DIKW Pyramid 

objectives of its subsystems. 

• The data-information-knowledge-wisdom   
(DIKW) hierarchy or pyramid is a model  Properties of a System 
or construct that has been used widely  A system has the following properties 
within information science and knowledge  1. Organization 
management.   2. Interaction 
3. Interdependence 
4. Integration 
5. Central Objective 
ELEMENTS OF A SYSTEM 

 
 
● Physical systems​ are tangible 
entities. We can touch and feel 
them. Physical System may be 
static or dynamic in nature.   
  ● Abstract systems​ are 
System Analysis and Design   non-physical entities or 
- refers to the process of examining a  conceptual that may be formulas, 
business situation with the intent of  representation or model of a real 
improving it through better  system. 
procedures and methods. System  ● An ​open system​ must interact 
analysis and design relates to shaping  with its environment. It receives 
organizations, improving performance  inputs from and delivers outputs 
and achieving objectives for  to the -outside of the system.  
profitability and growth through the  ● A ​closed system​ does not 
use of information system.  interact with its environment. It 
System  is isolated from environmental 
- is derived from Greek word Systema  influences. A completely closed 
which means an organized  system is rare in reality.  
relationship between any set of  ● Adaptive System​ responds to 
components to achieve some  the change in the environment in 
common cause or objective. A system  a way to improve their 
is “an orderly grouping of  performance and to survive.   
interdependent components linked  ● Non Adaptive System​ is the 
together according to a plan to  system which does not respond 
achieve a specific goal.”  to the environment.   
A system must have three basic  ● Permanent System​ persists for 
constraints  long time.   
● A system must have some structure  ● Temporary System​ is made for 
and behavior which is designed to  specified time and after that they 
achieve a predefined objective.   are demolished.   
● Interconnectivity and  ● Natural systems​ are created by 
interdependence must exist among the  the nature.   
system components.  ● Manufactured System​ is the 
● The objectives of the organization  man-made system.   
have a higher priority than the  ● Deterministic system​ operates 
 in a predictable manner and the  decision making and operational activities 
interaction between system  in an organization.  
components is known with 
certainty.    There are several categories of 
● Probabilistic System​ shows  information system:  
uncertain behavior. The exact  - Data Processing Systems (DPS)  
output is not known.    - Management Information Systems 
● Social System​ is made up of  (MIS)  
people.   - Decision Support Systems (DSS)  
● Human-Machine System​, both 
- Executive Information System (EIS).  
human and machines are 
 
involved to perform a particular 
Data processing systems  
task. 
● Machine System​ is where  Commercial computing systems were 
human interference is neglected.  first developed in the 1950s and 60s, initially 
All the tasks are performed by  by what can only be called enthusiasts 
the machine.    consisting of businessmen with a vision. 
These included Jo Lyon (of Lyon’s cakes 
Man–Made Information Systems   fame) who operated a huge catering empire in 
London in the 1940s and 50s. The story of 
  ​It  is  an  interconnected set of information  how they became computerized with the first 
resources  to  manage  data  for  particular  commercial system is told at the site http:// 
organization,  under  Direct  Management  www.kzwp.com/lyons/leo.htm.  
Control  (DMC).This  system  includes 
hardware, software, communication,  data,  These systems were data 
and application for producing information  processing systems that either 
according to the need of an organization.   replaced the manual clerical 
procedures currently in use (like bank 
records), or in new areas where 
Man-made information systems are  humans were unable to perform the 
divided into three types −   calculations involved due to their 
Formal Information System − It is based on  complexity.  
the flow of information in the form of 
memos, instructions, etc., from top level to  A ​Data Processing System​ is 
lower levels of management.   sometimes referred to as a ​Transaction 
Processing System (TPS)​,​ because it deals 
with the day-to-day transactions of an 
Informal Information System​ − this is  organization. Examples include systems for 
employee based system which solves the day  accountancy, invoicing, stock control and data 
to day work related problems.   entry. For example, a clerk processing a 
customer order needs to know whether the 
item is in stock, what the price of the item is, 
Computer Based System​ − this system  as well as customer details including name 
is directly dependent on the computer for  and address.  
managing business applications.  
Another example is each item sold 
in a supermarket. For each item the bar 
CATEGORIES OF INFORMATION  code would be scanned and used to find 
SYSTEM   the name and the price of the product and 
then the price used to calculate the total bill 
An information system is a group of 
for a customer. This type of event would be 
interrelated components that work to carry 
stored in the supermarket’s transaction file 
out input, processing, storage, output and 
for each day’s business.  
control actions in order to convert data into 
information that can be used to support  Data processing systems are usually 
forecasting, planning, control, coordination,  tools used at the operational level of an 
organization, since most organizations at  answers to routine pre-defined questions. 
an operational level produce large amounts  An example from a supermarket will 
of data from the events that contribute to  provide reports that show the sales figures 
their running.   for each department each day for a week, 
with weekly totals, monthly totals, 
Another simpler example of a DPS, within  comparisons with last month and the 
a school context, is the gathering of pupil  corresponding month last year. Once the 
attendance records. Usually some  information is in the system many reports 
attendance data is gathered for pupils in a  can be extracted.  
school, in the morning and afternoon. 
This data is then input into the attendance  These  systems  are  generally  not 
information system. It can be used to  very  flexible  and  have  little  analytical 
calculate pupil, class, and year-group  capability.  Most  MIS  use  simple  routines 
attendance percentages. Pupil support staff  such  as  summaries  and  comparisons  as 
enquiring about pupil illness or poor  opposed  to  sophisticated  mathematical 
attendance can also use the information  models or statistical techniques.  
produced by this system.  
A DPS usually involves a computer at 
the heart of the operation. Depending on the  Decision support systems  
size of the company, this could be a desktop  A DSS provides information 
computer, a network, a mini or mainframe  and models in a form to help tactical 
computer with ‘dumb’ terminals. The system  and strategic decision making. DSS 
also includes the software necessary to run  support management decision making 
the computer and handle the data. The  by integrating:  
means of collecting and outputting the data 
may well also be included. For example, the  - company performance data  
National Lottery DPS includes terminals in  - business rules in a decision table  
shops around the country where data is  - analytical tools and models for 
collected.   forecasting and planning  
- a simple user interface to query the 
system.  
Management information systems  
DSS are particularly useful when 
An MIS is a system that converts  making ad-hoc, one-off decisions. These 
data from internal and external sources  types of decisions tend to be unstructured 
into information, communicated in an  and irregular.  
appropriate form to managers at different 
levels of an organization. The  DSS enable a manager to explore 
information can contribute to effective  a range of alternatives under a variety of 
decision making or planning to be carried  conditions. For example, a manager may 
out.  wish to know the effects on profits if 
The source of data for an MIS usually  sales increase and costs decrease.  
comes from numerous databases. These  The source of data for a DSS 
databases are usually the data storage for  tends to be a combination of summary 
Data Processing Systems. MIS summarize  information gathered from lower level 
and report on the organization’s basic  DPS and MIS; it also includes significant 
operations. The basic data from the DPS is  information from external data sources.  
condensed and is usually presented in long 
reports that are produced on a regular basis.  
MIS produce reports for managers  Executive information system  
interested in historic trends on a weekly, 
monthly and yearly basis (not on the  An EIS provides senior managers 
day-to-day activities of the DPS). The  with a system to assist in taking strategic and 
information in these reports provides  tactical decisions. Its purpose is to analyze, 
compare and identify trends to help the  Reasons for expert systems in business:  
strategic direction of the organization.  
∙  To  store  information  in  an  active 
EIS  address  unstructured  decisions  form  as  organizational  memory, 
and  create  a  generalized  computing  and  creating  an  organizational 
communications  environment,  rather  than  knowledge  base  that  many 
providing  any  fixed  application  or  specific  employees  can  examine  and 
capability. Such systems are not  designed to  preserving  expertise  that  might  be 
solve  specific  problems,  but  to  tackle  a  lost  when  an  acknowledged  expert 
changing array of problems.  leaves the organization  
EIS are designed to incorporate data  ∙ To create a mechanism that is not 
about external events, such as new tax laws  subject to human feelings, such as 
or competitors, and also draw summarized  fatigue and worry. This may be 
information from internal MIS and DSS.  especially useful when jobs may be 
These systems filter, compress, and track  environmentally, physically or 
critical data; emphasizing the reduction of  mentally dangerous to humans. These 
time and effort required to obtain  systems may also be useful advisers in 
information useful to strategic management.  times of crisis.  
They employ advanced graphics software to  ∙ To enhance the organization’s 
provide highly visual and easy-to-use  knowledge base by generating 
representations of complex information and  solutions to specific problems that 
current trends, but they tend not to provide  are too substantial and complex to 
analytical models.   be analyzed by human beings in a 
EIS allow the user to look at specific  short period of time. 
data that has been summarized from lower   
levels within the organisation and then drill  INFORMATION TECHNOLOGY 
down to increase the level of detail, which is  - any form of technology used by 
provided by the information systems in  people to handle information  
different areas. This is an example of data  - hardware (computer machines, 
warehouse analysis, which we will discuss  storage devicesetc)  
later.   - software (windows) 
 
INFORMATION SYSTEM  
Expert systems   - “Information systems (IS) is the 
study of complementary networks of 
An expert system is a computer  hardware and software that people 
program that tries to emulate human  and organizations use to collect, 
reasoning. It does this by combining the  filter, process, create, and distribute 
knowledge of human experts and then,  data.” 
following a set of rules, it draws inferences.   THREE MAJOR TRENDS  
An expert system is made up of  1. Rapidly increasing 
three parts: a knowledge base; an  globalization  
inference engine; a user interface.   2. Technology integration for 
seamless information access. 
The knowledge base stores all of  3. Rapid growth of cloud-based 
the facts, rules and information needed to  computing and services 
represent the knowledge of the expert.  ● E-COMMERCE  
The inference engine is the part of the  ● B2C (Business to Consumer)  
expert system that interprets the rules  ● B2B (Business to Business) 
and facts using backward and forward 
chaining to find solutions to user queries. 
The user interface allows the user to 
enter new knowledge and query the 
system.