Systems concept

Ritika SinghJRF ISM

Suggest an example of a system

What is a system?System is derived from a Greek word systema

An organized relationship among functioning units or components

Transportation system, telephone system, accounting system, production system, computer system

Assumptions of a systemA system must be designed to achieve a predetermined objective

Interrelationships must exist among the components

The objective of the organization as a whole have a higher priority than the objectives of its subsystems

Characteristics of a systemOrganization authority structure, flow of information, organization structure

Interaction inventory and production, payroll and personnel

Interdependence plan, input of one system should depend upon output of another system

Integration It is more than sharing a physical part, synergy

Central objective One which is achievable to synchronize the activities

To construct a system Elements Outputs and inputs Output is first step in specifying the nature, amount and regularity of an input needed to operate a system

Processor(s) Operational component, modify the input completely or partially

ContControl decision-making subsystem that controls the pattern of activities governing input, output and processing. Eg. Management

Feedback It is applicable in dynamic systems. The output is compared with a set of performance standards and the information is fed back into the system along with the input. It can also result in the processing subsystem. It can be +ve or -ve

ContEnvironment It is the suprasystem within which the organization operates. It is the source of external elements that affect the performance

Boundaries and interface The limits that identify its components, processes and interrelationships when it interfaces with another system

Types of systemPhysical/Abstract Computer hardware is a static system, computer software is dynamic system but both are considered physical whereas statistical models are abstract

Open/closed In open systems the interactions are possible across the boundaries, environment plays an important role

ContMan-made Information systems

What is information systems?

A set of devices, procedures and operating system designed around user based criteria to produce information and communicate to the user for planning, control and performance

Categories of informationStrategic relates to long range planning policies that are of direct interest to upper management . The problems are unstructured eg population growth, trends in financial investments, HR

Managerial Direct use to middle management and department heads eg sales analysis, cash flow projections, annual financial statements

Operational daily information. The problems are structured eg daily employee absence sheets, inventory availables

AssignmentDifference between MIS and DSS?

Suggest instances or cases where they are in use

System development life-cycle

Lecture 2

Why are systems needed?It expedites problem solving and improves quality of decision makingRole of system analyst is to plan a new system and make suitable changes in the organization, personal contactsSystem study or system development life cycleSystems cut across boundaries

System development life-cycleDifferent stagesThe stages may overlap in realityAnalyst looks at alternative ways to improve a system or replace the parts that will reduce the costsThis also results in modification of earlier stages

Stage1 - Need recognitionPreliminary survey or initial investigation to determine an alternative systemIt includes duplication of efforts, bottlenecks, inefficient existing procedures, computerizationAn analyst is supposed to set an objective and define the scope also a preliminary cost estimate is providedThe statement should be approved by the user for accuracy

Impetus for system changeThe change may originate due to the external factors or the internal factorsUnemployment compensation regulation (changing of report formats, contents and procedure)Customer complaints about delivery orders (delivery schedules, volume, transportation)

ExamplesM&ANew branchesExpenses exceed the budgetUse of unauthorized formsTwo departments working on same projectHigh rate of labor turnoverLabor intensive activitiesHigh reject rates of finished goods

Ideas from top managementSales figures reportThe company comptroller reads the audit reportAn executive reads the DSS for sales forecastLong queues in the lobby due to slow response or lack of training or increase in the business

Users ideas converted into feasibility studyThe risk and potential returnManagements bias towards the userFundingPriorities of other projectsUsers persuasive capabilities

Stage 2 - Feasibility studyWhat are the users demonstrable needs and how does a candidate system meets them?

What resources are available for given candidate systems?

What are the likely impact of the candidate system on the organization? How well does it fit within the organizations master MIS plan?

Feasibility study - generates reportStatement of the problem carefully wordedSummary of findings and recommendations Details of findings - an outline of existing procedures + procedures, output reports, file structure, cost and benefits of candidate systemRecommendations and conclusion specific recommendations( personnel assignments, costs, project schedules and target dates)

Stage 3: AnalysisDefining boundariesData collected on the available files, decision points and transactionsTools used for analysis: data flow diagrams, interviews, on-site observations and questionnaires (training, experience and common-sense)

Stage 4: DesignIn system design we move from the logical to the physical aspectsTechnical specificationsTestingDocumentationFinal report procedural flowcharts, records layout, report layout, workable plan for implementation

Stage 5: Implementation Primarily concerned with user training, site preparation, and file conversion, network testsUser acceptance test, system test, test dataParallel run (POS)

Stage 6: Post-implementation and maintenanceMaintenance is to continue to bring the new system to the standardsDifference between maintenance and enhancementBank increases its service charges on checking accounts from Rs 3 to Rs 4.5 for a minimum balance of Rs 300Bank creates a personal loan on negative balances when customer overdraws their account

Project terminationChanging user requirements cannot be met by the designSudden change in the budgetBenefits do not justify costProject exceeds the time limit

Failure of a new systemUser requirements were not clearly understoodUsers were not directly involvedAnalyst and the programmer are inexperiencedTime constraints User training was poorHardware cannot handle the new loadNot user friendlyUsers changed the requirementUser staff was hostile