System:-

“A system is an orderly grouping of interdependent components linked together according to a

plan to achieve a specific goal.”
Examples of System:-
1. Transportation System
2. Telephone System
3. Accounting System
4. Production System
5. Computer System
6. Business System, etc.

System Concepts
Environment and boundaries
Systems theory views the world as a complex system of interconnected parts. One scopes a
system by defining its boundary; this means choosing which entities are inside the system and
which are outside—part of the environment. One can make simplified representations (models)
of the system in order to understand it and to predict or impact its future behavior. These models
may define the structure and behavior of the system.

Natural and human-made systems

There are natural and human-made (designed) systems. Natural systems may not have an
apparent objective but their behavior can be interpreted [by whom?] as purposeful by an
observer. Human-made systems are made with variable purposes that are achieved by some
action performed by or with the system. The parts of a system must be related; they must be
"designed to work as a coherent entity" — otherwise they would be two or more distinct
systems.
Open systems have input and output flows, representing exchanges of matter, energy or
information with their surroundings.

Theoretical framework
Most systems are open systems, exchanging matter and energy with its surroundings; like a
car, a coffeemaker, or Earth. A closed system exchanges energy, but not matter, with its
environment; like a computer or the project Biosphere 2. An isolated system exchanges neither
matter nor energy with its environment. A theoretical example of such system is the Universe.
Process and transformation process
An open system can also be viewed as a bounded transformation process, that is, a black box
that is a process or collection of processes that transforms inputs into outputs. [citationneeded]
Inputs are consumed; outputs are produced. The concept of input and output here is very broad.
For example, an output of a passenger ship is the movement of people from departure to
destination.

System model
A system comprises multiple views. Man-made systems may have such views as concept,
analysis, design, implementation, deployment, structure, behavior, input data, and output data
views. A system model is required to describe and represent all these views.

Systems architecture
A systems architecture, using one single integrated model for the description of multiple
views, is a kind of system model.

Subsystem
A subsystem is a set of elements, which is a system itself, and a component of a larger system.
A subsystem description is a system object that contains information defining the characteristics
of an operating environment controlled by the system.
Components/Elements of a System
INPUT: Input is what data the system receives to produce a certain output. Input involves
capturing and assembling elements that enter the system to be processed.
OUTPUT: What goes out from the system after being processed is known as Output. Those
elements that exists in the system due to the processing of the inputs.
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.
CONTROL: The control elements guide the system. It is the decision-making subsystem that
controls the pattern of activities governing input, processing, and output.
FEEDBACK: Feedback is the data about the performance of the system. Feedback measures
output against a standard in some form of cybernetic procedure that includes communication and
control.
BOUNDARY: The boundaries are nothing but the limit of the system. Setting up boundaries
helps for better concentration of the actives carried in the system.
INTERFACES: The interconnections and the interactions between the sub-systems is known as
the Interfaces. They may be inputs and outputs of the systems.
ENVIRONMENT: The things outside the boundary of the system are known as environment.
Change in the environment affects the working of the system.

Types of Systems
The systems can be divided into the following types −
1. Physical 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.

2. Abstract Systems
Abstract systems are non-physical entities or conceptual that may be formulas, representation or
model of a real system.

3. Open System
It has many interfaces with its environment. It interacts across its boundaries, it receives inputs
from and delivers outputs to the outside world. It must adapt to the changing demands of the
user.

4. Closed System
It is isolated from the environmental influences. A completely closed system is rare.

5. Natural System
Natural systems are created by the nature. For example, solar system, seasonal system.

6. Manufactured System
Manufactured System is the man-made system. For example, Rockets, dams, trains.

7. Deterministic 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.

8. Probabilistic System
Probabilistic System shows uncertain behavior. The exact output is not known. For example,
Weather forecasting, mail delivery.
9. 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.

10. Non Adaptive System

Non Adaptive System is the system which does not respond to the environment. For example,
machines.

11. Permanent System

Permanent System persists for long time. For example, business policies.

12. Temporary System

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.

13. Conceptual System

Conceptual System deal with theoretical structures which may or may not be have any
counterpart in the world. They are composed of ideas. They are typified by those of science, such
as economic theory, the general system of relativity etc. These are systems of explanation or
classification. They may also take the form of plans, policies, procedures, accounting system,
etc.

14. Empirical Systems

Empirical Systems are concrete operational systems made up of people, machines, materials,
energy, and other physical things. Electrical, thermal, chemical, and other such systems also fall
under this category of systems.

15. Stationary Systems

A stationary system is one whose properties and operations either do not very significantly or
vary in a repetitive manner. The automatic factory, super market operations, etc. Are examples.
16. Non-Stationary Systems
In non-stationary system, the properties and operations are subject to variations at a faster rate,
for instance, the human being, research and development laboratory etc.

17. Subsystems Systems

Smaller systems within the system or the components of a system are called subsystems.

18. Super Systems

Super system is the whole complex of subsystems, or it denotes any extremely large and
complex system.

19. 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.

20. Man–Made Information Systems

It is an interconnected set of information resources to manage data for particular organization,
under Direct Management Control (DMC).
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.

Characteristics of a system
1. Organization:
It implies structure and order. It is the arrangement of components that helps to achieve
objectives.
2. Interaction:
Interaction refers to the manner in which each component functions with other
components of the system.
3. Interdependence:
Interdependence means that parts of the organization or computer system depend on one
another. They are coordinated and linked together according to a plan.
4. Integration:
Integration refers to the holism of system. And is concerned with how a system is tied
together.
5. 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.

System Approach
The systems approach is an old concept. The approach stands on the assumption that breaking
down of a complex concept into simple easy to understand units helps in better understanding of
the complexity. Ludwig von Bertalanffy first proposed the systems approach under the name of
'General System Theory'.
The approach concentrates on the holistic entity of the system without neglecting the
components. It attempts to understand the role each component plays in the system while
simultaneously understanding the activity of the whole system. Major concepts of the systems
approach are:
Holism: A change in any part/component of a system affects the whole system directly or
indirectly (Boulding 1985, Litterer 1973, von Bertalanffy 1968).
Specialization: A whole system can be divided into granular (smaller easy to understand),
components so that the specialized role of each component is appreciated.
Non-summational: Every component (subsystem/partial system) is of importance to the whole.
It is therefore essential to understand the actions of each component to get the holistic
perspective (Boulding 1985, Litterer 1973).
Grouping: The process of specialization can create its own complexity by proliferating
components with increasing specialization. To avoid this it becomes essential to group related
disciplines or sub-disciplines.
Coordination: The grouped components and sub components need coordination. Without
coordination the components will not be able to work in a concerted manner and will lead to
chaos. Coordination and control is a very important concept in the study of systems as without
this we will not be a unified holistic concept.
Emergent properties: This is an important concept of systems approach. It means that the group
of interrelated entities (components) has properties as a group that is not present in any
individual component. This is the holistic view of a system. For example, multicellular
organisms exhibit characteristics as a whole which are not present in individual constituent parts
like cells.

Information System
Data: Data is raw facts. Data is like raw material. Data does not interrelate and also it does not
help in decision making. Data is defined as groups of nonrandom symbols in the form of text,
images, voice representing quantities, action and objects.

Information: Information is the product of data processing. Information is interrelated data.

Information is equivalent to finished goods produced after processing the raw material. The
information has a value in decision making. Information brings clarity and creates an intelligent
human response in the mind.
According to Davis and Olson: “Information is a data that has been processed into a form that
is meaningful to recipient and is of real or perceived value in the current or the prospective
action or decision of recipient.”
Information System
Definition: An information system can be defined as a set of interrelated components that collect
(or retrieve), process, store and distribute information to support decision making, coordination
and control in an organization.

Information System

Characteristics of Information
The parameters of a good quality are difficult to determine for information.
According to Wang and Strong, following are the dimensions or elements of Information Quality −

 Intrinsic − Accuracy, Objectivity, Believability, Reputation

 Contextual − Relevancy, Value-Added, Timeliness, Completeness, Amount of information
 Representational − Interpretability, Format, Coherence, Compatibility
 Accessibility − Accessibility, Access security
 Various authors propose various lists of metrics for assessing the quality of information. Let
us generate a list of the most essential characteristic features for information quality −
 Reliability − It should be verifiable and dependable.
 Timely − It must be current and it must reach the users well in time, so that important
decisions can be made in time.
 Relevant − It should be current and valid information and it should reduce uncertainties.
 Accurate − It should be free of errors and mistakes, true, and not deceptive.
 Sufficient − It should be adequate in quantity, so that decisions can be made on its basis.
 Unambiguous − It should be expressed in clear terms. In other words, in should be
comprehensive.
 Complete − It should meet all the needs in the current context.
 Unbiased − It should be impartial, free from any bias. In other words, it should have
integrity.
 Explicit − It should not need any further explanation.
 Comparable − It should be of uniform collection, analysis, content, and format.
 Reproducible − It could be used by documented methods on the same data set to achieve a
consistent result.

Types of Information
Information can be classified in a number of ways:

Classification of Information: The information can be classified in a number of ways provide

to better understanding (in terms of classification by characteristics).
Jhon Dearden of Harvard University classifies information in the following manner:
(1) Action Verses No-Action Information: The information which induces action is called
Action Information. ‘No stock’ report calling a purchase action is an Action Information.
The information which communicates only the status is No-Action Information. The stock
balance is No-Action Information.

(2) Recurring Verses No-Recurring Information: The information generated at regular

intervals is Recurring Information. The monthly sales reports, the stock statement, the trial
balance, etc. are Recurring Information.
The financial analysis or the report on the market research study is No-Recurring Information.

(3) Internal and external information: The information generated through the internal sources
of the organization is termed as Internal Information, while the information generated through
the govt. reports, the industry survey etc., termed as External Information, as the sources of the
data are outside the organization.

The information can also be classified, in terms of its application:

1. Planning Information: Certain standard norms and specifications are used in planning of
any activity. Hence such information is called the Planning Information. e. g. Time
standard, design standard.
2. Control Information: Reporting the status of an activity through a feedback mechanism is
called the Controlling Information. When such information shows a deviation from the
goal or the objective, it will induce a decision or an action leading to control.
3. Knowledge Information: A collection of information through the library records and the
research studies to build up a knowledge base as an information is known as Knowledge
Information.
4. Organization Information: When the information is used by everybody in the organization,
it is called Organization Information. Employee and payroll Information is used by a
number of people in an organization.
5. Functional/ Operational Information: When the information is used in the operation of a
business it is called Functional/ Operational Information.
Database Information: When the information has multiple use and application, it is called as Database
Information. Material specification or supplier information is stored for multiple users.
Role of Information in Decision-making
Information plays a vital role in decision-making. Even to take very simple decisions, we need
information. To understand the role played by information in decision-making, we have to
understand how decisions are taken. Decision-making is basically a process that includes the
following stages:

Stages of Decision-making Role of Information

One needs information to identify a problem and put it in a
Identification and structuring
structured manner. Without information about a problem or
of problem/opportunity
opportunity, the decision-making process does not even start.

Putting the Without information about the context in which the problem
problem/opportunity in has occurred, one cannot take any decision on it. In a way, the
context .information about the context defines the problem.

Information is a key ingredient in the generation of

Generation of alternatives alternatives for decision-making. One has to have information
about possible solutions to generate alternatives.

Based on the information about the suitability of the

Choice of best alternative
alternatives, a choice is made to select the best alternative.

Information is thus, very important to take decisions.

Decision-making is the most important task of managers in an organization. Therefore, to enable
managers to take good quality decisions, it is very important to provide them with the right kind
of information. In most organizations, business or otherwise, a systemic systems based method is
used for information management. Systems based information management works best under a
computerized environment and such computer based information management system is
normally called ‘Management Information System (MIS)’, which provides the service of
information supply to the managers enabling them to take informed decisions.

Information System
Definition: An information system can be defined as a set of interrelated components that collect
(or retrieve), process, store and distribute information to support decision making, coordination
and control in an organization.
Types of Information System
The type of information system that a user uses depends on their level in an organization. The
following diagram shows the three major levels of users in an organization and the type of
information system that they use.

Transaction Processing System (TPS)

Transaction processing systems are used to record day to day business transactions of the organization.
They are used by users at the operational management level.

Examples of transaction processing systems include;

Point of Sale Systems – records daily sales
Payroll systems – processing employees’ salary, loans management, etc.
Stock Control systems – keeping track of inventory levels
Airline booking systems – flights booking management
Management information systems (MIS)
Management information systems (MIS) serve the management level of the organization.
Management Information Systems are used by tactical managers to monitor the organization's
current performance status. Tactical managers are responsible for the semi-structured decision.
The output from a transaction processing system is used as input to a management information
system.
Examples of management information systems include;
Sales management systems – they get input from the point of sale system
Budgeting systems – gives an overview of how much money is spent within the organization for
the short and long terms.
Human resource management system – overall welfare of the employees, staff turnover, etc.

Decision-support systems (DSS)

Decision-support systems (DSS) also serve the management level of the organization. Decision support
systems are used by senior management to make non-routine decisions. Decision support systems use
input from internal systems (transaction processing systems and management information systems) and
external systems.

The main objective of decision support systems is to provide solutions to problems that are
unique and change frequently.
Examples of decision support systems include;
Financial planning systems – it enables managers to evaluate alternative ways of achieving
goals.
Bank loan management systems – it is used to verify the credit of the loan applicant and
predict the likelihood of the loan being recovered.