Systems concept

Ritika Singh
JRF ISM

Suggest an example of a system

What is a system?

System is derived from a Greek word

systema

An organized relationship among functioning

units or components

Transportation system, telephone system,

accounting system, production system,
computer system

Assumptions of a system

A system must be designed to achieve a

predetermined objective

Interrelationships must exist among the

components

The objective of the organization as a whole

have a higher priority than the objectives of
its subsystems

Characteristics of a system

Organization authority structure, flow of information,

organization structure

Interaction inventory and production, payroll and personnel

Interdependence plan, input of one system should depend

upon output of another system

Integration It is more than sharing a physical part, synergy

Central objective One which is achievable to synchronize the

activities

To construct a system
Elements

Outputs and inputs Output is first step in

specifying the nature, amount and regularity
of an input needed to operate a system

Processor(s) Operational component,

modify the input completely or partially

Cont

Control decision-making subsystem that controls

the pattern of activities governing input, output and
processing. Eg. Management

Feedback It is applicable in dynamic systems. The

output is compared with a set of performance
standards and the information is fed back into the
system along with the input. It can also result in the
processing subsystem. It can be +ve or -ve

Cont

Environment It is the suprasystem within

which the organization operates. It is the
source of external elements that affect the
performance

Boundaries and interface The limits that

identify its components, processes and
interrelationships when it interfaces with
another system

Types of system

Physical/Abstract Computer hardware is a

static system, computer software is dynamic
system but both are considered physical
whereas statistical models are abstract

Open/closed In open systems the

interactions are possible across the
boundaries, environment plays an important
role

Cont

Man-made Information systems

What is information systems?

A set of devices, procedures and operating
system designed around user based criteria
to produce information and communicate to
the user for planning, control and
performance

Categories of information

Strategic relates to long range planning policies

that are of direct interest to upper management .
The problems are unstructured eg population
growth, trends in financial investments, HR

Managerial Direct use to middle management and

department heads eg sales analysis, cash flow
projections, annual financial statements

Operational daily information. The problems are

structured eg daily employee absence sheets,
inventory availables

Assignment

Difference between MIS and DSS?

Suggest instances or cases where they are in

use

System development lifecycle

Lecture 2

Why are systems needed?

It expedites problem solving and improves

quality of decision making
Role of system analyst is to plan a new
system and make suitable changes in the
organization, personal contacts
System study or system development life
cycle
Systems cut across boundaries

System development lifecycle

Different stages
The stages may overlap in reality
Analyst looks at alternative ways to improve a
system or replace the parts that will reduce
the costs
This also results in modification of earlier
stages

Stage1 - Need recognition

Preliminary survey or initial investigation to

determine an alternative system
It includes duplication of efforts, bottlenecks,
inefficient existing procedures,
computerization
An analyst is supposed to set an objective
and define the scope also a preliminary cost
estimate is provided
The statement should be approved by the
user for accuracy

Impetus for system change

The change may originate due to the external

factors or the internal factors
Unemployment compensation regulation
(changing of report formats, contents and
procedure)
Customer complaints about delivery orders
(delivery schedules, volume, transportation)

Examples

M&A
New branches
Expenses exceed the budget
Use of unauthorized forms
Two departments working on same project
High rate of labor turnover
Labor intensive activities
High reject rates of finished goods

Ideas from top management

Sales figures report

The company comptroller reads the audit
report
An executive reads the DSS for sales
forecast
Long queues in the lobby due to slow
response or lack of training or increase in the
business

Users ideas converted into

feasibility study

The risk and potential return

Managements bias towards the user
Funding
Priorities of other projects
Users persuasive capabilities

Stage 2 - Feasibility study

What are the users demonstrable needs and

how does a candidate system meets them?

What resources are available for given

candidate systems?

What are the likely impact of the candidate

system on the organization? How well does it
fit within the organizations master MIS plan?

Feasibility study - generates

report

Statement of the problem carefully worded

Summary of findings and recommendations
Details of findings - an outline of existing
procedures + procedures, output reports, file
structure, cost and benefits of candidate
system
Recommendations and conclusion specific
recommendations( personnel assignments,
costs, project schedules and target dates)

Stage 3: Analysis

Defining boundaries
Data collected on the available files, decision
points and transactions
Tools used for analysis: data flow diagrams,
interviews, on-site observations and
questionnaires (training, experience and
common-sense)

Stage 4: Design

In system design we move from the logical to

the physical aspects
Technical specifications
Testing
Documentation
Final report procedural flowcharts, records
layout, report layout, workable plan for
implementation

Stage 5: Implementation

Primarily concerned with user training, site

preparation, and file conversion, network
tests
User acceptance test, system test, test data
Parallel run (POS)

Stage 6: Post-implementation
and maintenance

Maintenance is to continue to bring the new

system to the standards
Difference between maintenance and
enhancement
Bank increases its service charges on
checking accounts from Rs 3 to Rs 4.5 for a
minimum balance of Rs 300
Bank creates a personal loan on negative
balances when customer overdraws their
account

Project termination

Changing user requirements cannot be met

by the design
Sudden change in the budget
Benefits do not justify cost
Project exceeds the time limit

Failure of a new system

User requirements were not clearly understood

Users were not directly involved
Analyst and the programmer are inexperienced
Time constraints
User training was poor
Hardware cannot handle the new load
Not user friendly
Users changed the requirement
User staff was hostile