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Module-4 Part-1

The document defines key system concepts including inputs, processes, outputs, feedback loops, and the environment. It discusses types of systems such as deterministic, probabilistic, closed, and open systems. Large, complex systems must be broken down into smaller subsystems. A system's performance is measured by its efficiency and effectiveness. After implementing a system, periodic reviews and modifications are needed to prevent decay over time. Management information systems (MIS) are open systems that process and analyze data to provide useful information to decision makers.

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ARYAN RAJ
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34 views

Module-4 Part-1

The document defines key system concepts including inputs, processes, outputs, feedback loops, and the environment. It discusses types of systems such as deterministic, probabilistic, closed, and open systems. Large, complex systems must be broken down into smaller subsystems. A system's performance is measured by its efficiency and effectiveness. After implementing a system, periodic reviews and modifications are needed to prevent decay over time. Management information systems (MIS) are open systems that process and analyze data to provide useful information to decision makers.

Uploaded by

ARYAN RAJ
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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BBA 601 Management Information System (Study Material)

CHAPTER 4a: SYSTEMS CONCEPTS

Chapter Outline: System Concepts, Systems Control, Types of systems, Handling system
complexity, System efficiency & effectiveness, Post implementation problems in a system,
MIS & system concepts

#SYSTEM CONCEPTS (INTRODUCTION)


A system may be defined as a set of elements arranged in an orderly manner to
accomplish an objective.

Examples:
1. COMPUTER SYSTEM
Elements: I/P , Process, O/P devices
Objective: Process data & provide information

2. ACCOUNTING
Elements: Financial Transcations, Accounting principles & rules.
Objective: Process transactions & provide information relevant for
financial management decisions.

3. BUSINESS ORGANIZATION
Elements: People, plant, machinery, materials etc
Objective: Produce goods & services to achieve business objectives of
service, turnover & profits.

Parts of a system:

INPUT PROCESS OUTPUT

FILTER

1
ENVIRONMENT
Compiled & prepared by: Soumitro Chakravarty, Faculty Member, Deptt. of Mgmt. BITEC, Lalpur
BBA 601 Management Information System (Study Material)

System performs within an environment. The environment may influence the system in
its design & performance. A crucial role is played by the filtering system.

#SYSTEMS CONTROL

 System is aimed towards achieving specified objectives.


 In the event of not achieving the same there has to be a system control mechanism
based upon feedback mechanism.
 Compare the o/p with standards. If deviation then corrective measures/control
needed.

OUTPUT
INPUT PROCESS

Measures o/p &


SENSOR compares with
standard

CHANNELS OF FEEDBACK
COMPARISON Carries out
CORRECTIVE UNIT UNIT comparison

STANDARD

SYSTEMS CONTROL MODEL

 Control is responsible for regulating the system & maintaining equilibrium


position. It is the heart & brain of the system.
 Control may be external or internal. Most systems have in-built automatic control
mechanism.

2
Compiled & prepared by: Soumitro Chakravarty, Faculty Member, Deptt. of Mgmt. BITEC, Lalpur
BBA 601 Management Information System (Study Material)

#TYPES OF SYSTEMS

1. DETERMINISTIC SYSTEMS: The I/P, process & o/p is known with certainty.
2. PROBABILISTIC SYSTEMS: O/P can be predicted only in probabilistic terms.
3. CLOSED SYSTEM: No exchange with environment.
4. OPEN SYSTEM: Responds to changes in environment ex: Pricing System.

Systems (2) & (4) are complex in every respect. Need control mechanism vitally.

#HANDLING SYSTEM COMPLEXITY


 Large systems are inherently complex in nature.
 They need to be broken down into smaller sub systems & they have to be
arranged systematically.
 This approach provides a logical view to the designer of the system.

SYSTEM EFFICIENCY & EFFECTIVENESS


 A system’s performance can be measured in terms of its efficiency &
effectiveness.
 Efficiency relates to the manner in which inputs are used by the system. In other
words it is a measure of the productivity of the system in terms of O/p / i/p ratio.
 Effectiveness relates to the producing of the right o/p in terms of quality &
quantity. It is a measure of the goodness of the o/p.
 System has to be both effective & efficient for highest utility to the user of the
system.

POST IMPLEMENTATION PROBLEMS IN A SYSTEM


 Any system tends to decay over a period of time.
 Preventive measures needed like:
1. PERIODICAL REVIEW OF SYSTEM
2. USER MEETINGS TO ASSESS CURRENT UTILITY OF THE
SYSTEM
3. AUDIT USING TEST DATA
4. RUNNING SYSTEM UNDER TEST CONDITIONS TO FINALIZE
MODIFICATIONS.
5. BRING ABOUT THE NECESSARY SYSTEM MODIFICATIONS

#MIS & SYSTEM CONCEPTS


 MIS is also a system because it is an orderly arrangement of data
processing & information systems which provide o/p relevant to
decision making as information.
 MIS should have efficient control mechanism to perform well.
 MIS concentrates upon quality of I/P satisfying parameters in
terms of impartiality, validity, reliability, consistency & age.
 MIS should analyze data and give reports in presentable format.

3
Compiled & prepared by: Soumitro Chakravarty, Faculty Member, Deptt. of Mgmt. BITEC, Lalpur
BBA 601 Management Information System (Study Material)

 MIS is an open system & complicated as well. It is therefore


divided into smaller subsystems working in an integrated manner
to achieve organizational objective.
 As MIS is an open system degree of flexibility should be high to
support organizational goals as per changing environment.
 Components of typical MIS are Computer h/w, communication
channels, software, tools, development plans & well defined
measurable objectives consistent with the business objectives of
the organization.

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Compiled & prepared by: Soumitro Chakravarty, Faculty Member, Deptt. of Mgmt. BITEC, Lalpur

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