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Chapter-1 System Concepts i A system is an array of components that work together to achieve a common goal, or multple goals, by accepting input, processing it, and producing output in an ‘organized manner. Consider the following examples : 1 Computer is 8 a system with physical components viz. keyboard, monitor, memory chips, circuits and connecting cables and the basic goal is processing of a data. 2. Accounting is a system with elements Journal, ledgers, people and basic goal is recording of inancial transactions, preparation of balance sheet and reporting on financial operations of an entity. $—— Human body is a system with elements viz. organs, tissues, bones, blood, | nerves network and basic goal is homeostasis. Asystem consists of several subsystems - components of a larger system - with Sibgoals, all contributing to meeting the main goal. Subsystems can receive input from and transfer output to, other systems or subsystems. Figure 1.1 shows an accounting system consists of several subsystems : A) Accounts payable records information about money that the organization owes to other organizations and individuals. i Accounts receivable records sums owed to the organization and by whom. A general ledger records current transactions. Areport generator generates reports reflecting the company's financial staus. N subsystem has a well-defined goal. Together, the subsystems make UP the accounting system. il 1 : FIGURE a | Mhe.subsysioms, elements ofthe systom to wnch they belong, are themsewves ‘defined by their boundaries ‘interconnections and interactions. Be and between subsystems are called as interfaces, vinlerlaces occur al the boundary ofthe ‘Subsystem through the inputs and outputs, Fig. 1.2 lustrates the concept of interfaces, SubrSystem @ utput sub-system ¢ roms 1s required. This generally is achieved by provaing systems or maintaining excess capacties, _/’ive following points are supposed to form the basies of general A system must be designed to achiove a predetermined objective, 2 The objectives of he organization a a whole have higher pont than th objectives of its subsystems. ne celther puters bi Interrelationships and interdependence must exist among the components, 2Definition of A System ‘A system is an orderly grouping of interdependent components liked together ‘according to a plan to achieve a specific objectives, Basically, re are three major components in every system, namely, input, processing and output as shown in fig. 1.3. Inpur: PROCESSING FIGURE 13 For example, a business system combines policies, personnel, equipment and ‘computer facilities to co-ordinate the activiies of a business organisation. aracteristics of A System In general, all systems have the following common characteristics in figure 1.4. _Contal Processing Unt (@)__ Memory Unit 2 (e) Aw Soma] e) ots Ue (i) Outut Unit |e ep gee ney woes welt oa cng omelen en rigomentof various unites shown in 69.1.5 Jeet + Input Unt These are as follows 1. Specific Objectives “The basic objective of a system is to achieve some goal. A business system, for example, may have profit-making as its corporate goal 2. Components These are the sub-systems which collectively function to achieve goals of the > Flow of data & instructions (data Signa) system. > Control Signal 3. Organization Organization implies structure and order. It's the arrangement of components that helps to achieve objectives. For example “Inthe design of a business system the se nenentaen) president on top and leading downward to the ‘The components of the Computer System are ‘organization structure. : ‘authority in eeapine use of reeources. typical organisation suchel® SPM @ pet infig. 1.6. 4) les ead of Depariment Integration is concemed with how a Goventoryy |. ‘components ofthe system work together ough each component performs a unique function. Successful integration wil yea produce a better result as a whole rather than ‘Teach component independently. ‘ Behaviour A system reacts to inputs from ts environment (The extemal element of @. system are called its environment) and these responses WORKERS, FIGURE 1.6 Ee behaviour. Tho responce, in tum, are governed bythe res oF ees A Interaction wich the components or sub-systems are expected to follow in a pan 7 intercton refers one manner in which each component functions witht set of circumstances. For example, a person ( a human system), | Berner ofthe system. For example instinctively look lft and right before crossing a oad. (@) Ina computer system, the central processing unit (CPU) must interes Self-regulating with the input unit to solve a problem. ‘A system tends to maintain itself a steady state. In other words, ©) Ina business system, adverising must interact with sales. purchasiy 4 self-regulating ane Serragusing. with production and payroll with personnel. 9% Life Cycle ee 7 5 Interdependence Every systom has its life cycle birth, fe and death. Interdependence means that components or: ‘subsystems of the system depend ‘@n one another. One subsystem depends on the input of another subsyster I” Elements of A System for proper functioning; that is, the output of one subsystem is the requifed input for another subsystem. For example : ‘A decision to computerize an application is initiated by the user, analyzed and | __ designed by the analyst, programmed and tested by the programmer and nut (or by the computer operator as shown in fig. 1.7, none of these persons caf __ Perform property without the required input from others in the ‘computer baset pas i A simple way of looking ata system is we must determine what the cbjecves Of goals are, wat doy intent achieve, whats the purpose of ur workin other word, whatigy 0 achive} main aim behind the system. Once we know our aim,.we can try inthe best possible wa at Si 4 Inputs ‘Once wo know the output, we can easily determine what the inputs should ‘The essential elements of inputs are : Beer. (@) Control ‘the data is not accurate, the output will be wrong, Control of the system is the decision-maker that ‘accepting input, processing and producing the o | 2 Aimetiness a 5 4t data is not obtained in time, the entire system falls into arrears. organizational context. ene te aaa 3. Proper format The inputs must be availabe in proper format to operate within tolerable performance levels. temperatures of human body is 98.6°F. When temperature there is imbalance in the health 4 Economy (Feedback In feedback, the outputis fed back to input and Hence feedback is essential for system is the source of external elements that have an effect on n. In fact, It often determines how a system must function. As s banks, government and others, may provide constraints and, ‘consequenty | influence the actual performance of the business. "| (0) Boundaries and iteace A system should be defined by its boundaries - the limits that identiy Process, andinierelationships when itintriaces with anotg _ystem, For example, atl sysiem ina comercial banks ested aig ; ils withdrawals and related active of customers checking and savy ; Accounts. may exclude mortgage foreclosures, trust actvtios and tho tig LE of Systems ‘Systems have been classified in diferent ways. Common classifications are () Open and Closed Systems (i) Deterministic and Probablistic systems (ii) Physical or Abstract systems (v) Man-made information systems & PF Open and Closed Systems.) 5, A dosed system is one which is self contained. It has no interaction with its ‘environment. No known system can continue to operate for a long period of time without interacting with its environment. An example ofa relatively closed system is ‘& computer program which processes predefined inputs in a predefined way. A ‘relatively closed system is one which contro! its inputs, and so is protected from ‘environmental disturbance. ie An open system is a system that interacts freely with its environment. This type of |__ system can adapt to changing internal and environmental conditions. A business ‘organization is an excellent example of an open system. 2 (10) on 1 gthempainens onsen. raara eos cngsgeh _snanan bie ates ramp Adapt, Le teicintoracton with the. existence. Main characteristics of open systems Ay Eauitinality sedae [Anopen systemcan each tho same nal ‘andy various routes n ther words sytem: wth varying inputs and varying processes, mes tonsil ‘an open system is se acusting and sot: egulating. an Increase inthe cost of goods forces compare decrease in operating costs {ly Entropy (or toss of energy) All dynamic systoms ted to rundown overtime, resulting energy. Open systems rest entry by seeking new it processes o retum ta steady state or equim. (lv) Process, Output and Cycles wa (open systems produce useful output and operate in eles, f continuous flow path (0) Differentiation Open systems have a tendency towards an increasing 8p functions and a greater ditferentiation of their components. 15,2 Deterministic and Probabilistic Systems ‘The behaviour of a deterministic system is completely known. There is no’ involved in defining the outputs ofthe system knowing the inputs. the interactions between various subsystems is known with certainty. Ce program is a good example ofa deterministic systom. In the probabilistic systems, the behaviour can not be predicted with probabilistic estimates can be given. In this case, the interactions subsystems cannot be defined with certainty. ‘An example of such a system s a warehouse and its cons, of the contents at one time, and oa orders, etc, the contents at the next ‘could re Eee petenaiiaidee isa conceptualzain and a representation. Another exarpla i ed neertainty about a state or even, ‘information that the weattier will be good tommorrow red ‘uncertainty about whether or not a football game will be played, ‘An information system ie an arrangement of people, data, processes, intraces, ‘and communications that interact to support and improve day-o-day operations h 42 business as well as suppor the problem-solving and decision-making needs of ‘management and users, Ai information system exists with or without a computer. But when information "__t8chnology is used, it signficanty expands the power and potential of most information ‘systems. The major information systems are (@) formal information systems ag informal information systems fe computer based information systems (5.4.1 Formal Information Systems |__ A formal information system is based on the organization represented by the __Sfganization chart. The chart is a map of positions and their authority relationships, __ indicated by boxes and connected by straight lines. It is concerned with the patter /, communication and work flow. Information is formally disseminated in ‘Memos, oF reports from top management to the intended user in the luces over [12] A ‘Types oF Cateyories “There are three types orc Strategic Information is used byt their organisation and to assess practice. Such information incudes and cost of raising new funds, otal cash needs and ox etc. Information requirements of top ‘management: information tier by arranging information from inte (©) Tactical ormanageria informations used mise that the resources of the business are employed to objectives of the organisation. Such information ‘measurement (output per mar-hour or per machi or variance analysis reports and cash flow forecast, profit results within a particular department ofthe organi statistics within a department, short-term purchasing proportion of this information wil be generated from within ‘Another important function of tactical level so supply information to tier for the use of top management, echage ut propery within a factory or ofiee eto. Inthe payroll oie, k ‘operational information relating o day rate labour wil each week by each employee, his rate of pay per hour, Operational level require information for implementing and re¢ Plans for the purposes of conversion of inputs ito routine and other information to tactical tier in ‘The management and information levels in @ 1.10. {information system is an employee-based systom designed to meet jand vocational needs and to help in the solution of work-related problem, funnels information upward thorugh indirect channels. In this way, ity to be a useful system because it works within the framework of the t ‘and its stated policies. sed Information Systems of information system depends mainly on the computer for handling ‘applications. Computer based information systems are further classified d to obtain operational information is known as TPS. med with carrying out relatively simple, but repet! ge number of records involved, say, in payroll prepara / records, sales accounting and the like.” ‘The system required to obtain tactical information's thatthe processing requirements in the MIS can be For example, in ticket reservation system, a TPS is u tickets. An MIS is used to measure and report the p who selltickets. Such an MIS keeps track ofthe sales and it regularly produces reports about agent: eced in real He situations: techniques answers altematves arejy mix for manufacturing, what tO buy, hoy prc, nding ote epi ola fr te con FIGURE 1.13 ze SAA Office Automation System (OAS) An office automation system can be described as a multi-function, integrated, ‘computer based systems that allows many office activities to be performed in a ‘electronic mode. They are being developed with the hopes and expectations thal they wilincrease the efciency and productivity of ffice-workers-ypists, secretes administrative assistants, staff professionals, managers and the like. Many, "organisations have taken the frst step towards autemating their offices Often involves the use of word processing equipment to faciliite the tyPiNd- in printing of textual materials. Another development is a computer |such as electronic mail which allows people to com" EXERCISE = Define system and sub-eystem wit an ‘Explain the various characteristics of a (c) Deterministic or probabiietic systems ‘What is a Computer Based information system? _wite a short note on the following: (a). Transaction Processing Systems {b) Management Information Systems (©) Decision Support Systems () Office Automation Systems Distinguish between formal and informal information system. Explain the various types of information. soe Explain the characteristics of the open system. gaa ‘Computer based system has a ife cycle. Just as all ving beings flow aig ‘cycle. Commercial programs such as payroll accounts, inventory and other. ‘share a common life cycle pater, One method of doing things may work well period of time, This may last for several years. However, owing to expansion 3968 the nature of he business, the economic environment, the need to kegp ‘up with new technology or other factors, the program may be inadequate for flu, use. At this point investigations are made, requirements are analyzed, and ney ‘specifications are proposed and a new system is developed. The life cycle of the new system thus starts again. ! System development starts when management or sometimes system development personnel fee that a new system or an improvementin the existing system is requied. The systems development life cycle is classically thought of as the set of actives that analysts, designers and users carry to develop and implement an information ‘system. 2.2.1 Preliminary Survey 2.2 Phases of the System Development Life Cycle One of the most citficult tasks of the system analyst is of the existing system. Without clear ‘] ‘any further work done will lead to wastage of effort ‘System Development life cycle (SDLC) is a well-defined process by which a system ‘Committee members to evaluate the informed judgement about the feasibility gement information, etc “equipment tobe used, areas: rgd “a cl ee Hime limit for designing the new sysiom, | @ new technology is requited, how bes Eeonomiclretet : the size ofthe project. le Feasibility ea needed. Economic feasibility isthe most important study tt peneiits of the proposed system and compares wat ye been identified with the current system, the ptoject should not outweigh the budget, The oa the cost of hardware, software, development and imp analysis is performed to determine the benefits and senving INbenefis are found to be more than costs, then the analyst the development of he proposed system aherwise considers oa p Is fo examine the feasibiliy of the proposed system. This invohg, not feasible. «solutions considered by the management. G the costs and benefits ofthe system. intially a rough cost-benefit analy ‘By conducting this study the analyst can ascertain the follow forthe top management to take a decision eitner in favour la (@) Whether the projects econonichy iste anna ‘proposed system. 1 (b) Whether there are sufcient benefits as comparedto the costs ‘system. Benefits will be realised from the timely and accurate generation Operon ae at "required information to meet the stated objectives of the organisation. It is tb During operational feaal tk aaa

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