What is a System?

The word “SYSTEM” covers a very broad spectrum of concepts. This is derived from the Greek
word systema, which means an organised relationship among the functioning units or
components. In our daily life, we come into contact with the transportation system, the
communication system, the accounting system, the production system, the economic system and
for over three decades, the computer system. Similarly, business systems are the means by which
business organisations achieve their pre-determined goals. A business system combines policies,
personnel, equipment and computer facilities to co- ordinate the activities of business
organisation. Essentially, a business system represents an organised way of achieving the pre-
determined objective of an organization.
There are various definitions of the word system, but most of them seem to have a common idea
that suggests that a system is an orderly grouping of interdependent components linked together,
according to a plan, to achieve a specific goal. The word component may refer to physical parts
(engines, wheels of car), managerial steps (planning, organising, controlling) or a subsystem in a
multi-level structure. The components may be simple or complex, basic or advanced. They may
be a single computer with a keyboard, memory and printer or a series of intelligent terminals
linked to a mainframe. In either case, each component is part of the total system and has to do its
own share of work for the system to achieve the desired goal.
3.1.1 Systems Study, Systems Analysis and Systems Approach
Systems study may be defined as “a study of the operations of a set of connected elements and
of the inter-connections between these elements”. It shows clearly that one cannot ignore any
part or element of a system without first finding out the effect that elements has on the operation
of the system as a whole. We can understand this with the help of system analysis.
There is a difference between “systems approach” and “systems analysis” also. The systems
approach shows a set of procedure for solving a particular problem. It applies scientific methods
to observe, clarify, identify and solve a problem with special care being taken to understand the
inter-relatedness between elements and their system characteristics. However, systems analysis is
a management technique which helps us in designing a new system or improving an existing
system.
Characteristics of a System
Based on the definition of a system, it is observed that following characteristics are present in all
systems:
a) Organisation
Organization implies structure and order. It is the arrangement of components that helps to
achieve objectives. In the design of a business system, for example, the hierarchical relationship
starting with the president on top and leading downward to the blue-collar workers represents the
organization structure. Likewise a computer system is designed around an input device, a central
processing unit, an output device and one or more storage units. When these units are linked
together, they work as a whole system for generating information.
b) Interaction
Interaction refers to the procedure in which each component functions with other components of
the system. In an organization, for example, purchasing must interact with production,
advertising with the sales and payroll with personnel. In a computer system also, the central
processing unit must interact with other units to solve a problem. In turn, the main memory holds
program, and the data that the arithmetic unit uses for computation. The inter-relationship
between these components enables the computer to perform.
c) Interdependence
Interdependence means that component of the organization or computer system depends on one
another. They are coordinated and linked together in a planned way to achieve an objective.
d) Integration
Integration is concerned with how a system is tied together. It is more than sharing a physical
part or locations. It means that parts of the system work together within the system even though
each part performs a unique function. Successful integration will typically produce a better result
as a whole rather than if each component works independently.
e) Central Objective
Central objective is the last characteristics of a system. Objectives may be real or stated.
Although a stated objective may be the real objective. It is quite common that organization may
set one objective and operate to achieve another. The important point is that users must be aware
of the central objective well in advance.
3.1.3 Elements of Systems Analysis
There are four basic elements in systems analysis. Brief description of each element has been
given below:
a) Output
First of all, we must determine what the objectives or goals are, what do we intend to achieve,
what is the purpose of our work; in other words, what is the main aim behind the system.
Defining aim is very vital in system work. If we do not know where we want to go, we will not
know when we have reached there. We shall be unnecessarily wasting our time and energy in the
process. Once we know our aim, we can try to achieve it in the best possible way. The user
department has to define these objectives in terms of their needs. These become the outputs
which the systems analyst keeps in mind.
b) Inputs
Once we know the output, we can easily determine what the inputs should be. Sometimes, it may
happen that the required information may not be readily available in the proper form. This may
be because the existing forms are not properly designed. Sometimes, it may not be possible to get
the required information without the help of top management. If the information is vital to the
system, we should make all possible efforts to make it available. Sometimes, it might be too
costly to get the desired information. It would be better in such cases to prepare a cost-benefit
analysis to convince the management of the necessity for acquiring the information. The
essential elements of inputs are:
i) Accuracy: If the data is not accurate, the outputs will be wrong.

ii) Timeliness: If data is not obtained in time, the entire system falls into arrears.

iii) Proper format: The inputs must be available in proper format.

iv) Economy: the data must be produced at the least cost.

c) Files
As the word implies files are used to store data. Most of the inputs necessary for the system may
be historical data, or it may be possible that these are generated from within the system. These
are stored in files either in terms of isolated facts or in large volumes.
d) Processes
Here we come to the details of how the inputs and files are converted into outputs. This involves
the programs and the way in which data is processed through the computer. The processing
involves a set of logical steps. These steps are required to be instructed to the computer and this
is done by a series of instructions called “programs”.
Types of Systems
Systems have been classified in different ways. Common classifications are:

i) Physical or abstract systems

ii) Open or closed systems

iii) Deterministic or probabilistic systems

iv) Man-made information systems.

(i) Physical or Abstract Systems
Physical systems are tangible entities that may be static or dynamic in operation. Abstract
systems are conceptual or non-physical entities which may be as straight forward as formulas of
relationships among sets of variables or models – the abstract conceptualization of physical
situations.
(ii) Open or Closed System
An open system continually interacts with its environments. It receives inputs from and delivers
outputs to outside. An information system belongs to this category, since it must adapt to the
changing demands of the user. In contrast, a closed system is isolated from environmental
influences. In reality completely closed systems are rare.
(iii) Deterministic or Probabilistic Systems
A deterministic system is one in which the occurrence of all events is perfectly predictable. If we
get the description of the system state at a particular time, the next state can be easily predicted.
An example of such a system is a numerically controlled machine tool. Probabilistic system is
one in which the occurrence of events cannot be perfectly predicted. An example of such a
system is a warehouse and its contents.
(iv) Man-made Information Systems
It is generally believed that information reduces uncertainty about a state or event. For example,
information that the wind is calm reduces the uncertainty that a trip by boat will be enjoyable. An
information system is the basis for interaction between the user and the analyst. It determines the
nature of relationship among decision makers. In fact, it may be viewed as a decision centre for
personnel at all levels. From this basis, an information system designed 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. Many
practitioners fail to recognize that a business has several information systems, each is designed
for a specific purpose. The major information systems are:
● Formal information systems
● Informal information systems
● Computer-based information systems.

A Formal Information System is based on the organization represented by the organization

chart. The chart is a map of positions and their authority relationships, indicated by boxes and
connected by straight lines. It is concerned with the pattern of authority, communication and
work flow.
An Informal Information System is an employee-based system designed to meet personnel and
vocational needs and to help in the solution of work-related problems. It also funnels information
upwards through indirect channels. In this way, it is considered to be a useful system because it
works within the framework of the business and its stated policies.
Third category of information system depends mainly on the computer for handling business
applications. Systems analysis develops several different types of information systems to meet a
variety of business needs. There is a class of systems known collectively as
Computer-based Information Systems. As we have different types of transportation systems
such as highways systems, railways systems and airline systems, computer-based information
systems are of too many types. They are classified as:
● Transaction Processing Systems (TPS)
● Management Information Systems (MIS)
● Decision Support System (DSS)
● Office Automation Systems (OAS).

The figure 1.1 shows the organization chart of computer-based information system (CBIS) and
figure 1.2 shows the hierarchical view of CBIS.

Figure 1.2: The Hierarchical View of CBIS

 Figure 1.1: CBIS in an Organizational Context
Transaction Processing Systems
The most fundamental computer-based system in an organization pertains to the processing of
business transactions. A transaction processing system can be defined as a computer-based
system that captures, classifies, stores, maintains, updates and retrieves transaction data for
record keeping and for input to other types of CBIS. Transaction Processing Systems are aimed
at improving the routine business activities on which all organizations depend. A transaction is
any event or activity that affects the whole organization. Placing orders, billing customers, hiring
of employees and depending cheques are some of the common transactions. The types of
transaction that occur vary from organization to organization.
But it is true that all organization process transactions as a major part of their daily business
activities. The most successful organizations perform this work of transaction processing in a
very systematic way. Transaction processing systems provide speed and accuracy and can be
programmed to follow routines without any variance.
Management Information System
Data processing by computer has been extremely effective because of several reasons. The main
reason being that huge amount of data relating to accounts and other transactions can be
processed very quickly. Earlier most of the computer applications were concerned with record
keeping and the automation of routine clerical processes. However, in recent years, increasing
attention has been focussed on computer applications providing information for policy making,
management planning and control purposes. MIS are more concerned with management
function. MIS can be described as information system that can provide all levels of management
with information essential to the running of smooth business. This information must be as
relevant, timely, accurate, complete and concise as is economically feasible.
Decision Support Systems
It is an information system that offers the kind of information that may not be predictable, the
kind that business professionals may need only once. These systems do not produce regularly
scheduled management reports. Instead, they are designed to respond to a wide range of requests.
It is true that all the decisions in an organization are not of a recurring nature. Decision support
systems assist managers who must make decisions that are not highly structured, often called
unstructured or semi-structured decisions. A decision is considered unstructured if there are no
clear procedures for making the decision and if not all the factors to be considered in the decision
can be readily identified in advance. Judgement of the manager plays a vital role in decision-
making where the problem is not structured. The decision support system supports, but does not
replace, judgement of manager.
Office Automation Systems
Office automation systems are among the newest and most rapidly expanding computer-based
information systems. They are being developed with the hopes and expectations that they will
increase the efficiency and productivity of office workers, typists, secretaries, administrative
assistants, staff professionals, managers and the like. Many organizations have taken the first
step toward automating their offices. Often this step involves the use of word processing
equipment to facilitate the typing, storing, revising and printing of textual materials Another
development is a computer-based communications system such as electronic mail which allows
people to communicate in an electronic mode through computer terminals. An office automation
system can be described as a multi-function, integrated computer-based system that allows many
office activities to be performed in an electronic mode.
Categories of different information systems with their characteristics have been described briefly
in table 1.1:
Table 1.1: Categories of Information Systems

SELF-ASSESSMENT EXERCISE 1
i. What is the basic difference between „systems approach” and “systems analysis”?
ii. What are the four basic elements in systems analysis?
iii. What is a Computer-based Information System?
iv. When is a decision considered to be unstructured?

3.2 System Development Life Cycle (SDLC)

System development, a process consisting of the two major steps of systems analysis and design,
starts when management or sometimes system development personnel feel that a new system or
an improvement in the existing system is required. The systems development life cycle is
classically thought of as the set of activities that analysts, designers and users carry out to
develop and implement an information system. The systems development life cycle consists of
the following activities:
● Preliminary investigation
● Determination of system requirements
● Design of system
● Development of software
● Systems testing
● Implementation, evaluation and maintenance

3.2.1 Preliminary Investigation

A request to take assistance from information systems can be made for many reasons, but in each
case someone in the organization initiates the request. When the request is made, the first
systems activity, the preliminary investigation begins. This activity has three parts:
i) Request clarification
ii) Feasibility study
iii) Request approval

Request Clarification
Many requests from employees and users in the organizations are not clearly defined. Therefore,
it becomes necessary that project request must be examined and clarified properly before
considering systems investigation.
Feasibility Study
An important outcome of the preliminary investigation is the determination that the system
requested is feasible. There are three aspects in the feasibility study portion of the preliminary
investigation:
(i) Technical Feasibility
Can the work for the project be done with current equipment, existing software technology and
available personnel? If new technology is needed, what is the likelihood that it can be
developed?
(ii) Economic Feasibility
Are there sufficient benefits in creating the systems to make the costs acceptable? Or, are the
costs of not creating the system so great that it is advisable to undertake the project?
(iii) Operational Feasibility
Will the system be used if it is developed and implemented?
Will there be resistance from users that will undermine the possible application benefits?
The feasibility study is carried out by a small group of people who are familiar with information
systems techniques, understand the parts of the business or organisation that will be involved or
affected by the project, and are skilled in the systems analysis and design process.
Request Approval
It is not necessary that all requested projects are desirable or feasible. Some organizations
receive so many project requests from employees that only a few of them can be pursued.
However, those projects that are feasible and desirable should be put into a schedule. In some
cases, development can start immediately, although usually systems staff members are busy on
other ongoing projects. When such situation arises, management decides which projects are most
urgent and schedules them accordingly. After a project request is approved, its costs, priority,
completion time, and personnel requirements are estimated and used to determine where to add it
to any existing project list. Later on, when the other projects have been completed, the proposed
application development can be initiated.
A further discussion on preliminary investigation is converted in section 2.5 of unit 2.
3.2.2 Determination of System Requirements
At the heart of systems analysis is a detailed understanding of all important facets of the business
that are under investigation. The key questions are:
● What is being done?
● How is it being done?
● How frequently does it occur?
● How great is the volume of transactions or decision?

● How well is the task being performed?

● Does problem exist?
● If a problem exists, how serious is it? What is the underlying cause?
To answer the above questions, systems analysis discusses with different category of persons to
collect facts about the business process and their opinions of why things happen as they do and
their view for changing the existing process. During analysis, data are collected on the available
files, decision points and transactions handled by the present system. Some tools are used in
analysis like data flow diagrams (DFD), interviews, on-site observations and questionnaires.
Detail investigations also require the study of manuals and reports. Once the structured analysis
is completed, analyst has a firm understanding of what is to be done?
3.2.3 Design System
The design of an information system produces the details that clearly describe how a system will
meet the requirements identified during systems analysis. Systems specialities often refer to this
stage as logical design, in contrast to the process of developing program software, which is
referred to as physical design.
Systems analyst begins the design process by identifying reports and other outputs system will
produce. Then the specific data on each are pinpointed. The systems design also described the
data to be input, calculated or stored. Individual data items and calculation procedures are written
in detail. Designers select file structures and storage devices, such as magnetic disk, magnetic
tape or even paper files. Procedures they write tell how to process that data and produce the
output. The documents containing the design specifications portray the design in many different
ways – charts, tables, and special symbols. The detailed design information is passed on to the
programming staff for the purpose of software development. Designers are responsible for
providing programmers with complete and clearly outlined software specifications.
3.2.4 Development of Software
Software developers may install purchased software or they may develop new, custom-designed
programs. The choice depends on the cost of each option, the time available to develop software
and the availability of programmers. Generally it has been observed that programmers are part of
permanent professional staff in a big organization. In smaller organization, without
programmers, outside programming services may be hired or retained on a contractual basis.
Programmers are also responsible for documenting the program, providing and explanation of
how and why certain procedures are coded in specific ways. Documentation is essential to test
the program and carry on maintenance once the application has been installed.
3.2.5 Systems Testing
During systems testing, the system is used experimentally to ensure that the software does not
fail. In other words, we can say that it will run according to its specifications and in the way
users expect. Special test data are input for processing, and the results examined. A limited
number of users may be allowed to use the system so that analyst can see whether they try to use
it in unforeseen ways. It is desirable to discover any surprises before the organization
implements the system and depends on it.
3.2.6 Implementation, Evaluation and Maintenance
Implementation is the process of having systems personnel check out and put new equipment
into use, train users, install the new application and construct any files of data needed to use it.
This phrase is less creative than system design. Depending on the size of the organization that
will be involved in using the application and the risk involved in its use, systems developers may
choose to test the operation in only one area of the firm with only one or two persons.
Sometimes, they will run both old and new system in parallel way to compare the results. In still
other situations, system developers stop using the old system one day and start using the new one
the next day.
Evaluation of the system is performed to identify its strengths and weaknesses. The actual
evaluation can occur along any of the following dimensions:
(i) Operational Evaluation: Assessment of the manner in which the system functions, including
case of use, response time, overall reliability and level of utilization.

(ii) Organizational Impact: Identification and measurement of benefits to the organization in such
areas as financial concerns, operational efficiency and competitive impact.

(iii) User Manager Assessment: Evaluation of attitudes of senior and user manager within the
organization, as well as end-users.

(iv) Development Performance: Evaluation of the development process in accordance with such
yardsticks as overall development time and effort, conformance to budgets and standards and
other project management criteria.
Maintenance is necessary to eliminate errors in the working system during its working life and
to tune the system to any variations in its working environment. Often small system deficiencies
are found as a system is brought into operations and changes are made to remove them. System
planners must always plan for resource availability to carry out these maintenance functions. The
importance of maintenance is to continue to bring the new system to standards.
SELF-ASSESSMENT EXERCISE 2
i. What are activities which complete the system development life cycle?
ii. In preliminary investigation three types of feasibilities are usually studied. Name them.
iii. What are the areas of operational evaluation?
iv. Why is maintenance of a system necessary?

3.3 Software Crisis

The translation of a familiarity with computer hardware and software into the development of
useful commercial or business information systems is not a straight-forward or intuitive task. For
the last several decades, tens of thousands of people, usually very intelligent and talented have
been involved in the building of computer systems. It is now well-known that the rate at which
the hardware has been more and more accessible and at lower and lower prices, has created a
matching demand for development of software in a similar scale. But the traditional intuitive and
ad-hoc approach fails miserably when the quantities of data involved in information systems
exceeds say, 10 MB. This is a typical figure at which systems start crossing the barriers of
relatively simple and begin to enter the domain of significant complexity.
This has lead to the coining of the phrase “software crisis”, and the search for methods and
techniques to be able to cope with the ever expanding demands for software. The present course,
which is an attempt to teach the ingredients of a structured systems development methodology,
and elsewhere in the programme there is a reference to the techniques of software engineering as
well.
It is useful and desirable to have some feel for the kinds of problems which the programmer and
the user face and collectively perceive as the software crisis.
Software crisis can be broadly classified in the following major areas:
3.3.1 From Programmer‟s Point of View
The following types of problems may contribute in maximum cases to software crisis:
● Problem of compatibility
● Problem of portability
● Problem of documentation
● Problem in coordination of work of different people where a team is initialling to develop
software.
● Problems that arise during actual run time in the organization. Some time the errors are not
detected during sample run.
● Problem of piracy of software
● Customers normally expand their specifications after program design and implementation has
taken place.
● Problem of maintenance in proper manner.

3.3.2 From User‟s Point of View

There are many sources of problems that arise out of the user‟s end. Some of these are as
follows:
● How to choose software from total market availability.
● How to ensure which software is compatible with his hardware specifications
● The customerised software generally does not meet his total requirements
● Problem of virus
● Problem of software bugs, which comes to knowledge of customer after considerable data
entry.
● Certain software run only on specific operating system environment
● The problem of compatibility for user may be because of different size and density of floppy
diskettes.
● Problem in learning all the facilities provided by the software companies gives only selective
information in manual.
● Certain software run and creates files which expand their used memory spaces and create
problem of disk management.

● Software crisis develops when system memory requirement of software is more than the
existing requirements and/or availability.
● Problem of different versions of software (user as well as operating system).
● Security problem for protected data in software.
3.4 Role of a Systems Analyst
3.4.1 Who is a Systems Analyst?

A systems analyst is a person who conducts a study, identifies activities and objectives and
determines a procedure to achieve the objectives. Designing and implementing systems to suit
organizational needs are the functions of the systems analyst. He plays a major role in seeing
business benefits from computer technology. The analyst is a person with unique skills. He uses
these skills to coordinate the efforts of different type of persons in an organization to achieve
business goals.
3.4.2 What does a Systems Analyst do?
A system analyst carries out the following job:
(a) The first and perhaps most difficult task of systems analyst is problem definition. Business
problems are quite difficult to define. It is also true that problems cannot be solved until they are
precisely and clearly defined.

(b) Initially a systems analyst does not know how to solve a specific problem. He must consult
with managers, users and other data processing professionals in defining problems and
developing solutions. He uses various methods for data gathering to get the correct solution of a
problem.

(c) Having gathered the data relating to a problem, the systems analyst analyses them and thinks
of plan to solve it. He may not come up personally with the best way of solving a problem but
pulls together other people‟s ideas and refines them until a workable solution is achieved.

(d) Systems analysts coordinate the process of developing solutions. Since many problems have
number of solutions, the systems analyst must evaluate the merit of such proposed solution
before recommending one to the management

(e) Systems analysts are often referred to as planners. A key part of the systems analyst‟s job is
to develop a plan to meet the management objectives.
(f) When the plan has been accepted, systems analyst is responsible for designing it so that
management‟s goal could be achieved. Systems design is a time consuming, complex and
precise task.

(g) Systems must be thoroughly tested. The systems analyst often coordinates the testing
procedures and helps in deciding whether or not the new system is meeting standards established
in the planning phase.
3.4.3 Attributes of an Effective Systems Analyst
Systems analyst must have the following attributes:
(a) Knowledge of people
Since a systems analyst works with others so closely, he or she must understand their needs and
what motivates them to develop systems properly.
(b) 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 is a must since so
many systems are built around these two areas. He must be familiar with his company‟s product
and services and management‟s policies in areas concerning him.
(c) 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.
(d) Ability to communicate
As a coordinator, a systems analyst must communicate properly with people of different levels
within an organization. Systems analyst must listen carefully to what others say and integrate the
thoughts of others into the systems development process.
(e) Flexibility
Systems analysts must be flexible in their thinking since they often do not get their own way.
Different factions in an organization 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
organization. This requires an open mind and flexibility in his ideas.
(f) An analytical mind
It takes an unusual person to see through problems facing an organization and develop solutions
that will work. Systems analysts often find themselves with more data than they can cope with. It
requires an analytical mind to select pertinent data and concentrate on them in defining problems
and forming solutions.
(g) Well educated with sharp mind: Systems analysts are called upon to work with people at
all levels virtually in every aspect of business. They 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 it better.

4.0 CONCLUSION
In this unit, you were taken through the general concept of „systems‟ the types of systems,
system development life cycle (SDLC) activities, software crisis and the role of a system analyst
in the software/system development.
As you learnt in this unit computer-based information systems are classified into four major
types: Transaction Processing Systems, (TPS), Management Information Systems (MIS),
Decision Support system (DSS), and Office Automation System (OAS).
Also, you were taken through the various systems development life cycle (SDLC) activities and
the stakeholders in system development.
5.0 SUMMARY
Before going to study Systems Analysis and Systems Design, an initial overall idea should be
formed by the learner about what is a system, what are the characteristics of a system, what is
systems approach, what is systems analysis and what is systems design, what are the different
types of a system, etc. This unit provides an overview of systems, the components and activities
in the life cycle of a system development, what are the various sources which contribute a
software crisis, and in details a characteristics study of a system analyst‟s attributes, its different
jobs. After studying this unit, you might feel eager into go in details of systems analysis and
design.
MARKED ASSIGNMENT
1. What do you understand by software crisis?
2. Suppose a system memory requirement is more than the available memory size. Will you call
it a software problem although the crisis is with the hardware? Why?
3. Which is in your opinion the most difficult job of a systems analyst?
4. List three important attributes of a system analyst.