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System: Concept, Control and Types: Guided By: Dr. Deepika Upadhyay Presented By: Akanksha Rustagi Mba-Ii

System is defined as a group of interrelated parts that work together towards a common objective. There are two main types of systems - open systems that are responsive to the environment, and closed systems that have defined inputs, processes, and outputs. Every system can also be considered a sub-system of a larger system. Information systems include hardware, software, data, procedures, and people, and provide feedback. Management Information Systems help with routine operational data for tactical decisions, while Decision Support Systems provide strategic unstructured information to evaluate options like opening a new branch. Control in systems ensures data integrity and prevents fraud by using organizational, input preparation, and processing controls. Information

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26 views10 pages

System: Concept, Control and Types: Guided By: Dr. Deepika Upadhyay Presented By: Akanksha Rustagi Mba-Ii

System is defined as a group of interrelated parts that work together towards a common objective. There are two main types of systems - open systems that are responsive to the environment, and closed systems that have defined inputs, processes, and outputs. Every system can also be considered a sub-system of a larger system. Information systems include hardware, software, data, procedures, and people, and provide feedback. Management Information Systems help with routine operational data for tactical decisions, while Decision Support Systems provide strategic unstructured information to evaluate options like opening a new branch. Control in systems ensures data integrity and prevents fraud by using organizational, input preparation, and processing controls. Information

Uploaded by

akanksha_rustagi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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System: Concept,

Control and Types

Guided by:
DR. DEEPIKA UPADHYAY presented by:
AKANKSHA RUSTAGI
MBA-II
What is a SYSTEM?
A system comprises of a group of inter-related and
often interacting parts that together constitute a
whole.
e.g.-computer system….
A system is used to accomplish some objective or a
set of objectives.
The objective can be of transforming some
input(data) into useful information, through electronic
processing.
And since computer system generates information it
is known as INFORMATION SYSTEM
Types of systems:
1. Open system:
more responsive towards the environment;
reacts with customers, vendors &law makers: who bring
some kind of change whether in terms of products or
personnel.

2. Closed system:
like a computer system;
highly structured: well defined input, processing & output
units.
Can’t easily respond to unplanned changes.

Thus we need to have a flexible system which is adaptive to


environmental changes and also supports the business
systems.
Sub-system:
subsystems are sub-divisions of a system
We can say that every system is a sub system of some larger
system.
E.g. business information system: fin./prod./marketing

System development:
Components of a computerized information system
1. Hardware
2. Software
3. Data
4. Procedures
5. People

Also feedback is an integral part of this whole system.


Broadly IS can be classified in two categories:

MANAGEMENT INFORMATION SYSTEM


DECISION SUPPORT SYSTEM

1. M.I.S:
Helps in obtaining tactical information which need further processing.
e.g. at what stock level should reorder be initiated? How much should be re-
ordered?
We require a routine data processing to fetch operational information which
becomes an input to obtain tactical information.

2. D.S.S:
Helps in getting strategic information.
This kind of info. is unstructured.
They help in getting decisions like whether or not? After getting answers to
questions like : WHAT?
e.g. whether to open a new branch or not?
The concept of CONTROL IN SYSTEMS:

Why do we need to have control on information and system?


Control checks that the system processes the data as it is
designed to, so that we can have reliable reports.
The inflow and outflow of data should be controlled and no
duplication should occur,
However if some data is skipped by mistake, methods should be
devised of locating it without searching of whole system.

However controls are time consuming: require more


programming and processing time & memory consuming too,
but these limitations should not limit the extent of control.
Necessary controls should be planned and executed at initial
stages only.
OBJECTIVE OF CONTROL :

1. To make sure that data entering into the computer are


correct.
2. To check clerical handling of data before these reach
the computer.
3. To provide a method of auditing the steps in a
procedure to detect quickly where an error hs
occurred in the procedure.
4. To ensure that accounting for tax purpose or other
legal requirements is carried out according to the law.
5. To guard against the fraud that may affect the
financial standing and reputation of business.
TYPES OF CONTROL TECHNIQUES:
1.Organizational measures:
All changes must be monitored and reported
Responsibilities should be assigned individually e.g.
performance and recording of operations should be done by
different individuals.
Example: quantity of items received by a warehouse should
independently match with the quantity for which payment is
made, based on suppliers’ invoices.
2. Input preparation controls:
a. Sequence numbering
b.Batch controls
c .Data entry and verification
d.Record totals
e.Self checking digits
TYPES OF INFORMATION SYSTEMS:

1. Formal, Informal & Computer based.

2. Strategic, Managerial & Operational.

3. Structured and Unstructured.


Thank you

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