CSC 321- SYSTEM ANALYSIS AND DESIGN

MODULE 1

SYSTEM ANALYSIS

Overview

Systems analysis and design refers to the process of examining a business situation with the
intent of improving it through better procedures and methods. Systems development can
generally be thought of as having two major components: Systems Analysts and Systems Design.
Systems design is the process of planning a new system or replace or complement an existing
system. But before this planning can be done, we must thoroughly understand the existing
system and determine how computers can best be used to make its operation more effective.
Systems analysis, then, is the process of gathering and interpreting facts, diagnosing problems
and using the information to recommend improvement to the system. In brief, we can say that
analysis specified what the system should do. Design states how to accomplish the objectives.

What is a System?

The word “SYSTEM” covers a very broad spectrum of concepts. This is derived from the Greek
word systema, which means an organised relationship among the functioning units or
components. In our daily life, we come into contact with the transportation system, the
communication system, the accounting system, the production system, the economic system and
for over three decades, the computer system. Similarly, business systems are the means by which
business organisations achieve their pre-determined goals. A business system combines policies,
personnel, equipment and computer facilities to co- ordinate the activities of business
organisation. Essentially, a business system represents an organised way of achieving the pre-
determined objective of an organization.

There are various definitions of the word system, but most of them seem to have a common idea
that suggests that a system is an orderly grouping of interdependent components linked together,
according to a plan, to achieve a specific goal. The word component may refer to physical parts
(engines, wheels of car), managerial steps (planning, organising, controlling) or a subsystem in a
multi-level structure. The components may be simple or complex, basic or advanced. They may
be a single computer with a keyboard, memory and printer or a series of intelligent terminals
linked to a mainframe. In either case, each component is part of the total system and has to do its
own share of work for the system to achieve the desired goal.

Systems Study, Systems Analysis and Systems Approach

Systems study may be defined as “a study of the operations of a set of connected elements and of
the inter-connections between these elements”. It shows clearly that one cannot ignore any part
or element of a system without first finding out the effect that elements has on the operation of
the system as a whole. We can understand this with the help of system analysis.

There is a difference between “systems approach” and “systems analysis” also. The systems
approach shows a set of procedure for solving a particular problem. It applies scientific methods
to observe, clarify, identify and solve a problem with special care being taken to understand the
inter-relatedness between elements and their system characteristics. However, systems analysis is
a management technique which helps us in designing a new system or improving an existing
system.

Characteristics of a System

Based on the definition of a system, it is observed that following characteristics are present in all
systems:

1) Organisation

Organization implies structure and order. It is the arrangement of components that helps to
achieve objectives. In the design of a business system, for example, the hierarchical relationship
starting with the president on top and leading downward to the blue-collar workers represents the
organization structure. Likewise, a computer system is designed around an input device, a central
processing unit, an output device and one or more storage units. When these units are linked
together, they work as a whole system for generating information.

2) Interaction

Interaction refers to the procedure in which each component functions with other components of
the system. In an organization, for example, purchasing must interact with production,
advertising with the sales and payroll with personnel. In a computer system also, the central
processing unit must interact with other units to solve a problem. In turn, the main memory holds
program, and the data that the arithmetic unit uses for computation. The inter-relationship
between these components enables the computer to perform.

3) Interdependence

Interdependence means that component of the organization or computer system depends on one
another. They are coordinated and linked together in a planned way to achieve an objective.

4) Integration

Integration is concerned with how a system is tied together. It is more than sharing a physical
part or locations. It means that parts of the system work together within the system even though
each part performs a unique function. Successful integration will typically produce a better result
as a whole rather than if each component works independently.

5) Central Objective

Central objective is the last characteristics of a system. Objectives may be real or stated.
Although a stated objective may be the real objective. It is quite common that organization may
set one objective and operate to achieve another. The important point is that users must be aware
of the central objective well in advance.

Elements of Systems Analysis

There are four basic elements in systems analysis. Brief description of each element has been
given below:

a) Output

First of all, we must determine what the objectives or goals are, what do we intend to achieve,
what is the purpose of our work; in other words, what is the main aim behind the system.
Defining aim is very vital in system work. If we do not know where we want to go, we will not
know when we have reached there. We shall be unnecessarily wasting our time and energy in the
process. Once we know our aim, we can try to achieve it in the best possible way. The user
department has to define these objectives in terms of their needs. These become the outputs
which the systems analyst keeps in mind.
 b) Inputs

Once we know the output, we can easily determine what the inputs should be. Sometimes, it may
happen that the required information may not be readily available in the proper form. This may
be because the existing forms are not properly designed. Sometimes, it may not be possible to get
the required information without the help of top management. If the information is vital to the
system, we should make all possible efforts to make it available. Sometimes, it might be too
costly to get the desired information. It would be better in such cases to prepare a cost-benefit
analysis to convince the management of the necessity for acquiring the information. The
essential elements of inputs are:

i) Accuracy: If the data is not accurate, the outputs will be wrong.

ii) Timeliness: If data is not obtained in time, the entire system falls into arrears.

iii) Proper format: The inputs must be available in proper format.

iv) Economy: the data must be produced at the least cost.

c) Files

As the word implies files are used to store data. Most of the inputs necessary for the system may
be historical data, or it may be possible that these are generated from within the system. These
are stored in files either in terms of isolated facts or in large volumes.

d) Processes

Here we come to the details of how the inputs and files are converted into outputs. This involves
the programs and the way in which data is processed through the computer. The processing
involves a set of logical steps. These steps are required to be instructed to the computer and this
is done by a series of instructions called “programs”.

Types of Systems

Systems have been classified in different ways. Common classifications are:

i. Physical or abstract systems

ii. Open or closed systems
iii. Deterministic or probabilistic systems
 iv. Man-made information systems.
v. Physical or Abstract Systems

Physical or Abstract Systems

Physical systems are tangible entities that may be static or dynamic in operation. Abstract
systems are conceptual or non-physical entities which may be as straight forward as formulas of
relationships among sets of variables or models – the abstract conceptualization of physical
situations.

Open or Closed System

An open system continually interacts with its environments. It receives inputs from and delivers
outputs to outside. An information system belongs to this category, since it must adapt to the
changing demands of the user. In contrast, a closed system is isolated from environmental
influences. In reality completely closed systems are rare.

Deterministic or Probabilistic Systems

A deterministic system is one in which the occurrence of all events is perfectly predictable. If we
get the description of the system state at a particular time, the next state can be easily predicted.
An example of such a system is a numerically controlled machine tool. Probabilistic system is
one in which the occurrence of events cannot be perfectly predicted. An example of such a
system is a warehouse and its contents.

Man-made Information Systems

It is generally believed that information reduces uncertainty about a state or event. For example,
information that the wind is calm reduces the uncertainty that a trip by boat will be enjoyable. An
information system is the basis for interaction between the user and the analyst. It determines the
nature of relationship among decision makers. In fact, it may be viewed as a decision centre for
personnel at all levels. From this basis, an information system designed may be defined as a set
of devices, procedures and operating systems designed around user-based criteria to produce
information and communicate it to the user for planning, control and performance. Many
practitioners fail to recognize that a business has several information systems, each is designed
for a specific purpose. The major information systems are:

● Formal information systems

● Informal information systems

● Computer-based information systems.

A Formal Information System is based on the organization represented by the organization

chart. The chart is a map of positions and their authority relationships, indicated by boxes and
connected by straight lines. It is concerned with the pattern of authority, communication and
work flow.

An Informal Information System is an employee-based system designed to meet personnel and

vocational needs and to help in the solution of work-related problems. It also funnels information
upwards through indirect channels. In this way, it is considered to be a useful system because it
works within the framework of the business and its stated policies.

Third category of information system depends mainly on the computer for handling business
applications. Systems analysis develops several different types of information systems to meet a
variety of business needs. There is a class of systems known collectively as

Computer-based Information Systems. As we have different types of transportation systems

such as highways systems, railways systems and airline systems, computer-based information
systems are of too many types. They are classified as:

● Transaction Processing Systems (TPS)

● Management Information Systems (MIS)

● Decision Support System (DSS)

● Office Automation Systems (OAS).

 CBIS in an Organizational Context

The Hierarchical View of CBIS

Transaction Processing Systems

The most fundamental computer-based system in an organization pertains to the processing of
business transactions. A transaction processing system can be defined as a computer-based
system that captures, classifies, stores, maintains, updates and retrieves transaction data for
record keeping and for input to other types of CBIS. Transaction Processing Systems are aimed
at improving the routine business activities on which all organizations depend. A transaction is
any event or activity that affects the whole organization. Placing orders, billing customers, hiring
of employees and depending cheques are some of the common transactions. The types of
transaction that occur vary from organization to organization.
But it is true that all organization process transactions as a major part of their daily business
activities. The most successful organizations

perform this work of transaction processing in a very systematic way. Transaction processing
systems provide speed and accuracy and can be programmed to follow routines without any
variance.
Management Information System
Data processing by computer has been extremely effective because of several reasons. The main
reason being that huge amount of data relating to accounts and other transactions can be
processed very quickly. Earlier most of the computer applications were concerned with record
keeping and the automation of routine clerical processes. However, in recent years, increasing
attention has been focussed on computer applications providing information for policy making,
management planning and control purposes. MIS are more concerned with management
function. MIS can be described as information system that can provide all levels of management
with information essential to the running of smooth business. This information must be as
relevant, timely, accurate, complete and concise as is economically feasible.
Decision Support Systems
It is an information system that offers the kind of information that may not be predictable, the
kind that business professionals may need only once. These systems do not produce regularly
scheduled management reports. Instead, they are designed to respond to a wide range of requests.
It is true that all the decisions in an organization are not of a recurring nature. Decision support
systems assist managers who must make decisions that are not highly structured, often called
unstructured or semi-structured decisions. A decision is considered unstructured if there are no
clear procedures for making the decision and if not all the factors to be considered in the decision
can be readily identified in advance. Judgement of the manager plays a vital role in decision-
making where the problem is not structured. The decision support system supports, but does not
replace, judgement of manager.
Office Automation Systems
Office automation systems are among the newest and most rapidly expanding computer-based
information systems. They are being developed with the hopes and expectations that they will
increase the efficiency and productivity of office workers, typists, secretaries, administrative
assistants, staff professionals, managers and the like. Many organizations have taken the first
step toward automating their offices. Often this step involves the use of word processing
equipment to facilitate the typing, storing, revising and printing of textual materials.

Another development is a computer-based communications system such as electronic mail which

allows people to communicate in an electronic mode through computer terminals. An office
automation system can be described as a multi-function, integrated computer-based system that
allows many office activities to be performed in an electronic mode.