SYSTEM ANALYSIS AND DESIGN

July 8, 2023

• What is system analysis and design

• Information, system, data
• Components of information systems
• Characteristics of information systems
• Categories of information
• Types of information

System Analysis and Design

- is a step-by-step process for developing high-quality
information systems

Information
- is defined as knowledge obtained from investigation, study or
instruction

- good and correct information is essential for effective

operation and decision making at all levels in businesses

System
-collection of related elements and components that are linked
and organized for a common purpose

Every time a transaction is done, DATA are taken

from particular party or person, kept in
database/storage

These data are processed to become INFORMATION to

answer question and solve problems.

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Information System
- software that helps organize and analyze data to interpreted,
transformed, arranged, and managed as information.

- purpose – turn raw data into useful information that can be

used for decision making in an organization

- handle daily business transactions, improve company

productivity, and help managers make sound decisions

Examples:
*online air ticket booking system
* online survey tools
* customer relationship systems
* accounting information systems

Accounting Information System

- An accounting information system (AIS) is a system that a

business uses to collect, store, manage, process, retrieve,
and report its financial data.

- Tracks all accounting and business activity for a company.

Components of Information System

Hardware

- consists of everything in the physical layer of the

information system

- Examples of hardware: processors, monitors, keyboards,

printers, servers, devices

- Traditional systems – paper-based resources (logbook,

filing cabinets)
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 Software

- Programs and applications used to process and transform

data

- Programs that control the hardware and produced the desired

information or results

Database

- Information systems requires database that keeps all the

data. It can be traditional device or a modern form: online
and cloud

Network
- These includes technologies or techniques to linked and
integrate all components

Procedures
- These are set of steps on how data are transformed to
information

Characteristics of Information System

Organization
- It implies structure and order
- It is the arrangement of components that to achieve
objective

-Hierarchal

relationship in a business system

-System and subsystem relationship

-formal flow of communication

-chain of command

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 When linked together they work as
a whole system that produces
information

Interaction

- It refers to the manner in which each component functions

with other components of the systems

Interdependence

- Parts of the organization or computer system depend on

one another

- They coordinated and linked together according to plan

Integration

- Refers to the holism of systems

- It means part of the systems work together within the

system even though each part performs a unique function

Central Objective

- The objective of system must be central

- The users must know the main objective of a computer

application early in the analysis for a successful design
and conversion

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Categories of Information

Strategic Information

- Relates to long-range planning policies that are of

direct interest to upper management

(population growth report, financial investment

trends, human resources changes)

Managerial Information

- it is of direct use to middle management and department

heads for implementation and control

- this information is of use in short and intermediate

range planning

Operational Information

- It is a short term, daily information to operate

departments and enforce the day-to-day rules and
regulations of the business

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Types of Information Systems

Executive Information System (EIS)

- This system is designed to address unstructured decision

making at the strategic level of an organization

- Systems at strategic level help managers in long term

planning

Decision Support System (DSS)

- It differs from MIS in mainly having more analytical

power and more user-friendly capabilities.

- DSS combine data and analytical/modeling tools to support

semi-structured/unstructured decision making

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 Management Information System (MIS)

- This system is designed to serve the functions on

planning, controlling and decision-making at the
management level of the organization

- It generates accurate, timely, and organized information

so managers and other users can solve problems, supervise
activities, and track progress.

Transaction Processing System (TPS)

- The system is designed to serve the operational level of

an organization

- It records and process the daily routine transactions of

the organizations like accounting, payroll and order
processing

- It is an information system that captures and processes

data generated during business day to day transactions
(deposit, payment, order, reservation)

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