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SYSTEM - is a set of interacting or interdependent components forming an integrated whole or a

set of elements (often called components) and relationships working together as one.
SYSTEMS ANALYSIS - is the study of sets of interacting entities, including computer systems
analysis. This field is closely related to requirements analysis or operations research. It is also an
explicit formal inquiry carried out to help someone (referred to as the decision maker) identify a
better course of action and make a better decision than he might otherwise have made.
Importance of System Analysis Basically, it is necessary to set up the procedures to ensure
that all organizations personnel have all the data needed for their work. Systems are created to
solve problems. We need to see all sides of a problem to come up with an acceptable solution.
Analysis involves studying the system and seeing how they interact with the entities outside as
well as inside the system.
SYSTEM ANALYST system analyst researches problems, plans solutions, recommends
software and systems, at least at the function level and coordinates development to meet their
business or any other requirements.
INFORMATION is data that has been refined and organized by processing and purposeful
intelligence. Knowledge obtained from investigation, study, or instruction.
DATA are raw facts about the organization and its business transaction. Most data items have a
little meaning and use by themselves. Data are represented in a structure,
often tabular (represented by rows and columns), tree (a set of nodes with parentchildren relationship) or a graph structure.
Types of Data
1. Alphanumeric data
2. Image data
3. Audio data
4. Video data

Has few components, and the
relationship or interaction between
elements is uncomplicated and
Interacts with its environment
Undergoes very little change over time
Is able to change in response in changes
in the environment
Exists relatively for a long period of time

Have many elements that are highly
related and interconnected.
Has no interaction with the environment
Undergoes rapid and constant change
over time
Is not able to change in response to
changes in the environment
Exists for only a short period of time

Physical or Abstract System

Physical systems are tangible entities that we can feel and touch. These may be static or
dynamic in nature. For example, take a computer center. Desks and chairs are the static parts,
which assist in the working of the center. Static parts don't change. The dynamic systems are

constantly changing. Computer systems are dynamic system. Programs, data, and applications
can change according to the user's needs.
Abstract systems are conceptual. These are not physical entities. They may be formulas,
representation or model of a real system.
Open or Closed System
Systems interact with their environment to achieve their targets. Things that are not part
of the system are environmental elements for the system. Depending upon the interaction with
the environment, systems can be divided into two categories, open and closed.
Open systems: Systems that interact with their environment. Practically most of the
systems are open systems. An open system has many interfaces with its environment. It can also
adapt to changing environmental conditions. It can receive inputs from, and delivers output to
the outside of system. An information system is an example of this category.
Closed systems: Systems that don't interact with their environment. Closed systems exist
in concept only.
INFORMATION (and COMMUNICATION) TECHNOLOGY refers to the role of unified
communications and the integration of telecommunications with the application of computer
technology which enable users to access, store, transmit and manipulate information.
INFORMATION SYSTEM refers to the complementary networks of hardware and software that
people and organizations use to collect, filters, and process, create, and distribute data. Any
specific information system aims to support operations, management and decision making.
1. The value of information is directly linked to how it helps decision makers achieve the
organizations goals.
2. Models, computers, and information systems are constantly making it possible for
organizations to improve the way they conduct business.
3. Knowing the potential impact of information systems and having the ability to put this
knowledge to work can result in a successful personal career, organizations that reach
their goals, and a society with a higher quality of life.
4. System users, business managers, and information systems professionals must work
together to build a successful information system.

Transaction Processing Systems

Management Information Systems
Decision Support Systems
Expert Systems
Office Automation Systems


1. Transaction Processing Systems are information system applications that capture and
process data about business transactions.
Includes data maintenance, which provides for custodial updates to stored data.
Business process redesign (BPR) is the study, analysis, and redesign of fundamental
business (transaction) process to reduce costs and/ or improve value added to the
2. Management Information Systems (MIS) is an information system application that
provides for management-oriented reporting. These reports are usually generated on a
predetermined schedule and appear in a prearranged format.
3. Decision Support Systems (DSS) is an information system application that provides its
user with decision-oriented information whenever a decision-making situation arises.
When applied to executive managers, this system sometimes called Executive
Information System.
Data Warehouse is a read-only, informational database that is populated with
detailed, summary and exception data and information generated by other transaction
and management information system. The Data Warehouse can then be accessed by
end-users and managers with DSS tools that generate a virtually limitless variety of
information in support of uninstructed decisions.
4. Expert Systems is a programmed decision-making information system that captures and
reproduces the knowledge and expertise of an expert problem solver or decision maker
and then simulates the thinking or an action of that expert.
Experts Systems are implemented with artificial intelligence technology that captures,
stores and provides access to the reasoning of the experts.
5. Office Automation Systems It supports the wide range of business office activities that
provide for improved workflow and communication between workers, regardless of
whether or not those workers are located in the same office.
Personal Information Systems are those designed to meet the needs of a single user.
They are designed to boost an individuals productivity.
Workgroup Information Systems are those designed to meet the needs of a work group.
They are designed to boost a workgroups productivity.
Information Systems Application