CHAPTER ONE

Introduction
Definitions

System
A system is a set of inter-dependent/interrelated components (some of which may be systems in
their own right), with an identifiable boundary and which collectively accomplish certain
objectives/purpose.

Characteristics of a system
A system has 9 characteristics.
1. Components
A system is made up of components. A component is an irreducible part or aggregation
of that make up a system, also called subsystems. We can repair or upgrade the system by
changing individual components without having to make changes throughout the entire
system.
2. Interrelated Components
The components are interrelated. This means the dependence of one subsystem on one or
more subsystems. The function of one subsystem is tied to the function of others.
3. A Boundary
A system has a boundary within which all of its components are contained and which
establishes the limits of a system, separating the system from other systems. The boundary
is the line that makes the inside and outside of a system and that sends off the system from
its environments.
4. A purpose
This is the overall goal or function of a system. A system must give priority to the
objectives of the organization as a whole as compared to the objectives of a subsystem.
5. An Environment
This is everything external to a system that interacts with the system i.e. everything
outside the system’s boundary, usually the system interacts with its environment,
exchanging, in the case of an information system, data and information.
6. Interfaces
This is the point of contact where a system meets its environments or where subsystems
meet each other. eg. The interface between an automated system and its users (manual
system) and interfaces between different information systems. It is the design of good
interfaces that permits different systems to work together without being too dependent on
each other. Because an interface exists at the point where a system meets its environment,
the interface has several special, important functions outlined below:-
• Security - protecting the system from undesirable elements that may want to
infiltrate it.
• Filtering unwanted data both for elements leaving and entering the system.
• Coding and decoding incoming and outgoing messages.

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 • Detecting and correcting errors in its interaction with the environment.
• Buffering - providing a layer of slack between the system and its environment, so
that the system and its environment can work on different cycles and at different
speeds.
• Summarizing raw data and transforming them into the level details and format
needed throughout the system.

7. Constraint/ Controls
This is a limit to what a system can accomplish. A system must face constraints in its
functioning because there are limits – in terms of capacity, speed, or capabilities to what it
can do and how it can achieve its purpose within its environment.
8. Input
This is whatever a system gets from its environment, eg. Raw data.
9. Output
This is whatever a system returns to its environment in order to fulfill its purpose.

Feedback
A feedback may be defined as a check within a system in order to ensure that the objectives
of the system are achieved. These checks are conducted in order to find out way deviation. If any
deviation is detected, then appropriate steps are taken to ensure that the error is rectified.
Feedback may be positive or negative.

Negative Feedback
This is a system that works on the principle of trying to reduce the fluctuations around
a set standard, eg. If the credit limit of those customers who have outstanding debts is
restricted, then it is known as negative feedback since the action is taken opposite to
deviation.
Positive Feedback
It a system that attempts to increase a detected deviation, it helps the system to adjust
but acting in the same direction in which deviation has occurred, e.g. If the demand
for any product increases and as a result, production is also increased, then it is
positive feedback - it helps to increase the efficiency of the system.

Feedforward
It means to take steps to make some adjustments to the system in advance in order to face any
expected deviations in future. Feedback monitors the past results whereas feedforward deals with
future outcomes.

Computer Based system

The elements of a computer system include:-
▪ Hardware
▪ Software
▪ People (Users and operators)
▪ Database
▪ Documentation
▪ Procedures.

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Classification of Systems

(a) Systems and their Environment

General systems theory distinguishes between closed and open system.

Open Systems
These are the system which are connected to and interact with the environment. Examples are,
the biological and social system. All business organizations are also open systems since they
must have the capacity to adopt in the future of changing competition, changing markets e.t.c.
The major components which together constitute the open system are:-
• Input – This may take the form of money, materials energy, decisions, information e.t.c
• Process- This changes input into desirable output eg. Changing data to information.
• Output – This is the systems reason for its existence
• Sensor – Stimuli, response to the effect of the environment.
• Feedback – This is the systems way of monitoring the environment it operates in, which
permits it to make adjustments to survive and maintain dynamic equilibrium.
• Standard – This allows control to be exercised, allowing variances to be assessed and
action to be where necessary.
• Comparator – This is the means by which comparison is made between the standard and
actual performance or results.
• Effectors – Takes any action to correct any variance or deviation discovered by the
comparator.

Closed Systems
A closed system is that which does not interact with its environment. The system is neither
influenced by nor influences its environment. It does not take in from or give to it. The system
behavior occurs because of internal interaction and is more relevant to scientific than social
systems. They do not obtain modification from their environments. A computer program is a
relatively closed system because it accepts only previously defined outputs. In fact, no system
can be a completely closed system for a long time.

We may also have relatively or semi-closed system where the system relates to its environment
in a prescribed and controlled way.

Difference between Open Systems and Closed Systems

Open System Closed System

- Interacts with the environment constantly - Does not interact with the Environment
- Has infinite scope - Limited Scope
- Relevant variables keep on interacting - Self Contained
- Flexible and abstract - Rigid and mathematical

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(b) System and adaptability
They are classified according to a hierarchy of properties of the system.

Deterministic Systems (Mechanistic Systems)

These are the systems that function according to some predetermined procedure and have
results and future behavior predicted with certainty provided they are working correctly and
under control. A system may be classified as deterministic if it is possible to predetermine the
stages or steps through which it would pass. It is possible to examine the system and predict the
next stage from the present one. However, an unexpected mode of working may develop as a
result of errors or excessive weakness in which the case the system becomes probabilistic rather
than deterministic.
Examples include - the working of computer program, the behavior of the planet in orbit, or
business systems have a variety of uncertainties e.g. customer behavior.

Probabilistic Systems (Stochastic Systems)

These are those systems whose state and behaviour can be predicted only within certain limits,
even when they’re under control. Although some of these states in these systems may be
predicted from previous states, they can be described only in terms of probable behaviour.
Example, the inventory systems, average stock, average demand, average replenishment time
may be predicted but exact values of those factors any instance may not be known.

Cybernetic system (Self Organizing/ Adaptive)

These are systems that have to adapt to their environments/ react to stimuli, they learn from their
mistakes, so that they do not always react in the same way to a particular input.
Examples are the social systems, organizations, plants.

(C) Control of the system

Open – Loop System.

This is a system which does not act in a controlled manner, i.e no feedback, and so no measure of
performance against standards.

Closed – Loop System

A system that functions in a controlled manner e.g. A system accepts inputs, work upon them
according to some pre-defined processing rules, and produces outputs, so that it can function in a
controlled manner, must give feedback

Artificial Systems
These systems are created rather than occur by nature e.g computer programs, organization, etc.
They are usually made to support the objective of the designer and user.

Human Machine Systems

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Those are systems designed to help in accomplishing certain set goals e.g. helping in decision
making. The machine elements (eg h/ware and s/ware) are relatively closed and deterministic
whereas the human elements are open and probabilistic.

Information Systems (IS)

This is a set of persons, procedures and technological and other resources that collects, transfers
and disseminates information in the system eg. Organization IS includes manual IS, informal IS,
and computer based IS.

Types of Information Systems

There are different types of information systems distinguished from each other on the basis of
what the system does or by technology used to construct the system. One of the jobs of the
system’s analyst will be to determine which kind of system will best address the organizational
problem or opportunity on which you are focusing. In addition, different classes of systems may
require different methodology techniques, and tools for development. The following are some of
the classes of information systems.

1. Transaction Processing Systems (TPS)

TPS automate the handling or transaction, which can be thought of as simple, discrete events in
the life of an organization. Data about each transaction are captured. Transaction are verified and
accepted or rejected, and validated. Transactions may be moved from process to process in order
to handle all aspects of the business activity. The analysis and design of a TPS means focusing
on the firm’s current procedures for processing transactions, whether manual or automated. This
focuses on processing and output. 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.

2. Management Information System (MIS)

MIS takes the relatively raw data available through a TPS and converts them into a meaningful
aggregated form that managers need to conduct their responsibilities. It provides the
management with the report usually in predetermined, fixed format eg detailed summary.
Developing an MIS calls for a good understanding of how managers use information in their
jobs. MIS often requires data from several transaction processing systems eg. Customer order
processing, raw material purchasing and employee time keeping. Developing of an MIS can,
therefore benefit from a data orientation, in which data are considered an organization resource
separate from the TPS in which they are captured. MIS is also a term used in organization as the
title of their computer services department.

3. Decision Support Systems (DSS)

DSS are designed to help organizational decision makers make decisions. It provides guidance in
identifying problems, finding and evaluating alternative solutions, and selecting of and
comparing alternatives.
Instead of providing summaries of data, as with a MIS, it provides an interactive environment in
which decision makers can quickly manipulate data and models of business operations.

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A DSS is composed of a database (which may be extracted from TPS or MIS), mathematical or
graphical models of business processes, and a user interface that provides a way for the decision
maker, usually a non technical manager, to communicate with DSS.
A DSS may use both hard historical data as well as judgments (what if scenarios) about
alternative histories or possible futures. In many cases, the historical data came from a firm’s
data warehouse. One form of DSS, an executive information system, emphasizes the
unstructured capability for senior management to explore data starting at a high level of
aggregation and selectively drilling down into specific areas where more detailed understanding
of the business are required.
The SAD for a DSS often concentrates on the three main DSS components, database, model
base, and user dialogue. As with MIS, orientation is most often used for understanding user
requirement. In addition, the SAD project will carefully document the mathematical rules that
define interrelationships among different data. These relationships are used to predict future data
or to find the best solution.

4. Expert Systems (ES)

ES attempt to codify and manipulate knowledge rather than information. It provides expert with
advice by asking users a sequence of questions dependent on prior answers that lead to a
conclusion or recommendation. It simulates thinking for those with less knowledge. The focus
on developing on ES is acquiring the knowledge of the expert in the particular problem domain
knowledge engineers perform knowledge acquisition
Examples:- Physician Diagnostics.
Tools: LISP, Prolog

In addition, many organizations recognize scientific technical computing and office automation,
thus there are several other important systems concepts with which systems analysts need to be
familiar.

More Definitions
Decomposition
• This is breaking down the system into smaller, more manageable and understandable
components called the subsystem. This helps in focusing the attention on one subsystem
at a time without interference from other parts.
• Also permits different parts of the system to be built at independent times and/ or by
different people.

Modularity
A direct result of decomposition.
Refers to dividing a system up into chunks or modules of a relatively uniform size.

Coupling
This is the extent to which subsystems are dependent on each other. Subsystems should be as
independent as possible. If the subsystems are loosely coupled them, unfortunately one fails
then the other will not be affected.

Cohesion.

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 This is the extent to which a subsystem performs a single function. Biological systems are
very cohesive.

Any description of the system is abstract since the definition is not a system itself.

A Logical System Description portrays the purpose and function of the system without trying
the description to any specific physical implementation.

The Physical System Description is a material depiction of the system, and the central concern
is building the system.

Sub Optimization – An occurrence that occurs when the objective of one element (subsystem)
conflicts which the objective of the overall system.

System Analysis and Design

Is a complex challenging and stimulating organizational process that a team of business and
systems professional uses to develop and maintain computer based information system.
An important result of systems analysis and design is application software, i.e. software designed
to support a specific organizational function of process, such as inventory management, etc.
In addition to application software, the total information system includes the hardware and
system’s software on which the application software runs, documentation and training materials,
the specific job roles associated with the overall system, controls and the people working with
the software. Central to software engineering are various methodologies, techniques and tools
that have been developed, tested, and widely used to assist people in SAD.