Topic 1: Systems Analysis and Design (SAD) Fundamentals

System Analysis and Design

System Analysis and Design refers to the process of examining a business situation with the
intent of improving it through better procedures and methods.
System analysis and design relates to shaping organisations, improving performance and
achieving objectives for profitability and growth. The emphasis is on systems in action,
the relationships among subsystems and their contribution to meeting a common goal.

Systems Analysis
It refers to the understanding and specifying in detail of what an information system should do.
It is a process of collecting and interpreting facts, identifying the problems, and decomposition of
a system into its components.
System analysis is conducted for the purpose of studying a system or its parts in order to identify
its objectives. It is a problem solving technique that improves the system and ensures that all the
components of the system work efficiently to accomplish their purpose.

System Design
It refers to the specifying in detail of how the parts of an information system should be
implemented.
It is a process of planning a new business system or replacing an existing system by defining its
components or modules to satisfy the specific requirements. Before planning, you need to
understand the old system thoroughly and determine how computers can best be used in order to
operate efficiently.
System Design focuses on how to accomplish the objective of the system.

System
It is a collection of parts that work together to achieve a goal/task. It is a set of objects and
relationships among the objects viewed as a whole and designed to achieve a purpose.
Examples;
• Digestive systems
• Public transport system
• Computer system
• Information system
• Traffic management system
• Payroll system
• Automatic library system
• Human resources information system etc.
Subsystem is a system that is part of a larger system. It is a secondary or auxiliary system
that is part of a larger system. It possesses its own set of functions and operations that
contribute to the overall performance and functionality of the system as a whole.
Subsystems work together, interrelating and interconnecting, to achieve the bigger goal
of the primary system. Examples of subsystems could include the engine within a vehicle
or the cooling system within a computer.

1
Function of a system
The function of any system is to convert or process energy, information, or materials into a
product or outcome for use within the system, or outside of the system (the environment) or both.
Indeed, if a system is to survive, it must save some of the outcome or product to maintain the
system.
Characteristics of systems
i. A system is defined to fulfill a predetermined objective
ii. A system comprises of multiple components e.g. input, processor, output etc.
iii. These different components are interdependent and interlinked i.e. information must be
flowing from one component to another
iv. The different components of a system form a sub-system
v. A good system must have some control and this control helps it not to operate beyond its
boundaries
vi. A system must give priority to the objectives of the organization as a whole as compared
to the objectives of a sub-system.
Constraints of a System
A system must have three basic constraints −
• A system must have some structure and behavior which is designed to achieve a predefined
objective.
• Interconnectivity and interdependence must exist among the system components.
• The objectives of the organization have a higher priority than the objectives of its
subsystems.
Properties of a System
A system has the following properties −
• Organisation
Organisation implies structure and order. It is the arrangement of components that helps to
achieve predetermined objectives.
• Interaction
It is defined by the manner in which the components operate with each other.
For example, in an organization, purchasing department must interact with production
department and payroll with personnel department.
• Interdependence
Interdependence means how the components of a system depend on one another. For proper
functioning, the components are coordinated and linked together according to a specified plan.
The output of one subsystem is the required by other subsystem as input.
• Integration
Integration is concerned with how a system components are connected together. It means that the
parts of the system work together within the system even if each part performs a unique function.
• Central Objective
The objective of system must be central. It may be real or stated. It is not uncommon for an
organization to state an objective and operate to achieve another.
The users must know the main objective of a computer application early in the analysis for a
successful design and conversion.
Elements of a System

2
The following diagram shows the elements of a system −

Outputs and Inputs

• The main aim of a system is to produce an output which is useful for its user.
• Inputs are the information that enters into the system for processing.
• Output is the outcome of processing.
Processor(s)
• The processor is the element of a system that involves the actual transformation of input
into output.
• It is the operational component of a system. Processors may modify the input either totally
or partially, depending on the output specification.
• As the output specifications change, so does the processing. In some cases, input is also
modified to enable the processor for handling the transformation.
Control
• The control element guides the system.
• It is the decision–making subsystem that controls the pattern of activities governing input,
processing, and output.
• The behavior of a computer System is controlled by the Operating System and software.
In order to keep system in balance, what and how much input is needed is determined by
Output Specifications.
Feedback
• Feedback provides the control in a dynamic system.
• Positive feedback is routine in nature that encourages the performance of the system.
• Negative feedback is informational in nature that provides the controller with information
for action.
Environment
• The environment is the “supersystem” within which an organization operates.
• It is the source of external elements that strike on the system.

3
 • It determines how a system must function. For example, vendors and competitors of
organization’s environment, may provide constraints that affect the actual performance of
the business.
Boundaries and Interface
• A system should be defined by its boundaries. Boundaries are the limits that identify its
components, processes, and interrelationship when it interfaces with another system.
• Each system has boundaries that determine its sphere of influence and control.
• The knowledge of the boundaries of a given system is crucial in determining the nature of
its interface with other systems for successful design.

Other system concepts

1. Sub-optimization.
This is a situation where the objectives of a subsystem conflict with the objectives of the main
system or a situation where the sub-systems achieve their objectives of the higher system.
2. Synergy
It is where two systems operate as one and produce more results that each would achieve
independently.
3. Symbiosis
It is where two systems operate as one, and if one ceases to exist, the other cannot function. It is
thus based on take and give relation.
4. Redundancy
It is where there is application between sub-systems such that if and specific sub-subsystem
ceased to exist, the whole system would continue.
5. Factoring
It is the process of splitting disintegrating a system into sub systems/ units as a mean of focusing
on specific subsystem requirements.
6. Decoupling
This is a process which in the subsystems are given autonomy and independence .ie. the sub
system operate independently thereby pursuing own objectives and enhancing flexibility.
7. Decomposition
This is breaking down the system into smaller, more manageable and understandable
components called the subsystem. This helps in focusing the attention on one subsystem
at a time without interference from other parts.
Also permits different parts of the system to be built at independent times and/ or by
different people.
8. Modularity
A direct result of decomposition.
Refers to dividing a system up into chunks or modules of a relatively uniform size.
9. Coupling
This is the extent to which subsystems are dependent on each other. Subsystems should be as
independent as possible. If the subsystems are loosely coupled them, unfortunately one fails then
the other will not be affected.
10. Cohesion.
This is the extent to which a subsystem performs a single function. Biological systems are
very cohesive.

4
Any description of the system is abstract since the definition is not a system itself.
Types of Systems
The systems can be divided into the following types −
Physical or Abstract Systems
• Physical systems are tangible entities. We can touch and feel them.
• Physical System may be static or dynamic in nature. For example, desks and chairs are the
physical parts of computer center which are static. A programmed computer is a dynamic
system in which programs, data, and applications can change according to the user's needs.
• Abstract systems are non-physical entities or conceptual that may be formulas,
representation or model of a real system.
Open or Closed Systems
• An open system must interact with its environment. It receives inputs from and delivers
outputs to the outside of the system. For example, an information system which must adapt
to the changing environmental conditions.
• A closed system does not interact with its environment. It is isolated from environmental
influences. A completely closed system is rare in reality.
Adaptive and Non Adaptive System
• Adaptive System responds to the change in the environment in a way to improve their
performance and to survive. For example, human beings, animals.
• Non Adaptive System is the system which does not respond to the environment. For
example, machines.
Permanent or Temporary System
• Permanent System persists for long time. For example, business policies.
• Temporary System is made for specified time and after that they are demolished. For
example, A DJ system is set up for a program and it is dissembled after the program.
Natural and Manufactured System
• Natural systems are created by the nature. For example, Solar system, seasonal system.
• Manufactured System is the man-made system. For example, Rockets, dams, trains.
Deterministic or Probabilistic System
• Deterministic system operates in a predictable manner and the interaction between system
components is known with certainty. For example, two molecules of hydrogen and one
molecule of oxygen makes water.
• Probabilistic System shows uncertain behavior. The exact output is not known. For
example, Weather forecasting, mail delivery.
Social, Human-Machine, Machine System
• Social System is made up of people. For example, social clubs, societies.
• In Human-Machine System, both human and machines are involved to perform a particular
task. For example, Computer programming.
• Machine System is where human interference is neglected. All the tasks are performed by
the machine. For example, an autonomous robot.
Man–Made Information Systems
• It is an interconnected set of information resources to manage data for particular
organization, under Direct Management Control (DMC).

5
 • This system includes hardware, software, communication, data, and application for
producing information according to the need of an organization.
Man-made information systems are divided into three types −
• Formal Information System − It is based on the flow of information in the form of
memos, instructions, etc., from top level to lower levels of management.
• Informal Information System − This is employee based system which solves the day to
day work related problems.
• Computer Based System − This system is directly dependent on the computer for
managing business applications. For example, automatic library system, railway
reservation system, banking system, etc.
Systems Models
Schematic Models
• A schematic model is a 2-D chart that shows system elements and their linkages.
• Different arrows are used to show information flow, material flow, and information
feedback.
Flow System Models
• A flow system model shows the orderly flow of the material, energy, and information that
hold the system together.
• Program Evaluation and Review Technique (PERT), for example, is used to abstract a real
world system in model form.
Static System Models
• They represent one pair of relationships such as activity–time or cost–quantity.
• The Gantt chart, for example, gives a static picture of an activity-time relationship.
Dynamic System Models
• Business organizations are dynamic systems. A dynamic model approximates the type of
organization or application that analysts deal with.
• It shows an ongoing, constantly changing status of the system. It consists of −
o Inputs that enter the system
o The processor through which transformation takes place
o The program(s) required for processing
o The output(s) that result from processing.

Information
Information is data that has been processed into a form that is meaningful to the recipient and is of real or
perceived value in current or progressive decision”. For example, data regarding sales by various
salesmen can be merged to provide information regarding total sales through sales personnel. This
information is of vital importance to a marketing manager who is trying to plan for future sales.
Data
Data are raw facts about the organization and its business transactions. Most data items have
little meaning and use by themselves.

Categories of Information

6
There are three categories of information related to managerial levels and the decision managers
make.

Strategic Information
• This information is required by topmost management for long range planning policies for
next few years. For example, trends in revenues, financial investment, and human
resources, and population growth.
• This type of information is achieved with the aid of Decision Support System (DSS).
Managerial Information
• This type of Information is required by middle management for short and intermediate
range planning which is in terms of months. For example, sales analysis, cash flow
projection, and annual financial statements.
• It is achieved with the aid of Management Information Systems (MIS).
Operational information
• This type of information is required by low management for daily and short term planning
to enforce day-to-day operational activities. For example, keeping employee attendance
records, overdue purchase orders, and current stocks available.
• It is achieved with the aid of Data Processing Systems (DPS).

What is an Information System?

➢ Interrelated components working together to collect, process, store and disseminate
information to support decision making.
➢ Refers to a set of procedures and technologies and other resources that collects,
transforms and disseminates information in the system.
Elements/Components of an Information System
1) Computer hardware
This is the physical technology that works on data to get information. Hardware can be as small
as a smartphone that fits in a pocket or as large as a supercomputer that fills a building.
Hardware also includes the peripheral devices that work with computers, such as keyboards,
7
external disk drives, and routers. With the rise of the Internet of things, in which anything from
home appliances to cars to clothes will be able to receive and transmit data, sensors that interact
with computers are permeating the human environment.
2) Computer software
The hardware needs to know what to do, and that is the role of software. Software can be divided
into two types: system software and application software. The primary piece of system software
is the operating system, such as Windows or iOS, which manages the hardware’s operation.
Application software is designed for specific tasks, such as handling a spreadsheet, creating a
document, or designing a Web page.
3) Telecommunications
This component connects the hardware together to form a network. Connections can be through
wires, such as Ethernet cables or fibre optics, or wireless, such as through Wi-Fi. A network can
be designed to tie together computers in a specific area, such as an office or a school, through a
local area network (LAN). If computers are more dispersed, the network is called a wide area
network (WAN). The Internet itself can be considered a network of networks.
4) Databases and data warehouses
This component is where the “material” that the other components work with resides. A database
is a place where data is collected and from which it can be retrieved by querying it using one or
more specific criteria. A data warehouse contains all of the data in whatever form that an
organization needs. Databases and data warehouses have assumed even greater importance in
information systems with the emergence of “big data,” a term for the truly massive amounts of
data that can be collected and analyzed.
5) Human resources and procedures
The final, and possibly most important, component of information systems is the human element:
the people that are needed to run the system and the procedures they follow so that the
knowledge in the huge databases and data warehouses

Types of Information Systems used in Organiations

Organizations use several types of information systems to suit their needs. The various types
of information systems that an organization uses may be classified into the following categories:

▪ Office automation systems

▪ Transaction processing system
▪ Decision support systems
▪ Executive information systems
▪ Business expert system

Apart from these broad classes of information systems, organizations also use specific
information systems for some special tasks like executive information system, enterprise (wide)
resource planning systems, customer relationship management systems and supply chain
management system. These systems also fall under the above broad classification.
Office Automation Systems

This type of information system aids in automating office tasks. They have a limited role in
decision-making and are more useful for operational level people. The information coming out
of this kind of system can be used for rule-based decision-making for managers at the operational

8
level. These systems however play an important role in automating several functions of an office
and thus help in creating paperless offices. These kinds of systems help in increasing the
productivity and efficiency of the office workforce by automating simple tasks. These systems
mostly deal with operational data. More and more modern businesses are opting for this paperless
office environment as this brings in the following unique advantages for the business:

▪ Office work becomes faster and process driven.

▪ All basic level data is digitized and stored for future action.

An example of office automation system is the office suite of software that helps in automating
simple office tasks like presentations and documentation. Sometimes we also come across a class
of systems called the operations support system (OSS). OSS also work with the lowest levl31of
management is ensuring that the operations of the firm are performed smoothly. OSS can be very
different from Office Automation System even though they both help bottom level managers, in
term of the information complexity involved.
Transaction Processing System

This type of system is critical to the smooth functioning of an organization. The objective of this
kind of system is to capture all transaction related data between the organization and its external
and internal customers. Typically, these transaction level data are stored in a pre-formatted
manner in a relational database for further action in future. TPS is the most widely used form of
information systems as they provide the management with the flexibility of storing data in a
structured manner and retrieving it at a later date using a query facility. The system also helps in
aggregating and summarizing the data for creating of management reports. These reports are
further improved by using visualization tools that help the management in understanding
situations and scenarios better. These systems deal with tactical data from within the organization.
An example of TPS would be the sales management system with a relational database
management system at the server side back end and a customized front end to interact with the
users.
Decision Support Systems

Decision support systems help senior management to take strategic decisions. Contrary to the
other systems, decision support systems are developed with the objective of providing the users
(top management personnel) with unstructured information. These systems help the management
to develop ‘what if analysis’ so that different scenarios can be developed for decision-making.
Decision support systems deal with both internal and external data. Such systems are custom built
with features like business dashboard and scenario panel.
Such systems are complex with working models (internal) on the data to provide the senior
managers with decision support. Unlike transaction processing systems, these systems are not
query dependent only. Their main role is to access data from a data repository and then pass that
data through a model (mathematical, heuristic, statistical, econometric, operations research and
combinatorial), so that the senior management can take better decisions by doing either ‘what if
analysis’ and scenario building or by doing ‘predictive analysis’ to get some insight into a
business issue. Such systems are very costly to build and require advanced analytics tools.

9
Executive Support System

Executive support system is also known as the executive information (support) system. It began
to gain acceptance in the mid-eighties in large corporations and is now used even is smaller
corporations. In functionality, it is nearer to decision support systems than management
information systems. Its main objectives are to provide a macro-organization wide view for senior
executives, by providing a very user-friendly user-interface so that proactive steps may be taken
to beat competition. It provides timely and proactive organization tracking and control. It is able
to perform these tasks by providing fast access to all type of data and by filtering and tracking
critical data and information. It helps to identify problems and opportunities and thus, helps senior
executives to troubleshoot problems and take advantage of opportunities.
Business Expert System

Some business scenarios are so complex that they require the help of advanced systems that can
provide expert solutions. These systems use artificial intelligence and neutral networks to reach
the performance level of a human expert thereby helping the organization. These systems are
different from any other information system as they are capable of decision-making by themselves
without human intervention. Actually, these systems are loaded with the knowledge of experts
and these systems simply simulate the expert knowledge to arrive at decisions.

10