BUSINESS INFORMATION SYSTEM

Unit No. 1 – SYSTEM CONCEPTS

Faculty Name : Dr.Shalaka.

INDEX

DEFINITION OF SYSTEM
TYPES OF SYSTEM
TYPES OF SUBSYSTEMS
SYSTEM ANALYSIS
SYSTEM DESIGN
SAD

2
Definition of System

Computer is defined as
“System is defined as a set of elements arranged in an orderly manner to accomplish
an objective.”

3
Important Characteristics of a System

1. Clear statement of objectives directly affects

a. selection of elements
b. arrangement of elements in the system.

2. A system in any field has a basic structure and it consists of three parts :

INPUT PROCESS OUTPUT

4
3. The environment influences the choice of inputs, the method of processing and
the nature and content of the outputs.
The designer of the system therefore has to consider the environment and select
appropriate inputs and filtering mechanism to protect the system from the
undesirables influences of the environment.
Environment
Environment

RECORD 1
2. SITA SEC. 4 NEHRU ROAD INDORE MADHYA PRADESH 411001
INPUT PROCESS OUTPUT

Filter

5
TYPES OF SYSTEMS

Following are the different types of systems:

1. Abstract and Physical systems.

2. Deterministic and probabilistic systems.
3. Open and Closed systems.
4. User-machine systems.

6
Abstract and Physical systems

Abstract System:

An abstract or conceptual system is an orderly arrangement of interdependent ideas

or constructs, which may or may not have any counterpart in the real world.

For example :
1. Mathematical Model.
2. Software is an embodiment of abstract system.

7
Physical System:

Physical systems are concrete operational systems made up of people, materials,

machines, energy and physical things.
The elements in such a system interact to achieve a common objective.

For example :
1. Circulatory system
2. Transportation system
3. Computer system

8
Deterministic and Probabilistic Systems

Deterministic System :

A deterministic system is one in which the occurrence of all events is known with
certainty.

Example :
1. Computer program which performs exactly as set of instructions.
2. Examination system
3. Accounting system
4. Payroll system

9
Probabilistic System :
A probabilistic system is one in which the occurrence of events cannot be perfectly
predicted.
Though the behaviour of such a system can be described in terms of probability, a
certain degree of error is always associated to the prediction of the behaviour of the
system.

Example :
1. A set of instructions given to a person who may not follow the instructions
exactly as given.
2. Placement system.
3. Demand forecasting system.
4. Sales forecasting system
5. Pricing system

10
Open and Closed Systems

Open Systems :

An open system is the one which interacts with its environment and thus exchanges
information, material or energy with the environment.
- Adaptive
- self-organising
- Eg. Humans, plants, cells, business organisations.

11
Closed Systems:
A closed system is one which does not interact / exchange with its environment. A
closed system is not influenced by the environmental changes.

e.g. 1. A space ship.

2. Thermos system
3. Manufacturing system
4. Accounting system

12
User Machine Systems

Most of the physical systems are user-machine (or human-machine)systems. In user-

machine systems both i.e. human as well as machine, perform some activities in the
accomplishment of a goal. Eg. Decision making.

13
Subsystem

When many smaller systems together make a larger system, the smaller systems are
called the subsystems of the larger system.
e.g. ecosystem is a large system consisting of plants, animals, human beings which
are subsystems of it.

14
System Analysis

System Analysis may be understood as a process of collecting and interpreting facts,

identifying problems and using the information to recommend improvements in the
system.

Objectives of System Analysis :

1. To know how a system currently operates

2. To identify the user requirements in the proposed system.

15
Ø The system analysis is very important in the total development efforts of a
system.

Ø The user may be aware of the problem but may not know how to solve it.
Therefore the system analyst must involve the user at this stage to get complete
information of the system.

Ø The result of the system analysis phase is a set of system requirements of a

proposed information system.

16
Requirement determination

Requirement determination also called as software requirement specification (SRS)

is the first point of the system development activity.

Requirement determination is to learn and collect information about :

1. Basic Process:

a. The purpose of the business activity

b. The steps which are involved and where they are performed.
c. The people performing the business activity
d. The frequency, time and user of the resulting information.

17
2. Identify Data used and Information Generated :

What data is used to perform the business activity.

For e.g. Inventory system will require data such as item quantity, supplier name,
item cost, demand for the item in market etc.
The information generated in business transactions is required to be stored as it can
be used by managers in decision making. E.g. information from the
Inventory system is used to know the cash flow amount etc.

18
3. Determine Frequency, Time and volume :

How often the business activity is repeated?

Volume of items to be handeled by the business activity
Time taken to perform the business activity

19
4. Know the performance controls:
Managerial attributes:
manager’s knowledge of information system
Managerial style

Organisational factors:
Nature of the company,
Level of management
Structure of organisation.

20
Strategies for requirement determination

Interview
Questionnaire
Record Review
Observation

21
System Design

Introduction:
Ø System Design is another important step in system development process.
Ø This phase starts after the system analysis phase is over.
Ø The output of System Analysis phase i.e the requirement specifications become
input in the design phase.

22
Design Objectives

1. Practicality :
The system should be designed in such a way that it should be learnt and operated
with ease by the users.

2. Flexibility :
The business organisation is dynamic in nature. Therefore the system should be
responsive to the change requested by its users and which are inevitable.

3. Efficiency :
A system should be efficient i.e it should perform jobs within their specified time.

4. Security :
This aspect relates to the hardware and software reliability, physical security of data
and detection and prevention of data leakages.

23
Design Process

System Design is carried out at two levels:

1. Conceptual level (external or general)
2. Physical level(internal or detailed design)

24
Conceptual design

Conceptual designs are conceived and the one which is feasible of meeting the
management objectives is selected. The conceptual design is a basis for the detailed
MIS design.

The conceptual design involves the following steps:

1. Define problem
2. Set system objectives
3. Identify constraints
4. Determine information needs
5. Determine information sources
6. Develop various designs
7. Document the conceptual design
8. Prepare report

25
1.Define Problem:
Clearly understand and define the problem to be solved
Current Problems
Future Problems

2. Set System Objectives:

- Objectives should be set in consultation with the user.
- The value of the system depends on the benefit it brings to the user.
- Objectives should not be vague. They should be clear and quantitative rather
than qualitative.

26
3. Identify Constraints :

System constraints are also known as problem boundaries or restrictions.

Knowledge of the constraints is essential as it helps the designer to consider the
limitations that restrict the design of the system. Establishing the constraints will
help ensure that the design is realistic.
i. External constraints
They are external to the organization e.g. constraints posed by customers, suppliers,
government stc.

ii. Internal constraints

They are internal to the organization e.g. lack of support, shortage of resources,
organisational policy etc.

27
4. Determine information needs :
For a good design of information system it is very important to know the real
information needs of management in a clear statement. Thus information needs
which can really help the management in discharging their functions are identified
in this step.
For determination of the information needs the user manager should specify:
1. What they want out of an information system
2. Items of information that are needed to achieve the pre-determined objectives.
For determining the information needs the system analyst has to carefully select any
one approach or a combination of approaches from interview, questionnaire, record
review and observation.

28
5. Determine Information Sources :
a. Internal and external records:
Internal records:
files, correspondence, reports, documentation of present or
planned system etc.
External records :
trade publications, government statistics etc.
b. Managers and operating personnel.

29
6. Develop various designs:

Ø At this stage the system analyst should be able to conceptualise the overall
structure of the information system he or she is going to design.
Ø The conceptual design would define the decision points, information flows,
channels of information and roles of user(managers).
Ø The system analyst works out broad feasible alternative combinations of input,
processing and output to generate more than one conceptual MIS Designs.
Ø All the conceptual designs are evaluated on the basis of cost and performance
and the best conceptual design is selected after discussion with the top
management.

30
7. Documentation of Conceptual Design:
The finally selected conceptual design is documented in this step.
The documentation of the conceptual design involves:
1. Overall system flow
2. System Input
3. System output
4. Other Documentation like activity sheet and system description etc.

31
8. Report Preparation
The next step is to get an approval of the management so as to start detailed design
activity. Thus a report should enlist
-cost to be incurred
-organisational changes
-problem
-objectives
-an overall view of the system
-justification for selecting one alternative over others
-Time
-other resources required for developing and implementing the system. 3.

32
Detailed system design

Detailed system design involves the following phases:

1. Planning and control
2. Involve the user
3. Define the detailed sub-systems
4. Input / Output Design
5. Feedback from the user
6. Database Design
7. Procedure Design
8. Design Documentation

33
1. Planning and Control:
Consider the detailed design process as a complete project.

Project Planning:
i. Frame the project objectives.
ii. Define the project tasks.
iii. Prepare network diagrams for all events and activities.
iv. Schedule the work as per the user requirements.
v. Prepare a budget for the project.
Project Control:
1. Get a feedback of the actual performance of the project with respect to time,
cost and work of the project and compare it with schedules, budgets and
technical plan.
2. Take corrective action where required so as to maintain control.

34
2. Involve the User :

Users should be kept informed about the system so as to gain user’s support and
acceptance.
This will also help manage resistance to change and would ensure suucefful
implementation of the system.

35
3. Detailed Sub-System Definition :
Decomposition of system to operational activities is carried out as follows:
System
Sub-System
Functional Component
Task
Sub-Task
Operational element

36
4.Output/ Input Design

Objectives of Output Design :

1. Specific outputs which are required to meet the information needs are
identified.
2. Methods for presenting information are selected.
3. Reports, formats, or other documents that act as carrier of information
produced by an MIS are designed.

37
Main Points for Output Design :

1. Who will receive the output?

The answer to this question will help in determining the level of the user and also the
use of the information.
For e.g. Vice President may require reports in summary form, supplemented by
graphic displays.

2. When and how often is the output needed?

This determines the timing and frequency of output generation. Some reports are
generated regularly, while some reports are generated when a particular situation
arise e.g. inventory orders are generated when inventory falls to a certain level.

38
3. The usage of the output determines its content, form and media.
e.g. If a particular information is to be given to an employee and to an outsider or
customer then the content of the information differs in content, form and media.

4. How much details are required?

This question answers about the details required from an output.

39
Input Design

Objectives of Input Design :

1. Control the volume of input data. Try to reduce the data requirements and
avoid capturing unnecessary data.
2. Avoid delays during data entry. Automating data capturing may reduce this
delay.
3. Avoid data entry errors. Checks in the data entry program which are called
input validation techniques may help.
4. Keep the process simple and easy as possible.

40
5. Feedback from the user.

6. Database design:
Database is an orderly arrangement of all the records. It acts as a data resource for the
MIS of an organization. To have optimum performance, storage and retrieval of data,
database design is important phase in the detailed system design.

For designing the database :

1. Identify all data tables and record types.
2. Identify fields for each table, the key fields and relations between various tables.
3. Determine the data type and width for each field of the tables.
4. Normalise the data tables.
5. Properly document data dictionary.

41
7. Procedure Design:
Procedures are the rules, standards or methods designed to increase the
effectiveness of information system.
In designing procedures, designers should :
1. Understand the purpose and quality standard of each procedure.
2. Develop a step-by-step direction for each procedure and
3. Document all the procedures.
There are number of procedures :
i. Data entry procedure: These are the methods designed for data entry .e.g. data
entry sequence.
ii. Run-time Procedures :The actions to be taken by the users to achieve the intended
results. E.g. a procedure may instruct the user to load printer with a specific size of
paper.
iii. Error-handling procedures: These procedures help the user in detecting and
correcting errors etc.

42
Design Documentation:
System design documentation generally consist of following:
1. System objectives.
2. Design constraints.
3. Input/Outputs
4. Data files.
5. Procedures(manual)
6. Proposed system (a summary and detailed flow charts)
7. Input/output specifications
8. Program specifications
9. Database specifications
10. Cost of installation and implementation
11. System test conditions.
Documentation of the system should include user–manual and operator-manual. It
should be simple, easy to understand without any technical jargon. Operator manual
should be written from the operator’s point of view specifying start, stop restart
sequences. It should also contain procedures which may guide the operator regarding
security, privacy and integrity of data.

43
Thank You