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4 Characteristics of a System Our definition of a system suggests some characteristics that are present in all systems: organization (order), interaction, interdependence, integration and a central objective. 1.4.1 Organization Organization implies structure and order. It is the arrangement of components that helps to achieve objectives. In the design of a business system, for example, the hierarchical relationships starting with the president on top and leading downward to the blue – collar workers represents the organization structure. Such an arrangement portrays a system – subsystem relationship, defines the authority structure, specifies the formal flow of communication and formalizes the chain of command. Like – wise, a computer system is designed around an input device, a central processing unit, an output device and one or more storage units. When linked together they work as a whole system for producing information. 1.4.2 Interaction Interaction refers to the manner in which each component functions with other components of the system. In an organization, for example, purchasing must interact with production, advertising with sales and payroll with personnel. In a computer system, the central processing unit must interact with the input device to solve a problem. In turn, the main memory holds programs and data that the arithmetic unit uses for computation. The interrelationship between these components enables the computer to perform. 1.4.3 Interdependence Interdependence means that parts of the organization or computer system depend on one another. They are coordinated and linked together according to a plan. One subsystem depends on the input of another subsystem for proper functioning: that is, the output of one subsystem is the required input for another subsystem. This interdependence is crucial in systems work. An integrated information system is designed to serve the needs of authorized users (department heads, managers, etc.) for quick access and retrieval via remote terminals. The interdependence between the personnel subsystem and the organization’s users is obvious. In summary, no subsystem can function in isolation because it is dependent on the data (inputs) it receives from other subsystems to perform its required tasks. Interdependence is further illustrated by the activities and support of systems analysts, programmers, and the operations staff in a computer centre. 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 property without the required input from others in the computer center subsystem. Figure 1-1: Organization Structure – An Example 1.4.4 Integration Integration refers to the holism of systems. Synthesis follows analysis to achieve the central objective of the organization. Integration is concerned with how a system is tied together. It is more than sharing a physical part or location. It means that parts of the system work together within the system even though each part performs a unique function. Successful integration will typically produce a synergistic effect and greater total impact than if each component works separately. 1.4.5 Central objective The last characteristic of a system is its central objective. Objectives may be real or stated. Although a stated objective may be the real objective, it is not uncommon for an organization to state one objective and operate to achieve another. The important point is that users must know the central objective of a computer application early in the analysis for a successful design and conversion. Political as well as organizational considerations often cloud the real objective. This means that the analyst must work around such obstacles to identify the real objective of the proposed change. 1.5 Elements of a System In most cases, systems analysts operate in a dynamic environment where change is a way of life. The environment may be a business firm, a business application, or a computer system. To reconstruct a system, the following key elements must be considered: Formal Organizational positions President Vice- President Sales Vice- President Production Vice- President Accounting Department Head Assembly Departing Head Painting Lines of Authority Workers Workers 1. Outputs and inputs. 2. Processor(s). 3. Control. 4. Feedback. 5. Environment. 6. Boundaries and interface. 1.5.1 Outputs and Inputs A major objective of a system is to produce an output that has value to its user. Whatever the nature of the output (goods, services, or information), it must be in line with the expectations of the intended user. Inputs are the elements (material, human resources, and information) that enter the system for processing. Output is the outcome of processing. A system feeds on input to produce output in much the same way that a business brings in human, financial, and material resources to produce goods and services. It is important to point out here that determining the output is a first step in specifying the nature, amount, and regularity of the input needed to operate a system. For example, in systems analysis, the first concern is to determine the user’s requirements of a proposed computer system – that is, specification of the output that the computer is expected to provide for meeting user requirements. 1.5.2 Processor(s) The processor is the element of a system that involves the actual transformation of input into output. It is the operational component of a system. Processors may modify the input totally or partially, depending on the specifications of the output. This means that as the output specifications change so does the processing. In some cases, input is also modified to enable the processor to handle the transformation. 1.5.3 Control The control element guides the system. It is the decision – making subsystem that controls the pattern of activities governing input, processing, and output. In an organizational context, management as a decision – making body controls the inflow, handling and outflow of activities that affect the welfare of the business. In a computer system, the operating system and accompanying software influence the behaviour of the system. Output specifications determine what and how much input is needed to keep the system in balance. In systems analysis, knowing the attitudes of the individual who controls the area for which a computer is being considered can make a difference between the success and failure of the installation. Management support is required for securing control and supporting the objective of the proposed change.

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Lesson No: 1 Lesson Name :
Overview of System Analysis & Design
Author : Dr. Jawahar Vetter: Prof. Dharminder Kumar



1.0 Objectives:
1.1 Introduction
1.2 Over View of System Analysis and Design
1.3 Business System Concepts
1.4 Characteristics of a System
1.5 Elements of a System
1.6 Types of Systems
1.7 Systems Models
1.8 Categories of Information
1.9 Summary
1.10 Questions




1.0 Objectives
• Defining a system
• The role of computer in information systems
• What are the characteristic and element of information system
• What are the various types of information system and models
• What are the different types of specialised information system


1.1 Introduction
In business, System Analysis and Design refers to the process of examining a
business situation with the intent of improving it through better procedures and methods.
System analysis and design relates to shaping organizations, improving performance and
achieving objectives for profitability and growth. The emphasis is on systems in action, the
relationships among subsystems and their contribution to meeting a common goal.

,Looking at a system and determining how adequately it functions, the changes to be made and
the quality of the output are parts of system analysis.

Organizations are complex systems that consist of interrelated and interlocking
subsystems. Changes in one part of the system have both anticipated and unanticipated
consequences in other parts of the system. The systems approval is a way of thinking about
the analysis and design of computer based applications. It provides a framework for
visualizing the organizational and environmental factors that operate on a system. When a
computer is introduced into an organization, various functions’ and dysfunction’s operate
on the user as well as on the organization. Among the positive consequences are improved
performance and a feeling of achievement with quality information. Among the
unanticipated consequences might be a possible threat to employees job, a decreased morale
of personnel due to back of involvement and a feeling of intimidation by users due to
computer illiteracy. The analyst’s role is to remove such fears and make the system a
success.

System analysis and design focus on systems, processes and technology.
1.2 Over View of System Analysis and Design
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 determine
how computers can best be used to make its operation more effective. System analysis,
then, is the process of gathering and interpreting facts, diagnosing problems, and using
the information to recommend improvements to the system. This is the job of the
systems analyst.

Consider, for example, the stockroom operation of a clothing store. To better control its
inventory and gain access to more up – to – date information about stock levels and
reordering, the store asks a system analyst, to “computerize” its stockroom operations.
Before one can design a system to capture data, update files, and produce reports, one needs
to know more about the store operations: what forms are being used to store information
manually, such as requisitions, purchase orders, and invoices and what reports are being
produced and how they are being used.
To proceed, you then seek out information about lists of reorder notices, outstanding
purchase orders, records of stock on hand, and other reports. You also need to find out

,where this information originates, whether in the purchasing department, stockroom, or
accounting department. In other words, you must understand how the existing system works
and, more specifically, what the flow of information through the system looks like.

You also must know why the store wants to change its current operations. Does the business
have problems tracking orders, merchandise, or money? Does it seem to fall behind in
handling inventory records? Does it need a more efficient system before it can expand
operations?

Only after you have collected these facts can you being to determine how and where a
computer information system can benefit all the users of the system. This accumulation of
information, called a systems study, must precede all other analysis activities.

Systems analysts do more than solve current problems. They are frequently called upon to
help handle the planned expansion of a business. In the case of the clothing store, the
systems study is future oriented, since no system currently exists. Analysts assess as
carefully as possible what the future needs of the business will be and what changes should
be considered to meet these needs. In this instance and in most others, analysts may
recommend alternatives for improving the situation. Usually more than one strategy is
possible.

Working with managers and employees in the organization, systems analysts recommend
which alternative to adopt, based on such concerns as the suitability of the solution to the
particular organization and setting, as well as the employee support the solution is likely to
have. Sometimes the time required to develop one alternative, compared with others, is the
most critical issue. Costs and benefits are also important determinants. In the end,
management, which will pay for and use the result, actually decides which alternative to
accept.

Once this decision is made, a plan is developed to implement the recommendation. The
plan includes all systems design features, such as new data capture needs, file specifications,
operating procedures, equipment and personnel needs. The systems design is like the
blueprint for a building: it specifies all the features that are to be in the finished product.

Designs for the stockroom will provide ways to capture data about orders and sales to
customers and specify the way the data will be stored, whether on paper forms or on a
computer – readable medium, such as magnetic tape or disk. The designs will also designate

, work to be performed by people and by computers. Designs vary in their division of human
and computer tasks.

The stockroom personnel will also need information about the business. Each design
describes output to be produced by the system, such as inventory reports, sales analyses,
purchasing summaries, and invoices. The systems analysts will actually decide which
outputs to use, as well as how to produce them.

Analysis specifies what the system should do. Design states how to accomplish the
objective. Notice that each of the processes mentioned involves people. Managers and
employees have good ideas about what works and what does not, about what flows
smoothly and what causes problems, about where change is needed and where it is not, and
especially about where change will be accepted and where it will not. Despite technology,
people are still the keys that make the organizations work. Thus, communicating and
dealing with people are very important parts of the systems analyst’s job.



1.3 Business System Concepts
The word system is widely used. It has become fashionable to attach the word system to
add a contemporary flair when referring to things or processes. People speak of exercise
system, investment system, delivery system, information system, education system,
computer system etc. System may be referred to any set of components, which function in
interrelated manner for a common cause or objective.



1.3.1Definition:
The term system is derived form the Greek word systema, which means an organized
relationship among functioning units or components. A system exists because it is designed
to achieve one or more objectives. We come into daily contact with the transportation
system, the telephone system, the accounting system, the production system, and, for over
two decades, the computer system. Similarly, we talk of the business system and of the
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 are properly coordinated, however, the
firm can function effectively and profitably.

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