Unit 3: System Development, Types of system, Open Closed,

deterministic probabilistic……

Concept of System-

Definition of a System and Its Parts

system is an interrelated set of business procedures (or components) used
within one business unit, working together for some purpose. For example, a
system in the payroll department keeps track of checks, whereas an inventory
system keeps track of supplies. The two systems are separate. A system has
nine characteristics. A detailed explanation of each characteristic follows,
system exists within a larger world, an environment. A boundary separates
the system from its environment. The system takes input from outside,
processes it, and sends the resulting output back to its environment.

Types of Systems
1. Open or Closed Systems: An open system continually interacts with its environments. It
receives inputs from and delivers output to the 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.
2. 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.
3. 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 straightforward as formulas of relationships among sets of variables or models
– the abstract conceptualization of physical situations.
Relevance of Choice of System in MIS:-
The four alternatives to in-house development by IT specialists are
outsourcing, licensing, using software as a service (SaaS), and having the
users develop the system. If an application of the desired features and quality
can be obtained from more than one of the resources, then the major factor
left to be considered is usually cost. The preference then would be to license,
because of immediate availability and low cost. If the application cannot be
licensed, the next choice would usually be to obtain the use of the system as
a service from an application service provider (ASP) because the system is
immediately available for use and the organization does not have to lay out a
large sum up front for such use. If ASPs do not offer the desired IS and it can
be developed by non IT employees, then this would usually be the chosen
alternative. If non-IT employees cannot develop the IS, the choice might then
be to outsource IS development.

Outsourcing Outsourcing in general means hiring the services of another

organization or individual to perform some of the work that otherwise would
be performed by you or your employees. In the IT arena, Outsourcing has two
meanings. One is to commission the development of an application to another
organization, usually a company that specializes in the development of this
type of organization. The other is to hire the services of another company to
manage all or parts of the services that otherwise would be rendered by an IT
unit of the organization.

Integration of Organization Systems and Information

Systems:-
To facilitate the management decision making at all levels of company, the
MIS must be integrated. MIS units are companywide. MIS is available for the
Top management. The top management of company should play an active role
in designing, modifying and maintenance of the total organization wide
management information system. Information system and Information
technology have become a vital component of any successful business and are
regarded as major functional areas just like any other functional area of a
business organization like marketing, finance, production and HR. Thus it is
important to understand the area of information system just like any other
functional area in the business. MIS is important because all businesses have
a need for information about the tasks which are to be performed. Information
and technology is used as a tool for solving problems and providing
opportunities for increasing productivity and quality.

Information has always been important but it has never been so available, so
current and so overwhelming. Efforts have been made for collection and
retrieval of information, However, challenges still remain in the selection
analysis and interpretation of the information that will further improve decision
making and productivity.
System Development Life Cycle:-
System Analysis, Design and Implementation Software development
methodology A software development methodology or system development
methodology in software engineering is a framework that is used to structure,
plan, and control the process of developing

The three basic approaches applied to software development methodology

frameworks. A wide variety of such frameworks have evolved over the years,
each with its own recognized strengths and weaknesses. One software
development methodology framework is not necessarily suitable for use by all
projects. Each of the available methodology frameworks are best suited to
specific kinds of projects, based on various technical, organizational, project
and team considerations. These software development frameworks are often
bound to some kind of organization, which further develops, supports the use,
and promotes the methodology framework. The methodology framework is
often defined in some kind of formal documentation. Specific software
development methodology frameworks (noun) include:

Waterfall development: The Waterfall model is a sequential development

approach, in which development is seen as flowing steadily downwards (like a
waterfall) through the phases of requirements analysis, design,
implementation, testing (validation), integration, and maintenance. The basic
principles are:
• Project is divided into sequential phases, with some overlap and splashback
acceptable between phases.
• Emphasis is on planning, time schedules, target dates, budgets and
implementation of an entire system at one time.
• Tight control is maintained over the life of the project via extensive written
documentation, formal reviews, and approval/signoff by the user and
information technology management occurring at the end of most phases
before beginning the next phase.
The Waterfall model is a traditional engineering approach applied to software
engineering. It has been widely blamed for several large-scale government
projects running over budget, over time and sometimes failing to deliver on
requirements due to the Big Design Up Front approach. Except when
contractually required, the Waterfall model has been largely superseded by
more flexible and versatile methodologies developed specifically for software
development. See Criticism of Waterfall model.

Prototyping: Software prototyping is the development approach of activities

during software development, the creation of prototypes, i.e., incomplete
versions of the software program being developed.
The basic principles are:
• Not a standalone, complete development methodology, but rather an
approach to handle selected parts of a larger, more traditional development
methodology (i.e. incremental, spiral, or rapid application development (RAD)).
• Attempts to reduce inherent project risk by breaking a project into smaller
segments and providing more ease-of-change during the development process.
• User is involved throughout the development process, which increases the
likelihood of user acceptance of the final implementation.
• Small-scale mock-ups of the system are developed following an iterative
modification process until the prototype evolves to meet the users’
requirements.
• While most prototypes are developed with the expectation that they will be
discarded, it is possible in some cases to evolve from prototype to working
system.
• A basic understanding of the fundamental business problem is necessary to
avoid solving the wrong problem.

Spiral development:

The spiral model is a software development process combining elements of

both design and prototyping-in-stages, in an effort to combine advantages of
topdown and bottom-up concepts. It is a meta-model, a model that can be
used by other models.
The basic principles are:
• Focus is on risk assessment and on minimizing project risk by breaking a
project into smaller segments and providing more ease-of-change during the
development process, as well as providing the opportunity to evaluate risks
and weigh consideration of project continuation throughout the life cycle.
• "Each cycle involves a progression through the same sequence of steps, for
each part of the product and for each of its levels of elaboration, from an
overall concept-of-operation document down to the coding of each individual
program."
• Each trip around the spiral traverses four basic quadrants:
(1) determine objectives, alternatives, and constraints of the iteration;
(2) evaluate alternatives; Identify and resolve risks;
(3) develop and verify deliverables from the iteration; and
(4) plan the next iteration.
• Begin each cycle with an identification of stakeholders and their win
conditions, and end each cycle with review and commitment.

Systems Design and Implementation.

Introduction to SD
The business application system demands designing of systems suitable to the
application in project.
The major steps involved in the design are the following:
Input Design Input design is defined as the input requirement specification as
per a format required. Input design begins long before the data arrives at the
device. The analyst will have to design source documents, input screens and
methods and procedures for getting the data into the computer.
Output Design – The design of the output is based on the requirement of the
user –manager, customer etc. The output formats have to very friendly to the
user. Therefore the designer has to ensure the appropriateness of the output
format.
Development – When the design and its methodology are approved, the
system is developed using appropriate business models. The development has
to be in accordance to a given standard. The norms have to be strictly adhered
to.
Testing - Exhaustive and thorough testing must be conducted to ascertain
whether the system produces the right results. Testing is time consuming: Test
data must be carefully prepared, results reviewed and corrections made in the
system. In some instances, parts of the system may have to be redesigned.
Testing an information system can be broken down into three types of
activities: unit testing, system testing and acceptance test.

Implementation is a phase of system development where we implement all

the planned work to create a new system or get enhanced existing ones. MIS
implementation is a management process where all the objectives are
implements in the form of an MIS system. This system is further used by
management executives to do organizational activities. Successfully
implemented MIS along with testing, may be used by top-level executives of
the company in decision making.
Implantation is one of the most crucial phases of the MIS system. After
successful MIS design, the implementation process starts. MIS
implementation is a management process. The implementation procedure is
straightforward. Implementation preparation starts with defining and
establishing relationships between different tasks, assigning tasks for executing
all tasks, making cost estimation, and developing a monitoring and control
system. After successful implementation of the MIS; organizational changes
occur.

MIS Applications in Business.

An information system (IS) is the concept of integrating computer technology
in a business or organization. An information system can be small or large, and
designed for any type of business or organization. Information systems are the
main thrust of automating a department, division or branch which depends on
data to make decisions, produce products or goods, perform logistical
functions and develop software.
Executive Management - At the executive management level, business
information systems are designed to find solutions to corporate problems and
provide a decision support system based on project scenarios. An information
system can assist in determining scenarios such as mergers and acquisitions,
and streamline the strategic planning process. Executive managers such as a
Chief Operations Officer (COO) or Chief Financial Officer can make corporate
decisions based on data provided by the IS. At the executive level, the focus of
information systems is quality assurance and return on investment (ROI).
Operations Management - The role of information systems in operations
management is critical. Operations management is the heart of any
corporation or business. In operations management, information systems
design can apply to production control, research, development, and
manufacturing. Even though these processes or departments are separate,
information systems can integrate these processes to work efficiently to
produce desired results of a product or service.
Human Resources - Human resources management relies on information
systems to maintain employee records, benefits information and historical
information regarding employees. Information systems applications in the area
of human resources can integrate employee data into several processes used
by human resource managers or personnel to process important data
concerning employees. IS has applications for conducting research, workforce
projections and mandates for compliance in labor relations.
Logistics Management - Logistics management includes processes of shipping,
receiving or developing a structure for products or services. Information
systems support logistical processes in various ways, such as real time inquiries
to track an item from the point of shipment, receiving and storage of the item
and inventory status of the item. The information system enhances services
such as the tracking of goods on a transportation route and the arrival time of
goods through a computerized tracking number. Most freight carriers such as
United Parcel Service (UPS) and Federal Express (FedEx) use elaborate
information systems to manage their logistical process