SYSTEMS CONCEPTS AND INFORMATION SYSTEMS ENVIRONMENT LEARNING OBJECTIVES 4.4. Introduction 12 Definition of System 1,3. Characteristics of a System 1.4 Elements of a System 1.5 Types of System 1.5.1 Type of elements 1.5.2 Interaction with environment 1.5.3 Working Behavior 1.5.4 Degree of automation 1.5.5 Type of Creation 41.6 Types of System Models 4.7. Categories of Information 1.8 Basic Principles of a successful system 1.1. INTRODUCTION Now-a-days the word “system” is a widely used term. There are various systems that exist around us such as investment system, delivery system, information system, education system, computer system etc, An organization can also be viewed as a complex system that consists of several interrelated subsystems. In general terms, a system may be referred to any set of components, which function in interrelated manner to achieve a common goal or objective.n System Design and Implementation © Informa en Systems development can generally be thought of as having two major components, Systems Analysis and Systems Design. System design is the process of planning a new "business system or one to replace or complement an existing system. But before this planning can be done, we must thoroughly understand the old system and determing how computers can best be used to make its operation more effective. System analysis, thus, is the process of gathering and interpreting facts, diagnosing problems, and using the information to recommend improvements to the system. _DEFINITION OF SYSTEM The term system is derived from the Greek word systema, which means an organized relationship among various functioning units or components. It is an orderly arrangement of a set of interrelated and interacting elements that operate collectively to achieve common goal. It is created or designed to fulfill certain objectives. For example, a business system is designed to earn profits or revenue. Similarly an information system is developed to provide certain type of information that is required for decision making. | ] A system consists of a number of interrelated and well coordinated subsystems | Consider a business organization as a system consisting of interrelated departments (subsystems) such as production, sales, personnel, and an information system. None of | these subsystems is of much use as a single, independent unit. When they work in a coordinated manner, however, the firm can function effectively and profitably. The design of a successful system consists of three basic concepts: 1. It must be designed to achieve a predetermined objective. 2. It consists of several interrelated components and interdependence must exist among, the components. 3. The objectives of the organization as a whole have a higher priority than the objectives of its subsystems. For example, an information system must conform to the organization's policy on privacy, confidentiality and security but at the same time provide the information as and when needed. Therefore, a system consists of an orderly grouping of interdependent components that are linked together to achieve a specific objective. The word component may refer to physical parts, managerial decisions taken or a subsystem in a whole system. Furthermore, it may be simple or complex, basic or advanced. Component may also refer to a single computer with basic peripherals or a series of intelligent terminals linked to a mainframe. In either case, each component is a subsystem within a system. It also contributes in achieving the intended goal of the system. }ts and Informati systems CONCEP ation Systems Eny; ronment ORMATION SYSTEM INF An information system (IS) is an oy; gtoring and communicating informati together to support decis ion making, Borganization by providing useful aware, data, procedures, people ‘Banized sg softwares, information. CTERIS' 1.3. CHARACTERISTICS OF A sysrey system characteristics describe the fundamental beh gystem. The main characteristics that every aysten, possesses interaction, organization, integration, interdependence, int alte ale Because these characteristics are common to all systems of even ty referred to as Behavioral Principles. Apart from th characteristic of Decomposition, aviors associated with a particular jective, & and standards, a given type, they are also ‘ese some systems also have the Characteristics of System J J Central objective || Organization I Interdependence || | Decomposition | Interaction Integration = = | Figure 1.1 Characteristics of System e Central objective One of the main characteristic of a system is its central objective. Central objective means the common goal. Without the common goal the system will start moving. in all directions. Every system has a predefined goal or objective towards which it works, For example, a business organization would have an objective of earning maximum profit, for which each department and each individual has to work in coordination. A system cannot exist without a defined objective. These objectives can be real or framed. It is not uncommon for an organization to frame one objective and operate another to achieve a common goal. The framed objective may become the real objective. Another important point is, for thei nd Implementation | Information System Design a! 1.4 known to the users early in the me, some political as well as organizational ‘The analyst must work around such obstacles ors must know the main objective successful design of systems, the central objective must be analysis process. During the course of ti considerations may hinder the real objective. to identify the real objective of the proposed change. The us ; of a system early in the analysis for a successful design and conversion. © Interaction ‘Another important feature of the system is Interaction is not only collection or grouping © ways in which each component communicate with other components of the system. For example, consider an organization as a system. The purchasing department must interact with production department which in turn must interact with sales department and so on, Similarly in a computer system, if some information is keyed through some input device, it gets processed by central processing unit as the central processing unit interacts With the input device to solve a problem and the final result is displayed on the screen or outputted through some output device. The central processing unit also interacts with the main memory so that it can hold programs and data that the arithmetic unit uses for computation. the interaction of its basic components, f elements but it refers to the various Monitor Keyboard CPU Printer Other input | iniaeae Speaker other input Memory Other Output {gure 1.2 Interaction between various components in a computer system ‘The interrelationship between these components enables the computer to perform. So this interrelation activity of the components makes the system dynamic. © Organization System can also be characterized on the basis of organization. Organization implies structure and order. Thus, we can say that a system is an organized order of components.—— el aa ystems concepts and Information Systang Ent R ment: ail the components and sub-components of the objective of the system aS a whole is a such that iness system as shown in Figur, 7 B i « 7 2 One ecard Lending BM 13. The hierarchy relations sign of Director 08 top and! lea 1 GownWard to the wor e ships starting with the This organization depicts a system. ts the organization structure specifies the formal flow of comm authority structy : s structure, Nunication hain of command 1, system 5 are arranged j ° ‘anged in a chieved. As an anale aoe the Team Leader Team Leader Supervisor Supervisor | Supervisor Supervisor Operatives | Operatives | Operatives Operatives | Figure 1.3 Organizational hierarchy in a business system fi o Integration Integration is the process of bringing together the component sub-systems into one system and ensuring that the subsystems function together as one system. Thus, it is an aggregation of subsystems so that the system as a whole is able to deliver i The various parts of the system work together within the system. Each part performs a unique function but they work in an integrated way to achieve a common goal. It is concerned with how a system is tied together. If all the components are integrated properly, then it will result in a system that has a greater total impact than if each component works separately. For example, as shown in Figure 14, three subsystems interact with each other. They are combined to form one integrated system that accepts input from the environment and produces the output and returns it to the outside environment. ts functionality.° Information System Design and Implementation, Integrated System | Sub System A ‘Sub System B Figure 1.4 Integration of subsystems Interdependence A collection of components that work together to realize some objectives forms system. The different components are connected with each other and they are interdependent. They rely on one another for many different things and cannot function in isolation. Thus, Interdependence means that parts of the organization or system depend on one another to achieve a common goal. All the components are coordinated and linked together according to a plan. The output of one subsystem may be required as an input for another subsystem ie. one subsystem may depend on the input of another subsystem for proper functioning. Interdependence is also demonstrated by the activities and support of various personnel involved in the system. For example consider a newly developed computerized system, a decision to computerize an application is initiated by the user, analyzed and designed by the analyst, programmed and tested by the programmer, and run by the computer operator. None of these persons can perform properly without the required input from others in the system. e Standards It is an 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. Each has its own complexity and efficiency. There should be a standard or rule to use a particular algorithm, It should be seen whether that algorithm can be well implemented in the system. e Decomposition Decomposition of a system is defined as the division of the system into various sub systems. The decomposition of system allows to perform complex tasks easily. Division of system into various sub system also provides a hierarchical arrangement of the operationsLr Le | seeveent See or Figure 1. to be processed at the system level, a system becomes manageable at th is that it is easier to construct a sy Almost all systems operate in a da lynamic environment, 'y are: Inputs 2. Outputs Processor 4. Control 7 Feedback é 6. Environment Boundaries and interface eee ent eet Inputs: Some systems that interact with the environment, requires some inputs to be fed. Inputs are the elements such as physical resources and/or information that enter the system for processing. For example in a production system - raw materials, tools and machinery are the inputs required to produce finished goods. Similarly in the design of Information systems, the first and the foremost input is in the form of user requirements defining the system. 2. Outputs: Every system is designed with the objective of getting some output. Output is the end result obtained after processing the input. A system may generate singleInformation System Design and Implementation” or multiple outputs. Also the type of output depends on the type of system that j to be designed. It can be in the form of goods & services or information or boule Whatever be the nature of the output, it must meet the expectations of the user Processor: The clement of the system that transforms input into outputs is known, as processor. It is an operational component of the system that actually converts input into outputs. Sometimes the inputs are modified to enable the processor to handle the transformation. After processing, the amount of change that occurs jg the inputs depends upon the specifications of output. Processor can either sq. physical process or logical process to transform inputs to outputs. * A physical process is either a processor, such as a computer or person, or g technical implementation of specific work to be performed, such as a computer program or manual processes. * Logical processes may be assigned to physical processors such as PCs, servers mainframes, people, or devices in a network. Each logical process requires an implementation as one or more physical processes. A logical process may be split into multiple physical processes: © To define those aspects those are performed by people or computers. © To define those aspects to be implemented by different technologies, © To show multiple implementations of the same process. © To add processes for exceptions and internal control. The input is processed through processor by using various operations such’ as © Classification © Sorting © Calculation © Summarizing Classification: Classification of input is the proper arrangement of data in the _ memory according to the data types. It allows the processor to perform complex operations easily. Sorting: Sorting of data means to arrange the data in some specific order. It helps in faster processing of input as per the operations required. Calculations: Calculations are performed on the data to produce the desired results. The calculations to be performed on the data may be simple or complex depending on the requirement of the output. Summarizing: Summarizing of data allows the processor to make the data available to the user. The output of the processing can either be displayed or _ printed.‘Systems Concepts and Information Systems Environment 19 5 4. Control: A well designed system also includes an additional decision making subsystem referred to as ‘control’. In order to get the desired system, it is essential to monitor and control the input, processing and the output of the system. This job is done by the control subsystem. It guides the system by providing feedback and helps in achieving the desired objective of the system. The control element directs and governs the inputs, processing and output of the system in the same way as the management controls the inflow, handling and outflow of activities of the business. For example in a Computer system, the operating system acts as a control element as it influences the behavior of the system. Similarly in System design, the control element is required to identify the work to be performed and develop the schedules and costs estimates for the effort. It coordinates all activities and assures that all are operating from the same set of requirements, agreements and design iteration. 5. Feedback: Feedback is another important element of systems. It is used to measure the output against the predefined standards. The output of a system needs to be observed. It is compared against performance and is used to improve the system and make it achieve the laid standards. Thus control can be achieved through feedback. Feedback is important in all phases of system development. In analysis phase, the user feedback provides the designer the insight into the requirements of the user. Similarly, after the system has been implemented, the feedback from the user informs the analyst about the performance of the new installation which further leads to enhancements in the system to meet the user requirements. Feedback may be positive or negative, routine or informational. * Positive feedback reinforces the performance of the system. It is routine in nature. * Negative feedback generally provides the controller with information for action. It is informational in nature. 6. Environment: The environment is another element that may influence the system in its design and performance. Most of the systems operate in a dynamic environment where change is the way of life. Thus, it is very important for the system to adapt itself to its environment. For a system to exist it should change according to the changing environment. For example, we humans live in a particular environment. As we migrate 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. Similarly, in an organization, the environment consisting of vendors and competitors may put some constraints on the organization which subsequently influence the actual performance of the business. Thus, every system whether it is natural or man-made co-exists with an environment and it has to adapt itself to the changing environment.———— EE Information System Design and Implementation lio C and interface: Every system has defined boundaries within which jj 'e yundaries: aoe arious components and processey operates. They are the limits that identify the v > p Of the system. They also determine the interrelationship of system with othe, 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 Personnel system has to interact with the Accounting system to get the required details. Interfaces are another important element throu em 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 ag gh which the system interacts possible. The understanding of boundaries and interface is essential to bring clarity in explaining the system components and their arrangements. ‘As shown in Figure 1.6, a system operates in an environment. It takes input and then transforms it into output. When it is designed to achieve certain objectives, it automatically sets the boundaries for itself. 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 ENIVORNMENT INTERFACES. Figure 1.6 Elements of a System 1.5. TYPES OF SYSTEMS Systems can be classified under different categories based on their characteristics. It is very important for system analyst to understand system characteristics as it helps them to identify their role and relate their activities to the attainment of the firm’s objectives. The different systems can be categorized according to the following traits: 1. Type of elementssystems Concepts and Information Systems Environment 241 Systems Concepts and Information Systems Environment Interaction with environment Working behavior Degree of automation ge eN Type of creation 1 TYPE OF ELEMENTS Depending upon the type of elements, systems can be classified into two categories: Physical Systems © Abstract Systems ¢ Physical Systems: Physical Systems are the concrete operational systems that are made up of tangible entities like people, material, machines etc. The physical systems consist of physical things that may be static or dynamic in operation. For example, in an automated office, a computer operator, desk, chairs etc. are all static physical systems of the office. These can be seen, touched and counted. On the other hand, a programmed computer in an automated office is a dynamic system as the data, programs, output and applications in it can change as per the user’s demands or requirements. Physical Type of elements Abstract Open Interaction with environment Closed Deterministic Working system behavior Ko Probabilistic Manual Degree of automation Automated Natural Type of Creation Man-Made Figure 1.7 Types of SystemsBelow given are the four models that ai 1. Cc Information System Design and Implementation Abstract systems: Abstract system is an orderly arrangement of concepts, idea, or theories. They are conceptual or non-physical entities and are used for describing data and its relationships in accordance with concept. They are also referred a as Conceptual system. For example ~ Psychology is a system of orderly arrangemen of ideas about the behavior of human mind in a given situation. ‘Abstract systems may be formulas that describes the relationships among sets of Variables or models that represents an abstraction of real or planned system, Models are preferred as they point out the significant elements and the key interrelationships of a complex system easily. By using these models, the analyst can easily visualize relationships in the system under study. re commonly used in system analysis: In schematic model, a two dimensional chart is used ‘ents and their relationships. It represents the elements of 4 system using abstract, graphic symbols rather than realistic pictures. Different types of boxes are to represent different elements of the system. It also uses various types of arrows to depict information and material flow to and from various elements. Schematic Models: represent system elem |A flow model is diagrammatic representation of the flow and exchange of material, energy and information within a system. There is an orderly flow of logic in such models. A common example of flow system model is PERT (Program Evaluation and Review Technique). It is a technique used in ct management to analyze and represent the tasks involved in completing a given project. It provides a visual depiction of the major project activities and the ; sequence in which they must be completed. The activities are defined as distinct steps toward completion of the project that consume either time or resources, j Figure 1.8 shows diagrammatic view of PERT Flow system Models: projecSystems Concepts and Information Systems Environment 1.13 3. Static system models: St ‘atic system models represent one pair of relationships. The commonly used stat Es ic system model is Gantt chart which is used to show ae (tasks or events) displayed against time. It provides static information such as © What the various activities are * When each activity begins and ends * How long each activity is scheduled to last ° Where activities overlap with other activities, and by how much ¢ The start and end date of the whole project etc. A simple Gantt chart is shown below: Quarter 1 Task Name Guarter2 Quarter 3 Jan Feb | March | Aprit | May | June July | August ||| Planning —— = Research —" Design = Implementation —— Follow up = Figure 1.9 Gantt Chart 4. Dynamic System Models: Dynamic System Models are used to model systems that are ongoing and constantly changing such as Business organizations. A dynamic model approximates the type of organization or application that analysts deal with. It consists of the inputs that enter the system the processor through which transformation takes place the programs required for processing the outputs that result from processing. 1.5.2 Interaction with environment All systems work in a specific environment and based on how they perform within an environment, they can be categorized into two broad categories: © Open Systems © Closed SystemsOpen Systems An Open System is the system that interacts with its environment. It receives inpyp _ ftom environment and gives output back to it. It gets influenced by the changes takin, place in the environment. The life time of such system is relatively longer. For example. Business organization is an open system as it interacts with the various elements (inside and outside the business) and is responsive to the changing needs of the user and the environment. The important characteristics of open systems are: 1. Input from outside: An open system takes various types of inputs from the environment. Without these inputs, no open system can survive For example, a business organization may require various inputs in the form of raw materials, water and power supply etc. 2. Transformation: An open system converts the inputs into some kind of outputs, This process is known as transformation. For example, a business organization may convert inputs into goods and services through the transformation process 3. Outputs: An open system gives some outputs to the environment. The manner in which they give outputs determines their viability and existence. For example, + business organization gives goods and services as output. 4. System as Cycles of Events: Open systems produce useful output and operate in cycles, following a continuous flow path. The pattern of activities— inflow of inputs, throughput, outflow of outputs — has a cyclic character. The outputs given to the environment furnish sources of inputs for the repetition of cycle of activities. 5. Feedback Mechanism: An open system has a mechanism of providing feedback, Through feedback it gets valuable information from the environment. Feedback can be positive or negative. Information feedback of negative type enables the system to correct its deviations from the desired course of [Link] work according to the requirements of the user. 6. Differentiation: An open system moves in the direction of differentiation and elaboration. Old patterns are changed by new specialized functions. The roles of People and machines tend toward greater specialization and greater interaction, For example, a business organization may move towards automation from a manual system. It may bring more specialists and create specialized departments to have better control over the environment. 7. Entropy: Entropy means loss of energy. All dynamic systems tend to run down over time, resulting in entropy. In order to survive, open systems must acquire more energy from the environment than what a system spends. For example, a business organization must earn profit in order to survive on long-term basis.systems Concepts and Information Systems Environment 1.15 8. Equifinality: An open system is characterized by the principle of equifinality which suggests that a system can reach the same final state from differing initial conditions and by a variety of paths. For example, two competing business organizations may choose different course of actions and strategies to accomplish the same goal. Steady State: An open system reaches a steady state or equilibrium when functioning properly. However, this steady state is not a true equilibrium. Since jn an open system, input-process-output cycle is a continuous process, a new equilibrium may be formed from time to time. e Closed Systems ‘A Closed system is a system that does not interacts with its environment. It neither takes input from the environment nor provides any output. It is a self contained and self sufficient system. It remains uninfluenced by the environmental changes. It’s life time is much shorter as compared to open system. In reality, a completely closed system is rare. 1.5.3 WORKING BEHAVIOR Depending upon the behavior in which a system works (predictable or unpredictable), it can be classified into two categories: Deterministic Probabilistic Deterministic system: A system is deterministic if it operates in predictable manner. It is a system in which stepwise execution is always possible and its outputs are certain. In this type of systems, if the current state of the system is known then its future state can be determined because the relationships between its components are fully known and certain. Thus it has strong relationship among elements. An example of a deterministic system is an error free computer program as given an input, the output of such a program can be determined with certainty. Probabilistic system: A system is probabilistic if it operates in unpredictable manner. The output from such system behaves probabilistically, i.e. the output is predictable according to probability values. The future state can’t be determined even if the current state is known as it has weak relationship among the elements. Thus, in such type of systems, the degree of error is always possible and also output is not sure. An example of probabilistic system is an investment system of a company that invests in the stock market. It will give a probabilistic output for a given input as the system and its entities behave probabilistically.lig A $4 DEGREE of AUTOMATION Depending on the degree of automation, sys stems can be divided into: Manual Systems * Automated Systems on tems: Manual systems are : compen yo ere all the tasks such as data collection, manipulation, final reportin components. a solutely by human efforts. Their processing speed is relatively slo Se ae er erallo tay volume of data. The chances! of error are high as all the work is performed manually. In these systems, data analysis can be done only on sample and on that basis conclusion is drawn as it is not possible to analyze the whole population. An example of this kind of system is a department within an organization. Automated Systems: Automated systems are the systems where computer or microprocessor performs all the tasks. They perform quick and accurate processin of data and can handle relatively huge volume of data which is not possible by human efforts. In these systems, data analysis can be done on the entire population quickly with the help of computers. An example of this type of system is a fire the systems which consist of humans a5 alarm system. TYPE OF CREATION Bier On the basis of creation, systems can be divided into : * Natural Systems: Natural systems are the systems that are not created by people and occur naturally ie. they exist in nature and serve their own purpose. An example of natural system is Solar system. ¢ * Man-made Systems: Man-made Systems are the artificial systems that are not created naturally. They are constructed, organized and maintained by humans, Examples of man-made systems are financial system, manufacturing system etc Man-Made Information Systems Today, most of manmade systems are referred to as information systems as they Provide information that is used for planning and control. In general terms, an Information system may be defined as a set of devices, procedures and operating systems designed to Produce information to the user for planning, control and performance. It is generally believed that information reduces uncertainty about a state or event. Thus, an information system acts as a basis for interaction between the user and the analyst by providing instructions, commands and feedback. It works to provide data flow, communications, decision making and control. It also determines the nature of the relationship that exists between the decision-makers.Systems Concepts and Information Systems Environment 147 There are various information systems that exist in a business organization, each having its own purpose. The major information systems are Formal Information systems Informal Information systems Computer based Information systems Formal Information system: Formal information system is a system of passing messages and information between posi primarily for analysis, preparation and transfer of information. It is a power structure designed to achieve company goals. It follows the designated channels for the flow of information. It is based on the organization represented by the organization chart. The organizational chart depicts various positions in an organization and their authority relationships with the help of boxes and straight lines. Information can flow from top management to lower level management and vice versa. Policies, decisions and instructions are communicated from top management to the intended user down in the organization chart and feedbacks are sent back up in the chain. Policies are translated into directives, rules and regulations and transmitted to lower-level management for implementation. Figure 1.3 shows a formal information system in an organization. All the policies made at the top level by the director are communicated down to be implemented by the operatives through managers and supervisors. Similarly all the problems faced by the low level personnel in implementation are communicated up in the organizational chart. - ons within an organization. It is used Informal Information Systems: The second class of information systems is Informal information system. It covers all areas of the organization that is not described by the formal organizational structure. It is an employee based system designed to meet personnel and vocational needs and to help solve work — related problems. This system is based on informal relations and therefore is free from all the organizational formalities. Thus, any contact between employees, customers or suppliers which are not described in operational procedures enforced in the organization is a manifestation of the informal information system. Through informal information systems, the superiors gather such information from their subordinates as may be difficult to get through formal communication. Thus it also conveys information upward through indirect channels. In system study, the analyst should be aware of both formal and informal systems. He should have knowledge of the chain of commands and the power-authori influence network as well as the inner workings of the employee-based system. Employee cooperation and participation are crucial in preventing sabotage and training users.a oe J : dé Implementati | | = information system Design a pl es ation system j 5 her type of informatie a Systems: AnoteT OTT eer for handling Pusiness ce s ‘omputer- Based Information = Ano computer based information SYP" ir relies on # se puter based informal. processing storing, analyZin& ing EER Cations ee Coo proce pjective. The main aeyaponents of @ computer formation for meeting 2 based information system inc ness of Jude o Hardware Software © Data Procedures and ter, printer, display screen to accept data, or raw facts, as input and then displaying the information as jde instructions for processing the king with a Computer based o People such as 4 comp! The hardware and cables. The har before processing the 4 output. Software refers to computer Progr: people perform when Wor data. The procedures are what i information system to process data ‘and produce information. 'A business uses three types based information systems: « Transaction Processing System (TPs) = Management Information System (MIs) = Decision Support Systems (DSS) © Transaction Processing System (TPS) nizations depend on achinery, ork together information ‘ams that prov! is the physical m: dware devices W fata into useful ¥ computer The success of business orga the reliable processing of transactio Se ee eee ote cctsng has become a vital part of effective business manage 4 A transaction processing system an information processing system that involves cleat modification and retrieval of all transaction data for business transactions. It aw ‘events or activities that affect the entire organization, such as customer orde Pe oe | oe the means to rapidly process transactions to ensure the smooth flow of a ind development of process: is i i ae staal pros sane the enterprise. Rapid processing, reliability and f the characteristics of Transactit i ed ac : : on proce: Traneactions in a transaction processing system must pass the ACID te The A a refers to the following four properties: aye © Atomicity: Atomicity means that a tre ion is ei ansaction is either complete it be alk For example, if funds are transferred from one Sedoune to Sea a a ti asa bone fide transaction if both the withdrawal and deposit a sa ¢ account is debited and the other is not credited, it does note Th aa i ; alify as a transaction. TPS systems ensure that transactions tal ce in their entir. re ns take place in their entirety. |‘systams Concepts and Information Systems Environment © Consistency: TPS systems exist within a set of operating rules (or integrity constraints). If an integrity constraint states thal all transactions in a database must have a positive value, any transaction with a negative value would be refused. © Isolation: Transactions must appear to take place in isolation. For example, when a fund transfer is made between two accounts the debiting of one and the crediting of another must appear to take place simultaneously. The funds cannot be credited to an account before they are debited from another. © Durability: Once transactions are completed they cannot be undone. To ensure that this is the case even if the TPS suffers failure, a log will be created to document all completed transactions. These four conditions ensure that TPS systems carry out their transactions in a methodical, standardized and reliable manner. e Management Information System (MIS) A Management Information System provides information to managers so that they can plan and run the business. It is a computerized database of financial information and provides accurate, relevant, complete, concise, and timely information. It produces regular reports on operations for every level of management in a company. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows “actual” data over against “planned” results. Thus it measures progress against goals. The MIS receives data from company units and functions. Some of the data is collected automatically while some can be keyed in manually at periodic intervals. Routine reports are preprogrammed and run at intervals or on demand while others are obtained using builtin query languages. A key element of MIS is the database - an organized collection of related data. Information is accessed through a data base management system (DBMS). There are several advantages of using database in MIS: 1. It reduces processing time and the number of programs written to perform a task. 2. All applications share centralized files. 3. As duplication is eliminated, thus requires less storage space 4, Data are stored once in the database and are easily accessible when needed. The two primary drawbacks of a database approach are: 1, The cost of specialized personnel to perform various tasks related to database, 2. The need to protect sensitive data from unauthorized access.\ 1.20 C Information System Design and Implementatig, — (Informa eer © Decision support systems (DSS) Managers also use Decision Support Systems when making major decisions th, affect the entire business. Decision Support Systems (DSS) are a specific class « computerized information system that supporis business and organizational decision Mnizes and analyzes business data to facilitate quatiy making, activities. It collects, org: business decision-making for management, operations and planning. A well-design, Dss helps decision makers to compile useful information from various sources such Pave date, documents, personal knowledge from employees, management, executives a Latiness models. The analysis done with the help of DSS, hhelp companies to identify arg solve problems, and make decisions. It is commonly viewed as an extension of Ma Basically DSS comprises of three words: . «Decision — emphasizes decision making in problem situations. -aided decision situations «Support — requires computer + system — highlights the integrated nature of problem solving combining manuy and automatic (machine) decision environment. | levels of management along with top management f unstructured problem situations. It provides support fo x1 — modeling activities. oy It is designed to serve all taking decisions in “what if” both ad hoc data analysis as well as decisioy A typical DSS primarily consists of five phases ~ It involves searching for conditions in the environment that call f | r «Intelligence: decisions = Design: It involves inventing, developing, and analyzing possible courses of action, = Choice: It selects a course of action from those available Implementation: It implements the selected course of action. = Monitoring; It checks the consequences of the decision made after implementation, 1.6. TYPES OF SYSTEM MODELS System models are abstract representations of a [Link] are used to underst analyse, design, and communicate how the different parts of the system interact. They ra bbe mathematical or graphical andl are used in diverse fields such as engineering, comp ua science, business etc. to represent a system’s structure, behavior, and requirements. ‘Tet are several types of system models that can be used in designing and implementing a aysteal 1. Context Model a gontent model provides a high-level view of the entire system and its interactions. with external entities such as users, organizations, or other systems. It defines the system |‘Systems Concepts and Information Systems Environment 1.21) boundary and identifies what data or information flows into and out of the system. A context model helps analysts understand the environment in which the system operates. It is commonly represented using a context diagram, where the system is shown as a single process interacting with external entities. The context Diagram representing a Library Management System is shown in figure 1.10. Student Database Re ( Sports Request Supplier | Library Management Students st Av: isos lity Reports tudents ailability pi Reply Figure 1.10 Context Diagram representing a Library Management System 2. Behavioral Models Behavioral models describe how the system behaves over time in response to internal and external events. These models focus on processes, data movement, and interactions between system components. Commonly used behavioral models include: * Data Flow Diagrams (DFDs) - used to illustrate how data moves between processes, data stores, and external entities. * State Transition Diagrams - used to show how objects or systems change states based on events. * Sequence Diagrams - used to show the order of interactions between system components. These models are useful for understanding system logic, workflows, and real-time behavior. They help developers implement the logic correctly and ensure that system behaviour(output) matches user expectations. 3. Structural Models Structural models provide a static view of the system by describing the organization of data, components, and their relationships. They focus on how information and system components are arranged rather than how they change over time.1 Information System Design and Implementation ° ral models include: Commonly used struct which define entities, attributes, and relationship, + Entity-Relationship (ER) models, used in database design. «Class Diagrams, which are used in object-orient attributes, and associations. al models help in database design, system ed design, to represent classes | architecture, and understandin Structuri data organization. They also help plan system maintainability, scalability, and consisteng in large software applications. 9 4, Functional Models Functional models explain what the system is expected to do by focusing on its functio or services. These models help identify user needs ‘and system requirements. Use Cay: Diagrams are the most common type of functional models, showing how different user Intent with various system functionalities. The Use Case Diagram of Library Managemen system is shown in Figure 1-11. oo Bek 7 + cenctudes> 7 Toate Beak Update *2extena>> Catalog = (Lifemove Book rary Management System‘Systems Concepts and Information Systems Environment 1.23 Another commonly used Functional Model is Functional Decomposition Diagrams that break down complex system functions into smaller, manageable sub-functions. These models help in requirement gathering, validation, and communication with concerned Project members. The Functional Decomposition Diagram of Library Management System is shown in Fig. 1.12. Information, Inventory Borrowing System Settings |) Managoment Managament Maintenance Book Reader | Roador Rolum | | | Reader Book Book loss Information Information | Book sotlings Setup] | | Management | | sanagoment | | Managomont New book | Invoniory information storage Hook goes | User Management Systom Settings | Figure 1,12, Functional Decomposition Diagram of Library Management System Se 5. Object Models Object models are mainly used in object-oriented analysis and design. They describe the system in terms of objects, which combine data and behavior. Objects are instances of Library username assword P User pi name fogino id fogout() viow booklisto search() Librarian Books password tite operations Aulorname ‘Account Publisher add_book() borrow_books ‘show-books0 dolcie_book() reserved_books show _price() issue_books() return_books return_books() fino+amt send_emaill) calcultate_priced calculate_fine() Figure 1.13. Class Diagram of Library Management SystemQ __Information System Design and Implementatig n classes that define attributes and methods. These models help visualize how objects int inherit properties, and work together to perform system functions. Object diagrams Class diagrams are key representations of object models. Object modeling improv’ eal reusability, maintainability, and modularity in system design. 6. Network or Physical Models ; Network or physical models describe the hardware environment and the physica, deployment of system components. They show how servers, clients, databases, and oth hardware devices are connected and communicate with each other. These models ma. include topology diagrams or deployment diagrams that address infrastructure communication paths, and physical constraints. They are essential for designing distribute, systems, ensuring performance, and planning implementation. ed) 7. Architectural Models ‘Architectural models provide an overall blueprint of how a system is structured organized. They define the major components, their responsibilities, and the way they | interact. Common architectural patterns include layered architecture, client-serve, models, and the MVC (Model-View-Controller) structure. These models help in plannin, system scalability, performance, integration, and future modifications. They act as a guide for both development and maintenance. | 8. Process Models Process models focus on workflows, activities, and business processes within the system, They are used to visualize how tasks are carried out, decisions are made, and data moves between activities. Examples include Activity Diagrams and Business Process Model and, Notation (BPMN), which describe step-by-step processes in a graphical format. These models are especially useful for system automation, business process improvement, ad j understanding end-to-end operations. 1.7. GC ATION _ E koe S {ae In designing an information system, the analyst needs to determine the type of, information needed, the level of the information, how it is structured and in what format it is before deciding on the system needed to produce it. There are three categories of. information related to different managerial levels. The different types of information help the management in taking different decisions. | * Strategic Information © Managerial Information © Operational Information | * Strategic Information: Strategic information is the information needed by uppet level management for developing long term planning policies and decision making,© Information System Design and Implementation classes that define attributes and methods. These models help visualize how objects interac inherit properties, and work together to perform system functions. Object diagrams ang Class diagrams are key representations of object models. Object modeling improve, reusability, maintainability, and modularity in system design. 6. Network or Physical Models cal models describe the hardware environment and the physica ts. They show how servers, clients, databases, and othe, hardware devices are connected and communicate with each other. These models ma include topology diagrams or deployment diagrams that address infrastructure, communication paths, ints. They are essential for designing distributeg and physical constrain systems, ensuring performance, Network or physi deployment of system component and planning implementation 7. Architectural Models Architectural models provide an overall blueprint of how a system is structured ang organized. They define the major components, their responsibilities, and the way they frbract. Common architectural patterns include layered architecture, client-server and the MVC (Model-View-Controller) structure. These models help in planning models, These | integration, and future modifications. They act as a guide system scalability, performance, for both development and maintenance. 8, Process Models Process models focus on workflows, activities, and business processes within the system, They are used to visualize how tasks are carried out, decisions are made, and data moves between activities. Examples include Activity Diagrams and Business Process Model and_ Notation (BPMN), which describe step-by-step processes in a graphical format. These models are especially useful for system automation, business process improveme oe PE ent, and understanding end-to-end operations. 1.7. CATEGORIES OF INFORMATION __ In designing an information system, the analyst needs to determine the type of information needed, the level of the information, how it is structured and in what format it is before deciding on the system needed to produce it. There are three categories of information related to different managerial levels. The different types of information hel the management in taking different decisions. q * Strategic Information * Managerial Information * Operational Information + Strategic Information: Strategic information is the information needed by upper level management for developing long term planning policies and decision makingystems Concepts and Inf ation Systems Envi nment 1.25 For example the trends in revenues earned by the organization, pros and cons of different financial investments etc. fall under the category of strategic information as it is required by the top management for setting the policies and long range goals of the organization. The information systems that provide these kinds of information are known as Decision Support Systems. trategie\ Decision Suppor! System Information Managerial Management Information System Information Operational Transaction Processing System Information © Managerial Information: The second category of information required by the middle management is known as managerial information. It is used for making short term decisions and plans for the organization. For example information like sales analysis for the past quarter or yearly production details fall under this category. Thus, managerial information is of direct use to middle management and department heads for implementation and control. It is maintained with the aid of Management Information Systems (MIS). © Operational Information: The third category of information is operational information. It caters to the short term information needs of the organization and enforces the day-to-day rules and regulations of the business. For example information showing the current stocks available, the attendance records of the employees, processing of orders falls under this category. Thus, this kind of information is required at the operational level for carrying out the day-to-day operational activities. Operational information is established by Transaction Processing System (IPS) or Data Processing Systems (DPS). ‘Therefore, while designing a system, the system analyst has to determine the type of information needed, the level of the information, how it is structured and in what format it is before deciding on the system needed to produce it.Q Information System Design and Implementation BASIC PRINCIPLES OF A SUCCESSFUL SYSTEM Once a system is developed it is possible that it might not be able to fulfill the requirements as a result of which it may not get implemented. ‘Thus for the successh implementation of the system, the following five key qualities should be present in a system: 4 + Usability: A successful system is the one which have a simple user interface that it is be easy to operate the system by the user. It should also be supported with adequate documentation which helps the user in operating the system easly + Implemented in time: A system to be successfully implemented should be developed and ready for use well in time. It should not exceed the time limit as it makecy unacceptable by the user. i * Efficiency: A successful system should be efficient to use. It should not waste the useful resources such as memory and processor time. While making the system easy to operate for the users, the proper usage of memory and processor is ignore, But an efficient use of resources must be considered while developing the systems * Maintainability: A system should be easy to maintain. It should be flexible tg adapt to the changing needs of the user. It should be easily upgraded to a ney, version that meets the current requirements of the user. Maintenance cost should also be minimal. * Well documented: A system cannot be completely effective unless it is adequately documented. Documentation is necessary at every phase of system development, comm [77 POINTS TO REMEMBER SELEETEMy 1. System is defined as a set of elements arranged in an orderly manner to accomplish an objective. 2. Its main characteristics are: (a) Central objective (b) Interaction (c) Organization (d) Integration (e) Interdependence (f) Standards (g) Decomposition 3. A number of elements work together to form a system and realize some objectives, These elements are: (a) Inputs (b) Outputs (c) Processor (4) Control (e) Feedback (f) Environment (g) Boundaries and interface