COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Systems Analysis and Design

(MGMT 393)

Crédit Hrs : 3
 CHAPTER ONE
SYSTEM: AN OVERVIEW
System Analysis and Design - Overview
Systems Analysis
It is a process of collecting and interpreting facts, identifying the problems, and
decomposition of a system into its components.
Analysis specifies what the system should do.
Systems Design
It is a process of planning a new business system or replacing an existing system by
defining its components or modules to satisfy the specific requirements.
System Design focuses on how to accomplish the objective of the system.
System Analysis and Design (SAD) mainly focuses on −
 Systems
 Processes
 Technology
Systems definition
The word system is derived from the Greek word “systema” which means
organized relationship between among functional unit.
 It is a set of inter-related elements, or components that collectively work
together within a boundary to achieve common purpose or goal.
 It is a collection of parts that work together harmoniously only to achieve
specific goals. A system normally has subsystem and function within an
environment.
 A collection of components that work together to realize some objectives
forms a system.
Basically there are three major components in every system, namely
input, processing and output
 A System is an interrelated set of business procedures (or components)
used within one business unit, working together for some purpose.
For Ex. an inventory system in the materials department keeps track of the
raw materials supply.
 The system takes input from outside, processes it, and sends the
resulting output back to its environment.
A system can also defined as collections of people using information
technology and processes that define how people carry out their work.
The system also includes informal interactions that take place in an
organization Ex. emails, phone calls.
System and its Components
Units within a system that share some or all the characteristics of
that system are called subsystem. For example a company can be
view be as a system and its particular industry as a supra system.
Characteristics of a System
[Link] – A component is either an irreducible part or an
aggregate of parts, also called as a subsystem.
 Characteristics of a System
2. Interrelated Components – The function of one component is tied to the
functions of the others. Output from one is input for another, the dependence
of a part on one or more other parts.
3. Boundary – A system has boundary, within which all of its components are
contained and which establishes the limits of a system, separating it from
other systems. Components within the boundary can be changed whereas
systems outside the boundary cannot be changed.
4. Purpose – All components work together to achieve the overall purpose of
the system.
5. Environment – A system exist within an environment, everything outside
the system’s boundary that influences and / or interacts the system.
6. Interfaces – The points at which the system meets its environment and
there are also interfaces between subsystems
7. Input – System takes input from its environment
8. Output - System returns output to its environment as a result of its
functioning to achieve the purpose. Output from individual subsystems may
be inputs to other subsystems.
9. Constraints – There are limits to what the system can do (capacity, speed,
and capability), some of these constraints are imposed inside the system and
others are imposed by the environment.
System Concepts
Some important Systems concepts
Decomposition – is the process of breaking down a system into its smaller
components, decomposing a system also allows us to focus on one particular
part of a system.
Modularity is a direct result of decomposition which divides a system into
modules of a relatively uniform size.
Coupling means that subsystems are dependent on each other, messages are
passed between subsystems. A good system will have very independent
subsystems with minimal flows of data between them. This makes the system
simpler and easier to change just one part of the system without affecting the
other parts.
 Cohesion is the extent to which a subsystem performs single functions.
Generally coupling must be reduced and cohesion increased, so that it performs
only one function.
 Fundamentals of Information System

Meaning and role of an Information

Information is very important part of any business, which
helps the managers to take decisions.
The data flows throughout the organization and makes it
active.
There are lot of data available in the business, at every time a
transaction takes place ( Ex. a sale ), some data is recorded. It
could be recorded on paper or in a computer system.
The difference between data and information
 Data are raw (unprocessed) facts about people, objects, events in an
organization (Ex. all the sales orders for the year)
Information is data that have been processed and presented in a
suitable form for human interpretation. (how many of each product
were ordered in each month, may be shown on a graph)
Introduction to Information System
Information System
• An Information System is an arrangement of people, data,
processes, interfaces, networks and technology that interact for the
purpose of supporting and improving both day-to-day operations in
a business (data processing) as well as supporting the problem
solving and decision making needs of management (information
services).
• IS is a formalized computer information system that can collect,
store, process and report data from various sources to provide the
information necessary for management decision making.
 IS
• The Information System includes the following
• Hardware – Computers, servers and printers
• Software- System software’s and application software’s
• Documentation and training materials – The materials created by Systems
Analyst to help users to use the software
• Specific job roles – The roles associated with the overall system, such as
the people who run the computers and the software operating.
• Controls- which are the parts of the software written to prevent fraud and
theft
• People- Who uses the software in order to do their job.
Cont.
Types of Information Systems

Types of Information Systems

 Transaction Processing Systems
Office Automation Systems
Management information Systems
Executive Information Systems/Executive Support Systems
 Decision support Systems
Types of Information Systems
Transaction Processing System (TPS)
• A transaction is a business event such as a sale to a customer. Other
transactions include payment to an employee for work-performed
purchase of raw materials, and payment of accounts payable.
• TPS keep track of these daily business events. This is basically to support
day-to day-operations by maintaining detailed records. This system helps
the company to conduct its operation and keep track of its activities.
• The basic purpose is to support the operations of organization. Examples
of typical transaction processing systems include
accounts receivable systems; payroll systems, accounts payable systems,
airline reservation systems, and order processing systems.
Types of Transactions:
Internal Transactions:
External Transactions:
Internal Transactions:
• Those transactions which are internal to the company and are related
with the internal working of any organization Example: Recruitment
Policy, Promotion Policy, Production Policy, etc.
External Transactions:
• Those transactions, which are external to the organization and are
related with the external sources. Example: sales purchase, etc.
 Basic Purpose of TPS:
• TPS automates the handling and capture of data about transactions or business activities.
• For each transaction, the system must capture the data, verify that it is valid transaction and
accept or reject it
• Accepted transactions are stored in the system database
• Reporting provides summaries of transactions (ex. daily, weekly)
• The analysis and design of a TPS requires focusing on the firm’s current procedures for
processing transactions. How the organizations track, capture, process and output data?
• 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.
Characteristics of TPS:
• 1) Detailed
• 2) Record oriented
• 3) Performance
• 4) Reliability article
• 5) Supporting technology stable
 Office Automation System (OAS)

• OAS uses the computer to automate many of the routine tasks that are performed in a
typical office. OAS support interpersonal communication activities for correspondence.
• This system creates, store, modify and process interpersonal communication whether in
written, verbal or video form.
• But there are many other applications in the office including desktop publishing, electronic
mail, facsimile, voice mail, image processing, videoconference, etc.
• The basic purpose of OAS is to support in the personal communication. Characteristics of
OAS:
• 1) Multimedia applications
• 2) Inter connectedness and reliability important
• 3) Specific application selected to meet local needs
 Management Information Systems (MIS)
• MIS is the management reporting system and another name for this is information reporting
system. The management reporting system generates pre-planed reports for managers.
• The basic purpose of MIS is to support management of operations.
• MIS takes the raw data available through a TPS and converts them into a meaningful
aggregated form.
• It provides reports of this information to managers
• Thus, the System Analyst must develop a good understanding of the business and the
transaction processing systems that provide data for an MIS.
• Characteristics of MIS:
1. Summarized and standardized reports
2. Regular
3. Recurring reports
4. Timeliness
5. Reliability
6. Simple model with static structure
7. Technology stable
 Executive Support System (ESS) / Executive
Information System (EIS):
• This system supports the information needs of senior executives by
summarizing and presenting data at the highest level of aggregation.
• ESS involves presenting report in standard formats and they often involve
profiles. The information is updated frequently, such as on a daily basis, and
the systems also provide the capability to display more detailed information
if an executive wants to look at it.
• The basic purpose of ESS is to support senior executive information needs.
 Characteristics of ESS:

1. Graphical information is presented

2. Easy use interface
3. Broad and aggregated perspective
4. Able to expand detail
5. Integrates many sources of data
6. Timeliness crucial
The primary goal of an ESS is to obtain data from a variety of sources, interpret and aggregate
that data and display the resulting information in a easy to use comprehensible format. These
two are part of knowledge-based system.
An Expert System is typically a ruled based system that solves problem in a manner similar to
a human expert’s method.
Artificial Intelligence includes robotics and application such as vision inspection system for
spotting defects.
 Decision Support System (DSS)
• (DSS) is an integrated set of computer tools that allow a decision maker to interface directly
with computer to create information useful in making semi structured and unstructured
decisions.
• DSS differ from TPS and MIS in that they do not always support an ongoing process..
• Decision Support System has the following purposes:
 Helps the manager to take decisions by analyzing the data
It provides an interactive environment in which decision maker can quickly manipulate data
and models of business operations
 DSS has three parts: .
1. the first part is composed of a database
2. the second part consists of mathematical or graphical models of business processes
3. the third part is made up of a user interface that provides a way for the decision maker to
communicate with the DSS
System Analyst is to concentrate on the three main components
database, model base and user interface
TPS automates the handling and capture of data about transactions or
business activities
• For each transaction, the system must capture the data, verify that it is
valid transaction and accept or reject it
• Accepted transactions are stored in the system database
• Reporting provides summaries of transactions (ex. daily, weekly)
• The analysis and design of a TPS requires focusing on the firm’s
current procedures for processing transactions
Management Information System (MIS)
• MIS takes the raw data available through a TPS and converts them
into a meaningful aggregated from.
• It provides reports of this information to managers
• Developing MIS calls for good understanding of what kind of
information mangers require and how managers use information in
their jobs.
• Thus, the System Analyst must develop a good understanding of the
business and the transaction processing systems that provide data for
an MIS.
Expert Systems (ES)
• An ES is developed for a particular area of knowledge or domain, Ex
Medical diagnosis, Weather forecasting, etc.
• The ES asks questions, and the end user supplies the answers, rules
applied on the answers and the ES provides a recommendation.
• The focus on developing and ES is acquiring the knowledge of the
expert in the particular problem domain. Knowledge engineers
perform knowledge acquisition.