System Concept

We know transportation system, the economic system, educational system, and for
over three decades, the computer system. A system is a fundamental concept of
system theory, a way of thinking about the world, a model.
The term system is derived from the Greek word `systema which means an
organized relationship among functioning units or components or in other words,
A system is an orderly group of independent components linked together
according to a plan to achieve a common objective.
The word component may refer to physical parts (engines, wings of aircraft, wheels
of car), managerial steps (planning, organizing, directing, and controlling) or a
subsystem
in
a
multilevel
structure.
For example A business is also a system. Its components marketing,
manufacturing, sales, research, shipping, accounting and personnel all work
together to create profit that benefit the overall organization.
FEATURES OF A SYSTEM
System has the following features :

People : People include all those who are directly or indirectly related to the

Infrastructure : Include all the physical facilities provided by the system.

Rules, Policies & Regulations : Various procedures carried out to conduct

a meaningful activity.

Objective : It is the ultimate purpose of all the activities related to the

system. If the features above mentioned exist, then we can say that a system
exists. For example An Educational System.

People : Faculty, student, administrative staff etc.

Infrastructure : Building, furniture, library etc.

Rules and Regulations : Dress code, admission procedure, time table etc.

Objective : For teachers, teaching and earning money. For students, to. gain

The study of system concept has 3 basic implementation :

A system must be designed to achieve a predetermined objective.

Interrelationship and interdependence must exist among the components.

The objective of the organization as a whole have a higher priority than the
objective of its sub-system.

Therefore, system should be :

Interdependent

Interactive

Organized

Functioning

have common objective.

CHARACTERISTICS OF A SYSTEM
1. Organization : Organization implies structure and order. It is the
arrangement of components that helps to achieve the objectives. Likewise, a
system i.e., a computer system is designed around an input device, .a central
processing unit, an output device and one or more storage units. When linked
together, they work as a whole system for producing information.
2. Interaction : It refers to the manner in which each component functions with
other component of the system.
3. Interdependence : It means that part of the organization depends on one
another. One subsystem depends upon the input of another subsystem for
proper functioning e., output of one subsystem is the required input for the
another subsystem.
4. Integration : It is concerned with how a system is tied together. It means
that parts of the system work together within the system even though each
part performs a unique function.
5. Central Objective : The last characteristic of a system is its central
objective. The important point is that user must be know about the central
objective of the organization.
TYPES OF SYSTEM
System has been
classifications are

classified

in

different

1. Physical and Abstract System

2. Open and Closed System
3. Formal and Informal Information System
4. Computer Based Information System

ways.

Some

popularly

known

Management Information System (MIS)

Decision Support System (DSS)

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.
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.
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.
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.

YSTEM ANALYST

System Analyst is a specialist who studies the problems and needs of an

organization to determine how people, data, processes, and information technology
can best accomplish improvements for the business.
System analyst understand both business and computing. They study both business
problems and opportunities and then transform business and information
requirements into specification for information systems that will be implemented by
various technical specialists including computer programmers.
System analyst initiates changes within an organization. Every new system changes
the business.
System analyst is basically a problem solver. Problems may be either real or
anticipated that require corrective action.
Skills to be possessed by System Analyst
An analyst must possess various skills to effectively carry out the job. They may be
divided into 2 categories interpersonal and technical skills. Interpersonal skills
deal with relationship and the interface of the analyst with people in business. They
are useful in establishing trust and resolving conflicts. Technical skills focus on
procedures and techniques for operation analysis, system analysis and computer
science.
A system analyst must develop or possess other skills, knowledge and traits to
complete the job. These include :

Computer programming experience and expertise : It is difficult to

imagine how systems analysts could adequately prepare business and
technical specification for a programmer if they didnt have some
programming experience. Most syStem analysts need to be proficient in one
or more high-level programming languages.

General problem solving skills : The system analyst must be able to take
a large business problem, break down that problem into its parts, determine
problem causes and effects and then recommend a solution. Analyst must
avoid the tendency to suggest the solution before analyzing the problem.

Good Interpersonal Communication Skills : An analyst must be able to

communicate effectively, both orally and in writing. Communication is not
just reports, telephone conversations and interviews. It is people talking,
listening, feeling and reacting to one another, their experience and reactions.

Flexibility and Adaptability : Successful system analysts learn to be

flexible and to adapt to unique challenges and situations.

Act as a Motivator : A system should be designed and acceptable to the

user. System acceptance is achieved through user participation in its
development, effective user training, and proper motivation to use the
system. Analyst plays an important role in acting as a motivator.

General Business Knowledge

There are few general principles that are of particular interest to people building
automated information systems. They include the following :

The more specialized the system is, the less able it is to adapt to different

The more general purpose a system is, the less optimized it is for any
particular

The larger a system is, the more of its resources that must be devoted to its
everyday maintenance.

Participants to System Development

User

Management

Auditors, Quality assurance people

System Analysts

System Designers

Programmers

Operations Personnels

THE ROLE OF SYSTEM ANALYST

Why does Business need Systems Analysts ?
The first systems analysts was born out, of the industrial revolution. They were
industrial engineers whose responsibilities centered around the design of efficient
and effective manufacturing systems. Information system analysts evolved from the
need to improve the use of computer resources for the information-processing
needs of business applications. In other words, they designed computer-based
systems that manufacture information.
Who is a System Analyst ?
System analysts are people who understand both business and computing. System
analysts study business problems and opportunities and then transform business

and information requirements of the business into the computer based information
systems and computer applications that are implemented by various technical
specialists including computer programmers.
A system analyst facilitates the study of the problems and needs of a business to
determine how the business system and information technology can best solve the
problems and accomplish improvements for the business. The product of this
activity may be improved business processes, improved information systems, or
new or improved computer applications or all the three.
Interpersonal skills relevant to systems work include the following.

Communication : Having the ability to articulate and speak the language of

the user, and a knack for working with virtually all managerial levels in the
organisation. It is people talking; listening, felling, and reacting to one
another, their experience and reactions.

Understanding : Identifying problems, and assessing their ramification;

having a group of company goals and objectives and showing sensitivity to
the impact of the system on people at work.

Teaching : Educating people in use of computer systems, selling the system

to the user, and giving support when needed.

Selling : Selling ideas and promoting innovations in problems solving, using

Technical Skill includes :

Creativity : Helping users model ideas into concrete plans and developing
candidate systems to match user requirements.

Problem solving : Reducing problems to their elemental levels for analysis,

developing alternative solutions to a given problem, and delineating the pros
and cons to candidate systems.

Project Management : Scheduling, performing well under time constraints

co-ordinating team efforts, and managing cost and expenditures.

Dynamic Interface : Blending technical and non-technical considerations in

functional specifications and general design.

Questioning attitude and enquiring mind : Knowing the what, when,

why, where, who and how a system works.

WHAT SYSTEM ANALYST DOES ?

A system analyst carries out the following activities :
1. The first and perhaps most difficult task of systems analyst is problem
definition. Business problems are quite difficult to define. Problems can not be
solved until they are precisely and clearly defined.
2. Having gathered the data relating to a problem, the systems analyst analyses
them and thinks to plan to solve it. He may not come up personally with the
best way of solving a problem but pulls together peoples ideas and refines
them until a workable solution is achieved.
3. Systems analysts are often referred to as planners. A key part of the systems
analysts job is to develop a plan to meet the managements objectives.
4. Initially a systems analysis does not know how to solve a specific problem. He
must consult managers, users and other data processing professionals in
defining problems and developing solutions.
5. systems analysts co-ordinate the process of developing solutions. The
systems analyst must evaluate the merit of such proposed solution before
recommending one to the management.
6. When the plan has been accepted, systems analyst is responsible for
designing it so that managements goal could be achieved. Systems design is
a time consuming, complex and precise task.
ATTRIBUTES OF AN EFFECTIVE SYSTEMS ANALYST
Systems analyst must have the following attributes :
1. Knowledge of Business functions : A systems analyst must know the
environment in which he or she works. He must be aware of the peculiarities

of management and the users at his installation and realize how they react to
systems analyst. A working knowledge of accounting and marketing
principles. He must be familiar with his companys product and services and
managements policies in areas concerning him.
2. Ability to communicate : As a co-ordinator, a systems analyst must
communicate properly with people of different levels within an organisation.
Systems analyst must listen carefully to what others say and integrate the
thoughts of others into the systems development process.
3. Flexibility : Systems analysts must be flexible in their thinking since they
often do not get their own way. Different people in an organisations have
conflicting needs and most systems are the result of compromise. The
analysts goal is to produce the system that will be the best for his
organisation. This requires an open mind and flexibility in his ideas.
4. Knowledge of Data processing principles : Most systems today are
computer based. The systems analyst must be fully aware of the potential
and limitations of computers.
5. Well educated with sharp mind : Systems analysts are called upon to
work with people at all levels virtually- in every aspect of business. The must
know how to work with all of them and gain their confidence. Analysts must
have sharp mind to learn quickly how people do their jobs and develop ways
for them to do better.
6. An analytical mind : It takes an unusual person to see through problems
facing an organisation and develop solutions that will work. It requires an
analytical mind to select pertinent data and concentrate on them in defining
problems and forming solutions.
7. Knowledge of people : Since a systems analyst works with others so
closely, he or she must understand their needs and know what motivates
them to develop systems properly.
Skills of Analyst

Architect : The architects primary function as liaison between the clients

abstract design requirements and the contractors detailed building plan may
be compared to the analysts role as liaison between the users logical design
requirements and the detailed physical system design.

Investigator and Monitor : In defining a problem, the analyst places

together the information gathered to determine why the present system does
not work well and what changes will correct the problem.

To undertake and successfully complete a project the analyst must monitor

programs in relation to time, cost, and quality.

Sales person : Selling system can be as crucial as initiating change. Selling

system actually takes place at each step in the system life cycle, however.
Sales skills and persuasiveness, then, are crucial for the success of the
system.

Politician : Related to the role of motivator is that of politician. Diplomacy

and finesse in dealing with people can improve acceptance of the system. In
as much as a politician must have the support of his/her constituency, so is
the analysts goal to have the support of the users staff. He/she represents
their thinking and tries to achieve their goals through computerization.

Change Agent : The analyst may be viewed as an agent of change. The

system designs to introduce change and reorientation in how the user
organisation handles information or makes decisions.

Motivator : Analysts role as a motivator becomes obvious during the first

few weeks after implementation and during times when turnover results in
new people being trained to work with the candidate system.

Psychologist : The analyst plays the role of a phychologist in the way he/she
reaches people, interprets their thoughts, assesses their behaviour, and
draws conclusions from the interactions. Understanding interfunctional
relationships is important.