Introduction to System Analysis and Design

UNIT 2 INTRODUCTION TO
SYSTEM ANALYSIS AND DESIGN

Systems are created to solve problems. Systems development can generally be thought of as having
two major components: Systems analysis and Systems design. System design is the process of planning
a new business system or one to replace or complement an existing system. But before this planning can
be done, we must thoroughly understand the old system and determine how computers can best be used
to make its operation more effective. System analysis, then, is the process of gathering and interpreting
facts, diagnosing problems, and using the information to recommend improvements to the system.
Objectives
It is expected that after going through this lesson, you would be able to
- Understand information system, describe its components and various types of IS.
- Explain the different phases of system development life cycle
- Understand and describe Phases of system and software Design
- Learn the steps in project planning to develop a defensible plan and logical schedule.
Design conceptual diagrams that will help in the design of an IS.
1.0 INTRODUCTION
1.1. Data Processing Cycle
1.2. Information vs Data
1.2.1. Data
1.2.2. Information
1.2.3 Classification of Information
1.3. INFORMATION SYSTEM
1.3.1. What is a System?
1.3.2 What is an Information System?
1.3.3 Components of IS
1.3.4 Importance of an IS in an organization
1.3.5 Types of Information System
1.3.6 Importance of an Information System
1.3.7 Opportunities Provided By an Information System
1.4 ORGANIZATIONAL STRUCTURE
1.4.1 What’s an organizational structure?
1.4.2 Why should you develop a structure for your organization?
1.4.3 Organizational Structure of an Information System
1.5 Revision Questions For unit 2
2.0 INTRODUCTION

2.1. Data Processing Cycle

The term “data processing” (or by abuse information processing) usually refers to the
manipulation off raw information (called data) to produce useful information. Information processing
cycle refers to the sequence of events which includes four principal stages: Input, processing and output

1- Input: Data input refers to the various manual and automated ways by which data enter the
computer. This stage involves collection of data from the outside or also from within the
system. The input stage can be further broken down into data acquisition, data entry and
data validation.
- Data acquisition refers to the collection of the raw data from the outside so that it can be put
into an Information system.
- Data entry is the process of putting the acquired data into the IS. Example: typing students
details into a database
- Data validation refers to the process of checking the data to ensure it is error free. It uses
routines also called validation routines or check routines, that check for correctness,
meaningfulness and security of data that are input to the system.
• format check: e.g. date has to be in the format DD/MM/YY
• Data type check: e.g. the letter ‘O’ should not be typed instead of the integer 0.
• Range check: The month should lie between 1 and 12
• Limit check: the age should not be negative
• Presence check: e.g. Any customer must have a telephone number
• Consistency check: e.g. If Title = “Mrs”, then the gender = “F”
• …
2- Processing : In this stage the computer processes the minutest details entered. It is the fact of
manipulating data to produce information.

Common processing methods

 Batch Processing: This is a method where the information to be organized is sorted into
groups to allow for efficient and sequential processing.
 Online Processing: This is a method that utilizes Internet connections and equipment
directly attached to a computer. It is used mainly for information recording and research.
 Real-Time Processing: This technique has the ability to respond almost immediately to
various signals in order to acquire and process information.
  Distributed Processing: This method is commonly utilized by remote workstations
connected to one big central workstation or server. ATMs are good examples of this data
processing method.
3- Output: In this stage, the processed information is now transmitted to the user. Output is the
act of sending out information by a data processing system such as the computer.
4- Other stages : Other stages include:
(a) Storage: After the data has been processed, along with the output to the user, the data is also
stored.
(b) Retrieval: This is the reverse of storage
(c) Communication: This is the process of sending data or information to another places.
(d) Data verification: This is the process whereby the process is checked for accuracy and
inconsistencies after data migration. Data verification is used to prevent errors occurring when
data is copied from one medium to another. Common data verification methods include:
- Proof reading (visual check): checked for errors by looking through the data. E.g. proof-
reading a typed document
- Double keying: This is a check to see whether the data has been keyed in correctly. The data
is keyed twice, and the computer will only accept the data for processing in the two versions
are identical.
- Parity: Used to check for transmission errors over network or between memory and disk. An
extra bit is added to each binary number before it is transmitted. Even parity system makes
sure that each number has an even number of “1” bits. After transmission each number is
checked to see if it still has an even number of “1” bits. If not, then the computer will conclude
that the corruption of data has occurred.
(e) Archiving: Archiving means taking the data off the main storage (e.g. hard drive) and
storing it offline (not immediately available) usually on tape in the way it will not take up
important hard disk space.
(f) Deleting: This is the process of erasing or wiping our recorder data (usually from a recorded
unit).

2.2. Information vs Data

2.2.1. Data

Data is raw, unorganized facts that need to be processed in order to make it meaningful. Data can
be something simple and seemingly random and useless until it is organized. Data does not have any
specific purpose. Example of data include : Yaounde, Nigeria, Washington, Cameroon, Lagos, USA

2.2.2. Information

Information is data that has been organized, processed, interpreted and presented to be meaningful
and useful. An example of information is :
Cameroon: Yaoundé
Nigeria: Lagos
USA, Washington
The diagram below demonstrates the relationship between data and information.
 2.2.3 Classification of Information

Information classification is a process in which organisations assess the data that they hold and
the level of protection it should be given.

Organisations usually classify information in terms of confidentiality – i.e. who is granted access to see it.
A typical system will include four levels of confidentiality:

• Confidential (only senior management have access)

• Restricted (most employees have access)
• Internal (all employees have access)
• Public (everyone has access)
As you might expect, larger and more complex organisations will need more levels. Take hospitals, for
example: doctors and nurses need access to patients’ medical histories, which are highly sensitive, but
they shouldn’t have access to other types of information that would fit that criteria, such as the hospital’s
financial records.
In cases such as this, a separate level must be created that accounts for specific job functions.
Information classification can be shown in the diagram below:
 2.3. Information System

2. 3.1. What is a System?

We can define a System as a combination of resources or functional units working together to accomplish
a given task.

a) Basic element of a system

The basic elements of the system may be listed as:

→ Resources: Resources can be hardware, software or liveware (computer users).

→ Procedures: Every system functions under a set of rules that govern the system to accomplish
the defined goal of the system. This set of rules defines the procedures for the system →
Data/Information,
→ Processes: The systems have some processes that make use of the resources to achieve the set
goal under the defined procedures.

b) Characteristics of a system

Systems also exhibit certain features and characteristics, some of which are:

→ Objective: Every system has a predefined goal or objective towards which it works. A system
cannot exist without a defined objective.
→ Standards: It is the acceptable level of performance for any system. Systems should be
designed to meet standards.
→ Environment: Every system whether it is natural or man-made co-exists with an environment.
It is very important for a system to adapt itself to its environment.
→ Feedback: Feedback is an important element of systems. The output of a system needs to be
observed and feedback from the output taken so as to improve the system and make it achieve
the laid standards.
→ Boundaries and interfaces: Every system has defined boundaries within which it operates.
Beyond these limits the system has to interact with the other systems.

c) Types of Systems

→ Manual Systems: These are systems that are basically mechanical in nature and do not require
or use any automation. Such systems existed predominantly in the past and were not very
reliable or fast.
→ Information Systems: (IS) Any system that makes use of automation and especially harnessed
by people, procedures, software, hardware and digital data is called an information system (IS).
 2. 3.2 What is an Information System?

An Information System (IS) is defined as an organized collection of technical and human

resources for the processing, storing and distribution of an organization’s information. An IS using a
computer is called a Computer Based Information System (CBIS).

2. 3.3. Components of IS

The 5 components that must come together in order to produce a Computer-Based Information system
are:

 Hardware: The term hardware refers to machinery. This category includes the computer itself,
which is often referred to as the central processing unit (CPU), and all of its support
equipments.
 Software: The term software refers to computer programs and the manuals (if any) that support
them.
 Data: Data are facts that are used by programs to produce useful information.
 Procedures: Procedures are the policies that govern the operation of a computer system.
"Procedures are to people what software is to hardware" is a common analogy that is used to
illustrate the role of procedures in a CBIS.
 People: Often the most over-looked element of the CBIS are the people, probably the
component that most influence the success or failure of information systems.

2. 3. 4. Importance of an IS in an organization

To gain the maximum benefits from your company's information system, you have to exploit all its
capacities. Importance of IS within an organisation are numerous:

Communication: Part of management is gathering and distributing information, and

information systems can make this process more efficient by allowing managers to
communicate rapidly.
Operations: How you manage your company's operations depends on the information you
have. Information systems can offer more complete and more recent information, allowing
you to operate your company more efficiently.
Decisions: The company information system can help you make better decisions by delivering
all the information you need and by modelling the results of your decisions.

Records: Your Company needs records of its activities for financial and regulatory purposes as
well as for finding the causes of problems and taking corrective action.

2. 3. 5 Types of Information System

Information systems differ in their business needs. Also depending upon different levels in organization
information systems differ. Three major information systems are:
1. Transaction processing
 2. Management information system
3. Decision support system
4. Executive Information System

2.3.5.1 Executive Information System (EIS):

This is a computer based system intended to help and support the information and decision
making needs of senior executives of a company or organization. It provides easy access to internal
and external information needed to achieve the strategic goals of the organization. It is commonly
considered as a specialized form of DSS.

Functions of a EIS in terms of data processing requirements

Inputs Processing Outputs
External Data Summarizing Summary reports
Internal Files Simulation Forecasts
Pre-defined models "Drilling Down" Graphs / Plots

2.3.5.2 Decision support system (DSS)

A decision support system is a computer application that helps users analyse problems and make
business decisions more confidently. It uses data routinely collected in organizations and special
analysis tools to provide information support to complex decisions. To store all the necessary decision-
making data, DSSs or EISs often use extremely large databases, called data warehouses. A data
warehouse stores and manages the data required to analyze historical and current business
circumstances. DSS manipulate and build upon the information from a MIS and/or TPS to generate
insights and new information.

Functions of a DSS in terms of data processing requirements

Inputs Processing Outputs
 Modelling
Internal Transactions Simulation Summary reports
Internal Files Analysis Forecasts
External Information? Summarizing Graphs / Plots

2.3.5.3 Management Information system (MIS)

The MIS is defined as a system which provides information support for decision making
in the organization. They use the results of transaction processing and some other information also. It
is an information system that generates accurate, timely and organized information so managers and
other users can make decisions, solve problems, supervise activities, and track progress. An important
element of MIS system is database. MIS are built on the data provided by the TPS

Functions of a MIS in terms of data processing requirements

Inputs Processing Outputs
Internal Transactions Sorting Summary reports
Internal Files Merging Action reports
Structured data Summarizing Detailed reports

2.3.5.4 Transaction Processing System (TPS)

A transaction processing system (TPS) is an information system that captures and processes
data generated during an organization’s day-to-day transactions. A transaction is any activity of an
organization including a business activity such as a deposit, payment, order or reservation. As
computers became more powerful, system developers built online transaction processing systems.
With online transaction processing (OLTP) the computer processes transactions as they are entered.

Functions of a TPS in terms of data processing requirements

Inputs Processing Outputs
Transactions Validation Sorting Lists
Events Detail reports
Listing Action reports
Merging Summary reports?
Updating
Calculation
2.3.5.5 Other types of information systems
a) Office Automation System (OAS): These are systems that use varied computer machinery and
software to digitally create, collect, store, manipulate and relay office information needed for
accomplishing basic tasks in an organisation. All office functions like dictation, typing, filing, copying,
fax, telex, microfilm and records management, telephone and telephone switch board operations are
included.
b) Expert system (ES): An expert system is an information system that captures and stores the
knowledge of human experts and then imitates human reasoning and decision-making processes for
those who have less expertise. Expert systems are composed of two main components: a knowledge
base and inference rules.
- A knowledge base is the combined subject knowledge and experiences of the human experts.
- The inference rules are a set of logical judgments applied to the knowledge base each time a user
describes a situation to the expert system.
c) Integrated Information Systems (IIS): With today’s sophisticated hardware, software and
communications technologies, it is often difficult to classify a system as belonging uniquely to one of
the information system types discussed. Although expert systems still operate primarily as separate
systems, organizations increasingly are consolidating their information needs into a single, integrated
information system.

2. 3. 6. Importance of an Information System

Information system has the following advantages to any organization or system: a) IS help an
organization in decision making
b) They help to improve performance
c) Efficient in business communication
d) They help in record taking in an organization
e) Problem identification is easier with an IS in an organization.

2. 3. 7 Opportunities Provided By an Information System

Various career opportunities exist in the field of Information Systems. Thus, students can find an
area that interests them and pursue it further. Although career opportunities are numerous, each one
requires that a graduate possesses the following basic skills:

• Analytical skills
• Interpersonal skills
• Presentation skills
• Problem identification skills
• Report writing skills
• Self-development skills
• Time management skills

Career opportunities in the field of Information Systems include:

• Systems or business analyst
• Project manager
• Information officer
• Database administrator
• Business intelligence
• ICT consultant
• Web design
• Programmer
• Systems architect
 2. 4 Organizational Structure

2. 4.1 What’s an organizational structure?

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see their organization and its
environment. Organizational structure determines how the roles, power and
responsibilities are assigned, controlled, and coordinated, and how information flows between The
different levels of management. A structure depends on the
organization's objectives and strategy.
In a centralized structure, the top layer of management has most of the decision making power
and has tight control over departments and divisions.
In a decentralized structure, the decision making power is distributed and the departments and
divisions may have different degrees of independence.

2. 4. 2 Why should you develop a structure for your organization?

Structure gives members clear guidelines for how to proceed. A clearlyestablished structure
gives the group a means to maintain order and resolve disagreements.
Structure binds members together. It gives meaning and identity to the people who join the
group, as well as to the group itself.
Structure in any organization is inevitable -- an organization, by definition, implies a
structure.

2. 4. 3 Organizational Structure of an Information System

An organizational chart illustrates the organizational structure. It is Visual representation of how

a firm intends authority, responsibility, and information to flow within its formal organizational structure.
It usually depicts different management functions (accounting, finance, human resources, marketing,
production, R&D, etc.) and their subdivisions as boxes linked with lines along which decision making
power travels downwards and answerability travels upwards.
2. 5 Revision Questions For Unit 2

1) Define the following terms as related to Information System

a) Data
b) Information
c) System
d) Information System
2) In a tabular form, differentiate between Data and Information.
3) With the help of diagrams, write short notes on any fours (04) Information systems of your
choice.
4) What is the difference between a manual system and an information system?
5) Why is it important for an organization to implement an information system? Give 5
reasons.
6) What are various occupations that could be available for one who has specialized
information system design and analysis?
7) Why is developing a structure important to any organization?
8) Is it advisable for an organization to classify its information? Why/why not ?