What is a System?

The term System Originate from a Greek word systema, which means, "place together". In simple words, System can be defined as "A collection of components that work together to realize some objective”

More Scientific definition of 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.

Interoperability - a property referring to the ability of elements to work together. Interoperable elements hence mean the elements that are compatible each other in form, format, fit and functions. In software, the term interoperability is used to describe the capability of different programs to exchange data via a common set of exchange formats, to read and write the same file formats, and to use the same protocols

“Working in synergistically,” Means individual input components should work in way that to accomplish a higher level capability that cannot be achieved as stand-alone elements.

“In a prescribed operating environment” Means every system should have a prescribed and bounded operating environment for survival and outcome

“With a specified outcome,” means system stakeholders expect systems to produce results.

“And probability of success,” means that accomplishment of a specific outcome involves a degree of uncertainty or risk Simple Representation

Simple representation

Analytical Representation

What are the Classifications of Systems?

1. Physical System: Entities that can be touch and feel. These can be static or dynamic.

2. Abstract System: They are conceptual in nature. They may be formulas, representation or model of a real system.

3. Open Systems: System continuously interacts with its environment. Open systems are those that maintain their state and exhibit the characteristics of openness.

4. Closed systems: System in the state of being isolated from its surrounding environment. The term often refers to an idealized system in which closure is perfect

What is an Information System?

In a general sense, the term Information System (IS) refers to a system of people, data records and activities that process the data and information in an organization, and it includes the organization's manual and automated processes
Information system deals with data of the organizations. The purposes of Information system are to process input, maintain data, produce reports, handle queries, handle on line transactions, generate reports, and other output. These maintain huge databases, handle hundreds of queries etc. The transformation of data into information is primary function of information system

What are the main types of Information Systems?

1.Transaction Processing Systems
2.Management Information Systems
3.Decision Support systems

Define Transaction Processing System

Transaction processing systems(TPS)automate the handling of data about business activities or transactions, which can be thought of as simple, discrete events in the life of an organization. Data about each transaction are captured, transactions are verified and accepted or rejected and validated transactions are stored for later aggregation. Reports may be produced immediately to provide standard summarizations of transactions and transactions may be moved from process to process in order to handle all aspects of the business activity

In order to qualify as a TPS, transactions made by the system must pass the ACID test. The ACID tests refers to the following four prerequisites:

Atomicity:Atomicity means that a transaction is either completed in full or not at all. For example, if funds are transferred from one account to another, this only counts as a true transaction if both the withdrawal and deposit take place. If one account is debited and the other is not credited, it does not qualify as a transaction. TPS systems ensure that transactions take place in their entirety.

Consistency:TPS systems exist within a set of operating rules (or integrity constraints). If an integrity constraint states that all transactions in a database must have a positive value, any transaction with a negative value would be refused.

Isolation:Transactions must appear to take place in isolation. For example, when a fund transfer is made between two accounts the debiting of one and the crediting of another must appear to take place simultaneously. The funds cannot be credited to an account before they are debited from another.

Durability:Once transactions are completed they cannot be undone. To ensure that this is the case even if the TPS suffers failure, a log will be created to document all completed transactions

Transaction processing systems offer business the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the business. Typically, a TPS will exhibit the following characteristics:

Rapid Processing :The rapid processing of transactions is vital to the success of any business. TPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it.

Reliability:TPS systems must be designed to ensure that not only the transactions , but that the systems themselves remain operational permanently. TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. These measures keep the failure rate well within tolerance levels.

Standardisation:Transactions must be processed in the same way each time to maximise efficiency. To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the customer.

Controlled Access:Since TPS systems can be such a powerful business tool, access must be restricted to only those employees who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process.

Define Management Information Systems

An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities those were planned and executed. "A management information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers” – Philp Kotler

An institution's MIS should be designed to achieve the following goals:

• Enhance communication among employees.
• Deliver complex material throughout the institution.
• Provide an objective system for recording and aggregating information.
• Reduce expenses related to labor-intensive manual activities.
• Support the organization's strategic goals and direction.

The five elements of a useable MIS system are: timeliness, accuracy, consistency, completeness, and relevance. The usefulness of MIS is hindered whenever one or more of these elements is compromised

Timeliness:To simplify prompt decision making, an institution's MIS should be capable of providing and distributing current information to appropriate users. Information systems should be designed to expedite reporting of information. The system should be able to quickly collect and edit data, summarize results, and be able to adjust and correct errors promptly.

Accuracy:A sound system of automated and manual internal controls must exist throughout all information systems processing activities. Information should receive appropriate editing, balancing, and internal control checks. A comprehensive internal and external audit program should be employed to ensure the adequacy of internal controls.

Consistency:To be reliable, data should be processed and compiled consistently and uniformly. Variations in how data is collected and reported can distort information and trend analysis. In addition, because data collection and reporting processes will change over time, management must establish sound procedures to allow for systems changes. These procedures should be well defined and documented, clearly communicated to appropriate employees, and should include an effective monitoring system.

Completeness:Decision makers need complete and pertinent information in a summarized form. Reports should be designed to eliminate clutter and voluminous detail, thereby avoiding "information overload."

Relevance:Information provided to management must be relevant. Information that is inappropriate, unnecessary, or too detailed for effective decision making has no value. MIS must be appropriate to support the management level using it. The relevance and level of detail provided through MIS systems directly correlate to what is needed by the board of directors, executive management, departmental or area mid-level managers, etc. in the performance of their jobs.

Define Decision Support Systems

Decision Support Systems (DSS) are a specific class of computerized information systems that supports business and organizational decision-making activities. A properly-designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

 

A passive DSS is a system that aids the process of decision making, but that cannot bring out explicit decision suggestions or solutions. An active DSS can bring out such decision suggestions or solutions. A cooperative DSS allows the decision maker (or its advisor) to modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation. The system again improves, completes, and refines the suggestions of the decision maker and sends them back to her for validation. The whole process then starts again, until a consolidated solution is generated.

 

Three fundamental components of a DSS architecture are

 

i.the database (or knowledge base), ii.the model (i.e., the decision context and user criteria), and iii. the user interface

 

DSS components may be classified as:

 

i). Inputs: Factors, numbers, and characteristics to analyze User Knowledge and ii). Expertise: Inputs requiring manual analysis by the user

iii) Outputs: Transformed data from which DSS "decisions" are generated

iv) Decisions: Results generated by the DSS based on user criteria

 

Benefits of DSS

 

Improves personal efficiency

Expedites problem solving (speed up the progress of problems solving in an organization)

Facilitates interpersonal communication

Promotes learning or training Increases organizational control

Generates new evidence in support of a decision

Creates a competitive advantage over competition

Encourages exploration and discovery on the part of the decision maker

Reveals new approaches to thinking about the problem space

Helps automate the managerial processes.