Topics Covered:  System System  Sub system Sub system  Characteristics of System Characteristics of System  Elements of Systems Elements of Systems  Types of System Types of System Physical and Abstract System Deterministic and Probabilistic System Open and Closed System Man made Information System

 System: A set of components that work together to achieve a goal by:  Accepting inputs  Processing it  Producing outputs in an organized manner.  Examples : Computer System, Education System, Production System, Transportation System etc.

 Sub System : Each system is composed of sub systems. The lowest level subsystem is called Black box system.  The subsystems are integrated to form a system because a full system is too large to analyze. Sub system A Sub system B Sub system C Inputs Output from A Output from B Outputs Input to B Input to C

 Characteristics of a System:  Specific Objective: e.g. Business system has profit making as its objective or goal.  Components: Subsystems which collectively work to achieve goals of the system.  Organization: Arrangement of components that helps to achieve objectives.

 e.g. General arrangement of a computer has  An input device  A CPU  An output device  One or more storage units  These work together as a computer system.

 Interaction: e.g. In an organization purchasing interact with production, advertising with sales and payroll with personnel.  Interdependence: e.g. One subsystem depends on the input of another subsystem for proper functioning. Output of the one subsystem is the required input for another subsystem.  Integration: It means that parts of the system work together where each part (component) performs a unique function.  Behavior: A system responds according to its environment. E.g. a person may look left and right before crossing a road.

 Elements of a System:  Outputs: The main objective of a system is to produce outputs. Therefore first of all we must determine goal or purpose of work.  Inputs: Inputs are the elements that are entered into the system for processing. Inputs can be easily determined if outputs are known.

 The characteristics of inputs are: Accuracy Timeliness Proper Format Economy

 Processor: This is the operational component. It converts inputs to outputs. Processor may totally or partially modify the input depending upon the specifications of outputs.  Control: The decision maker element that control the activities of the system This element makes the system to operate within tolerable performance levels.  Feedback: Feedback provides information about system performance and thus required modifications. It is of 2 types: Positive: Routine in nature & increases performance Feedback Negative: Provides information for action

 Environment: The external elements which have an effect on the system forms an environment. e.g. An organization’s environment may consist of vendors, competitors, banks, government and others.  Boundaries and Interface: limits that identify system’s components, processes and interrelationships when it interfaces with another system.  e.g. A teller system in bank may include deposits, withdrawals etc. but may exclude mortgage, trust activities.

 Types of system:  Physical and Abstract system :  Physical systems are tangible entities that may be static or dynamic in operation. e.g programmed computer is dynamic whereas tables, chairs, monitor etc are static.  Abstract systems are conceptual or non physical entities e.g A model which is a representation of real system is an abstract system.

 Deterministic and Probabilistic system:  A Deterministic system is one in which occurrence of all events can be perfectly predicted. e.g a computer program.  A Probabilistic system is one in which occurrence of all events can not be perfectly predicted. e.g contents of a stock.

 Open and Closed system:  An Open system is one which interacts with its environment being able to receive unexpected inputs. e.g Business Organization.  A Closed system is one which does not interact with its environment. Such systems are rare e.g A computer system is not really but relatively closed system.

 Man made Information system:  Information system is defined as interaction of man & machine which gathers data & provides information after analysis. Management can take decision based on information system. The major information systems are:  Formal Information system  Informal Information system  Computer based Information system

 Formal Information system: It is based on the organization represented by the organization chart. It provides 3 types of information  Strategic Information  Managerial Information  Operational Information Strategic Information Managerial Information Operational Information Top Middle Lower

 Informal Information system: It is an employee based system designed to meet personnel and vocational needs.  Computer based Information system: This information system depends on the computer for handling business application. It is classified as:  Transaction Processing System:  Management Information System:

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