The Concept of Systems

Bambang Herry Purnomo

Systems:

“A set of elements or components that interact and

coordinated to accomplish goals”
Systems:

“... an identifiable, complex dynamic entity

composed of discernibly different parts or
subsystems that are interrelated to and
interdependent on each other and the whole entity
with an overall capability to maintain stability and
to adapt behaviour in response to external
influences” [Webster’s]
Transform Inputs into Outputs

INPUT

ERR OR
FEEDBAC K
TRANSFOR M
INPUT OUTPUT
INPUTS TO
OUTPUTS

INPUT
OUTPUT

TRANSFOR M OUTPUT
INPUTS TO
OUTPUTS
INPUT

STATUS FEEDBACK
System Elements
• Inputs
• Processing mechanisms
• Outputs
 System Example

Elements
System Processing Goal
Inputs Outputs
elements
Actors, director, Filming, Finished Entertaining
staff, sets, editing, film movie, film
Movie equipment special delivered to awards,
effects, movie profits
distribution studio
Open System

Sense Response
OPEN
SYSTEM

ENVIRONMENT:
Adapt Behaviour in Response to External Influence …attempt to ensure survival as
external changes occur
 University – Open System

Policy
Approved Funding
Industry Needs
Students UNIVERSITY

Funding Requests
New Knowledge
Graduates
Closed System ???
Systems:
The system is a working network of most
related procedures, gathering together
to make an activities or complete a
particular target (Jogiyanto)
Systems:
A system is a network of procedures that
are made according to an integrated pattern
to carry out the main activities of the
organization
Procedure:
Procedure is a sequence of clerical activities,
usually involving several people in one or more
departments, which is made to ensure uniform
handling of organizational transactions that
occur repeatedly
System vs Procedure:

A system consists of a network of

procedures, whereas procedures
are a sequence of clerical activities
THE CONCEPT OF INFORMATION SYSTEM (IS)
Data Vs. Information
Data: Raw unorganized facts

Information:
A collection of facts organized in such a
way that they have additional value beyond
the value of the facts themselves.

Defining and organizing relationships among data

creates information.
Data → Information

Data Transformation Information

Information cycle

Knowledge

Siklus Informasi
Information Concepts
Process:
A set of logically related tasks performed to
achieve a defined outcome.

Knowledge:
An awareness and understanding of a set of
information and ways that information can be
made useful to support a specific task or reach a
decision
Information System (IS)

Definition :
“A set of interrelated elements or components that collect
(input), manipulate (process), and disseminate (output)
data and information and provide a feedback mechanism
to meet an objective”
What is an Information System?

An organized combination of people,

hardware, software, communications
networks, and data resources that
collects data, transforms it, and
disseminates information.
CBIS
Hardware:
Computer Equipment

Software:
Computer Programs

Databases:
An organized collections of facts
CBIS
Telecommunications:
Electronic transmission of signals
for communication

▪ Networks: Distant electronic communication

▪ Internet: Interconnected Networks
▪ Intranet: Internal Corporate Network
▪ Extranet: Linked Intranets
CBIS
People

Procedures:
Strategies, policies, methods, and
rules for using a CBIS.
KOMPONEN SISTEM INFORMASI ... (3)
KOMPONEN SISTEM INFORMASI ... (5)
KOMPONEN SISTEM INFORMASI ... (6)
What is an Information System?

• Schematic model of an information system

Feedback

Input Processing Output

 Input, Processing, Output in IS
• Input
• The activity of gathering and capturing data
• Whatever goes into the computer
• Processing
• Converting or transforming data into useful outputs
• Output
• Useful information, usually in the form of documents and/or
reports
• Anything that comes out of a computer
• Feedback
• Output that is used to make changes to input or processing
activities
Types of Business Information
Systems
1. Transaction processing systems
2. E-commerce systems
3. Management information systems
4. Decision support systems
5. Expert systems
Transactions Processing Systems
• Transaction
• Any business-related exchange
• E.g., generating a weekly payroll
• Transaction processing system (TPS)
• An organized collection of people, procedures, software,
databases, and devices used to record completed for for
business related exchanges
Payroll Example

Hours
worked
Payroll
Payroll
transaction
checks
processing
Pay
rate
E-Commerce System

• E-commerce
• Involves any business transaction executed electronically
• Conducting business on-line
• For example, between…
• Companies
• Companies and consumers
• Business and the public sector
• Consumers and the public sector
• Example for placing a purchase order
Purchase Order - Traditional
Purchase Order – E-commerce
Management Information Systems

• MIS is…
• An organized collection of people, procedures, software,
databases, and devices used to provide routine
information to managers and decision makers
 MIS - DEFINITIONS

“…MIS is an integrated computer based user-machine system that provides

information for supporting operations and decision making functions”
Awad (1988)

“..It [MIS] is a system using formalised procedures to provide management at all levels
in all functions with appropriate information based on data from both internal and
external sources, to enable them to make timely and effective decisions for planning,
directing, and controlling the activities for which they are responsible..”
Lucey (1997)

“..Organized approach to the study of information needs of management at every

level in making operational, tactical, and strategic decisions. Its objective is to
design and implement man-machine procedures, processes, and routines that
provide suitably detailed reports in an accurate, consistent, and timely manner..”
www.Businessdictionary.com (2009)
Schematic of MIS

Marketing Manufacturing
management management
information Information
system system

Common
databases
Financial Order
management management
Information information
system system
TPS
Decision Support Systems

• A DSS is…
• An organized collection of people, procedures, software,
databases, and devices used to support problem-specific
decision making
• A DSS helps a manger “do the right thing”
Expert Systems

• An expert system is…

• A computer application that performs a task that would
otherwise be performed by a human expert
• gives the computer the ability to make suggestions and
to act like an expert in a particular field
• Examples: diagnose human illnesses, make financial
forecasts, schedule routes for delivery vehicles
• Expert systems typically include “artificial
intelligence”
 Artificial Intelligence

The branch of computer science concerned with making computers

behave like humans. The term was coined in 1956 by John McCarthy
at the Massachusetts Institute of Technology. Artificial intelligence
includes
• games playing: programming computers to play games such as
chess and checkers
• expert systems : programming computers to make decisions in real-life
situations (for example, some expert systems help doctors diagnose
diseases based on symptoms)
• natural language : programming computers to understand natural
human languages
 Artificial Intelligence (2)

• neural networks : Systems that simulate intelligence by attempting

to reproduce the types of physical connections that occur in animal
brains
• robotics : programming computers to see and hear and react to
other sensory stimuli

Currently, no computers exhibit full artificial intelligence (that is, are

able to simulate human behavior). The greatest advances have
occurred in the field of games playing. The best computer chess
programs are now capable of beating humans. In May, 1997, an IBM
super-computer called Deep Blue defeated world chess champion
INFORMATION SYSTEM
IN ORGANIZATION

Bambang Herry Purnomo

Role of Information Technology
Intelligence INTELLIGENT MANAGER
1. Help Creating the Intelligence

+ wisdom

2. Help Empowering the People

Knowledge EXECUTIVES
+ experience

Information LINE MANAGER

+ context

Data SUPERVISOR
+ procedure

Business Facts STAFF

Contoh Sistem Informasi pada
Perusahaan:
1. Level Operasional
SI dalam satu lingkup aktivitas saja, bersifat rutin dan berulang. Yang
termasuk dalam level ini adalah TPS, misalnya: system untuk merecord
jumlah barang yang keluar masuk gudang pergudangan

2. Level Pengetahuan
SI yang mencakup lintas aktivitas dan mampu mengolahnya menjadi
informasi yang lebih terpadu. Sistem pakar dan DSS bisa saja termasuk
ke dalam level ini. Misalnya: SI yang mampu menggolongkan secara
otomatis inventory yang masuk ke dalam golongan A, B, C, memberikan
informasi level stok rata-rata, informasi stock out atau over stock,
informasi biaya persediaan, informasi waktu siklus persediaan dsb
Contoh Sistem Informasi pada
Perusahaan:
3. Level Managemen
SI yang mencakup lintas departemen. Misalnya departemen
pemasaran, produksi, dan Inventory. Bisa menjawab
pertanyaan “Jika … Maka”. Contohnya, jika Permintaan barang
diketahui, Posisi persediaan di gudang diketahui, berapa
Jumlah barang yang harus diproduksi? Informasi ini akan
membantu manager untuk menyususn jadwal produksi
4. Level Strategis
SI Lintas departemen yang sangat luas. Dapat digunakan
untuk membantu mengambil keputusan strategis. Misalnya,
rencana 3 – 6 tahun mendatang untuk penambahan kapasitas
produksi atau penambahan kapasitas gudang, apakah rasional
dan layak?
MANAGEMENT INFORMATION SYSTEM

52
 MIS - DEFINITIONS

“…MIS is an integrated computer based user-machine system that provides

information for supporting operations and decision making functions”
Awad (1988)

“..It [MIS] is a system using formalised procedures to provide management at all levels
in all functions with appropriate information based on data from both internal and
external sources, to enable them to make timely and effective decisions for planning,
directing, and controlling the activities for which they are responsible..”
Lucey (1997)

“..Organized approach to the study of information needs of management at every

level in making operational, tactical, and strategic decisions. Its objective is to
design and implement man-machine procedures, processes, and routines that
provide suitably detailed reports in an accurate, consistent, and timely manner..”
www.Businessdictionary.com (2009)
Schematic of MIS

Marketing Manufacturing
management management
information Information
system system

Common
databases
Financial Order
management management
Information information
system system
TPS
Role Of MIS
• The role of MIS in an organization can be compared to the
role of heart in the body.

• The information is the blood and MIS is the heart. In the

body the heart plays the role of supplying pure blood to all
the elements of the body including the brain.

• The MIS plays exactly the same role in the organization.

• The system ensures that an appropriate data is collected

from the various sources, processed, and sent further to all
the needy destinations.

55
Features of MIS
• Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance

56
Aim of Management Information
System
• The main aim of MIS is to inform management and help
them make informed decisions about management and the
way the business is run.

57
Elements of MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications and Networks

58
Outputs Of a MIS

• Scheduled reports which are

produced periodically, or on a
Schedule (daily, weekly, monthly).

• Key-indicator report which

summarizes the previous day’s critical
activities and also it is typically
available at the beginning of each day.

59
• Demand report which
gives certain information
at a manager’s request.

• Exception report which is

automatically produced
when a situation is unusual
or requires management
action.

60
 Benefits of MIS

• It improves personal efficiency.

• It expedites problem solving(speed up
the progress of problems solving in an
organization).
• It facilitates interpersonal
communication
• It promotes learning or training.
• It increases organizational control.

61
• It generates new evidence in support
of a decision.
• It creates a competitive advantage
over competition.
• It encourages exploration and
discovery on the part of the decision
maker.
• It reveals new approaches to thinking
about the problem space.
• It helps automate the Managerial
processes.

62
Functional Aspects
• MIS is an integrated collection of functional
information systems, each supporting particular
functional areas.

Schematic
 Internet An Organization’s
MIS

Financial
MIS
Business
transactions

Drill down reports

Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports

Business
transactions
Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.

Figure 9.3
Financial MIS
• Provides financial information to all financial
managers within an organization.

Schematic
 Databases of Financial
Databases of
internal data external data DSS

Business
transactions
Transaction Databases
processing of valid
Financial
systems transactions MIS Financial
for each applications
TPS databases

Business
transactions
Financial statements
Financial
Operational Uses and management ES
Internet or databases of funds
Extranet Financial statistics
for control

Business Customers,
transactions Suppliers
Figure 9.3
Sources of Management
Information

Schematic
 Employees

Corporate
Databases Corporate
databases
of intranet
of
external
internal
data
data Decision
support
systems

Transaction Databases Management Executive

Business processing of information Application support
transactions systems valid systems databases systems
transactions

Drill-down reports Expert

Exception reports systems
Demand reports
Operational Key-indicator reports
databases
Input and Scheduled
error list reports
Outputs of a
Management Information System
• Scheduled reports
• Produced periodically, or on a schedule (daily, weekly, monthly)
• Key-indicator report
• Summarizes the previous day’s critical activities
• Typically available at the beginning of each day
• Demand report
• Gives certain information at a manager’s request
• Exception report
• Automatically produced when a situation is unusual or requires
management action
Scheduled Report Example

Daily Sales Detail Report

Prepared: 08/10/xx
Order Customer Sales Ship
# ID Rep ID Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
Key Indicator Report Example

Daily Sales Key Indicator Report

This Last Last

Month Month Year
Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608

Demand Report Example

Daily Sales by Sales Rep Summary Report

Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
Exception Report Example

Daily Sales Exception Report – ORDERS OVER $10,000

Prepared: 08/10/xx
Order Customer Sales Ship
# ID Rep ID Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $13,214
P12453 C89321 CAR 08/12/96 288 P3214 $15,660
P12453 C03214 GWA 08/13/96 12 P4902 $11,224
… … … … … … …
… … … … … … …
 Outputs of a Management
Information System

Earnings by Quarter (Millions)

Actual Forecast Variance
2ND Qtr 1999 $12.6 $11.8 6.8%
Drill Down Reports
Provide detailed data 1st Qtr 1999 $10.8 $10.7 0.9%
about a situation.
4th Qtr 1998 $14.3 $14.5 -1.4%
3rd Qtr 1998 $12.8 $13.3 -3.0%

Etc. See Figure 9.2