantages, people have applied EIS in many areas, especially, in manufacturing,
marketing, and finance areas which are as follows :
1. Manufacturing : Basically, manufacturing is the transformation of raw
materials into finished goods for sale, or intermediate processes involving
the production or finishing of semi-manufactures. It is a large branch of
industry and of secondary Manufacturing operational control focuses on
day-to-day operations, and the central idea of this process is effectiveness
and efficiency. To produce meaningful managerial and operational
information for controlling manufacturing operations, the executive has to
make changes in the decision processes. EIS provides the evaluation of
vendors and buyers, the evaluation of purchased materials and parts, and
analysis of critical purchasing areas. Therefore, the executive can oversee
and review purchasing operations effectively with EIS. In addition, because
production planning and control depends heavily on the plants data base
and its communications with all manufacturing work centers, EIS also
provides an approach to improve production planning and control.
2. Marketing : In an organization, marketing executives role is to create the
future. Their main duty is managing available marketing resources to create
a more effective For this, they need make judgments about risk and
uncertainty of a project and its impact on company in short term and long
term. To assist marketing executives in making effective marketing decisions,
an EIS can be applied. EIS provides an approach to sales forecasting, which
can allow the market executive to compare sales forecast with past sales.
3. Financial : A financial analysis is one of the most important steps to
companies today. The executive needs to use financial ratios and cash flow
analysis to estimate the trends and make capital investment decisions. An
EIS is a responsibility-oriented approach that integrated planning or
budgeting with control of performance reporting, and it can be extremely
helpful to finance executives. Basically, EIS focuses on accountability of
financial performance and it recognizes the importance of cost standards
and flexible budgeting in developing the quality of information provided for
all executive levels. EIS enables executives to focus more on the long-term
basis of current year and beyond, which means that the executive not only
can manage a sufficient flow to maintain current operations but also can
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figure out how to expand operations that are contemplated over the coming
years.
Advantages and Disadvantages
Advantages
Easy for upper-level executives to use, extensive computer experience is not
required in operations
Provides timely delivery of company summary information
Information that is provided is better understood
Filters data for management
Improves to tracking information
.Offers efficiency to decision makers
Disadvantages
Functions are limited, cannot perform complex calculations
Hard to quantify benefits and to justify implementation of an EIS
Executives may encounter information overload
System may become slow, large, and hard to manage
Difficult to keep current data
May lead to less reliable and insecure data
Small companies may encounter excessive costs for implementation
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Expert System
EXPERT SYSTEM
An expert system is a software system that attempts to reproduce the
performance of one or more human experts, most commonly in a specific
problem domain, and is a traditional application and/or subfield of artificial
intelligence.
A wide variety of methods can be used to simulate the performance of the expert
however common to most or all are :
the creation of a so-called knowledge base which uses some knowledge
representation formalism to capture the subject matter experts (SME)
knowledge.
a process of gathering that knowledge from the SME and codifying it
according to the formalism, which is called knowledge engineering. Expert
systems may or may not have learning components but a third common
element is that once the system is developed it is proven by being placed in
the same real world problem solving situation as the human SME, typically as
an aid to human workers or a supplement to some information system.
Advantages and Disadvantages of ES
Advantages
Provides consistent answers for repetitive decisions, processes and tasks.
Holds and maintains significant levels of information.
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