system

 A system is a set of interacting or
interdependent components forming an
integrated whole or a set of elements (often
called'components' ) and relationships which
are different from relationships of the set
or its elements to other elements or sets.

What is a SYSTEM?
 A system is a group of interrelated components working
together toward a common goal by accepting inputs
and producing outputs in an organized transformation
process.
 Components and their attribution
 Systems structure: relationship between components
 Subsystems
 Environment and Boundary
 Input and Output

CHARACTERISTICS
 . Organization: It says the Structure or order of
built.
2. Interaction: Procedure in which the
components interact.
3. Interdependence.
4. Integration
5. Central Objective

System concepts
 Environment and boundaries :Systems
theory views the world as a complex system of
interconnected parts. We scope a system by
defining its boundary; this means choosing
which entities are inside the system and which
are outside - part of the environment. We then
make simplified representations (models) of
the system in order to understand it and to
predict or impact its future behavior. These
models may define the structure and/or
the behavior of the system.

 Natural and human-made systemsThere are
natural and human-made (designed) systems.
Natural systems may not have an apparent
objective but their outputs can be interpreted
as purposes. Human-made systems are made
with purposes that are achieved by the
delivery of outputs. Their parts must be
related; they must be “designed to work as a
coherent entity” - else they would be two or
more distinct systems.

 Process and transformation processA system can
also be viewed as a bounded transformation
process, that is, a process or collection of
processes that transforms inputs into outputs.
Inputs are consumed; outputs are produced. The
concept of input and output here is very broad.
E.g., an output of a passenger ship is the
movement of people from departure to
destination.
 A subsystem is a set of elements, which is a
system itself, and a component of a larger system.

 System Architecture A system architecture,
using one single integrated model for the
description of multiple views such as
planning, requirement (analysis), design,
implementation,
deployment, structure,behavior, input data,
and output data views, is a kind of system
model.

Elements of System
 Inputs and Outputs
 Processor
 Control
 Environment
 Feedback
 Boundaries and Interface

Types of systems
 Conceptual or empirical systems.
 Open or Closed systems.
 Natural and artificial Information systems.
 Social and machine Information systems.
 Adaptive & nonadaptive Information systems.
 Computer Based Information systems.
 Transaction Processing System (TPS)
b. Management Information System (MIS)
c. Decision Support System (DSS)
d. Office Automation System (OAS)
 Real Time System.
 Probalistic& deterministic systems
 Permanent and temporary systems

System analyst
 System analyst is a person who conducts the
system study & identifies the activities &
objectives, formulate a set of rules to achieve
the objects. His main activities are
 Problem identification, which a crucial part.
Data gathering
Develop a solution for the problem
Co-ordinate to develop all possible solutions.
Develop plans to meet management
objectives
System Designing

 He should have following Qualities.
 1. Knowledge of people
2. Knowledge of Business functions
3. Knowledge of data processing principles
4. Ability to communicate
5. Flexibility
6. Analytical Mind
7. Well educated with sharp mind

SYSTEM MANAGEMENT
STAGES
 System determination
 System design and creation
 System operation and control
 System review and evaluation

Systems theory
 “Systems Theory: the transdisciplinary study
of the abstract organization of phenomena,
independent of their substance, type, or spatial
or temporal scale of existence
 Transdisciplinary
 Physical, Physiological, Chemical, Sociology, Psychology, Financial, Mathematical,
Philosophical, Etc

 Systems can be broken down into Sub-systems, and sub-
systems further broken down into sub sub systems
 Subsystems interact and respond to each other
 E.g. the sub divisions of any business –
 Marketing
 Sales
 Production
 Finance
 Etc
 An organisation can be said to consist of three major
subsystems:
 An Organisational Structure
 A technological System (including MIS)
 A Social System

Cybernetics
 Cybernetics essentially deals with the ability of
systems (technological, biological and social)
to exercise control over themselves to reach a
goal. It is the science of communication and
control. System embodying feedbackcontrol
are commomnly called as cybernetic systems.

TYPES OF CONTROLS
 1. FORWARD CONTROLS:
 THEY FOCUS ON OPERATIONS BEFORE THEY BEGIN.THEIR GOAL IS
TO PREVENT ANTISIPATED PROBLEMS.eg. scheduled maintenance on
auto mobiles and machinery. regular maintenance feed forward to prevent
problems.
 2. CONCURRENT CONTROLS:
 APPLY TO PROCESS AS THEY ARE HAPPENING.CONCURRENT
CONTROLS ENACT WHILE WORK IS BEING PERFORMED AND
INCLUDE ANY TYPE OF STEERING OR GUIDING MECHANISM SUCH
AS DIRECT SUPERVISION , AUTOMATED SYSTEMS.
 3. FEEDBACK CONTROL:
 THIS TYPE FOCUSSES ON THE RESULTS OF THE OPERATIONS
.THEY GUIDE FUTURE PLANNING, INPUTS AND PROCESS
DESIGNS.eg.timely ( weekly , monthly , quaterly , annual) reportes so that
almost instataneous adjust ments can be made.


CONTROL IN SYSTEM
 Information systems controls
 To ensure secure and efficient operation of
information systems, an organization institutes
a set of procedures and technological
measures called controls. Information systems
are safeguarded through a combination of
general and application controls.

SECURING INFORMATION
 As a security measure, each legitimate user has a
unique name and a regularly changed password.
Another security measure is to require some form of
physical authentication, such as an object (a
physical token or a smart card) or a personal
characteristic (fingerprint, retinal pattern, hand
geometry, or signature). Many systems combine these
types of measures—such as automatic teller
machines, which rely on a combination of a personal
identification number (PIN) and an identification card.
Security measures placed between an organization’s
internal networks and the Internet are known
as firewalls.

FEEDBACKLOOPS
 The section of a control system that allows for
feedback and self-correction and that adjusts its
operation according to differences between the
actual output and the desired output.
 A feedback loop is a common and powerful tool
when designing a control system. Feedback loops
take the system output into consideration, which
enables the system to adjust its performance to
meet a desired output response.

Negative feedback
 Negative feedback occurs when the result of a
process influences the operation of the process
itself in such a way as to reduce changes.
Negative feedback tends to make a system self-
regulating; it can produce stability and reduce the
effect of fluctuations. In systems controlled by a
negative feedback loop, the level of
some measured parameter is compared to
a reference value, and any difference triggers an
action that reduces the gap between the two
levels

 Feedback that seeks to dampen and reduce
fluctuations around a norm or standard .

Positive feedback
 It causes the system to repeat or amplify an
adjustment or action . Positive feedback tends
to cause system instability.
 A key feature of positive feedback is thus that
small disturbances get bigger. When a change
occurs in a system, positive feedback causes
further change, in the same direction.

Types of control system
 Open loop system which is also called as
Manual control system.
 Closed loop system which is also named as
automatic control system.


Advantages:
 Simplicity and stability: they are simpler in their layout and
hence are economical and stable too due to their simplicity.
 Construction: Since these are having a simple layout so are
easier to construct.

Disadvantages:
 Accuracy and Reliability: since these systems do not have
a feedback mechanism, so they are very inaccurate in terms
of result output and hence they are unreliable too.
 Due to the absence of a feedback mechanism, they are
unable to remove the disturbances occurring from external
sources.


 Closed Loop System:
Advantages:
 Accuracy: They are more accurate than open loop
system due to their complex construction. They are
equally accurate and are not disturbed in the
presence of non-linearities.
 Noise reduction ability: Since they are composed of
a feedback mechanism, so they clear out the errors
between input and output signals, and hence remain
unaffected to the external noise sources.


Disadvantages:
 Construction: They are relatively more complex
in construction and hence it adds up to the cost
making it costlier than open loop system.
 Since it consists of feedback loop, it may create
oscillatory response of the system and it also
reduces the overall gain of the system.
 Stability: It is less stable than open loop
system but this disadvantage can be striked off
since we can make the sensitivity of the system
very small so as to make the system as stable as
possible.

Systems development life cycle
(SDLC), or Software
development
 is a process of creating or altering information
systems, and the models
and methodologies that people use to develop
these systems.

SDLC is a cycle to develop
software, basic steps are
 1* . Preliminary Investigation
Request clarification
Feasibility Study
a. Technical feasibility
b. Economical
c. Operational
( Request Approval)
 2. Determination of system requirements
3. Design system
4. Development of software
5. System testing
6. Implementation, evaluation & maintenance
Operational Evaluation
Organizational Impact
User Manager
Development performance.

SDLC OBJECTIVES
 SDLC has three primary business objectives:
 - Ensure the delivery of high quality systems;
 - Provide strong management controls;
 - Maximize productivity.
 In other words, the SDLC should ensure that
we can produce more , with higher quality, in
less time, with less resources and in a
predictable manner.

Selection of System projects
Depends on:
 1. Capability
2. Control
3. Communication
4. Cost
5. Competitiveness

Utility of information:
 There are four utilities of information that are identified:
 1)Form Utility:
 As the form of information more closely matches therequirement of
the decision maker, its value increases.
 2)Time Utility:
 Information has greater value to the decision maker if it isavailable
when needed.
 3)Place Utility (Physical accessibility):
 Information has greater value if it can be accessed or delivered
easily. Online systems maximize bothtime and place utility.
 4)Possession Utility (Organizational location):
 The possession of information strongly affects its value by
controlling its dissemination toothers.

WHAT IS LAW OF REQUISITE
VARIETY?
 THE law was propounded by Ross Asbhy ,
which states that complete control of a system
can be acheived only when the control
system has much variety in response as the
number of ways the system can go wrong .
 There must be atleast as many variations of
control as there are ways for the system go go
out of control. Law of requisite variety
is one of the basic notation of system control
theory, to obtain control. The idea is to
control each possible state of system.

 The law of requisite variety means that for a
system to be controlled , every controller must
be provided with:
 * Enough control responses to meet any
situation .
 * Decision rules for generating all possible
control responses .
 * The authority to become a self organising
system in order to generate control responses.

STRUCTURE OF MIS

 CHAPTER********* 3

STRUCTURE OF MIS( multiple
approaches)
 Structure of MIS is a difficult concept to understand b ecause thereis no standard or universally
acceptedis no standard or universally acceptedframework for describing management
informationframework for describing management informationsystem. For example , A car may
be perceived in a system. For example , A car may be perceived in anumber of different way; by
describe the physicalnumber of different way; by describe the physicalcharacteristics, i.e. its
shapes, colour, seating capacity,characteristics, i.e. its shapes, colour, seating capacity,door etc.
MIS structure be described by following adoor etc. MIS structure be described by following
avariety of different approaches:variety of different approaches:
 Physical component
 Information system processing functions
 Decision support
 Levels of management activities
 Organizational functions

 Structure of MIS may be understood
through physical components of the
information system in an
organization. The physical
components of an organizational
information system may be :
 hardware, software, database, manual
procedures and operating persons.

MIS STRUCTURE - BASED ON
ORGANISATIONAL FUNCTIONS
 Production Subsystem
 Marketing Subsystem
 Human Resource Subsystem
 Logistics Subsystem
 The logistic subsystem includes activities
like purchasing, receiving, inventory
control & distribution. The transactions to
be processed are purchase requisitions,
manufacturing orders, receiving reports &
shipping orders.

 Information Processing Subsystems
 It’s the responsibility of the info processing
subsystem to provide the necessary info
processing services & resources.

Information system processing
functions
 Information system structure can also be
understood interm of its processing functions. The
main processingfunctions of information system
are described below:
 To process the transactions
 To maintain the master files
 To produce the reports
 Processing inquiries
 Process interactive support applications

Decision Support
 Decision situation are broadly classified ionto
structured and unstructured on the basis of
whether the procedure can be well defined or
not.
 Decision vary with respect to the structure that
can be provided for making them .
 In case of unsructured decisions the users
cannot even anticipate their information
requirements.

Level of MGT ACTIVITIES
STRATEGIC PLANNING( informntn on industry ,
economic, political, current performance, new
investment activities ,,,& so on)
MANGEMENT CONTROL(acquisition of resources,
plant location, new pdt developmnt,,,etc)
OPERATIONAL CONTROL( efficient & effective use
of resources , with in the budget constraints)
TRANSACTION PROCESSING

Types of information system
 An information system is the basis for
interaction between the user and the analyst. It
is an open system that allows the inputs and
facilitates the interaction with the user. It can
be defined as a set of devices, procedures and
operating systems designed around the user
to produce information and communicate it to
the user for planning, control and performance.

FORMAL & INFORMAL
INFORMATION SYSTEM
 Formal Information System
 This system defines very clearly the work-flow system, communication flow-
down and the authority. The information flows in terms of policies, goals,
strategies, rules and regulations from the top level management to the
bottom level of management.. The information also flows from the bottom
level management to the top level in terms of feedback, results of work
done etc.
 There are three categories of information related to the Formal Information
Systems:
 1. Strategic Information - relates to long-range planning policies. This
information is achieved using the Decision Support System
 2. Managerial Information - helps the middle level management in policy
implementation and control. This information is achieved using
the Management Information System
 3. Operational Information -is the daily information needed to operate the
business. This information is achieved using the Data Processing System

Informal Information System
 The informal information system should be
employee based and cater to their
development and solve their work related
problem. Employee co-operation and the
knowledge of the informal communication
should help one to get a good Informal
Information Systems in place.

Public & private information system
 Private information can only be released to the
subject of the information and to those within the
university who have a legitimate need-to-know,
outside entities with the subject's written
permission, and others as allowed by law. Some
private information, like protected health
information (PHI) and electronic PHI, is protected
by law.
 Public information is available to anyone who
requests it,but certain files are not available to
others in the organisation and certain files may be
shared with trusted persons discriminatingly.

FORMS OF INFORMATION
 Informal public information system
 In addition to the public formal system ,there also exist informal
public system in order to provide benefits to all persons in the
organization who really need such information .strict rules and
procedures may not be
found in such systems .Electronic mails ,telephone calls
,conversation at public places in the organization etc are examples of
public informal information system.
 Formal private information system
 Besides these formal and informal public information system , there
are also formal and informal private system in an organization. In the
case of formal private system information is under the custody of the
individual owner and his staff.
 For example ,a marketing manager might have been collected
information regarding sales data relating to a purticuler sales district
through his sales staff .In addition to that the secretary to the
manager may also collect and maintain information relating to sales
from some private sources .This information is available only to the
marketing manager and anybody else.


 Private informal information system
 Many individuals may maintain their own private informal
information system for discharging their duties more
effectively and efficiently .It is normally found that
certain exicutives in an organization may collect valuable
information from informal sources to make their
decisions more accurate .They collect such type of
information through their personal contacts with people
.Such information might be very important and useful for
decision making in certain occasions.


 Formal private information system
 Besides these formal and informal public information system , there are also
formal and informal private system in an organization. In the case of formal
private system information is under the custody of the individual owner and
his staff.
 For example ,a marketing manager might have been collected information
regarding sales data relating to a purticuler sales district through his sales
staff .In addition to that the secretary to the manager may also collect and
maintain information relating to sales from some private sources .This
information is available only to the marketing manager and anybody else.

 Private informal information system
 Many individuals may maintain their own private informal information system
for discharging their duties more effectively and efficiently .It is normally
found that certain exicutives in an organization may collect valuable
information from informal sources to make their decisions more accurate
.They collect such type of information through their personal contacts with
people .Such information might be very important and useful for decision
making in certain occasions.

Synthesis of MIS Structure
Davis and Olson combined all the approaches to
MIS Structure into a conceptual structure for an
organizational MIS. Conceptually each functional
subsystemishaving its own files. The organization
al MIS is having a database, models forplan
ning, decision and investment in the mo
del base and commonly sharedapplicati
on software. The common database is manage
by database managementsoftware
(DBMS).Conceptually it is a federation of
subsystems integrated throughthe database
software.

Physical components
 Hardware
 All physical components of a computer system compose the computer hardware. Important
components include the central processing unit, input/output devices, storage units and
communication devices. Communication can be over fiber-optic cables or wireless networks.
 Software
 Software provides the interface between users and the information system.
Software can be divided into two generic types: system software and
applications. The system software comprises of the operating system, utility
programs and special purpose programs. Applications are developed to
accomplish a specific task. For users of MIS it is much more important to
understand the software than the hardware. Software maintenance can take 50
to 70 percent of all personnel activity in the MIS function. When the
organization moves to implement an advanced information system the
hardware and software environment becomes more complex.


 Database
 A database is a centrally controlled collection of organized data.
Central control reduces redundancy and duplication of data. Data is
stored in an organized and structured way to facilitate sharing and
improve availability to those who need it. The database improves
efficiency of storage by elimination of redundant files and improves
efficiency of processing by providing all required data in a single file
rather than separate files. This also improves efficiency of
information retrieval.
 Procedures
 Three types of procedures are required for an MIS to operate
effectively: user instructions, instructions for input preparation and
operating instructions for MIS personnel who maintain the MIS.


DBMS
 Database Management System (DBMS) is a
set of programs that enables you to store,
modify, and extract information from a
database, it also provides users with tools to
add, delete, access, modify, and analyze data
stored in one location.
 DBMS’s also provide the method for
maintaining the integrity of stored data,
running security and users access, and
recovering information if the system fails.

ADVANTAGES IN DBMS
 1. Controlling Data Redundancy
 2. Elimination of Inconsistency
 3. Better service to the users
 4. Flexibility of the System is Improved
 Standards can be enforced
 Security can be improved
 Organization's requirement can be identified
 Overall cost of developing and maintaining
systems is lower

Data mining
 Data mining (sometimes called data or knowledge
discovery) is the process of analyzing data from
different perspectives and summarizing it into
useful information - information that can be used
to increase revenue, cuts costs, or both. Data
mining software is one of a number of analytical
tools for analyzing data. It allows users to analyze
data from many different dimensions or angles,
categorize it, and summarize the relationships
identified. Technically, data mining is the process
of finding correlations or patterns among dozens
of fields in large relational databases.

ELEMENTS
 Data mining consists of five major elements:
 Extract, transform, and load transaction data onto
the data warehouse system.
 Store and manage the data in a multidimensional
database system.
 Provide data access to business analysts and
information technology professionals.
 Analyze the data by application software.
 Present the data in a useful format, such as a
graph or table.

Data Warehousing
 Data Warehouses
 Dramatic advances in data capture, processing
power, data transmission, and storage capabilities
are enabling organizations to integrate their
various databases into data warehouses. Data
warehousing is defined as a process of
centralized data management and retrieval. Data
warehousing, like data mining, is a relatively new
term although the concept itself has been around
for years. Data warehousing represents an ideal
vision of maintaining a central repository of all
organizational data. Centralization of data is
needed to maximize user access and analysis.

 Personnel
 The personnel in the MIS function include computer
operators, programmers, systems analysts and
managers. Human resource requirements should be
assessed by considering both the present system
needs and the future system growth. The quality of
MIS personnel is a key factor in its effectiveness. An
MIS manager needs a combination of both managerial
and technical skills.


 The structure of MIS has been explained in terms
of decision making, management
activity,organisational functions and operating
elements. These different approaches of MIS can
be combined to get an overall perspective of MIS
structure. This process of combining these
different approaches of MIS is called SYNTHESIS
OF MANAGEMENT INFORMATION SYSTEM.
This can be of two ways
 Conceptual structure
 Physical structure

CONCEPTUAL STRUCTURE
 The conceptual structure of a MIS is a federation of functional
systems niz, production, finance,personnel and marketing. Each of
these subsystems of information system is supported to provide
information support to executives for operational control,
management control and strategic planning
 Different operational functions have different information
requirements. Their information requirements vary not only in
current but also in characteristics. In fact the content of information
depends upon the activities to be performed under an operational
functions, in turn, influences the characteristics, which particular
information possesses.
 The levels of management activity also influence the characteristics
of information. Strategic planning requires more external
information. On the other hand management control level requires
more accurate, precise, and repetitive information. Operation
management needs very detailed information for performing the
day- to-day activities.

system

More Related Content

What's hot (20)

Viewers also liked (7)

Similar to system (20)

More from Saranya Dhanesh Kumar (6)

Recently uploaded (20)

system