Structured Systems Analysis and Design (SSAD)

Unit 1

Prepared by: Sunil Kumar Shrestha

Introduction
Defining a System
The term system originates from the Greek term

systema, which means to place together. A collection of components that work together to realize some objective forms a system. Basically there are three major components in every system, namely input, processing and output.

Defining a System contd..

Take a cash machine for example. You input your card. You input your PIN number. You input your request. The machine processes the information. You receive your money, statement and card as an output.

Introduction contd..
'SYSTEM' is an important factor of management information system. The word system connotes plan, order, and arrangement. ASYSTEM says the dictionary,is a regularly interaction or inter-dependent group of items forming a united whole. A system is thus a set of interacting elements, interacting with each other to achieve a predetermined objective or goal. For example , in a computer system,the computer receives inputs and processes than produces the output.
INPUT SYSTEM OUTPUT

Systems Analysis and Design What is it?

System

organized set of related components established to accomplish certain task Natural Planned and placed by people Computer system A system that has computers as one of its components

Systems Analysis and Design What is it?

Systems Analysis:

Understanding and specifying in detail what an

information system should do Process of studying an existing system to determine how it works and how it meets user needs To understand information needs
System Design:

Specifying in detail how the parts of an information system should be implemented Process of developing a plan for an improved system, based upon the results of the systems analysis Define the system architecture (based on needs)

Systems Analysis and Design Why do it?

Impetus for change

Internal force External force Authority for change Approval of higher management

What is Systems Analysis and Design ?

Systems Analysis: understanding and specifying in

detail what an information system should do

System Design: specifying in detail how the parts

of an information system should be implemented

Why is it important?

Success of information systems depends on good SAD Widely used in industry - proven techniques Part of career growth in IT - lots of interesting and well-paying jobs! Increasing demand for systems analysis skills

Introduction
Elements of Computer based systems
Software computer program Hardware Electronics device that provides computing

capability and other devices that provides external world function ( sensors, motor etc)
People Users and operators of hardware and software Database Organized collection of information that is

accessed via software.

Documentation User Manuals, other documents to

explain procedures of the system.

Conceptual model of a system

A system can be defined any set of objects and ideas,and

their interrelationships which are ordered to a common goal or purpose. A conceptual Model describes the design of an application from the perspective of the owners and/or users of the application. Since a conceptual model does not focus on implementation it is inherently more stable than a Logical Model or Physical Model. A schematic description of a system, usually in the form of a written description, or flowchart, that includes visual representations corresponding to known properties of the system being modeled. A conceptual model can be used to further study the characteristics of the system being modeled.

For example, we can describe the system by its components I, J,K........Q or by its subsystems IJK, LMNO,PQ,whichever serves our purpose better. With complex systems, we can divide the analysis and design of the system into subsystems for control and implementation purpose.

Conceptual model of a system contd..

In the previous example various symbols through Q represent the component of the system. The lines connecting the symbols represent the relationships among components. Identical symbols represent a unique relationship among one or more,which can be termed a system into subsystem. The use of the term subsystem facilitates analysis or communication.

System Concepts
System can be underlined the field of information systems. A system can be simply defined as a group of interrelated or

interacting elements forming a unified whole. Many examples of systems can be found in the physical and biological science, in modern technology and human society. A system is a group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organized transformation process. Such a system sometimes is called a dynamic systems .it has three basic interacting components.

System Concepts contd..

INPUT

Capturing/accepting and assembling components that enter the system to be processed. Example Raw data, Raw material etc. Process that series of changes to be done on information, to convert input into output. Example: Data processing, Manufacturing process etc. Involves transferring elements that have been produced by a transformation process to their ultimate destination Example: Reports, Finished products etc.

PROCESSING

OUTPUT

System Limitations
System makes it is possible focus in a particular system within a hierarchy of systems. A limitation of a system may exist either physically or conceptually. The operational definitions of a system in terms of its limitations are: List all the components that are to make up the system and circumscribe them. Whatever found within this circumscribe space is called the system, and outside this space is called the environment. Work out the flows across the limitation. Flow from the environment into the system are called input and flows from in side the limitation to outside are called output.

System Limitations contd..

Identify all elements that contribute to the specific goals of the system and include these within the limitation if they are not included. Information system made up of the six building blocks that are:

User

User

User

INPUT TECHNOLOGY

MODELS DATABASE

OUTPUT CONTROL

System Limitations contd..

Buildings blocks system can be formed into functioning information system that meet the needs of organizations and their user's understandings these blocks, their relationship and their logical and physical context provides the basic knowledge for describing, developing and designing information systems.

Systems Approach to Problem Solving

In system approach, normally we use the following steps: Define the problem what it is about the system that is not satisfactory. Any changes in input from cost or availability of output unsatisfactory? What is the objective of the system analysis effort? Understand the system and define it. Because systems are hierarchical and are inter-related with their environment,so they need to follow the system study. What are the components of the system? Understand the each components relationship with the What are the constraints/limitations of the system of interest?

Systems Approach to Problem Solving contd..

What attractive exit to achieve our objectives with respect to modify the system? What choices are their to improve the system? What is their cost? And can they be implemented? Select one of their alternatives Develop and implement the alternatives If needed evaluate the impact of the changes made in the system.

Characteristics of a System
Every system has a certain objectives and goals Main system has a several subsystems or models The structure of the system is representation of the

interaction and inter-relationship between different components or subsystem that from a system
The lifecycle of the system is expression of the phases in

the alive usage life of the system

System operates in terms of goals and predetermined scope System in real life do not operate in isolation

Components of Information System

People ,hardware, software ,data, and networks are the five basic resources of information system.
1)Human resources[HR] - Information system specialize and end users 2)Data resources - Data and knowledge base. 3)Software resources - System procedures and programmer 4)Hardware resources - Media and machines 5)Networks resources - For communication system media and network support to perform input, processing, output, storage and control activities that transform data resources into information products

Components of Information System contd..

1.Human Resources : Specialist :- System analysis ,programmer ,computer operators. End user :- any one else who uses information system. 2.Data Resources : Procedure descriptions , customer records , employee files , inventory database. 3. Software Resources : Programs : operating system , spreadsheet programs, word processing programs ,payroll program. Procedures : data entry procedures,error correction procedures, paycheck distribution procedures.

Components of Information System contd..

4. Hardware resource : Machines: Computers ,Video monitors, magnetic disk drive, printers , output scanners. Media : Floppy disk, magnetic tape, optical disks, paper forms, plastic card. 5. Network Resource : Communications media ,communications processors , network access and control software.

Types of Systems contd..

A System is a set of components that interact with one another and serve for a common purpose or goal. Systems may be: Physical system - such as man, weapons etc. It has a material nature. It is based on material basis rather than on ideas or theoretical notions. Abstract system- such as god, nature etc. It is conceptual, a product of a human mind. That is, it cannot be seen or pointed to as an existing entity. Social, theological, cultural systems are abstract systems. None of them can be photographed, drawn or otherwise physically pictured. However, they do exist and can be discussed, studied and analyzed.

Types of Systems
Open systems- such as man.

An open system is any distinct entity -- a cell, a person, a forest, or a business organization -- that takes in resources from its environment, processes them in some way, and produces output. To survive, such a system depends on its environment, and on interactions between its component parts or subsystems. This type of system can adapt to changing internal and environmental conditions. We are interested in relationships and patterns of interaction between subsystems and their environments within the organization. We also look for relationships and reciprocal influences between the organization and the environment outside its formal "boundary."

Manufacturing system (Open system)

Closed Systems
Closed systems-such as chemical process.

A closed system is one which is self contained. It has no interaction with its environment. No know system can continue to operate for a long period of time without interacting with its environment.

Major Difference Between Closed and Open System

Open system a) Open system interacts or communicates with the environment constantly b) An open system has an infinite scope till the organization services. c) In an open system relevant variables keep on interacting. d) An open system is generally flexible and abstract. Closed system a) Whereas a closed system does not react with the environment b) Whereas a closed system has limited shape. c) Whereas the variables in a closed system are self contained. d) Whereas a closed system is rigid and mathematical.

Deterministic and Probabilistic System

Deterministic system :The behavior of a deterministic :

system is completely known .There is no uncertainty involved in defining the outputs of the system knowing the inputs. This implies that the interaction between various subsystems is know with certainty .Computer program is a good example of deterministic system, Here, knowing the inputs, the outputs of the program can be completely defined. Probabilistic systems- such as arrival pattern,class etc. In the probabilistic system,the behaviour cannot be predicted with certainty; only probabilistic estimates can be given. in this case,the interactions between various subsystems cannot be defined with certainty.

Types of Systems contd..

Man -Machine systems,such as aeroplane.

System Life Cycle

A computer based information system has a lifecycle. Without the structure and organization provided by SDLC approach projects are at risk for missed deadline, low quality etc. The systems life cycle is a systematic approach to solving business problems A business MIS passes through six distinct phases during its life cycle. Each phase has unique activities 1) The study Phase: this phase leads to a feasibility study on I) Identification of the problem. ii) Existing system and its effectiveness

System Life Cycle contd..

iii) Identifying & Evaluating the various alternative courses costs and benefits. Feasibility document (Preliminary Investigation Report) that indicates the willingness to proceed further. iv) Selecting the best alternative course of action.

System Life Cycle contd..

Why should the information system be changed? New laws that force organisations to do new things, or do old things differently Changes in society, such as growing demand for better security over personal data Changes in technology - e.g. a new operating system may force upgrades to computers A need to increase productivity, quality or efficiency Concern that existing equipment is a health and safety threat

System Life Cycle contd..

Changes in work processes, expansion of the business, changes in business requirements or the environment in which the organisation operates may all lead to a reassessment of information system requirements. The current system may be too inflexible or expensive to maintain, or may reduce the organisation's ability to respond quickly enough to customer's demands.

Reasons for change can come from within the organisation or from outside it . Factors can be technological, economic, social, legal or political.

System Life Cycle contd..

2) Design Phase a) identify the functions to be performed. b) Design the input/output and file design. c) Defining basic parameters for system design. Design Objectives Adding, changing and deleting processes to produce a new system Two major stages Logical design Independent of the physical world (considers the processes only, not who or what does the processes or how the processes are completed)

System Life Cycle contd..

Physical Design Adds the physical characteristics to an approved logical design. The people/machine interface is decided (processes to automate and those to remain manual).

System Life Cycle contd..

3) Development Phase At this stage the hardware and software are to be decided Construction of new system (coding,documentation, and manuals are produced)

System Life Cycle contd..

4) Implementation The selected is given particle shape and adopted for use. Any hardware that has been purchased will be delivered and installed and Software, which was designed and programmed will be installed Users are then trained Both the hardware and the software is tested File conversion is planned 5) Evaluation of the System After a period the system is evaluated to see whether it has fulfilled our requirements.

System Life Cycle contd..

6) Review of the System This may result in identification of deficiencies in the system. Also environmental conditions may change so that system may have to be modified.

Types of Systems
A system is defined and determined by its boundaries and

objectives. it is quite likely that a system is an arrangement of system in a logical order. When many smaller systems together make a larger system, the smaller system are called sub systems of the large systems. A large system can be spilt or decomposed into smaller system up to a certain levels. This decomposition can go down to a level where the input and the output are more or less. The decomposition of a system into subsystems can be in a serial form or it could be in a matrix form.

Types of Systems contd..

Example: a) sub systems in a serial order.
Subsystem1 Manufacturing Subsystem2 QualityControl Subsystem3 Maketing

-In a serial processing,the entire output of a system is the input to the next sub system. And so on.

Types of Systems contd..

b)

sub system operating in matrix order.

SubSystem1 Manufacturing SubSystem2 Marketing

SubSystem3 QualityControl

SubSystem4 Accounting

- In the matrix arrangement the different outputs go to the

different sub systems. A sub systems receives more than one input from other sub systems.

Hierarchical structure
Hierarchical structure : example for bill passing system in a commercial organization can be shown as follows.
BillPassingSystem

CollatingBillto Purchase

CollatingBillto Goodsreceipt Voucher

ComputingBill AmountPayable

Preparationof Cheque& PaymentVoucher

Bill Secreting

BillBooking Against Purchase

Compute Gross Amount

Taxand Duties

Finance Accounting

BillScrutinyV/S GoodsReceived

AuditingFor Payments

Business functions in Organizations

Every business consists of several well defined functions.

Often these functions are organized in to areas / departments. These areas are known as the functional areas of the business , in each functional area , as well defined business function is performed. For example , the area within a business origination responsible for pricing , coordinating consumer adverting efforts, and distributing the firm's products/services is known as the marketing function is usually performed by the marketing departments. Similarly the area within a firm responsible for making the product if a product is indeed made - is the manufacturing department.

Business functions in Organizations

Mainly three functional areas believed to be the most critical

in business: Finance Marketing Manufacturing Some other functional areas are Personnel, Engineering and Research and development etc.

Computerized Tasks and Reports in various Functional ; areas of Business

Functional area Finance and Accounting

Computerized Tasks

Reports

Accounts Payable Accounts Receivable -General Accounting Reports, Budgeting Payroll Accounting Reports Financial Statement Computation -Bonus and Reports Fixed Assets Control -Financial Analysis reports Payroll System -Cost Analysis Reports Port flow analysis -Cash Flow Statements Etc. Market Analysis Order entry Sales Tracking Inventory control Manufacturing scheduling Material resources planning (MRP) Computer-aided manufacturing (CAM) -Sales Forecasting Reports -Sales Planning Reports -Customer and sales Analysis Reports, etc. -Production planning and machine loading reports. -Cost analysis and control reports -Quantity control reports -Goods on order reports -Vendor analysis reports -Inventory control reports -ABC/XYZ analysis reports, etc.

Marketing

Production and Materials

Business functions in Organizations

Functional area Computerized Tasks Reports

Personnel Customer resources managements [HRM]

Employee education Employee tracking IT calculations Government reports generation Recruiting

-Personal information's reports -Performance appraisal reports -Training and leave records reports Etc.

Research and development (R&D)

Compute- Aided Design (CAD) Patent - searches Specialized engineering functions

-R&D analysis reports.

Business functions in Organizations

The back bone of an business origination information system is it's functional information system, since these process translations and make possible various house keeping and administrative qualities, they also provide most of the information useful for planning.

System Development Model

In order to design a good system, traditionally, the developers have used the Waterfall model as shown in Fig.

Waterfall Model
MISSION AND GOALS INFORMATION NEEDS SPECIFICATIONS ANALYSIS SYSTEM DESIGN PROCESS DESIGN TESTING IMPLEMENTATION MAINTENANCE

Waterfall Model
As Management Information Systems As waterfall flows from the top to the bottom, the system model shows the development process from the top to the bottom in steps. As water does not rise from a lower level to a higher level, it is presumed that once a step in the model is over, it is not required to go back. This model fits well when the changes into the requirement specifications are not required frequently. The minor changes can be taken care of through a maintenance process or through small design changes. The waterfall model applies well to the basic rule based data and information processing systems in accounting materials, production and personnel.

Waterfall Model contd..

A classically linear and sequential approach to software design and systems development, each waterfall stage is assigned to a separate team to ensure greater project and deadline control, important for on-time project delivery. A linear approach means a stage by stage approach for product building.

The Waterfall model contd..

Waterfall Strengths
Easy to understand, easy to use Provides structure to inexperienced staff Milestones are well understood Sets requirements stability Good for management control (plan, staff, track) Works well when quality is more important than cost or

schedule

The Waterfall model contd..

Waterfall model problems/ Deficiencies Inflexible partitioning of the project into distinct stages makes it difficult to respond to changing customer requirements. Therefore, this model is only appropriate when the requirements are well-understood and changes will be fairly limited during the design process. The waterfall model is mostly used for large systems engineering projects where a system is developed at several sites. The main drawback of the waterfall model is the difficulty of accommodating change after the process is underway. One phase has to be complete before moving onto the next phase.

The Waterfall model contd..

Waterfall model problems/ Deficiencies
All requirements must be known upfront Deliverables created for each phase are considered frozen

inhibits flexibility Can give a false impression of progress Does not reflect problem-solving nature of software development iterations of phases Integration is one big bang at the end Little opportunity for customer to preview the system (until it may be too late)

The Waterfall model contd..

When to use the Waterfall Model ?

Requirements are very well known Product definition is stable Technology is understood New version of an existing product Porting an existing product to a new platform.

However, some systems are more dynamic and require changes in specifications more often to continue to be useful. These modifications are termed as the versions of the basic model. One of the popular model developed by Boehm is a Spiral model as shown in Fig.

Ssira. Voce

Spiral model
A spiral model fits well, when we are developing large systems, where the specifications cannot be ascertained in one stroke completely and correctly. Some of them get surfaced when the system is put to use after its testing: The continuous revision of these steps in the system development is very common and then the designers call them as versions. The new version provides an additional functionality, features, and facilities to the user, and addresses the issues of the users of the system viz. performance, response, security and so on, irrespective of which development model is used in developing the system

Spiral model
The user wants the system to be user friendly, reliable and

effective, and one which gives correct results, while the developer wants, the system easy to modify, easy to understand, portable and compatible to other systems.

Spiral Model contd..

The spiral model is favored for large, expensive, and complicated projects. The steps in the spiral model can be generalized as follows: 1. The new system requirements are defined in as much detail as possible. This usually involves interviewing a number of users and other aspects of the existing system. 2. A preliminary design is created for the new system. 3. A first prototype of the new system is constructed from the preliminary design. That represents an approximation of the characteristics of the final product.

Spiral Model contd..

4. A second prototype is evolved by a fourfold procedure: (1) evaluating the first prototype in terms of its strengths, weaknesses, and risks; (2) defining the requirements of the second prototype; (3) planning and designing the second prototype; (4) constructing and testing the second prototype. 5. At the customer's option, the entire project can be aborted if the risk is deemed too great. Risk factors might involve development cost overruns, operating-cost miscalculation, or any other factor that could, in the customer's judgment, result in a less-than-satisfactory final product.

Spiral Model contd..

6. The existing prototype is evaluated in the same manner as was the previous prototype, and, if necessary, another prototype is developed from it according to the fourfold procedure outlined above. 7. The preceding steps are iterated until the customer is satisfied that the refined prototype represents the final product desired. 8. The final system is constructed, based on the refined prototype. 9. The final system is thoroughly evaluated and tested. routine maintenance is carried out on a continuing basis to prevent large-scale failures and to minimize downtime.

Spiral Model

Spiral Model contd..

Characteristics: Process is represented as a spiral rather than as a sequence of activities with backtracking. Each loop in the spiral represents a phase in the process. No fixed phases such as specification or design - loops in the spiral are chosen depending on what is required. Risks are explicitly assessed and resolved throughout the process.

Spiral Model Strengths

Provides early indication of risks, without much cost Users see the system early because of rapid

prototyping tools The design does not have to be perfect Users can be closely tied to all lifecycle steps Early and frequent feedback from users Cumulative costs assessed frequently

Spiral Model Weaknesses

Time spent for evaluating risks too large for small or low-risk

projects
Time spent planning, resetting objectives, doing risk

analysis and prototyping may be excessive

Risk assessment expertise is required Estimates of budget and time are harder to judge at the

beginning of the project since the requirements evolve through the process

When to use Spiral Model

When creation of a prototype is appropriate When costs and risk evaluation is important For medium to high-risk projects Long-term project commitment unwise because of

potential changes to economic priorities

Users are unsure of their needs Requirements are complex Significant changes are expected (research and

exploration)

A good system
The definition of a good system varies with the system's

environment. In some systems the performance is the key measure of a good system while in other cases the ability to change fast is a key measure of a good system. In some cases the user friendliness could be a measure of good system. In all the cases, however, the correctness of the result is a common measure, making them reliable and dependable for the business operations. The speed and response are the performance measures in case of large volume transaction based systems designed for real time applications.

A good system
The flexible design is a measure of performance where the

system needs continuous modifications to meet the revised requirements of the specifications. When it comes to a complex system the user friendliness and the ease of operations become the measures of a good system. In other words, a good system design considers the environment and the users, and incorporates all the needs and expectations so that its utility is the highest.

The System Development Methods

The traditional software development methods are the

Structured Systems Analysis and Design (SSAD) by Ross; the Requirement Driven Design by Alford and the Structured Analysis and Structure Design (SASD) by Yourdon. All these methods deal with the functions and data separately. The modem methodology is object-oriented, where the functions and the data are viewed together as an object.

The System Development Methods contd..

Where to use SSAD ? In well know problem domains With contract projects where SRS is specified In both real-time systems and transaction processing systems Not appropriate when time to market is short

The System Development Methods

Traditional methods consider the function and the data

independent of each other. The function provides the behaviour or operation which will use the data to perform. The data set so produced will hold information on the latest status of the transaction or function. These methods operate on the data model which has a structure, definition and application. The same data when used in different functions will produce different results and information.

The System Development Methods contd..

A system developed with the SSAD and the similar

approaches are difficult to maintain. The reason is that for each function and its behaviour the data structure is defined. The functionality behaves correctly under the conditions of the rigid data definition and structure. However, in real life, the data format changes, calling for a change in the programmes to meet the revised format and its processing. The length of the programme and its complexity increases due to first checking the data condition, and then moving the control to an appropriate command set for its processing. The SSAD is, therefore, easy to understand but difficult to maintain.

The System Development Methods contd..

The user of the system does not think in terms of the data

and its definition but thinks in terms of the functionality or process producing a result. In the SSAD approach, therefore, the user must have two views on the system to understand. The first view on the data and the second on its functionality. The two views create a problem of understanding the system correctly.

The Object Oriented Technology (OOT)

The Object Oriented Technology (OOT) approach differs

from the SSAD approach. The difference is that the OOT views the system and then models it in terms of an item called the Object, where the function and the data are defined at its lowest level where changes rarely occur. The OOT views the functions and the data as one integrated entity .It reflects the requirements directly into the objects.

The System Development Methods contd..

In the SSAD approach, the requirement is fulfilled through

defining and associating the data for each function. While in the OOT approach the requirement is fulfilled, through the object(s) processing, where the object itself is based on the behaviour. If a new requirement arises the new object(s) view is taken and the model is modified in that portion only leaving the rest of the design and the programme structure as it is. In the OOT approach the changes boil down to the lowest level in most of the cases.

The System Development Methods contd..

A good object model of the system does not require 'any

changes at a 'Class' or 'Super Class' level. They are, generally, at the instance level. For example, in invoice preparation, new functionality is required to calculate the invoice amount. In SSAD this would need a condition definition for recognition, then the changes in the data and process flow, further defining the output of the new requirement. In OOT the same situation would be handled by creating an instance where only the computing behaviour is different from the others.

The System Development Methods contd..

The instance is created by using the principle of inheritance.

Hence the change in the system and the programme progress is only at the lowest level and is local, not running across the total model of the system. In short, for a given business functionality the objects are defined in different categories and the system design is built through the objects and it is processed through object processing. Hence, in a business organisation to conduct a business, it requires the customer orders, purchase indents, material indents, work orders, purchase orders, receipts, issues, payments, delivery notes, packing notes, excise gate passes, invoices, bills, vouchers, etc. In the OOT usage the analysis is made of the business operations, and it is modelled into objects.

The System Development Methods contd..

For example, the object class 'ORDER' will handle all kinds of orders, viz., the customer orders, purchase orders, pay orders, appointment orders and so on. The objects are constructed for the documents, transactions and operations. The method which uses the objects in modelling and processing is called as the object oriented methodology.

The System Development Methods contd..

SSAD vs. OOAD Similarities Both SAD and OOAD had started off from programming techniques Both techniques use graphical design and graphical tools to analyze and model the requirements Both techniques provide a systematic step-by-step process for developers Both techniques focus on documentation of the requirements Differences SAD is Process-oriented OOAD is Data-oriented

Traditional versus Object-Oriented Approaches

The System Development Model

Whether it is a Waterfall model or a Spiral model of system development, or whether it is the SSAD or the SASD approach or whether it is the object oriented technology of system development the following steps of the development are common.

Common System Development Steps

Requirement Analysis The requirement analysis is carried out from the top

downwards in the organisation hierarchy, linking the goals and the objectives of the business organisation, with the strategy mix decided to achieve them. In this phase the information needs of the individuals, groups and functions are analysed from a decision making or a support point of view. Such information needs would fully satisfy the operational and management information needs. Once the needs are justified, the next step is to define them in clearer terms for the purpose of development.

Common system development steps

Requirement Definition

The requirement definition brings clarity in the content and its application in various ways in the organisation. System Design Input Design Process Design Output Design The third step is to design a physical and a logical system through which the outputs are designed. The processes which would give the outputs are determined, and the data which would be required by these processes is finalised in terms of definition, source, and quality.

Common system development steps contd..

And further, the collection, creation, validation and

storage of the input data is also decided.

Common system development steps contd..

System Development

Structuring the modules Developing The fourth step is to break the system design into modules in the hierarchical top-down structure to facilitate the development effort as well as its implementation. Unit Testing Once the modules are developed, the unit testing is carried out to confirm data transaction and outputs' validity and accuracy .In this testing, the transaction level processes are checked to confirm the input-process-output relation, and the data storage and the transaction level updating.

Common system development steps contd..

Integration of the Modules

When the unit testing is over and the module level processing is confirmed, the modules are put together to generate the information as determined in the requirement definition. The process of putting the modules together is a process of integration. It is intended to produce the results of data integration. System Testing The system so developed is tested as a whole for several aspects such as information, quality, performance, utility, user acceptance and so on.

Common system development steps contd..

Implementation Once the system testing is complete, the system is

implemented at site, on the hardware and software platform.

The implementation step has its own procedure starting from

the installation of the hardware and the software, training the users, and then shifting to a fully designed system.

While implementing the system some minor modifications /

adjustments, may be required for the ease of acceptance by the user.

Common system development steps

Maintenance

Even after complete installation, the system may require modifications or changes in terms of functions and features over a period of time. The process of introducing these new requirements without disturbing the time tested basic system is called maintenance. Such changes are required swiftly and hence they are required to be carried out very easily. The system is designed keeping this natural requirement in post implementation period.

A good system design

A good system design and its implementation has high

user acceptance because it helps solve the problems in business performance, and meets the information needs, within a sensible time scale, with an assured quality and security of information.

Information
Second important element in any managerial information system is the Information. "Information can be defined as data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective decisions". "Information refers to an input of data processing which is organized and meaningful to the person who receives it. Information is;

Knowledge from data Data presented in a meaningful context

Information is an organizational resource which must be

managed as carefully as other resources

Information

contd..

For example, data concerning a sale may indicate the number of the salesman. When a large number of such data elements is organized and analyzed, it may provide important information to a marketing director who is attempting to evaluate his sales force. In general, the planning information requirements of executives can be categorized into three broad categories viz.. Environmental Information Competitive Information Internal Information.

Environmental Information
Environmental Information comprises the following: i) Government policies Information about concessions, benefits government policies in respect of tax concessions or for any other aspect, which may be useful to an organization in the future period. ii) Factors of Production: Information related with source, cost, location, availability, accessibility and productivity of the major factors of production viz Capital, Labour, Material etc. iii) Technological Environment: Forecast of any technological changes in the industry and the probable effect of it on the firm.

Environmental Information contd..

iv) Economic trends: It includes information relating to economic indicators like consumers disposable income, employment, productivity, capital investment etc.

Competitive Information
Competitive Information Includes the following information: i) Industry demand: Demand forecast of the industry in respect of the product manufactured and in the area in which the firm used to be operating. ii) Firm Demand Assessment of the firms product demand in the specified market. It also includes an assessment of firm's capability to meet firm's demand. iii) The competitive data:

Internal Information
Internal Information includes the information concerning concern's are: i) Sales forecast ii) The financial plan/budget iii) Supply factors, and iv) Policies, which are vital for subsidiary planning at all levels in the organization.

Level of Information

Information within an organization can be analyzed into 3 levels.

Level of Information contd..

Strategic Information Is used by senior managers or top management to plan the objectives of their organization, and to assess whether the objectives are being met in practice. Such information includes overall profitability, the profitability of different segments of the business, future market prospects, the availability and cost of raising new funds, total cash needs, total management levels and capital equipment needs, etc. although internally generated information will always be used.

Level of Information contd..

Strategic Information contd.. Information requirements of top management are met by strategic information tier by arranging information from internal and external sources. Internal sources of data might include sales, manufacturing, inventory, or financial data from an organizations database. Data from external sources could include interest rates, population trends, and costs of new housing construction or raw material pricing. These systems assist higher management to make long term decisions. These type of systems handle unstructured or semi structured decisions.

Level of Information contd..

Strategic Information contd.. A decision is considered unstructured if there are no clear procedures for making the decision Strategic information is the information needed by top most management for decision making. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. This information is not required by the lower levels in the organization.Examples: a) Disturbing sales trends; New lines of product, Major changes in employee benefits

Level of Information contd..

b) Recognizing unusual or exceptional sales activities; periodic reports dont work here, further inquiries are needed (to the DB)

Level of Information contd..

Tactical Information Is used by middle management to ensure that the resources of the business are employed to achieve the strategic objectives of the organization. Such information includes productivity measurement output per on an - hour or per machine - hour, budgetary control or variance analysis reports and cash flow forecasts, managing levels and profit results within a particular department of the organization, labour turnover statistics within a department, short term purchasing requirements etc. Is used for making short term decisions and plans

Level of Information contd..

Tactical Information contd.. A large proportion of this information will be generated from within the organization as a feedback. Tactical information is usually prepared regularly and it is used -or the decision making referred to as management control. Another important function of tactical level is to supply information to strategic tier for the use of top management. Information like sales analysis for the past quarter or yearly Due to its vastness, most of the big organizations have separate MIS departments Prespecified reports Information like sales analysis for the past quarter or yearly

Level of Information contd..

Examples: a) Inventory reorder; Periodic reports are all right here b) Sales analysis reports; Performance figures = by product line = by sales person = by sales region c) Market research studies changes in consumer preferences & competitive products

Level of Information contd..

Operational Information Is used by operation level of management (front - line manager) such as foremen or head clerks to ensure that specific tasks are planned and carried out properly within a factory or office etc. In the payroll system, for example, operational information relating to day rate labour will include the hours worked each week by each employee, his rate of pay per hour, details of his deductions, and for the purpose of wages analysis, details of the time each man spent on individual jobs during the week. In this example, the information is required weekly.

Level of Information contd..

Operational Information contd.. Operational information relates to the level of decision making referred to as operational control. Operational level requires information for implementing and regulating operational plans for the purpose of conversion of inputs into outputs. Also it supplies routine and other information to tactical tier in summarized form.

Characteristics of Information
Important characteristics of useful and effective information are as follows: i) Accuracy: Information, if it is to be value should be accurate and should be truly reflects the situation or behavior of an event as it really is. Otherwise the user will take the incorrect information as correct and may use it for decision - making with a disastrous result. ii) Form Information : Is of value if it is provided to the user in the form It is useful and best understood by him. This is described in terms of qualitative and quantitative, numerical and graphic, summary and detailed.

Characteristics of Information contd..

iii) Relevance : It refers to current utility of information in decision making or problem solving. Information is relevant if it is needed for a practical situation. iv) Timeliness : It means that information should be made available when it is needed for a particular purpose and not before and in any case not after. Delayed information has far less value as a resource. v) Completeness : Information is considered as complete if it tells its user all what he wishes to know about a particular situation/problem. The more than completeness of information the higher is its value.

Characteristics of Information contd..

vi)Purpose : Information must have purpose at the time it is transmitted to a person or machine, otherwise it is simply data. The basic purpose of information is to inform, evaluate, persuade or organize other information, create new concepts, identify problems, solve problems, decision making, planning, initializing, controlling and searching. vii)Reliability: The information should be reliable and external force relied upon indicated. viii) Validity: It measures the closeness of the information to the purpose which it purports to serve.

Decision Making
Decision Making is an essential part of management. Processing information and making decision.
Information systems are developed to help the managers in their

decision making process.

It can be regarded as an outcome of mental processes

(cognitive process) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice.The output can be an action or an opinion of choice. The decision making process is based on the support of the information systems in the organizations. The managers must be aware of a problem, before a decision can be made.

Decision Making contd..

A problem exists when the real situation is different than the

expected one. Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. One has the highest probability of success or effectiveness Best fits with our goals, desires, lifestyle, values, and so on After the problem has been identified, the causes of the existence of the problem must be identified and then the solution to the problem has to be found.

Decision Making contd..

The decision making process can be divided into three main phases: Intelligence : Searching the environment for conditions calling for decisions. The phase consists of determining that a problem exists. Collect facts, beliefs and ideas.. Internal & external events or conditions (problems or opportunities) Design : The decision process follows the sequence from intelligence to design and to choice. It is possible to go back from one phase to another and the whole process may be repeated.

Decision Making contd..

Design : Develop & evaluate alternative courses of action; What-if What would happen to the break-even point if we cut advertising expense by 10%, 20%....? Choice : In this phase the decision maker selects one of the solutions identified in the design phase. Select a particular course of action (most promising alternative) Ideal situation: enough information & sufficient number of alternatives

Types of Decisions
The decisions have been classified into most activity. We present here different on the arranging mainly two types of decisions that are : i) Structured Decisions or Programmed Decisions ii) Unstructured Decision or Non Programmed Decisions. Structured Decisions Programmed and well defined decisions and they are preplanned They are essentially repetitive routine and involve a definite procedure for handling them so that they do not have to be treated each as if they were new.

Types of Decisions contd..

Structured decisions are made in the situations which are

fully understood Structured decisions are generally made for routine tasks

Types of Decisions contd..

At the operational level and the managerial staff, deal mostly

with such fairly well structured problems. Structured decisions are also called programmable decisions Where the procedures to follow when a decisions are structured or programmed by the decision procedures or decision rules developed for the them. A structured decision could possibly involve what is known as a deterministic decision or an algorithmic decision. Example : Decision making of students results Decision about the payroll systems etc.

Types of Decisions contd..

Characteristics : Structured decisions can be delegated: Structured decisions are repetitive, routine, and understood well enough that they can be delegated to lower-level employees in the organization. The cost of taking such decisions is not as high as that of unstructured ones. These decisions can be made with the help of computer systems.

Types of Decisions contd..

Unstructured Decisions Unstructured decisions are creative and they are not preplanned In unstructured decisions the situations are uncertain and unclear. Unstructured decisions are made for a sudden one-shot kind of situations These type of decisions are occasional and unique in nature. There are no predefined procedures available to solve these problems and a new analysis is required for each occurrence.

Types of Decisions contd..

In top level managers are usually faced with more such

unstructured decision making situations. Thus the strategic decision are non-repetitive, vital and important and aim of determining or changing the ends or means of the enterprise. Unstructured decisions are not simple. They are usually quite complex in nature, so, There is no tried and true method of handing them.

Types of Decisions contd..

The decision maker must provide judgment, evaluation and

insight into the problem definition. The risk involved in taking decisions to solve the problems in this is usually high A decision is considered unstructured if there are no clear procedures for making the decision Unstructured problems often solved with human intuition Eg. dealing with a labor strike in a factory, Plant expansion, Products scheduling , Capital budgeting Features of Unstructured decisions : These decisions cannot be delegated. The cost of taking such decisions are quite high. compared to structured decisions.

Types of Decisions contd..

Customer expectations, competitor response New product and marketing strategy decisions commonly fit

into this category

Decision Making Process

Herbert Alexander Simon, an American political scientist, economist, and psychologist, and professor s model

Decision Making Process contd..

Simon's decision making model: The decision making process as proposed by Herbert A. Simon. His model is a conceptual framework that divides the decision making process onto the following stages or phases: i) Intelligence Activities : At this stage, a search of the environment takes place to identity events and conditions requiring decisions. Data inputs are obtained, processed and examined for clues that may identify problems or opportunities.

Decision Making Process contd..

ii) Design facilities : At this stage, alternative courses of action are developed, analyzed and evaluated. This involves process to understand the problem, to generate solutions, and to test solutions for feasibility iii) Choice & Implementation activates : Here one has to select an alternative as course of action from those available. A choice is made implementation and monitored. Through intelligence, design, choice and implementation activities are sequential in nature, the decision making process includes the ability to cycleback to a previous stage as shown in figure;

Flow Chart of Decision Process

Is there a problem ? Intelligence

What are the alternatives ? Design

Which should you choose ? Choice

Is the choice Working ? Implementation

Decision Support Systems [DSS]

A Decision Support System (DSS) is an interactive

computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. In general, Decision Support Systems are a class of computerized information system that support decisionmaking activities. DSS are an application of Herbert A Simon model. As explained earlier, the model has three phases viz intelligence, design and choice and implementation.

Decision Support Systems [DSS]

The DSS basically helps the information system in the

intelligence phase where the objective is to identify the problem and then go to the design phase for solution. The choice of selection, criteria varies from problem to problem. It is therefore required to go through these phase again and again till a satisfactory solution is found. These systems are helpful where the decision maker calls for complex manipulation of data and use of several methods to reach an acceptable solution using different analysis approach.

Decision Support Systems contd..

The decision support system helps in making a decision and

also in its performance evaluation. These systems sensitivity analysis on various parameters of the problem.
DSS can be built around the rule in case of programmable

decision situation. While in Non-Programmable decisions, the rules are not fixed or predetermined, and requires every time the user to go through the decision making cycle as indicated in the Herbert Simon model.
The DSS refers to a class of systems which support in the

process of decision making and does not always give a decision itself.

Decision Support Systems contd..

Attributes of Decision Support System: [DSS] 1) can be 2) Flexibility : The systems are flexible so that any situation semi structured or unstructured decision making tackled with case and speed. Simple Model : The systems use simple model of

decision making. The only change is that a different set of Information is sought for the use of different models. The choice of a model depends upon the complexity of decision making.

Decision Support Systems contd..

3) Database :
The DSS needs database(s). The system calls for several

inputs from database(s) for decision making. The use of information being common input to the system is from the database.
A database is a non-redundant collection of interrelated data

items that can be processed through application programs and available to many users.

Types of Decision support system

1. Status inquires Systems : The number of decision in the operational management and same at the middle management are such that they are based on one or two aspects of a decision making situation. It does not call for any elaborate computations, analysis, choice, etc. for decision making. If the status is known, the decision is automatic, ie the status and solution is unique relation. 2. Data analysis Systems : These decision systems are based on comparative analysis, and use of a formula or an algorithm.

Types of Decision support system contd..

The cash flow analysis, the inventory analysis and the

personal inventory systems are examples of the analysis systems. The use of simple data processing tools and business rules are required to develop this system. 3. Information analysis Systems : In this system, the data is analyzed and information reports are generated. The reports might be having exceptions as a feature. The decision makers use these reports for assessment of the situation for decision making. The sales analysis, the accounts receivable systems, the market research analysis

Types of Decision support system contd..

4. Accounting System : These systems are not necessarily required for decision making but they are desirable to keep track of the major aspects of the business or a function. The contents of these systems is more data processing leading to formal reporting, with exceptions, if necessary. These systems account items such as cash, inventory, personnel and so an and relate it to a norm or norms developed by the management for control and decision. 5. Model Based Systems. These systems are simulation models or optimization models for decision making.

Types of Decision support system contd..

These decision, generally, are one time and infrequent and

provide general guidelines for operation or Management.

The product mix decision, the material mix, the Job

scheduling rules, and the resource or asset or facilities planning systems are the examples. Models Financial models Statistical analysis models Graphical models Project management models

Types of Decision support system contd

Example:
In order to illustrate these decision support systems, let us

take the example of materials management function and the variety of the decision and the type of systems used therein to support and examine the decision.

Types of Decision support system contd..

Decision Selection of Vender Procurement Pricing Type of system required Inquiry System Inquiry System Data analysis

Selection of vendor based on price, Information analysis system. quality performance Selection of capital asset Inventory rationalization Management of inventory within various financial and stocking constraints Return on investment analysis Valuation of inventory accounting system and

Inventory optimization model

Facts about Decision Support System

1. The decision support systems are developed by the users

and system analysis jointly.

2. DSS uses the principles of economics, science and

engineering, and also the tools and techniques of management.

3. The data used in the DSS is draw from the information

systems developed in the company.

4. The decision support systems are developed in isolation

and form an independent system subset of the management information system.

Facts about Decision Support System

5.

The most common use of the decision support system is to test the decision alternatives and also to test the sensitivity of the result to the change in the system and assumptions.