Harambee University

Management Department
Chapter One
Introduction to System and System Analysis

Prepared By: Kebebe.S(MSc)

Definition of System
 The term system is derived from the Greek word systema, which
means “an organized relationship among functioning units”.
 A collection of components that work together to realize
some objective forms a system.
 The objectives of the system demand that some output is
produced as a result of processing the suitable inputs.
 Basically there are three major components in every
system, namely input, processing and output.
Definition of System
 Basically there are three major components in every system,
namely input, processing and output.
 A system is a part of bigger system. It consists of four layers:
1. Conceptual Layer: system objectives, system scope and
interfaces to other system.
2. Logical Layer: Rules & regulations, Functions & Process, data
flow & process flow.
3. Control Layer: control based on conditions & constraints to
ensure results.
4. Operational Layer: User interface, data entry, operational flow
and maintenance.
Characteristics of a System
• [characteristic = attribute/feature/something it has
that makes it a system]
 There are 9 characteristics that a system has:
o Components – one part or a number of parts grouped
together – a subsystem.
o Interrelated components – function of one component is
related to the function of another component – output from
one is input for another – dependence of a part on one or
more other parts.
(Cont…)
o Boundary – separates the system from other systems; all
components within the boundary; establishes the limits of the
system; components within the boundary can be changed but
components outside cannot be changed. Separates the system
from other systems in the organization.
o Purpose – (or goal) – all components work together to achieve
the overall purpose of the system.
o Environment – everything outside the Boundary that
influences and/or interacts the system.
o Interfaces – the points at which the system meets the
environment, or where subsystems meet each other.
(Cont…)
o Input - system takes input from its environment.
o Output – system returns output to its environment as a result
of its functioning – to achieve the purpose. Output from
individual subsystems may be inputs to other subsystems.
o Constraints – there are limits to what the system can do
(capacity, speed, capability); some imposed within the system
itself, some by the environment (e.g. available resources,
deadlines).
Organization of a System
 H. J Leavitt describes the organization as consisting of
five interrelated components. This model is called as
Leavitt’s model.
1. Task (performance)
2. Technology (Current & New)
3. Structure (peoples structure, Organizational
structure, management structure etc.,)
4. People (capability, capacity and maturity)
5. Culture (attitudes, behaviour, skills, languages)
 Fundamentals of Information System
What is Information System?
Definition – I
 An Information System is an arrangement of people, data,
processes, interfaces, networks and technology that interact
for the purpose of supporting & improving both day-to-day
operations in a business (sometimes called data processing) as
well as supporting the problem solving and decision making
needs of management (sometimes called information services).
 Definition – II
 An Information System (IS) is a system that accepts inputs in
the form of raw data, processes them, and provides output in
the form of information. IS are designed in a manner to help
the managers to analyze data and make decisions.
 Types of Information System
 A variety of Information Systems are available to cater to the
varying needs of the organizations. Some of them are as follows:
i. Transaction Processing Systems
ii. Management Information Systems (such as Inventory and
Planning systems)
iii. Decision Support Systems
iv. Expert Systems
v. Customer Relationship Management Systems
vi. Electronic Commerce Systems
vii. Enterprise Resource Planning Systems
viii. Office Automation and Enterprise Collaboration Systems
 i. Transaction Processing Systems
 Automate the handling & capture of data about transactions or
business activities.
 For each transaction, the system must capture the data, verify
that it is a valid transaction and accept or reject it.
 Accepted transactions are stored in the system database.
 Reporting provides summaries of transactions (e.g. daily,
weekly).
 A transaction may be passed from one process to another to
reflect all steps in the business process e.g. take a credit card
order over the phone, authorize with the credit card company,
then place the order with the inventory system.
 ii. Management Information Systems (MIS)
 Take the raw data from a system such as a TPS, and convert into a
more meaningful form, where the data is aggregated
(combined).
 Provide reports of this information to Managers.
iii. Decision Support Systems (DSS)
 Help decision-makers with decisions, by allowing them to analyze data.
 Interactive environment to allow data to be manipulated (viewed in
different ways) and to change different factors.
 Data extracted from a TPS or MIS, and combined with models of
business processes.
 Help user to find problems or decide a course of action in the business.
 Requires a user interface to allow decision-maker to input criteria,
answer questions etc.
 iv. Expert Systems (ES)
 Replicate the decision-making process, by applying rules to
information in the way that an expert would.
 An ES is developed for a particular domain/area of knowledge &
problems e.g. medical.
 The knowledge of a human expert and how they apply that
knowledge to make decisions needs to be written into the system.
 More recently, expert systems include data warehousing and data
mining:
o Data warehousing is the storage of large volumes of data for
organizational use.
o Data mining is the process of looking for patterns in the data
stored in databases, in order to uncover undiscovered
information.
 Types of System
 Systems are of two types – Open and Closed.
1. Open System
 It is a collection of interacting software, hardware and human
components designed to satisfy the stated needs
 They adapt quickly to the environment in which they live by
possessing preamble boundaries through which the new and
viable ideas are incorporated, by which they serve their parent
environment Ex : Network File System by Sun Microsystems,
Netscape Navigator
 Types of System(Cont…)
Advantage of Open System
o Less reliance on proprietary products
o More competition leading to lower cost
o Decreased probability of schedule delay
o Tested products
o Portable applications
o Interoperability
o Faster technology insertion
o Foundation for system evaluation
 Types of System(Cont…)
Closed System
 It is a system which resists the inclusion and integration of new
ideas.
 They do not adapt to the new and feasible ideas and may be
considered waste and unnecessary to the parent environment.
Ex: Internet Explorer Browser for proprietary Windows Operating
System
 Key principles System
o Decomposition – breaking down into smaller components – to
make smaller, less complex parts.
o Modularity – as a result of Decomposition, the system is divided
into ‘chunks’ or modules that are roughly the same size; this
makes it easier to understand the system.
o Coupling – coupled subsystems depend on each other –
messages are passed between subsystems; a good system will
have very independent subsystems with minimal flows of data
between them. This makes the system more simple and also
makes it easier to change just one part of the system without
affecting the other parts.
o Cohesion – the extent (how much) to which a subsystem
performs a single function. Generally, a module should be
cohesive – so that it performs only one function.
Coupling vs Cohesion

Coupling Cohesion
Coupling is also called Inter- Cohesion is also called Intra-
system Binding. system Binding.
Coupling shows the Cohesion shows the
relationships between systems. relationship within the systems.
Coupling shows the Cohesion shows the system's
relative independence between relative functional strength.
the systems.
In coupling, systems are linked In cohesion, the system focuses
to the other systems. on a single thing.
 Role and Requirements of Systems Analysis
 Systems Analysis: Systems analysis is the study of a business
problem domain for the purpose of recommending
improvements and specifying the business requirements for the
solution.
 Systems Design: Systems design is the specification or
construction of a technical, computer-based solution for the
business requirements identified in a systems analysis.
 Systems Analyst: A systems analyst facilitates the study of the
problems and needs of a business to determine how the
business system and information technology can best solve the
problem and accomplish improvements for the business. The
product of this activity may be improved business processes,
improved information systems, or new or improved computer
applications, frequently all three.
Roles of system Analyst
 Working Knowledge of Information Technology
 Computer Programming Experience and Expertise
 General Business Knowledge
 Problem-Solving Skills
 Interpersonal Communications Skills
 Interpersonal Relations Skills
 Flexibility and Adaptability
 Systems Analysis and Design Skills
 ….End of Chapter One…

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