System definition and concepts

The word system is derived from the Greek word systema which means the organized relationship among the
functioning units.
However the word system always comes with an adjective, whenever we talk about a system such as educational
system, political system, accounting system etc. But if we carefully analyze these systems we can find that there
are some features common to all the systems.
These are the characteristics of the system which help us to understand the working definition of the word system.

Definition
1...A system is an orderly grouping of independent components linked together according to plan to achieve a
specific objective.
2..System is integrated collection of the components which satisfy functions necessary to achieve the system
goals and which have relationship to one another that defines structure of the system.
3... A system is a set of elements forming an activity or scheme seeking a common goal by operating on data in
time reference to yield information.

Characteristics Of System
->Organization
->Interaction
->Interdependence
->Integration
->Central Objective

ORGANIZATION:

Organization implies structure and order. It can also be defined as the arrangement of components that
helps to achieve objectives.

For eg: - in the design of a business system, the hierarchical relationships starting with the president on top
and leading towards the workers represents the organization structure. So this gives the authority structure
and specifies the formal flow of communication.

Like wise a computer system is designed around an input device, a central processing unit, an output device
and one or more storage units.

INTERACTION:

Interaction refers to the manner in which each component functions with other components of the system.ie,
there should be an interrelationship between each components of a system.

For eg: - in an organization there should be interaction between purchase department and production
department, same way advertising with sales, payroll with personnel.
In 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.

INTERDEPENDENCE:

This is one of the important characteristics of a system.

Interdependence means the parts or the components of an organization or computer system depend on
one another. Each component or parts should depend on other components of an organization. One
component or subsystem depends on the input of another subsystem for proper functioning, ie, the
output of one subsystem is required input for another subsystem. For example: - A decision to
computerize an application is initiated by the user, analyzed and designed by the analyst, programmed
and tested by the computer operator. In the below figure:- none of these persons can perform properly
without the required input from others in the computer center subsystem.
INTEGRATION

Integration refers to the holism of systems. Synthesis follows analysis to achieve the central objective of the
organization. It 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.

CENTRAL OBJECTIVE

The last characteristic of a system is its central objective. Objectives may be real or stated. 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.

types of system
1.Physical and Abstract System

Physical systems are tangible entities that may be static or dynamic in operation.

Static systems are those systems in which each entity has its own physical existence, which
can be seen, touched and counted. For example, the physical parts of the computer center are
the offices, desks and the chairs that facilitate the operation of the computer. They can be seen
and counted.
In contrary, Dynamic system responds to various demands made by the user. Data, program,
output and specification changes as the user demands.

Abstract system are conceptual and non-physical entities. Or in other words, Abstract
systems are used for describing data and data relationships in accordance with concept. They
may be straight forward as formula of relationship among the set of variables. The main
objective of abstract model is that it seems to be easier for the analyst to visualize relationship
among the system under study and point out the components and interrelationship among
them.

2. Open and Closed System

An open system is a state of a system, in which a system continuously interacts with its
environment. Open systems have many interfaces with environment. It permits interaction
across boundary. It receives input from and delivers output to the outside world. It visualizes
organizations taking inputs such as raw material, labour, capital and competitive information
from the larger environment. Operations are performed on the input and combined with the
managerial process to produce desirable results which are distributed back to the environment.
A closed system is a system in the state of being isolated from the environment. Or in other
words, A closed system is the one which do not interact with the environment i.e., it has no
input or output. Whatever environment surrounds, the closed system do not the change, or if it
does, a barrier exist between the environment and the system to prevent the system from
being affected.

It is often used to refer to a theoretical scenario where perfect closure is an assumption,

however no system can be completely closed; there are only varying degrees of closure.

3.FORMAL AND INFORMAL INFORMATION SYSTEM

A formal information system is based on the organization represented by the organization

chart. An organization chart is a flow chart that identifies the organizational element of a
business and displays areas of responsibility and lines of authority. It is the responsibility of top
management to define and to update the organization chart. It is concerned with the pattern of
authority, communication and work flow.

Formal system follows certain formalities i.e, they follow a step by step procedure. An informal
information system do not folkw formalities. If is an employee based
 system, designed to meet personnel and vocational needs and to help solve work related
problems. It also funnels information upwards through indirect channels. In this respect, it is a
useful system because it works within the boundaries and framework of the business and
stated policies.

4.COMPUTER BASED INFORMATION SYSTEM (CBIS)

These days information system relies on computer for the storage, retrieval of data. Computer
are used to make business application. These days system analysis heavily relies on computer
to solve the business problem.

Major categories of CBIS available these days are :

Management Information System (MIS)

Decision Support System (DSS)

Management Information System (MIS)

A management information system is an information system application that provide for

management oriented reporting. These reports are usually generated on a predetermined
schedule and appears in a predefined format.

An MIS is a set of computer based system and procedure implemented to help managers in
their crucial job of decision making. The actual process will involve the collection, organization,
distribution and storage of organization wide information for managerial analysis and control.

MIS is a person machine system and highly integrated grouping of information processing
functions designed to provide management with a comprehensive picture of specific
operations.

Management information system is made up of 3 components :

 Management : Emphasizing the ultimate use of such information system for decision
making.

Information : Information highlighting on processed data rather than the raw data and
in the context in which managers and other end users use it.

System : System emphasizing a fair degree of integration.

Examples of MIS are :

Inventory Reporting

Sales Forecasting

Sales Reporting

Financial Reporting

Salary Analysis

Decision Support System

A key factor in a use of decision support system is determining what information is needed.
DSS advances the capabilities of MIS. It assist management in decision making. All type of
DSS help managers to answer the question relevant to a decision situation. The question may
be complex, simple and after somewhat simplistic.

A DSS is an interactive computer based system intended to help managers to make decisions.
A DSS helps a manager to retrieve, summarize and analyze decision relevant to data.

The origin of the term is simple :

Decision : Emphasizes decision making in problem situation, not in information

processing, retrieval or reporting.

Support : Requires computer aided decision situations with enough structure to

permit computer support.

System : Accentuates the integrated nature of problem solving, suggesting a combined

man, machine and decision environment.
5. Deterministic System:

Deterministic system operates in a manner that stat of the system at a time is already
determined and we can also predict the next state of the system without error.

For ex: The output of computer system is deterministic.

6. Probabilistic System:

The probabilistic system works in a predictable manner. If we can predict the stat of the system
then it is probabilistic.

For ex: Economic forecasting.

7.Man Made Information Systems

Information System may be defined as a set of devices, procedures, and operating
systems designed around user based criteria to produce information and communicate it to
the user for planning, control and performance