Friday, 21 June 2019

Introduction to Management Information System


INTRODUCTION TO INFORMATION SYSTEMS

The term “system” originates from the Greek term systema, which means to “place together.” Multiple business and engineering domains have definitions of a system. This text defines a system as: System An integrated set of interoperable elements, each with explicitly specified and bounded capabilities, working synergistically to perform value-added processing to enable a User to satisfy mission-oriented operational needs in a prescribed operating environment with a specified outcome and probability of success.

1.1 SYSTEM DEFINITION RATIONALE
The definition above captures a number of key discussion points about systems.
·         By “an integrated set,” means that a system, by definition, is composed of hierarchical levels of physical elements, entities, or components.
·         By “interoperable elements,” we mean that elements within the system’s structure must be compatible with each other in form, fit, and function,
·         By each element having “explicitly specified and bounded capabilities,” means that every element should work to accomplish some higher level goal or purposeful mission. System element contributions to the overall system performance must be explicitly specified. This requires that operational and functional performance capabilities for each system element be identified and explicitly bounded to a level of specificity that allows the element to be analyzed, designed, developed, tested, verified, and validated—either on a stand-alone basis or as part of the integrated system.
·         By “working in synergistically,” means that the purpose of integrating the set of elements is to leverage the capabilities of individual element capabilities to accomplish a higher level capability that cannot be achieved as stand-alone elements.
·         By “value-added processing,” means that factors such operational cost, utility, suitability, availability, and efficiency demand that each system operation and task add value to its inputs availability, and produce outputs that contribute to achievement of the overall system mission outcome and performance objectives.
·         By “enable a user to predictably satisfy mission-oriented operational needs,” means that every system has a purpose (i.e., a reason for existence) and a value to the user(s). Its value may be a return on investment (ROI) relative to satisfying operational needs or to satisfy system missions and objectives.
·         By “in a prescribed operating environment,” means that for economic, outcome, and survival reasons, every system must have a prescribed—that is, bounded—operating environment.
·         By “with a specified outcome,” means that system stakeholders (Users, shareholders, owners, etc.) expect systems to produce results. The observed behavior, products, byproducts, or services, for example, must be outcome-oriented, quantifiable, measurable, and verifiable.
·         By “and probability of success,” means that accomplishment of a specific outcome involves a degree of uncertainty or risk. Thus, the degree of success is determined by various performance factors such as reliability, dependability, availability, maintainability, sustainability, lethality, and survivability.


1.2 SYSTEM REDEFINED
A system is an ordered grouping of independent components linked together according to specifications so as to achieve defined objectives of a business organization.

A system in its broadest form is a group of components that interact to achieve a purpose. Comprises elements namely people, resources, concepts and procedures intended to perform a function towards a goal

The study of systems concepts has the following implications:-
·         A system is designed to achieve a predetermined objective
·         Interrelationships and interdependences exist among the components
·         Objectives of an org. have higher priority than objectives of its sub-systems

A system can assume one of the forms
            Schematic system – a two dimensional representation
            Flow system – an abstraction of real world e.g. PERT chart
            Static system – exhibits one relationship e.g. GANNT charts
            Dynamic system – model that approximates the business organization

1.3 SYSTEMS AND ORGARNIZATION
·         Organizations are complex systems that consist of inter-related and interlocking subsystems such that changes in one subsystem has anticipated consequences in other parts of the systems.
·         Systems analysis concerns the application of the system approach to the study and finding solution of problems using computer-based systems.
·         System analysis provides a framework for visualizing the organizational and environment factors that operate on system.
·         Computerizing operations of an org improves performance, efficiency, effectiveness, satisfaction, quality information processing and results.

However automating operation has negative impact such as
·         Possible threat to employment due to redundancy
·         Decreased morale of personnel who were not consulted about the installation
·         Feeling of intimidation by users who have limited training in Computer skills

1.3.1 SYSTEMS THEORY
·         The systems theory is concerned with tendency towards the fragmentation of knowledge and the increasing complexity of the organizations
·         Systems concepts relate to the organizations by viewing an ongoing system / operations as a processor of information for making decisions, in which information and communication provide connecting links for unifying various components
·         Generally, systems theory is concerned with developing a systematic, theoretical framework upon which to make decisions by considering all activities of the org. and its external environment


1.3.2 COMPONENTS OF A SYSTEM
A system has distinct components namely
  • Inputs –elements that enter the system e.g. data entered into comp. raw materials to a plant,
  • Processes – operations necessary to convert / transform inputs to outputs. Computer processing involves activating commands, execution, computations and storage
  • Control – elements that guide the system in decision making by monitoring pattern of activities    that govern input, processing and output e.g. OS, management etc
  • Outputs – Describes finished products / services as consequences of inputs being in the system
  • Communication - Also feed-forward and feedback which are Connections / flow of info and materials among sub-systems. Reports on Operations & performance of systems for decision – making modification of inputs/process
  • Boundary – Physical/non-physical confinement that separates a system from its environment
  • Environment – Comprises elements outside a system that can impact on a system’s performance e.g. Business environ includes competitors, suppliers, customers, regulation agencies, demographic, social & economic conditions

1.3.3 CHARACTERISTICS OF A SYSTEM
  • Organization – implies structure and order of arrangement of the components that help to achieve the objectives. A business system has a defined authority structure, specifies the formal flow of communication and formalizes the chain of command; whose info. Is processed by an IS
  • Interaction – concerns the functions of systems’ components set to realize efficient and effective performance
  • Interdependence – parts of org. or computer system depend on one another but are linked together and coordinated to a plan, whereby the output of one sub system may be an input of another, all aimed at proper functioning
  • Integration – concerned with how parts of a system work together within the system even though each part performs a unique function
  • Common objective – users to know the main objective of a computer application during analysis for a successful design and conversion

1.4 SYSTEM FEATURES  
A big system may be seen as a set of interacting smaller systems known as subsystems or functional units each of which have its defined tasks. All these work in coordination to achieve the overall objective of the system. System engineering requires development of a strong foundation in understanding how to characterize a system, product, or service in terms of its attributes, properties, and performance. As discussed above, a system is a set of components working together to achieve some goal. Systems also exhibit certain features and characteristics, some of which are:

1.4.1 OBJECTIVES
Every system has a predefined goal or objective towards which it works. A system cannot exist without a defined objective. For example an organization would have an objective of earning maximum possible revenues, for which each department and each individual has to work in coordination.

1.4.2 STANDARDS
It is the acceptable level of performance for any system. Systems should be designed to meet standards. Standards can be business specific or organization specific. For example take a sorting problem. There are various sorting algorithms. But each has its own complexity so that such algorithm should be used that gives most optimum efficiency. So there should be a standard or rule to use a particular algorithm. It should be seen whether that algorithm is implemented in the system.

1.4.3 ENVIRONMENT
Every system whether it is natural or manmade co-exists with an environment. It is very important for a system to adapt itself to its environment. Also, for a system to exist it should change according to the changing environment.

1.4.4 FEED BACK
Feedback is an important element of systems. The output of a system needs to be observed and feedback from the output taken so as to improve the system and make it achieve the laid standards. A system takes input. It then transforms it into output. Also some feedback can come from customer (regarding quality) or it can be some intermediate data (the output of one process and input for the other) that is required to produce final output.

1.4.5 BOUNDARIES AND INTERFACES
Every system has defined boundaries within which it operates. Beyond these limits the system has to interact with the other systems. For instance, Personnel system in an organization has its work domain with defined procedures. If the financial details of an employee are required, the system has to interact with the Accounting system to get the required details. Interfaces are another important element through which the system interacts with the outside world. System interacts with other systems through its interfaces. Users of the systems also interact with it through interfaces. Therefore, these should be customized to the user needs. These should be as user friendly as possible.


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