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What are systems?What are systems?

A system is a group of elements that are

integrated with the common purpose of

achieving an objective. Organizationhaving common goal for the

achievement.

Organizations have functionallyinteractive units to achieve the common

goal or goal of a system.

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A A systemsystem isis aa setset ofof interrelatedinterrelated elementselements thatthat

collectivelycollectively workwork togethertogether toto achieveachieve somesome commoncommon

purposepurpose oror goalgoal..

AA cricketcricket gamegame isis alsoalso playedplayed accordingaccording toto aa systemsystem

thatthat isis composedcomposed ofof suchsuch elementselements likelike

TeamsTeams

RulesRules StadiumsStadiums

RefereesReferees

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AA computercomputer basedbased informationinformation systemsystem isis

alsoalso collectioncollection ofof people,people, hardware,hardware,

softwaresoftware andand proceduresprocedures thatthat interactinteract totoprovideprovide timelytimely datadata andand informationinformation..

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Purchase System

A simple example can be given of a purchase andsales system. In a typical purchase system informationrelated to purchase of materials is kept, for instance Orders for the purchase of various materials Status of deliveries received against specific orders

Changes in the order quantity, time, day or other information

Quality inspection reports and whether they need to becommunicated to the supplier.

Updated status report of stock

Issues made out of the stock

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Component ofSystemComponent ofSystem

FollowingFollowing areare thethe importantimportant componentscomponents ofof thethe systemsystem..

InputInput elementselements

RawRaw DataData inputinput toto thethe computercomputer systemsystem

ProcessProcess

Any specific treatment defined in the system to be performed on the data entered into the

system OutputOutput elementselements

The results given by the system after the process has been performed on the data being inputto the system.

ControlControl mechanismmechanism

Every system is expected to generate some sort of standardized output. Hence actual outputneeds to be compared with what it is supposed to generate. This comparison of actual withexpected output is done with the help of control mechanism.

FeedbackFeedback systemsystem

AA formalformal reportingreporting systemsystem..

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Generally the components are dividedGenerally the components are divided

into two broad categoriesinto two broad categories

Logical DescriptionLogical Description

Physical DescriptionPhysical Description

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Logical DescriptionLogical Description

The logical description of a system is aThe logical description of a system is a

representation that specifies essentialrepresentation that specifies essential

system elements in broad. E.g. if wesystem elements in broad. E.g. if wewant to describe a computer system, wewant to describe a computer system, we

might use the terms Input, Processingmight use the terms Input, Processing

and Output.and Output.

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Physical DescriptionPhysical Description

TheThe physicalphysical descriptiondescription isis muchmuch moremore

preciseprecise aboutabout howhow itit isis actuallyactually

implementedimplemented.. EE..gg.. IfIf wewe statestate thatthat aakeyboardkeyboard isis toto bebe usedused asas anan inputinput devicedevice

onon aa microcomputermicrocomputer system,system, whichwhich alsoalso

usesuses bothboth printerprinter andand monitormonitor asas outputoutputdevicesdevices.. SoSo herehere wewe areare describingdescribing

systemsystem inin physicalphysical termsterms..

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MODELING SYSTEMSMODELING SYSTEMS

WhenWhen studystudy anyany system,system, itit isis convenientconvenient

toto representrepresent themthem inin thethe formform ofof aa modelmodel..

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Types ofModelsTypes ofModels

Graphic ModelsGraphic Models

Mathematical ModelMathematical Model

Narrative modelNarrative model

Physical ModelPhysical Model

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Graphic ModelsGraphic Models

TheseThese modelsmodels generallygenerally useuse

SymbolsSymbols

IconsIcons

BoxesBoxes

LinesLines

TheyThey representrepresent realreal worldworld elementselements andand theirtheirrelationshiprelationship..

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Mathematical ModelMathematical Model

AA mathematicalmathematical modelmodel isis usedused toto expressexpress

quantifiablequantifiable phenomenaphenomena..

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ThisThis modelmodel showsshows thethe economiceconomic orderorder

quantity,quantity, DD showsshows thethe annualannual usageusage ofof

product,product, CC showsshows costcost ofof placingplacingindividualindividual order,order, PP showsshows thethe priceprice ofof

product,product, HH isis unitunit costcost ofof carryingcarrying itemsitems inin

inventoryinventory..

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Narrative ModelNarrative Model

ThisThis ModelModel describesdescribes aa systemsystem withoutwithout

anyany formulaformula oror graphgraph.. SomeSome examplesexamples ofof

narrativenarrative modelsmodels areare thethe spokenspoken wordswordsdescribingdescribing anan objectobject oror event,event, aa writtenwritten

descriptiondescription ofof procedure,procedure, aa photographphotograph oror

aa videotapevideotape ofof anan objectobject oror eventevent..

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Physical ModelPhysical Model

A A physicalphysical modelmodel isis usuallyusually aa threethree

dimensionaldimensional representationrepresentation thatthat cancan bebe

heldheld oror touchedtouched.. InIn fieldfield ofof architecture,architecture,physicalphysical modelsmodels ofof buildingsbuildings areare widelywidely

usedused toto showshow clientsclients whatwhat newnew facilitiesfacilities

willwill looklook likelike beforebefore theythey areare builtbuilt..

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Types ofSystems

There are different types of InformationThere are different types of Information

Systems.Systems.

Open Loop SystemOpen Loop System

Closed Loop SystemClosed Loop System

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OpenLoop SystemOpenLoop System

TheThe determinantdeterminant factorfactor inin openopen looploop systemsystemisis thatthat thethe informationinformation fromfrom thethe systemsystem notnot

usedused forfor controlcontrol purposepurpose.. The output is not coupled to the input for

measurement.

E.g. AnAn informationinformation systemsystem thatthat automaticallyautomaticallygeneratesgenerates reportreport onon regularregular basisbasis andand areare notnotusedused toto monitormonitor inputinput oror activitiesactivities..

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OpenLoop SystemOpenLoop System

In open-loop architecture, business decisionsmade by management have an impact in themarketplace, and the impact of that decision ismeasured only indirectly by the company'scomputer systems. For example, if a bankdecides to raise interest rates, the results of thedecision impact the lenders, the present and

future borrowers. The results are measuredindirectly as loan applications increase ordecrease.

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OpenLoop SystemOpenLoop System

Another example can be given of an

insurance company which decides to

offer a new kind of insurance. The marketexpresses its approval or disapproval by

buying or not buying the new insurance

offering.

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ACTIVITYACTIVITY

Models of Organizational System with itsModels of Organizational System with its

external and internal Environment.external and internal Environment.

Strategic Planning ModelsStrategic Planning Models

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ClosedLoop System

IsIs aa systemsystem wherewhere partpart ofof thethe outputoutput isis feedfeedbackback toto thethe systemsystem toto initiateinitiate controlcontrol toto changechangeeithereither thethe activitiesactivities ofof thethe systemsystem oror inputinput ofof thethesystemsystem..

ExampleExample

BudgetaryBudgetary controlcontrol systemsystem inin aa companycompany bybywhichwhich thethe resultsresults areare communicatedcommunicated throughthroughfeedbackfeedback systemsystem..

ResultsResults areare comparedcompared withwith thetheobjectives/budgetobjectives/budget throughthrough controlscontrols mechanismmechanism

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Example:

THE BOOK STORE may have:

An Open loop if customer feedback is

not taken for the purchase of books for

the store OR

A Closed loop if Customer

feedback/interest is taken into accountwhen selecting the books to be

purchased and displayed in the store

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Example:Example:

The SCHOOL LIBRARY may have:

An Open loop if students feedback is not taken for the kind ofbooks to be stocked in the library.

A Closed loop if students interest is the determinant criteria

for the kind of books that are to be carried out in the library

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ClosedLoop SystemClosedLoop System

As an example of a closed- loop decision

environment, suppose a departmental store

can use its data warehouse to determine whohas made purchases of more than Rs. 15000

in the past year. Once that information is

collected, those customers can be offered a

personalized credit card. In such a manner,management can measure the effect of the

decision quickly and very accurately.

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Open Systems

AA systemsystem thatthat isis connectedconnected toto itsits environmentenvironment

byby meansmeans ofof resourceresource flowsflows isis calledcalled anan openopen

systemsystem.. EE..gg.. BusinessBusiness isis aa systemsystem wherewhere managementmanagement

decisionsdecisions areare influencedinfluenced byby or or havehave anan

influenceinfluence onon suppliers,suppliers, customers,customers, societysociety asas aa

wholewhole.. EE..gg.. Book Store any and everyone is allowed

to view and purchase the books available.

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Closed Systems

A A systemsystem thatthat isis notnot connectedconnected withwith itsitsenvironmentenvironment

ExamplesExamples An An informationinformation systemsystem designeddesigned toto controlcontroldatadata inin aa researchresearch laboratorylaboratory isis aa closedclosedsystemsystem..

AnAn informationinformation systemsystem designeddesigned toto recordrecordhighlyhighly sensitivesensitive informationinformation isis aa closedclosed systemsystemsoso asas

ToTo acceptaccept nono inputinput forfor amendmentamendment

ToTo givegive nono outputoutput forfor disclosuredisclosure

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Control SystemControl System

AA systemsystem mustmust bebe controlledcontrolled toto keepkeep itit steadysteady..

TheThe actualactual resultsresults deviatedeviate fromfrom expectedexpected resultsresults..

ControlControl isis requiredrequired toto covercover unpredictableunpredictable disturbancesdisturbances..

TheThe disturbancedisturbance maymay bebe entryentry ofof powerfulpowerful newnewcompetitorcompetitor intointo marketmarket..

UnexpectedUnexpected riserise inin laborlabor costcost..

TheThe failurefailure ofof suppliersupplier toto deliverdeliver promisedpromised rawraw

materialsmaterials.. TendencyTendency ofof employeesemployees toto stopstop workingworking..

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Control SystemControl System

TheThe controlcontrol systemsystem mustmust ensureensure thatthat

businessbusiness isis capablecapable ofof survivingsurviving thesethese

disturbancesdisturbances byby dealingdealing withwith themthem..

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FilteringFiltering

FilteringFiltering meansmeans removingremoving impuritiesimpurities..

OperationalOperational staffstaff maymay needneed detaildetail butbut

whenwhen theythey reportreport toto higherhigher systemsystem thenthendetaildetail isis filteredfiltered outout leavingleaving onlyonly thethe

importantimportant pointspoints..

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Level ofPlanning

There are three levelsThere are three levels

Strategic Strategic

Tactical / Functional Tactical / Functional

Operational Operational

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Strategic Planning

IsIs thethe formulation,formulation, evaluationevaluation andand selectionselection

ofof strategiesstrategies forfor thethe purposepurpose ofof preparingpreparing aa

longlong--termterm planplan ofof actionaction toto attainattain objectivesobjectives..

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Tactical/Functional

Planning IsIs thethe processprocess byby whichwhich managersmanagers assureassure

thethe resourcesresources areare obtainedobtained andand usedused

effectivelyeffectively andand efficientlyefficiently inin thetheaccomplishmentaccomplishment ofof thethe organizationsorganizations

objectivesobjectives

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Operational Planning

IsIs thethe processprocess ofof assuringassuring thatthat thethe

specificspecific taskstasks areare beingbeing carriedcarried outout

efficientlyefficiently andand effectivelyeffectively..

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Functional Strategic

PlanningFirms executives requires strategicFirms executives requires strategic

planning for the following functionalplanning for the following functional

areas.areas.o Manufacturing resourceso Manufacturing resources

o Financial resourceso Financial resources

o Human resourceso Human resources

o Marketing Resourceso Marketing Resources

o Information Resourceso Information Resources

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IntegrationofInformationIntegrationofInformation

IntegrationIntegration ofof informationinformation enablesenables usus toto createcreate aacommoncommon viewview ofof informationinformation acrossacross thethe organizationorganization..

InformationInformation integrationintegration isis thethe processprocess ofof integratingintegrating andand

transformingtransforming datadata andand contentscontents toto deliverdeliver authoritative,authoritative,consistent,consistent, timelytimely andand completecomplete informationinformation..

wewe emphasizeemphasize thethe benefitsbenefits ofof integratingintegrating informationinformationacrossacross thethe enterprise,enterprise, creatingcreating anan informationinformationtechnologytechnology infrastructureinfrastructure inin whichwhich informationinformation flowsflows

fromfrom oneone partpart ofof thethe organizationorganization toto anotheranother andand fromfromthethe organizationorganization toto itsits customers,customers, suppliers,suppliers, andandbusinessbusiness partnerspartners..

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InformationConfidentialityInformationConfidentiality

InformationInformation willwill bebe treatedtreated inin thethe

confidenceconfidence andand willwill notnot bebe delivereddelivered toto

anyoneanyone outsideoutside thethe organizationorganization exceptexceptwherewhere circumstancescircumstances existexist However,However, inin

orderorder thatthat wewe cancan provideprovide thethe bestbest

possiblepossible helphelp toto ourour clientsclients itit maymay bebenecessarynecessary toto shareshare informationinformation withwith aa

supervisorsupervisor oror managermanager withinwithin CareCare

ConfidentialConfidential..

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InformationConfidentialityInformationConfidentiality

NoNo conversationconversation aboutabout aa clientclient shouldshould taketake

placeplace withwith anyoneanyone..

NoNo personalpersonal informationinformation aboutabout aa clientclient willwill bebegivengiven toto anyany thirdthird partyparty..

YouYou shouldshould notnot discussdiscuss personalpersonal informationinformation

givengiven byby clientsclients..

AnyAny informationinformation thatthat youyou givegive toto youryour ProjectProject

LeaderLeader willwill notnot bebe discusseddiscussed withwith othersothers

withoutwithout youryour consentconsent andand knowledgeknowledge..

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InformationConfidentialityInformationConfidentiality

AuthorizationAuthorization forfor accessaccess toto datadata shouldshould

notnot exceedexceed thethe minimumminimum levellevel requiredrequired

forfor eacheach useruser toto carrycarry outout his/herhis/her roleroleeffectivelyeffectively.. EachEach employeeemployee mustmust havehave anan

individualindividual accountaccount forfor whichwhich specificspecific

accessaccess hashas beenbeen approvedapproved byby thethe datadataownersowners..

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CharacteristicsCharacteristics

ofEffectiveofEffectiveInformationInformation

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Informationis somethingInformationis something

that is perceivedthat is perceived PerceptualPerceptual andand personalitypersonality factorsfactors

influenceinfluence thethe mannermanner inin whichwhich datadata areare

encoded,encoded, processedprocessed andand storedstored.. ThusThustwotwo peoplepeople lookinglooking atat thethe samesame setset ofof

datadata oftenoften focusfocus onon andand perceiveperceive differentdifferent

things,things, perhapsperhaps reachingreaching differentdifferentconclusionsconclusions..

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Information reducesInformation reduces

UncertaintyUncertainty PeoplePeople tendtend toto seekseek outout informationinformation

becausebecause certaincertain factsfacts maymay helphelp toto

minimizeminimize thethe riskrisk ofof makingmaking wrongwrongdecisiondecision andand makingmaking thethe rightright oneone..

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The rate at which peopleThe rate at which people

can process data intocan process data into

informationis finiteinformationis finite

IfIf tootoo manymany datadata areare presentedpresented inin limitedlimited

andand certaincertain timetime frame,frame, TheThe resultresult isisinformationinformation overloadoverload.. SinceSince individualsindividuals

cancan onlyonly processprocess chunkschunks ofof datadata atat oneone

timetime.. MaterialsMaterials suchsuch asas reports,reports, graphsgraphs

andand tablestables shouldshould bebe formattedformatted thatthat theythey

dodo notnot overwhelmoverwhelm decisiondecision makersmakers..

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ContentContent

TheThe mostmost importantimportant qualityquality ofof MISMIS isis thatthat

itit containcontain informationinformation thatthat peoplepeople reallyreally

needneed..

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PresentationPresentation

PresentationPresentation refersrefers toto thethe methodsmethods ofof

increasingincreasing interestinterest thatthat reportreport oror screenscreen

informationinformation willwill bebe bothboth comprehensiblecomprehensibleandand usefuluseful.. ThisThis mustmust maximizemaximize thethe

impactimpact thatthat outputoutput havehave onon usersusers andand

decisiondecision makersmakers.. PresentationPresentation isisimportantimportant inin thethe samesame wayway thatthat aa personperson

outsideoutside appearanceappearance isis importantimportant..

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Eliminating UnnecessaryEliminating Unnecessary

informationinformation TheThe presencepresence ofof unnecessaryunnecessary informationinformation

detractsdetracts fromfrom thethe impactimpact ofof keykey

informationinformation..

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Carefully formattingCarefully formatting

critical informationcritical information TheThe physicalphysical placementplacement ofof informationinformation isis

alsoalso veryvery importantimportant.. IfIf criticalcritical informationinformation

relegatedrelegated toto placesplaces wherewhere decisiondecisionmakersmakers areare notnot aptapt toto look,look, itit maymay gogo

unnoticedunnoticed..

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PuttinginformationintoPuttinginformationinto

itsu

seful formits

usef

ul form

SomeSome informationinformation hashas greatergreater impactimpact ifif itit

isis convertedconverted fromfrom absoluteabsolute formform intointo

relativerelative formform.. EE..gg.. NumbersNumbers oftenoften havehavemoremore informationalinformational valuevalue ifif theythey areare

computedcomputed inin percentagepercentage oror drawdraw inin formform

ofof lineline andand somesome otherother graphgraph formform..

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UsingColorUsingColor

TheThe availabilityavailability ofof colorcolor monitor,monitor, plottersplotters

andand printersprinters makesmakes itit possiblepossible toto useuse

colorcolor toto highlighthighlight importantimportant informationinformation..

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INFORMATIONINFORMATION

MANAGEMENTMANAGEMENTInformation must be managed justInformation must be managed just

like other organizational resources.like other organizational resources.

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INFORMATIONINFORMATION

MANAGEM

EN

TMANAG

EM

EN

T Identify current and future information needs.Identify current and future information needs.

Identify information resourcesIdentify information resources

Collecting InformationCollecting Information Storing InformationStoring Information

Facilitate the existing methods of usingFacilitate the existing methods of using

information.information.

Ensure that information is communicated toEnsure that information is communicated to

those who need itthose who need it

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Users ofInformationUsers ofInformation

The Board of DirectorsThe Board of Directors

Divisional ManagersDivisional Managers

Departmental headsDepartmental heads

Section HeadsSection Heads

EmployeesEmployees

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Factors to makeFactors to make

Information

Valuable

Information

Valuable

The Source of InformationThe Source of Information

The ease of AssimilationThe ease of Assimilation

AccessibilityAccessibility

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The Source ofInformationThe Source ofInformation

IfIf thethe sourcesource ofof informationinformation isis moremore

respected,respected, widelywidely known,known, qualityquality

informationinformation providerprovider andand accuracyaccuracy thentheninformationinformation becomebecome moremore valuablevaluable..

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AccessibilityAccessibility

IfIf thethe informationinformation isis easilyeasily accessibleaccessible andand

usersusers dodo notnot havehave toto commitcommit tootoo muchmuch

timetime andand efforteffort toto receivereceive itit thentheninformationinformation becomesbecomes moremore valuablevaluable..

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Cost andValue OFCost andValue OF

InformationInformation TheThe costcost ofof anan individualindividual itemitem isis notnot

alwaysalways easyeasy toto quantifyquantify..

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Knowledge ManagementKnowledge Management

KnowledgeKnowledge isis thethe informationinformation withinwithin peoplepeople

mindsminds.. KnowledgeKnowledge managementmanagement describesdescribes thethe

processprocess ofof collecting,collecting, storingstoring andand usingusing thetheknowledgeknowledge heldheld withinwithin anan organizationorganization..

KnowledgeKnowledge isis commonlycommonly viewedviewed asas sourcesource ofof

competitivecompetitive advantageadvantage..

KnowledgeKnowledge isis valuablevaluable becausebecause humanhuman createscreatesnewnew ideasideas andand useuse itit forfor decisiondecision makingmaking..

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Types ofKnowledgeTypes ofKnowledge

ExplicitExplicit

TacitTacit

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ExplicitExplicit

TheThe knowledgeknowledge thatthat companycompany knowsknows thatthat

itit hashas.. ItIt includeinclude facts,facts, transactionstransactions andand

eventsevents thatthat cancan bebe clearlyclearly statedstated..

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TacitTacit

TheThe knowledgeknowledge thatthat companycompany doesdoes notnot

knowknow itit hashas..

OrganizationOrganization shouldshould encourageencourage peoplepeople totoshareshare theirtheir knowledgeknowledge.. ThisThis cancan bebe donedone

throughthrough improvedimproved managementmanagement ofof

informationinformation..

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Large Storage Capacity

Efficient and effective decision making requirestwo aspects

Availability of processed data occurrence of

every event relating to a company affectspolicy making and implementation, thusrecording and processing of every data resultsin huge amount of information is essential.

Instant access to right chunk of informationpresented in comprehensible format both theabove requirements are easy to handle when awell structured information system is in place.

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Efficient Processing,

including q

uery time

Every transaction affects our records in a

number of ways. CBIS helps in updating

every change being triggered in less timeand with less effort.

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Cross-functional

boundaries

There are various functions in an organization that need to bemanaged.

Manufacturing

Purchasing

Warehousing Marketing

Accounts

Finance

Human Resource

In every transaction, every department has its own share ofresponsibility. Thus uncoordinated effort by every department wonthelp in achieving the successful completion of transaction and meetingcommitments. CBIS help in keeping an updated record for easy accessby every department in an organization.

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Competitive Tool

Businesses invest to earn profits or for

other non-profit based objectives. Hence

CBIS/IS can and should work to enhancethe competitive advantage for the

organization.

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Electronic Document

Information overload enhances paper work.

Maintenance of records in hard form has

always difficult job. An IS/CBIS should be efficient enough to

properly manage of documents electronically.

Report generation and record analysis gets

convenient and easy.

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Conclusion

Hence an Information System / Computer

Based information system should help an

organization in achieving the abovementioned goals. If put differently, an

organization should not proceed with the

implementation of an IS unless it helps inachieving the above goals.