Introduction

System
• A collection of components that work together to
realize some objective.
• Basically there are three major components in every
system, namely input, processing and output.

1. Input: Involves capturing and assembling elements

that enter the system to be processed.
2. Processing: Involves transformation processes that
convert input into output. For example mathematical
operations.
3. Output: involves transferring elements that have been
produced by a transformation process to their
ultimate destination.
 System Components
i. Resources
Resources can be hardware, software or liveware.
Hardware resources may include the computer, its
peripherals, stationery etc. Software resources would
include the programs running on these computers and
the liveware would include the human beings required to
operate the system and make it functional.
Thus these resources make an important component of
any system. For instance, a Banking system cannot
function without the required stationery like cheque
books, pass books etc. such systems also need computers
to maintain their data and trained staff to operate these
computers and cater to the customer requirements.
 System Components cont...d
ii. Procedures
Every system functions under a set of rules that
govern the system to accomplish the defined goal of
the system. This set of rules defines the procedures
for the system. For instance, the Banking systems
have their predefined rules for providing interest at
different rates for different types of accounts.
 System Components cont...d
iii. Data/Information
Every system has some predefined goal. For achieving
the goal the system requires certain inputs, which are
converted into the required output. The main
objective of the System is to produce some useful
output. Output is the outcome of processing. Output
can be of any nature e.g. goods, services or
information.
However, the Output must conform to the customer's
expectations. Inputs are the elements that enter the
system and produce Output. Input can be of various
kinds, like material, information, etc.
 System Components cont...d
iv. Intermediate Data
Various processes process system's Inputs. Before it is
transformed into Output, it goes through many intermediary
transformations. Therefore, it is very important to identify the
Intermediate Data. For example, in a college when students
register for a new semester, the initial form submitted by
student goes through many departments. Each department
adds their validity checks on it.
Finally the form gets transformed and the student gets a slip
that states whether the student has been registered for the
requested subjects or not. It helps in building the System in a
better way. Intermediate forms of data occur when there is a lot
of processing on the input data. So, intermediate data should be
handled as carefully as other data since the output depends
upon it.
 System Components cont...d
v. Processes
The systems have some processes that make use of
the resources to achieve the set goal under the
defined procedures. These processes are the
operational element of the system.
For instance in a Banking System there are several
processes that are carried out. Consider for example
the processing of a cheque as a process. A cheque
passes through several stages before it actually gets
processed and converted. These are some of the
processes of the Banking system. All these
components together make a complete functional
system.
 Characteristics of a system
Systems also exhibit certain features and characteristics, some of
which are:
i. Objective
This is a predefined goal of a system. A system cannot exist without a
defined objective. For example an organization would have an
objective of earning maximum possible revenues, for which each
department and each individual has to work in coordination.
ii. Standards
It is the acceptable level of performance for any system. Systems
should be designed to meet standards. Standards can be business
specific or organization specific.
For example take a sorting problem. There are various sorting
algorithms. But each has its own complexity. So such algorithm
should be used that gives most optimum efficiency. So there should
be a standard or rule to use a particular algorithm. It should be seen
whether that algorithm is implemented in the system.
 Characteristics of a system cont...d
iii. Environment
It is the surrounding of a particular system. Every system
whether it is natural or man made co-exists with an
environment. It is very important for a system to adapt itself to
its environment. Also, for a system to exist it should change
according to the changing environment.
For example, we humans live in a particular environment. As we
move to other places, there are changes in the surroundings but
our body gradually adapts to the new environment. If it were
not the case, then it would have been very difficult for human to
survive for so many thousand years.
iv. Feed Back
Feedback is an important element of systems. The output of a
system needs to be observed and feedback from the output
taken so as to improve the system and make it achieve the laid
standards.
 Characteristics of a system cont...d
v. Boundaries and Interfaces
Every system has defined boundaries within which it operates.
Beyond these limits the system has to interact with the other
systems.
For instance, Personnel system in an organization has its work
domain with defined procedures. If the financial details of an
employee are required, the system has to interact with the
Accounting system to get the required details.
Interfaces are another important element through which the
system interacts with the outside world.
System interacts with other systems through its interfaces. Users
of the systems also interact with it through interfaces.
Therefore, these should be customized to the user needs. These
should be as user friendly as possible.
 Classifications of System
i. Physical vs Abstract System
Physical systems are tangible entities that we can touch and feel.
These may be static or dynamic in nature. For example, take a
computer center. Desks and chairs are the static parts, which assist in
the working of the center. Static parts don't change. The dynamic
systems are constantly changing.
Computer systems are dynamic system. Programs, data, and
applications can change according to the user's needs.
Abstract systems are non-physical entities or conceptual that may be
formulas, representation or model of a real system.

ii. Open vs Closed System

Open systems interact with their environment to achieve their
targets. Things that are not part of the system are environmental
elements for the system. Depending upon the interaction with the
environment, systems can be divided into two categories, open and
closed.
 Classifications of System cont...d
Open systems: Systems that interact with their environment. Practically most of the
systems are open systems. An open system has many interfaces with its environment.
It can also adapt to changing environmental conditions. It can receive inputs from, and
delivers output to the outside of system. An information system is an example of this
category.
Closed systems: Systems that don't interact with their environment. Closed systems
exist in concept only.

iii. Man made Information System

The main purpose of information systems is to manage data for a particular
organization. Maintaining files, producing information and reports are few functions.
An information system produces customized information depending upon the needs of
the organization. These are usually formal, informal, and computer based.
Formal Information Systems: It deals with the flow of information from top
management to lower management. Information flows in the form of memos,
instructions, etc. But feedback can be given from lower authorities to top
management.
Informal Information Systems: Informal systems are employee based. These are made
to solve the day to day work related problems.
Computer-Based Information Systems: This class of systems depends on the use of
computer for managing business applications.
 Information system
Information System: A collection of interrelated components that collect, process,
store, and disseminate information needed to complete business tasks. Three major
information systems are:
1. Transaction processing system: TPS processes business transaction of the
organization. Transaction can be any activity of the organization. Transactions
differ from organization to organization. For example, take a railway reservation
system. Booking, canceling, etc. are all transactions. Any query made to it is a
transaction.
However, there are some transactions, which are common to almost all organizations.
Like employee new employee, maintaining their leave status, maintaining employees
accounts, etc.
2. Management information system: These systems assist middle management in
problem solving and making decisions. They use the results of transaction
processing and some other information also. It is a set of information processing
functions. It should handle queries as quickly as they arrive. An important
element of MIS system is database.
3. Decision support system:
These systems assist higher management to make long term decisions. These type of
systems handle unstructured or semi structured decisions.
A decision is considered unstructured if there are no clear procedures for making the
decision and if not all the factors to be considered in the decision can be readily
identified in advance.
 Data & Information
• Data: Streams of raw facts representing events such
as business transactions.
• Information: Clusters of facts that is meaningful and
useful to human beings in the processes such as
making decisions.
• Another definition: Information is the product of
data processing. Information is interrelated data.
Information is equivalent to finished goods
produced after processing the raw material. The
information has a value in decision making.
 System Analysis and Design
Systems development can generally be thought of as
having two major components: Systems analysis and
Systems design.
System analysis, is the process of investigating a
system, identifying problems, and using the
information to recommend improvements to the
system.
System design is the process of planning a new
business system or one to replace or complement an
existing system.
Analysis specifies what the system should do. Design
states how to accomplish the objective.
 System Analysis and Design
• In business, System Analysis and Design refers to
the process of examining a business situation with
the intent of improving it through better procedures
and methods.
• System analysis and design relates to shaping
organizations, improving performance and
achieving objectives for profitability and growth.
The emphasis is on systems in action, the
relationships among subsystems and their
contribution to meeting a common goal.
 System analyst
The system analyst is the person (or persons) who guides through the development of an
information system .
Role of System Analyst differs from organization to organization. Most common responsibilities
of System Analyst are following
1) System analysis
It includes system's study in order to get facts about business activity. It is about getting
information and determining requirements. Here the responsibility includes only requirement
determination, not the design of the system.
2) System analysis and design:
Here apart from the analysis work, Analyst is also responsible for the designing of the new
system/application.
3) Systems analysis, design, and programming:
Here Analyst is also required to perform as a programmer, where he actually writes the code to
implement the design of the proposed application.
Due to the various responsibilities that a system analyst requires to handle, he has to be
multifaceted person with varied skills required at various stages of the life cycle. In addition to
the technical knowhow of the information system development a system analyst should also
have the following knowledge.
• Business knowledge: As the analyst might have to develop any kind of a business system, he
should be familiar with the general functioning of all kind of businesses.
• Interpersonal skills: Such skills are required at various stages of development process for
interacting with the users and extracting the requirements out of them
• Problem solving skills: A system analyst should have enough problem solving skills for defining
the alternate solutions to the system and also for the problems occurring at the various stages
of the development process
 Users of the system
The system end users of the system refer to the people who use
computers to perform their jobs, like desktop operators.
End users can be divided into various categories:
• Hands-on users: They actually interact with the system. They are
the people who feed in the input data and get output data.
For instance; Like person at the booking counter of a gas authority.
This person actually sees the records and registers requests from
various customers for gas cylinders.
• Indirect end users : They do not interact with the systems
hardware and software. However, these users benefit from the
results of these systems. These types of users can be managers of
organization using that system.
• Users with management responsibilities for application systems:
They oversee investment in the development or use of the system.
• Senior managers: They are responsible for evaluating
organization's exposure to risk from the systems failure.
 Review questions
1. Define the term ‘System’.
2. What are the various elements of system?
3. Identify two systems in your surroundings.
4. What is system analysis and design?
5. What are the roles of system analyst?
6. Make a list of traits that a system analyst should have.
7. Will the responsibility of a system analyst vary according to:
(a)Organization size( for example small or large business)?
(b) Type of organization(business, government agency, non-
profit organization)?
8. Differentiate between
a)Open and closed system
b) Physical and abstract
9. Main aim of an information system is to process _________.
10. Transaction processing, __________________ , and decision
support system are three types of information system.
11. State true or false
a) Decision support system is for middle level management.
b) Closed systems don't interact with their environment.
c) Transaction processing system handles day-to-day operations
of the organization.
d) Management information system deals with strategic
information of organization.
e) Problem solving and interpersonal skills are desirable for
system analyst