Chapter one: Overview (Basic concepts)

Definition
􀀦 System analysis and design is a step by step complex method where by computer-based information
systems that can perform basic business functions are developed and maintained.
􀀦 It can also be defined as a standard set of activities, methods, best practices, deliverables, and automated
tools that stakeholders use to develop and maintain information systems.
􀀦 System AD is used to analyze, design and implement improvements in the functioning of businesses
that can be accomplished through use of computerized information systems. Notice the emphasis on
business improvement.
It is based on two skills (knowledge)
􀀦 Understanding of organizations’ objectives, structure and process (domain Knowledge)
􀀦 Knowledge of how to exploit information technology for advantage
Outcome of such SAD
􀀦 An application software (information systems) to improve employee efficiency
From the definition, it is easy to understand that ‘System’, specifically ‘information system’ is a core
concept.
Question: what exactly is a system?
Definition: A system is an interrelated set of components with an identifiable boundary, working together for
some purpose.
Characteristics of a system
􀀦 Components-either an irreducible part or an aggregate of parts, subsystem
􀀦 Interrelated Components- the function of one is tied to the function of the other
􀀦 Boundary- the limits of the system with in which the system is contained, and that separates it
from other systems. Components within the boundary can be changed.
􀀦 Purpose- The components work together to achieve some overall purpose: the system’s reason for
existence
􀀦 Environment- Everything outside the system’s boundary
􀀦 Interfaces- the point at which the system meets its environment
􀀦 Input-What the system takes in from the environment to function
􀀦 Output- The result of the function of the system
􀀦 Constraints- limits to the system in terms of its capacity
Example
Thinking about a car as a system helps us determine what the problem is and fix it by breaking the
system down in to its components. It is also important to consider the relationship one subsystem has
with another in doing so. We can also think of the car at a more abstract level using its logical
description (focuses on the system’s function and purpose without regard to how the system will
be physically implemented) as opposed to a physical description (how the system will be materially
constructed).
Other Important system concepts
􀀦 Living Vs Non-living systems
􀀦 Open Vs. Closed systems- depends whether the system needs to adapt to the environment as the
environment changes. Most ISs are open systems. Take a watch as an example.
􀀦 Decomposition- being able to break down a system in to its components. It also helps to build
different parts of the system at different times or by different individuals.
􀀦 Modularity- relatively uniform size components or chunks.
􀀦 Coupling- the extent to which subsystems are dependent on each other. As much as possible the
subsystems should not be very much coupled.
􀀦 Cohesion- the extent to which a module or a subsystem performs a single function. When we have
highly cohesive modules each module accomplishes one and only one function. This makes the
module reusable in future programs. Take a biological system as an example. It has highly cohesive
modules. It is possible to transplant a heart or kidney.
􀀦 System thinking
􀂾 Is a mind set or way of viewing a world as a system. Actually, systems thinking is just
one part of the skills a systems analyst requires
􀂾 it helps to see the big picture; it also pays to break problems down to their components to
avoid complexity.
􀂾 Minimize the effect a change in one module will have on another. Take a laptop as an
example.
􀂾 It emphasize on the relationship and the process that go inside rather than constituent
part or just the sum of the parts. Accordingly, “A system is bigger than the sum of its
components”
Information Systems
Definition- An IS is an arrangement of people, data, processes, communication, and information
technology that interact to capture, transmit, store, retrieve, manipulate and/or display information needed
 to support and improve day-to-day operations in a business as well as support the problem solving and
decision-making needs of management and other users.
Information technology: computers (hardware + software) and telecommunications technology.
This course, for the most part, is about “analyzing” business requirements for information systems and
“designing” computer-based information systems that fulfill business requirements and use information
technology.
Types of information systems-
IS can be classified in to various types based on the technology used to construct them and on the basis of
the function of the IS. Therefore, understanding the various classes helps the analyst to choose between
various technologies or kinds of systems to solve a specific business problem.
Based on the part of the business that they support
1. Front-office information systems
􀂾 Support business functions that reach out to the customers
2. Back-office information systems
􀂾 Support internal business and operation of an organization
Based on their function
1. Transaction Processing Systems (TPS)- automate the handling of data about business activities or
transactions, which can be thought of as simple, discrete events in the life of an organization. The goal of
TPS development is to improve transaction processing by speeding it up, using fewer people, improving
efficiency and accuracy, integrating it with other organizational information systems, or providing
information not previously available.
2. Management Information systems- take the relatively raw data from a TPS and convert it into a
meaningful aggregated form that managers need to conduct their responsibilities. They produce
predetermined reports such as trend analysis, summary data, or exception reporting. Examples: AIS,
budget analysis and forecasting, Sales reporting and forecasting.
3. Decision support systems- provide management an interactive environment in which decision makers
can quickly manipulate data and models of business operations. In addition to what MIS have DSS allow
interaction with the user to help the user make what if analysis using data and models. For instance, what
is the impact of increasing our price by 10% on net profit?
4. Expert systems- The concept of expert systems originated from research in the field of artificial
intelligence (AI). Artificial intelligence is the subfield of computer science that attempts to develop
machines that are capable of emulating human thought processes. Artificial Intelligence (AI) is a branch
of computer science that has the goal of understanding intelligence by building computer programs that
exhibit intelligent behavior. It is concerned with the concepts and methods of symbolic inference, or
 reasoning, by a computer, and how the knowledge used to make those inferences will be represented
inside the machine.
AI is also concerned with robotics and natural language processing. AI programs that achieve expert-level
competence in solving problems in task areas by bringing to bear a body of knowledge about specific
tasks are called knowledge-based or expert systems. Expert systems have knowledge base, inference
engine and user interface.
5. Office automation systems- support the wide range of business office activities that provide improved
work flow and communications between workers, regardless of whether or not those workers are located
in the same office.
Examples: Word Processing, Microsoft outlook, NetMeeting
Remark
􀀦 The difference between DSS and ES is that DSS do not make the decisions for management while ES do.
Another difference is in the database: while the data in DSS is derived from various sources such as TPS
and MIS the data for ES comes from the knowledge base of the ES which is acquired from experts.
Example can be a credit request evaluation expert system.
􀀦 Building blocks of IS
o Data- the raw material used to create useful information
o Processes- the activities that carry out the mission of the business
o Interfaces- how the system interfaces with its users and other information systems.
􀀦 Other Systems
o E-commerce Applications: marketing, business to customer and B2B applications
o ERP systems- integrate many ISs existing at various levels of management and used for various functions.
o IRS- Information retrieval systems
Summary:
Type of IS IS characteristics System Development Focus
TPS Capture and process high Process orientation, response
volume data about day to day time, throughput (volume of
business transactions. transaction), accuracy,
consistency and service.
MIS Draws on diverse yet Kind of information
predictable data resources to management requires and
aggregate and summarize how they use this information
data, may involve forecasting to make decisions.
future data from historical
trends and business
knowledge.
DSS Provides support for decision Mathematical rules that
making by guiding the define the interrelationship
evaluation of various among various data.
alternatives. Tries to respond
to “what-if” questions.
ES Provides expert advice by Knowledge acquisition and
asking users a sequence of structuring knowledge
questions dependent on prior (knowledge engineering).
answers that lead to a
conclusion or
recommendation.