Business as a system  The term system is derived from Greek word Systema, which means an organized relation-ship among

the functioning units or components. A System is existing because it is designed to achieve one or more predefined objectives. Some definitions of word System are as follows:  A system is an orderly grouping of inter-dependent components linked together according to a plan to achieve a specific goal  It is an organized combination of resources working together to convert some inputs into some useful output  System is simply a set of components that interact together to achieve some specific goals  A System is an organized group of interconnected, integrated, interdependent components, that are grouped to achieve a specific, predefined objective Business system:-Business is the set of activities of an entity involved in commerce, manufacturing, or service that results in the production of an economic output with the intention of producing a profitable gain. In other words: the strategic aim of business is to earn a return on capital, and if in any particular case the return in the long run is not satisfactory, the deficiency should be corrected or the activity abandoned for a more favorable one. Business organization as a system:-Any organization operate through a information. Function of management are served by information system. We relate a business organization as a system. Inputs to the organization as a system are men, money, materials and information. There are two types of controls that are more specific and manageable and therefore relatively easy to implement in operations of management. Internal controls and External controls: Financial accounting, inventory control, costing, and employee integrity are some instance of internal controls. External controls are more strategy oriented. These pertain to consideration to outside the operation of the firms. For instance: competitive environment, statutory requisitions of government bodies like license, sale tax, custom regulations. These factors may also be considered while designing the budgets in the information system. There should be a central processing unit which should measure the standard performance in outputs and budgets. MIS should provide a feedback system of self regulations and corrections. For ex: In a typical business organization, if sales targets are not being met or production schedule are going down then this information ought to be provided to subsystem of sales, accounts, and production plans. This is required to monitor the output against controls. Components: A system is composed of various components which can be tangible or intangible objects. A tangible object is one that can be touched or measured. For instance: Computer, car, equipment, people are tangible objects. An intangible object is one that cannot be touched or measured for Ex: data, information, theory or it can be a event like republic day parade. These are the major component of System: 1. Inputs: Inputs are basic components that enter the system for processing. Data in the form of documents, manual or computer-based files, human voice, picture or other media are the major inputs of a system. Information and software ate other forms of inputs for a computer based information system. Outputs: after processing the inputs, the system produces the desired outputs in the form of documents, reports, things, material and ideas.

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Processor: Processor is the operational component of a system that processes the inputs to produce the desired outputs. People and computers are the examples of processor for manual and computer-based information system, respectively. Control and feedback: A system must have adequate control and feedback measures to monitor the outputs of the system and to compare with the system goals. Control is the sub-system that controls the activities of inputs, outputs, and processors. And feedback measures help the system in achieving control. Environment: :anything outside the system boundaries is called system environment. Ex: the organizations environment is its vendors, competitors, and others may provides constrains & consequently, influence the actual performance of the business. System boundary: All systems have boundaries and its limits that identify their components, process, inter-relationship and sub-systems during their interface with other system.

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M a n a g e m e n t In f o r m a t i o n C o n sty rs ot el m a n d

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F in a n c ia In v e n t o r l y ac c o u n ti co n t r o l ng (S u b (S u b sy s t e m ) sy s t e m ) M a n a g e m e n t (S u b sy s t e m )

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Types of Systems 1. Physical and Abstract system:-Physical systems are tangible entities that may be static or dynamic in operation. For Example, the physical parts of the computer center are the offices, desks, and chairs that facilitate operation of the computer. They can be seen and counted, they are static. In contrast, programmed computer is a dynamic system. Data, programs, output and application changes as the user's demand or the priority of the inforamation requested changes. Abstract systems are conceptual or nonphysical entities. They may be models-the abstract conceptualization of physical situations. A model is a representation of a real or a planned system. The use of models makes it easier for the analyst to visualize relationships in the system under study. The objective is to point out the significant element and the key interrelationships of a complex system. Open and Closed system:- A closed operating system is that does not allow you to have root access to the file system (ex. delete files or change files related to the graphical interface or how your computer does things)An example of this type of operating would be iOS which runs on iPod touches, iPhones, Apple TV, and iPad. An open operating system is the exact opposite of a closed operating system and is how all operating systems on a computer work which includes Mac OSX, Windows 7,XP, Vista, and Linux. People-Machine System:- A system could be defined with mathematical symbols and set theory. A Human-Machine System could be defined verbally as an arrangement of people and machines (or physical components) interacting within an environment in order to achieve a set of system goals. Examples of Human-Machine Systems include a person with a hammer, an office machine with its operator, oil refineries, hospitals, a rescue operation of a crashed airplane. The task of a human factors specialist is to optimize the interaction between people and machine elements of the system while taking the environment into account. An example of an interaction between a person and a machine is shown in figure 1.1(p15) Manual and Computer-based information system:- Manual is using old method without the help of the technology or maybe less to perform certain task or work. For example using typewriter to write a report or keep documents in the paper folder. While computerized system is using latest technology of ICT to carry out various task that is more effective compare to manual system in terms of the productivity and time usage. Manual is not completely accurate but in the computer based information system the information is accurate and it take decision on the basis of all the earlier results. In the manual system all the entries are done by the human and after that they take decision by them self . Sub-system 1. 2. 3. 4. 5. A sub system is that part of a system that carries one part of the system. Sub-systems are the separate but related parts that make up the total system. A system is made up of many sub-systems. subsystem - A lower systems level. subsystem - a system that is part of some larger system.

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For Example: For an information system, these are the sub-systems: y y y y Knowledge Work System Management of Information Decision Support Group Decision

Business system as a set of three sub-systems: 1. The physical system for ex: people, facilities, techniques which transform components in to finished product. The decision sub-system, which controls the physical sub-system. The information sub-system, which links the physical and decision sub-system. Prototyping Prototype was employed to help system designer to build an system that is easy to manipulate for end users. Prototype is an iterative process that is part of the analysis phase of the system development life cycle. It enables the early discovery of shortcomings in the system There are two major problems with building information system: 1. 2. The SDLC takes too long. The right system is rarely developed the first time. Lengthy development frustrates the user. Analyst seems to get bogged down with tedious methodologies. For developing system. The reason is that they often come up with the wrong system that is they expect users to define their requirements. It usually turns out that what users ask for is not what they want, and what they want is not what they need. As alternative to this paralysis by analysis is an advanced technique called a prototyping. Prototyping recognize problems using advanced computer technology. It promotes building a simple system through Trial, Error and Refining, through an iterative process. Characteristics of Prototyping Tool: 1. 2. 3. 4. The prototype is a live and working application. The purpose of prototype is to test assumption made by analysts and users about required system feature. Prototypes are created quickly. Prototypes evolve through an iterative process. Tools Of Structured Analysis There are five tools or technique of structured system analysis. These tools are:-

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Data Flow Diagram (DFD) Data Dictionary (DD) Decision Tables Decision Tree Structured English

The objective of all tools is to build a new document called System Specification. This document provide the basis for design and implementation. 1. Data Flow Diagram (DFD):- Data Flow Diagrams are widely used graphic tools for describing the movement of data within or outside the system. As a DFD consist of a series of bubbles joined by lines, it is also known as a Bubble Chart. DFD was first developed by Larry Constantine as a way of expressing system requirements in a graphical form. This led to modular design. DFD has the purpose of clarifying system requirements and identifying major transformations. Which quickly convey to both the software developer and the user how the current system is working and how the proposed system will work? The main advantage of DFD is that they are easily understood by the users, and hence user can suggest modifications in the proposed system. Type of DFD and How these DFD can be drown:- There are two types of DFD- Physical and Logical DFD.

Physical DFD:- The Data Flow Diagram which represent the model of the current system (manual or computerized), are known as physical DFD. These diagrams are drawn, when the analyst studies the current working system in detail. Logical DFD:- The Data Flow Diagrams which represent the model of the proposed system, are known as logical DFD, these diagrams are drawn from the physical DFD. Symbols of DFD: There are four symbols:

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Square- Square defines a source or destination of system data. Arrow- An arrow identifies data flow data in motion. It is as a pipeline through which information flows. Circle- Circle represents the process that transforms incoming data flow into outgoing data flow. Open Rectangle- Open rectangle shows the data temporary data is to store. Making a DFD Several rules are used in making DFD:

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Arrow should not cross each other. Squares, circles, and files must bear names. Decomposed data flows must be balanced. No two data flows, squares, or Circles can have the same name. Draw all data flows around the out side of the diagrams.

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Choose meaningful names for data flows, processes, and data stores, use strong verbs followed by nouns. Control Information such as record counts, passwords, and validations requirements are not relevant to a data flow diagram.

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Data Dictionary: A Data Dictionary is created to define the contents of each data flow, each data store, each process to avoid ambiguity or confusion about what particular data is collected and stored. Data elements (or attributes) are the simplest entry in the data dictionary, for example state (NSW, WA, VIC, QLD, SA, TAS) or quantity (number ordered). These elements cannot be further simplified. A collection of a number of related elements is called data structures and these appear within either data flows or data stores. A data structure can be simple like address or complex like order form. Address has a number of data elements (address line 1, address line 2, suburb, state, postcode). Order form could contain at least 10 structures as well as perhaps 50 elements. There are three classes of item to be defined: 1. Data Element- The smallest unit of data which are not divided in the small parts. Ex. Part code, part name, date of transaction, etc are data elements. Data Structure- Data structure is a group of data elements that describe a unit in the system. Ex. Phone is the data structure consisting of four data elements: area code-exchange-number-extension. Ex. 80-924-3423-236. Data flows & Data stores- Data flows is a data structure in motion, whereas data stores are data structure at rest. A data store is a location where data structures are temporarily located. The three levels that make up the hierarchy of data are shown: 1. Smallest unit of data 2. Group of data element 3. Groups of data structure

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Importance of Data Dictionary Data dictionary is an important tool for structured analysis as it offers following advantages: It is a valuable reference for designing the system. It is used to build the database and write programs during design phase. It assists in communication meaning of different elements, terms and procedures. It facilitate analysis in determining additions and change in the system. It helps the analyst to record the details of each element and data structure. It is used to locate error in the system description.

There are two types of Data Dictionaries: 1. 2. Integrated and Stand-alone

The integrated dictionary is related to one database management system. To the extent the organization data is under this DBMS, it is global or organization wide. However, very few enterprises have all their data eggs in one basket, so the dictionary documentation can be considered as local fragmented. The stand-alone dictionary is

not tied to any one DBMS, although it may have special advantage for one DBMS, such as the IBMDB-DC data Dictionary, which has special feature related to the IBM IMS DBMS but is still a stand-alone variety of dictionary. Decision Tree:- Decision Trees are useful tools for helping you to choose between several course of action. they provide a highly effective structure within which you can explore options, and investigate the possible outcomes of choosing those options. In other words: A decision tree is one of the most systematic tools of decision-making theory and practice. Such trees are particularly helpful in situations of complex multistage decision problems. For example, when you need to plan and organize a sequence of decisions and take into account how the choices made at earlier stages and the outcomes of possible external events determine the types of decisions and events at later stages of that sequence. Decision Table:- A major drawback of a Decision Tree is the lack of information in its format to tell us what other combinations of condition to test. This is where the decision table is useful. A decision table is a table that represents relationship between condition and actions. It consist of four part-condition stub, condition entry, action stub and action entry. The different steps to make a Decision Table are: 1. 2. Write different IF conditions stub part and different THEN actions in action stub part. Divide the condition entry and action entry part into as many columns as there are actions and number these columns. Put Y or N in each column of condition entry part, depending upon the action taken on validity of one or more condition. Put X in the appropriate column of action entry part, depending upon the action taken on validity of one or more condition. Structure English Structured English uses narrative statements to describe a procedure. It resembles a programming language, so programmers find it easy to understand. It uses three basic types of statements: (a) Sequential structures: They include a set of instructions that are carried after another and do not depend on any condition. Ex: Accept Employee Code, Accept Employee Name, Accept Employee Age (b) Decision Structures: They include one or more sets of instructions that are carried out depending upon one or more conditions. They generally use the phrase THEN ELSE to carry out different actions. (c) Iteration Structure: They include a set of instructions that are repeated particular condition occurs. They generally use the phase DO WHILE END DO to repeat a set of instructions

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