What are systems?

 A system is a group of elements that are

integrated with the common purpose of
achieving an objective. Organization
having common goal for the
achievement.
 Organizations have functionally
interactive units to achieve the common
goal or goal of a system.
 A system is a set of interrelated elements that
collectively work together to achieve some common
purpose or goal.
 A cricket game is also played according to a system
that is composed of such elements like
 Teams
 Rules
 Stadiums
 Referees
 A computer based information system is
also collection of people, hardware,
software and procedures that interact to
provide timely data and information.
Purchase System
 A simple example can be given of a purchase and
sales system. In a typical purchase system information
related to purchase of materials is kept, for instance
 Orders for the purchase of various materials
 Status of deliveries received against specific orders
 Changes in the order quantity, time, day or other information
 Quality inspection reports and whether they need to be
communicated to the supplier.
 Updated status report of stock
 Issues made out of the stock
Component of System
Following are the important components of the system.
• Input elements
Raw Data input to the computer system
• Process
Any specific treatment defined in the system to be performed on the data entered into the
system
• Output elements
The results given by the system after the process has been performed on the data being input
to the system.
• Control mechanism
Every system is expected to generate some sort of standardized output. Hence actual output
needs to be compared with what it is supposed to generate. This comparison of actual with
expected output is done with the help of control mechanism.
• Feedback system
A formal reporting system.
 Generally the components are divided
into two broad categories
 Logical Description
 Physical Description
Logical Description

 The logical description of a system is a

representation that specifies essential
system elements in broad. E.g. if we
want to describe a computer system, we
might use the terms “Input”, “Processing”
and “Output”.
Physical Description

 The physical description is much more

precise about how it is actually
implemented. E.g. If we state that a
keyboard is to be used as an input device
on a microcomputer system, which also
uses both printer and monitor as output
devices. So here we are describing
system in physical terms.
MODELING SYSTEMS

 When study any system, it is convenient

to represent them in the form of a model.
Types of Models

 Graphic Models
 Mathematical Model
 Narrative model
 Physical Model
Graphic Models

 These models generally use

Symbols
Icons
Boxes
Lines
They represent real world elements and their
relationship.
Mathematical Model

 A mathematical model is used to express

quantifiable phenomena.
 This model shows the economic order
quantity, D shows the annual usage of
product, C shows cost of placing
individual order, P shows the price of
product, H is unit cost of carrying items in
inventory.
Narrative Model

 This Model describes a system without

any formula or graph. Some examples of
narrative models are the spoken words
describing an object or event, a written
description of procedure, a photograph or
a videotape of an object or event.
Physical Model

 A physical model is usually a three

dimensional representation that can be
held or touched. In field of architecture,
physical models of buildings are widely
used to show clients what new facilities
will look like before they are built.
Types of Systems

There are different types of Information

Systems.
 Open Loop System
 Closed Loop System
Open Loop System
 The determinant factor in open loop system
is that the information from the system not
used for control purpose.
 The output is not coupled to the input for
measurement.
 E.g. An information system that automatically
generates report on regular basis and are not
used to monitor input or activities.
Open Loop System
 In open-loop architecture, business decisions
made by management have an impact in the
marketplace, and the impact of that decision is
measured only indirectly by the company's
computer systems. For example, if a bank
decides to raise interest rates, the results of the
decision impact the lenders, the present and
future borrowers. The results are measured
indirectly as loan applications increase or
decrease.
Open Loop System

 Another example can be given of an

insurance company which decides to
offer a new kind of insurance. The market
expresses its approval or disapproval by
buying or not buying the new insurance
offering.
ACTIVITY

 Models of Organizational System with its

external and internal Environment.
 Strategic Planning Models
Closed Loop System
 Is a system where part of the output is feed
back to the system to initiate control to change
either the activities of the system or input of the
system.
 Example
Budgetary control system in a company by
which the results are communicated through
feedback system.
Results are compared with the
objectives/budget through controls mechanism
Example:

 THE BOOK STORE may have:

• An Open loop – if customer feedback is
not taken for the purchase of books for
the store OR
• A Closed loop – if Customer
feedback/interest is taken into account
when selecting the books to be
purchased and displayed in the store
Example:

 The SCHOOL LIBRARY may have:

An Open loop – if students’ feedback is not taken for the kind of
books to be stocked in the library.

A Closed loop – if students’ interest is the determinant criteria

for the kind of books that are to be carried out in the library
Closed Loop System
 As an example of a closed- loop decision
environment, suppose a departmental store
can use its data warehouse to determine who
has made purchases of more than Rs. 15000
in the past year. Once that information is
collected, those customers can be offered a
personalized credit card. In such a manner,
management can measure the effect of the
decision quickly and very accurately.
Open Systems
 A system that is connected to its environment
by means of resource flows is called an open
system.
 E.g. Business is a system where management
decisions are influenced by or have an
influence on suppliers, customers, society as a
whole.
 E.g. Book Store any and everyone is allowed
to view and purchase the books available.
Closed Systems
 A system that is not connected with its environment
 Examples
• An information system designed to control data in
a research laboratory is a closed system.
• An information system designed to record highly
sensitive information is a closed system so as
• To accept no input for amendment
• To give no output for disclosure
Control System
 A system must be controlled to keep it steady.
 The actual results deviate from expected results.
 Control is required to cover unpredictable disturbances.
 The disturbance may be entry of powerful new
competitor into market.
 Unexpected rise in labor cost.
 The failure of supplier to deliver promised raw
materials.
 Tendency of employees to stop working.
Control System

 The control system must ensure that

business is capable of surviving these
disturbances by dealing with them.
Filtering

 Filtering means removing ‘impurities’.

 Operational staff may need detail but
when they report to higher system then
detail is filtered out leaving only the
important points.
Level of Planning

There are three levels

• Strategic
• Tactical / Functional
• Operational
Strategic Planning
 Is the formulation, evaluation and selection
of strategies for the purpose of preparing a
long-term plan of action to attain objectives.
Tactical/Functional
Planning
 Is the process by which managers assure
the resources are obtained and used
effectively and efficiently in the
accomplishment of the organization’s
objectives
Operational Planning

 Is the process of assuring that the

specific tasks are being carried out
efficiently and effectively.
Functional Strategic
Planning
Firm’s executives requires strategic planning
for the following functional areas.
o Manufacturing resources
o Financial resources
o Human resources
o Marketing Resources
o Information Resources
Integration of Information
 Integration of information enables us to create a
common view of information across the organization.
 Information integration is the process of integrating and
transforming data and contents to deliver authoritative,
consistent, timely and complete information.
 we emphasize the benefits of integrating information
across the enterprise, creating an information
technology infrastructure in which information flows
from one part of the organization to another and from
the organization to its customers, suppliers, and
business partners.
Information
Confidentiality
 Information will be treated in the
confidence and will not be delivered to
anyone outside the organization except
where circumstances exist However, in
order that we can provide the best possible
help to our clients it may be necessary to
share information with a supervisor or
manager within Care Confidential.
Information
Confidentiality
 No conversation about a client should take
place with anyone.
 No personal information about a client will be
given to any third party.
 You should not discuss personal information
given by clients.
 Any information that you give to your Project
Leader will not be discussed with others
without your consent and knowledge.
Information
Confidentiality
 Authorization for access to data should
not exceed the minimum level required
for each user to carry out his/her role
effectively. Each employee must have an
individual account for which specific
access has been approved by the data
owners.
Characteristics
of Effective
Information
Information is something
that is perceived
 Perceptual and personality factors
influence the manner in which data are
encoded, processed and stored. Thus
two people looking at the same set of
data often focus on and perceive different
things, perhaps reaching different
conclusions.
Information reduces
Uncertainty
 People tend to seek out information
because certain facts may help to
minimize the risk of making wrong
decision and making the right one.
The rate at which people
can process data into
information is finite
 If too many data are presented in limited
and certain time frame, The result is
information overload. Since individuals
can only process chunks of data at one
time. Materials such as reports, graphs
and tables should be formatted that they
do not overwhelm decision makers.
Content

 The most important quality of MIS is that

it contain information that people really
need.
Presentation

 Presentation refers to the methods of

increasing interest that report or screen
information will be both comprehensible
and useful. This must maximize the
impact that output have on users and
decision makers. Presentation is
important in the same way that a person
outside appearance is important.
Eliminating Unnecessary
information
 The presence of unnecessary information
detracts from the impact of key
information.
Carefully formatting
critical information
 The physical placement of information is
also very important. If critical information
relegated to places where decision
makers are not apt to look, it may go
unnoticed.
Putting information into
its useful form
 Some information has greater impact if it
is converted from absolute form into
relative form. E.g. Numbers often have
more informational value if they are
computed in percentage or draw in form
of line and some other graph form.
Using Color

 The availability of color monitor, plotters

and printers makes it possible to use
color to highlight important information.
INFORMATION
MANAGEMENT
Information must be managed just
like other organizational resources.
INFORMATION
MANAGEMENT
 Identify current and future information needs.
 Identify information resources
 Collecting Information
 Storing Information
 Facilitate the existing methods of using
information.
 Ensure that information is communicated to
those who need it
Users of Information

 The Board of Directors

 Divisional Managers
 Departmental heads
 Section Heads
 Employees
Factors to make
Information Valuable
 The Source of Information
 The ease of Assimilation
 Accessibility
The Source of Information

 If the source of information is more

respected, widely known, quality
information provider and accuracy then
information become more valuable.
The ease of Assimilation

 People will use modern methods of

presentation not only words and figures
but also for color graphics, sounds and
movement. This makes the information
reception more richer and can be easily
understood.
Accessibility

 If the information is easily accessible and

users do not have to commit too much
time and effort to receive it then
information becomes more valuable.
Cost and Value OF
Information
 The cost of an individual item is not
always easy to quantify.
Knowledge Management
 Knowledge is the information within people
minds. Knowledge management describes the
process of collecting, storing and using the
knowledge held within an organization.
 Knowledge is commonly viewed as source of
competitive advantage.
 Knowledge is valuable because human creates
new ideas and use it for decision making.
Types of Knowledge

 Explicit
 Tacit
Explicit

 The knowledge that company knows that

it has. It include facts, transactions and
events that can be clearly stated.
Tacit

 The knowledge that company does not

know it has.
 Organization should encourage people to
share their knowledge. This can be done
through improved management of
information.
Attributes of an IS/CBIS
 Efficient Processing, including query
time
 Large Storage Capacity
 Reduced information Load
 Cross-functional boundaries
 Competitive Tool
 Electronic Document
Management/Paper Free environment
Large Storage Capacity
 Efficient and effective decision making requires
two aspects
– Availability of processed data – occurrence of
every event relating to a company affects
policy making and implementation, thus
recording and processing of every data results
in huge amount of information is essential.
– Instant access to right chunk of information
presented in comprehensible format – both the
above requirements are easy to handle when a
well structured information system is in place.
Efficient Processing,
including query time
 Every transaction affects our records in a
number of ways. CBIS helps in updating
every change being triggered in less time
and with less effort.
Reduced information Load
 With such huge amounts of information
available, managers can feel overloaded,
hence taking more time in decision making.
CBIS/IS help to tailor loads of information w.r.t.
every manager’s requirements. The way
information is presented can also save time for
decision making. Hence, report formats can be
tailored in accordance with the nature of
problem being faced.
Cross-functional
boundaries
There are various functions in an organization that need to be
managed.
 Manufacturing
 Purchasing
 Warehousing
 Marketing
 Accounts
 Finance
 Human Resource
In every transaction, every department has its own share of
responsibility. Thus uncoordinated effort by every department won’t
help in achieving the successful completion of transaction and meeting
commitments. CBIS help in keeping an updated record for easy access
by every department in an organization.
Competitive Tool

 Businesses invest to earn profits or for

other non-profit based objectives. Hence
CBIS/IS can and should work to enhance
the competitive advantage for the
organization.
Electronic Document
 Information overload enhances paper work.
 Maintenance of records in hard form has
always difficult job.
 An IS/CBIS should be efficient enough to
properly manage of documents electronically.
 Report generation and record analysis gets
convenient and easy.
Conclusion

 Hence an Information System / Computer

Based information system should help an
organization in achieving the above
mentioned goals. If put differently, an
organization should not proceed with the
implementation of an IS unless it helps in
achieving the above goals.