Understand the Basic

Elements of a System
Unit 1
 Appreciation for a Man made Systems and a Natural Systems
System Definition
• A set of interrelated components working together for a common purpose.
Components of a system
• A system has four basic components: input, processing, output and feedback, (see
Fig. 1.1).

Figure 1.1 Components of a System

• Input -Things put into the system. These are data are collected and entered into
computer.
• Processing - These are also data are manipulated into information using
mathematical, statistical, and other tools.
• Output - Things taken from the system. Information is displayed or presented.
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Appreciation for a Man made Systems and a Natural Systems, (Cont)
Natural Systems
• Natural systems may not have an apparent objective but their outputs can be
interpreted as purposes.
• Example of a natural system is the reproductive system.
• Purposes: Facilitates in the reproduction of animals and plants.
Man made Systems
• Man-made (designed) systems are made with purposes that are achieved by the
delivery of outputs.
• Their parts must be related; they must be designed to work as one - else they would
be two or more distinct systems.
• An example is an accounting system.
• Accounts payable will record money that the organization owes.
• Accounts receivable will record sums owed to the organization.

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 Man-Made System or Natural System?

Digestive System Electrical System

Education System Immune System

Water Cycle System Metric System

Binary System
Computer System

Reproductive System

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 Understand the Basics of Automated Man made Systems
Components of an automated system
The components are:
• Data: This is input that the system takes to produce information.
• Hardware: This includes the computer and the peripheral equipment.
• Software: Set of instructions that tell the computer how to take data in, how to
process it, how to display the information, and how to store data and information.
• Telecommunication: This is combination of hardware and software that facilitate the
fast transfer of pictures, animation, text, images and sound.
• People: These are professionals and users who analyze organizational needs,
design information systems, write computer program and manage computer hardware
and software.
• Procedures: Rules that are used to process and secure data.
On-line System
• An on-line system is a system that is available on line to provide some computational
outcome.
• An on-line system maybe a real-time system.
Real-time system
• A real-time system is a system that reacts to events in the environment by performing
predefined actions within specified time intervals.
• Examples of real time systems are: aircraft, airport landing services, nuclear power
stations, chemical plants and life support systems.

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 Understand the Basics of Automated Man made Systems, (Cont)
Decision Support System (DSS)
• A decision support system is an organized collection of people, procedures, software,
databases, and devices used to support problem-specific decision making.
• Interactive support for non-routine decisions or problems.
• End-users are more involved in creating a DSS than an MIS.
Knowledge based systems
• Supports knowledge, integrated new knowledge into business and helps to control
flow of paperwork.

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 General Systems Principles
General system principles
• In a system the different components are connected with each other and they are
interdependent.
• For example, the human body represents a complete natural system.
• We are also bound by many national systems such as political system, economic
system, educational system and so forth.
• The objective of the system demand that some output is produced as a result of
processing the suitable inputs.
• System Development - Any accepted approach for analyzing, designing,
implementing, testing, maintaining, and evaluating an information system.
Information Systems
• A type of fabricated system used by one or more persons, to help them accomplish
some task or assignment they have.
• An Information System:
 Supports policies and procedures
 Has three components – data, people, procedures
 In addition to the six general system components input, output, processing,
control, feedback and boundary.
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 General Systems Principles, (Cont)
Types of Information Systems

Electronic Commerce Systems

• E-commerce is a new way of conducting business, and transactions over networks
and through computers.
• Specifically, ecommerce is the buying and selling of goods and services, and the
transfer of funds, through digital communications.
• Business-to-business
• Business-to-consumer
• Business-to-government
• Government-to-consumer

Transaction Processing Systems

• A transaction processing system (TPS) is an organized collection of people, procedures,
software, databases, and devices used to record completed business transactions.
• Process business exchanges
• Maintain records about the exchanges
• Handle routine, yet critical, tasks
• Perform simple calculations

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 General Systems Principles, (Cont)
Types of Information Systems

Transaction Processing System (TPS)

• The lowest level of information system.
• Operational Level - Aid operational managers.
• The primary users of a TPS are staff at the Operational, or lowest-level, of a
business.
• Most common form of information system.
• Used by businesses to record “transaction” information.
• Transactions include things like booking airline tickets, purchasing goods or services.
• TPS accept input related to a transaction event, process it, and produce output.
• Handle routine information manipulation –sorting, listing, merging, etc .
• Many online so users can interact with database simultaneously.
• Provides raw data used in processing in EIS, MIS and DSS.
• Critical - TPS are important for a business. They manage the data that keeps the
business going.

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 General Systems Principles, (Cont)
Types of Information Systems

Management Information System (MIS)

• Aid middle managers.
• Provide focused view of information flow.
• Regular reports on internal events – weekly, monthly, yearly Planning, controlling,
decision making.
• Depend on TPS.
• Not flexible or analytical – answer predefined questions.
• A step up from TPS.
• Reports are used to monitor and control normal business activities.
• A MIS provides Managers with reports on an organisations performance - both past
and present.
• MIS serves Managers by helping them monitor actual business performance, and
predict future performance.
• Transaction data is compressed by summarisation, and presented in long reports.
• Reports are produced on a regular basis answering routine, structured questions.

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 General Systems Principles, (Cont)
Decision Support System (DSS)
• Definition: A DSS is a coherent system of computer based technology used by
managers as an aid to their decision making in semi-structured tasks.
• Conceptually, DSS and MIS overlap in many aspects, but generally:
– MIS are used to produce routine reports.
– DSS use more sophisticated analysis and data modelling tools (Spreadsheet
modelling, What-If scenarios, Regression Analysis, Graphical projection of
performance) to solve semi-structured problems.
• Used to solve unusual problems, and problems that fall outside the capabilities of the
MIS
• Structured and semi-structured decisions.
• Used by managers at different levels.
• Used both by groups and individuals.
• Supports a variety of decision styles and processes.
• It has adaptability and flexibility.
• Ease of use.
• Its based on effectiveness and not efficiency.

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 General Systems Principles, (Cont)
Types of Information Systems

Executive Support System (ESS)

• Topmost systems.
• High-level systems designed to provide Senior Management (SM) with information on
general trends in business activities rather than the intimate details.
• Used to help SM formulate business strategies, and plan for the future.
• Relatively long time-frame considered.
• Unstructured and open-ended (many variables can be considered).
• For accurate results ESS require information from inside and outside the business.
• Provides rapid access to current information and filters and tracks critical data.
• Its major activity is information scanning and evaluation, it deals mainly with the
intelligence phase of decision-making.
• Improved financial and operational control.
• Enhances business problem solving (business crisis).
• Helps in the identification of new opportunities (e.g. tour operators use it to identify
new holiday destinations)
• Increases IT awareness among senior management.

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