System Components and Characteristics

A big system may be seen as a set of interacting smaller systems known as subsystems or functional units each of which has its defined tasks. All these work in coordination to achieve the overall objective of the system. System engineering requires development of a strong foundation in understanding how to characterize a system, product, or service in terms of its attributes, properties, and performance. As discussed above, a system is a set of components working together to achieve some goal. The basic elements of the system may be listed as:
y y y y y

Resources Procedures Data/Information Intermediate Data Processes

Resources
Every system requires certain resources for the system to exist. 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.

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 to Chapter 1 Introduction to Systems operate. For instance, the Banking systems have their predefined rules for providing interest at different rates for different types of accounts.

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.

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.

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. Systems also exhibit certain features and characteristics, some of which are:
y y y y y

Objective Standards Environment Feedback Boundaries and interfaces

Objective
Every system has a predefined goal or objective towards which it works. 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.

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.

Environment
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. Another example can be Y2K problem for computer systems. Those systems, which are not Y2K compliant, will not be able to work properly after year 2000. For computer systems to survive it is important these systems are made Y2K compliant or Y2K ready.

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. In fig 1.1, it is shown that a system takes input. It then transforms it into output. Also some feedback can come from customer (regarding quality) or it can be some intermediate data (the output of one process and input for the other) that is required to produce final output.

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.

What is a System?
The term system originates from the Greek term systema, which means to place together. Multiple business and engineering domains have definitions of a system. This text defines a system as:
y

System An integrated set of interoperable elements, each with explicitly specified and bounded capabilities, working synergistically to perform value-added processing to enable a User to satisfy mission-oriented operational needs in a prescribed operating environment with a specified outcome and probability of success.

To help you understand the rationale for this definition, lets examine each part in detail.

System Definition Rationale

The definition above captures a number of key discussion points about systems. Lets examine the basis for each phrase in the definition.
y y

By an integrated set, we mean that a system, by definition, is composed of hierarchical levels of physical elements, entities, or components. By interoperable elements, we mean that elements within the systems structure must be compatible with each other in form, fit, and function, for example. System elements include equipment (e.g., hardware and system, system, facilities, operating constraints, support), maintenance, supplies, spares, training, resources, procedural data, external systems, and anything else that supports mission accomplishment.

One is tempted to expand this phrase to state interoperable and complementary. In general, system elements should have complementary missions and objectives with nonoverlapping capabilities. However, redundant systems may require duplication of capabilities across several system elements. Additionally, some systems, such as networks, have multiple instances of the same components.
y

By each element having explicitly specified and bounded capabilities, we mean that every element should work to accomplish some higher level goal or purposeful mission. System element contributions to the overall system performance must be explicitly specified. This requires that operational and functional performance capabilities for each system element be identified and explicitly bounded to a level of specificity that allows the element to be analyzed, designed, developed, tested, verified, and validatedeither on a stand-alone basis or as part of the integrated system. By working in synergistically, we mean that the purpose of integrating the set of elements is to leverage the capabilities of individual element capabilities to accomplish a higher level capability that cannot be achieved as stand-alone elements. By value-added processing, we mean that factors such operational cost, utility, suitability, availability, and efficiency demand that each system operation and task add value to its inputs availability, and produce outputs that contribute to achievement of the overall system mission outcome and performance objectives.

By enable a user to predictably satisfy mission-oriented operational needs, we mean that every system has a purpose (i.e., a reason for existence) and a value to the user(s). Its value may be a return on investment (ROI) relative to satisfying operational needs or to satisfy system missions and objectives. By in a prescribed operating environment, we mean that for economic, outcome, and survival reasons, every system must have a prescribedthat is, boundedoperating environment. By with a specified outcome, we mean that system stakeholders (Users, shareholders, owners, etc.) expect systems to produce results. The observed behavior, products, byproducts, or services, for example, must be outcome-oriented, quantifiable, measurable, and verifiable. By and probability of success, we mean that accomplishment of a specific outcome involves a degree of uncertainty or risk. Thus, the degree of success is determined by various performance factors such as reliability, dependability, availability, maintainability, sustainability, lethality, and survivability.

You need at least four types of agreement on working level definitions of a system: 1. 2. 3. 4. a personal understanding a program team consensus an organizational (e.g., System Developer) consensus, and most important, a contractual consensus with your customer.

Why? Of particular importance is that you, your program team, and your customer (i.e., a User or an Acquirer as the Users technical representative) have a mutually clear and concise understanding of the term. Organizationally you need a consensus of agreement among the System Developer team members. The intent is to establish continuity across contract and organizations as personnel transition between programs.

Other Definitions of a System

National and international standards organizations as well as different authors have their own definitions of a system. If you analyze these, you will find a diversity of viewpoints, all tempered by their personal knowledge and experiences. Moreover, achievement of a one size fits all convergence and consensus by standards organizations often results in wording that is so diluted that many believe it to be insufficient and inadequate. Examples of organizations having standard definitions include:
y y y y y y y

International Council on Systems Engineering (INCOSE) Institute of Electrical and Electronic Engineers (IEEE) American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) International Standards Organization (ISO) US Department of Defense (DoD) US National Aeronautics and Space Administration (NASA) US Federal Aviation Administration (FAA)

You are encouraged to broaden your knowledge and explore definitions by these organizations. You should then select one that best fits your business application. Depending on your personal viewpoints and needs, the definition stated in this text should prove to be the most descriptive characterization.

Closing Point
When people develop definitions, they attempt to create content and grammar simultaneously. People typically spend a disproportionate amount of time on grammar and spend very little time on substantive content. We see this in specifications and plans, for example. Grammar is important, since it is the root of our language and communications. However, wordsmithed grammar has no value if it lacks substantive content. You will be surprised how animated and energized people become over wording exercises. Subsequently, they throw up their hands and walk away. For highly diverse terms such as a system, a good definition may sometimes be simply a bulleted list of descriptors concerning what a term is or, perhaps, is not. So, if you or your team attempts to create your own definition, perform one step at a time. Obtain consensus on the key elements of substantive content. Then, structure the statement in a logical sequence and translate the structure into grammar.

Classifications of System
From previous section we have a firm knowledge of various system components and its characteristics. There are various types of system. To have a good understanding of these systems, these can be categorized in many ways. Some of the categories are open or closed, physical or abstract and natural or man made information systems, which are explained next. Classification of systems can be done in many ways. Physical or Abstract System Physical systems are tangible entities that we can feel and touch. 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 conceptual. These are not physical entities. They may be formulas, representation or model of a real system. Open Closed System 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. 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. 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. These systems are discussed in detail in the next section.

Types of Information Systems

Information systems differ in their business needs. Also depending upon different levels in organization information systems differ. Three major information systems are

Transaction processing systems

Management information systems

Decision support systems

Figure 1.2 shows relation of information system to the levels of organization. The information needs are different at different organizational levels. Accordingly the information can be categorized as: strategic information, managerial information and operational information.

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. The information systems that provide these kinds of information are known as Decision Support Systems.

Figure 1.2 - Relation of information systems to levels of organization

The second category of information required by the middle management is known as managerial information. The information required at this level is used for making short term decisions and plans for the organization. Information like sales analysis for the past quarter or yearly production details etc. fall under this category. Management information system (MIS) caters to such information needs of the organization. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system. The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. This kind of information is required at the operational level for carrying out the day-to-day operational activities. Due to its capabilities to provide information for processing transaction of the organization, the information system is known as Transaction Processing System or Data Processing System. Some examples of information provided by such systems areprocessing of orders, posting of entries in bank, evaluating overdue purchaser orders etc.

Transaction Processing Systems

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. This provides high speed and accurate processing of record keeping of basic operational processes. These include calculation, storage and retrieval. Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization.

Management Information Systems

These systems assist lower 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 is database. A database is a non-redundant collection of interrelated data items that can be processed through application programs and available to many users.

Decision Support Systems

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. These are not of recurring nature. Some recur infrequently or occur only once. A decision support system must very flexible. The user should be able to produce customized reports by giving particular data and format specific to particular situations.

Summary of Information Systems

Catagories of Information System Transaction Processing System Characteristices Substitutes computer-based processing for manual procedures. Deals with well-structured processes. Includes record keeping applications. Management information system Provides input to be used in the managerial decision process. Deals with supporting well structured decision situations. Typical information requirements can be anticipated. Provides information to managers who must make judgements about particular situations. Supports decision-makers in situations that are not well structured.

Decision support system

Analytical Representation of a System

As an abstraction we symbolically represent a system as a simple entity by using a rectangular box as shown in Figure 1. In general, inputs such as stimuli and cues are fed into a system that processes the inputs and produces an output. As a construct, this symbolism is acceptable; however, the words need to more explicitly identify WHAT the system performs. That is, the system must add value to the input in producing an output. We refer to the transformational processing that adds value to inputs and produces an output as a capability. You will often hear people refer to this as the systems functionality; this is partially correct. Functionality only represents the ACTION to be accomplished; not HOW WELL as characterized by performance. This text employs capability as the operative term that encompasses both the functionality and performance attributes of a system. The simple diagram presented in Figure 1 represents a system. However, from an analytical perspective, the diagram is missing critical information that relates to how the system operates and performs within its operating environment. Therefore, we expand the diagram to identify these missing elements. The result is shown in Figure 2. The attributes of the constructwhich include desirable/undesirable inputs, stakeholders, and desirable/undesirable outputsserve as a key checklist to ensure that all contributory factors are duly considered when specifying, designing, and developing a system.

Figure 1 - Basic System Entity Construct

Figure 2 - Analytical System Entity Construct