System Analysis & Design

INTRODUTION:

Systems are created to solve problems. One can think of the systems approach as an organized
way of dealing with a problem. In this dynamic world, the subject System Analysis and Design (SAD),
mainly deals with the software development activities.

System is based on Input-Process-Output (IPO model). Manual work can be replaced by

computerizes System for accuracy and speed of processing. So before the development of any
computerized system, developers should also understand all basic concept about the system. To
develop a system, a standard methodology must be considered. Different approaches are available for
the development of the system.

Selecting the best approach is the responsibility of System analyst and this selection is based on
the requirements of the used, problem definition and the infrastructure provided.

System analyst is a person who looks after all the activities related to system development process. He
is a technical person.

Business System Concepts:

The word system is widely used. It has become fashionable to attach the word system to add a
contemporary flair when referring to things or processes. People speak of exercise system, investment
system, delivery system, information system education system, computer system, etc. System may be
referred to any set components, which function in interrelated manner for a common cause or
objective.

System analyses and system design. System design is the process of planning a new business
system or one to replace or complement an existing system. But before this planning can be done, we
must thoroughly understanding the old system and determine how computers can best be used to make
it operation effective.

System analysis is the process of gathering and interpreting facts, diagnosing problems, and
using the information to recommend improvements to the system. This is the job of the systems analyst.

Definition of System: A collection of components that work together realize some objective
forms a system. Basically there are three major components in every system, namely input, processing
and output. System is the word derived from the Greek word ‘Systema’ which means an organized
relationship among components.

“The term system may be defined as a set of interrelated elements that operate collectively to
accomplish some common purpose or goal.”

“A System may be defined as orderly grouping of interdependent components linked to gather

according to a plan to achieve a specific goal. Each component is a part of total system and it has to own
share of its work for the system to achieve the desired goal.”

“An information system is an arrangement of people, data, process, information presentation

and information technology that interacts to support and improve day to day operations in a business as
well as support the problem solving and decision making needs of management and users.”

Eg. Business as a system, Transportation system, Examination system, Electrical system, Natural
system etc.
 A system is a collection of related elements. These elements take the form of input, process and
output can represented as in the below shown figure.

Analysing the Definitions:

A system exists because it is designed to achieve one or more objectives. We come into daily
contact with the transportation system, the telephone system, the accounting system, the production
system, and, for over two decades, the computer system. Similarly, we talk of the business system and
of the organization as a system consisting of interrelated department (subsystem) such as production,
sales, personnel, and an information system. None of these subsystems is of much use as single,
independent unit. When they are properly coordinated, however, the firm can function effectively and
profitably.

Characteristics of a system:

The definition of a system suggests some characteristics that are present in all system:

1. Organization implies structure and order. It is an arrangement of components hat helps to

achieve objectives.
2. Interaction refers to the procedures in which each component functions with other
components of the system.
3. Interdependence means that one component of the system depends on another
components.
4. Integration is concerned with how a system is tied together. It is more than sharing a
physical part. It means that part of system work together within the system the system even
though each part performs a unique function.
5. Central objective is quite common that an organization may set one objective and operate
to achieve another. The important point is that the users must be aware about the central
objective well in advance.

Sub-System: System has many layers and at every level a system can be perceived to be part of
a still larger system. It also means that at every level a subsystem can be a system relative of the
objective. That is, it is the objective that decides the system, subsystem, their functions and the
system environment.

Elements of a System:

1. Outputs and inputs.

2. Processor(s).
3. Control.
4. Feedback.
5. Environment.
6. Boundaries and interface.
1. Outputs and Inputs: A major objective of a system is to produce an output that has value to
its user. Whatever the nature of the output (goods, services, or information), must be in line
with the expectations of the intended user. Inputs are the elements (material, human
resources, and information) that enter the system for processing. Output is the outcome of
processing.
2. 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. Processors
may modify the input totally or partially, depending on the specifications of the output. This
 means that as the output specifications change so does the processing. In some cases, input
is also modified to enable the processor to handle the transformation.
3. Control: The control element guides the system. It is the decision-making subsystem that
controls the pattern of activities governing input, processing, and output. In an
organizational context, management as a decision-making body controls the inflow,
handling and outflow of activities that affect the welfare of the behavior of the system, the
operating system and accompanying software influence the behavior of the system. Output
specifications determine what and how much input is needed to keep the system in balance.
4. Feedback: Control in dynamic system is achieves by feedback. Feedback measures output
against a standard in some form of cybernetic procedure that includes communication and
control. Output information is fed back to the input and/or to management (Controller) for
deliberation. After the output is compared against performance standards, changes can
result in the input or processing and consequently, the output.
5. Environment: The environment is the “suprasystem” within which an organization operates.
It is the source of external elements that impinge on the system. In fact, it often determines
how a system must function. Example, the organization’s environment, consisting of
vendors, competitors, and others, may provide constrains and, consequently, influence the
actual performance of the business.
6. Boundaries and interface: A system should be defined by its boundaries-the limits that
indentify its components, processes and interrelationship with another system. For
example, a teller system in a commercial bank is restricted to the deposits, withdrawals and
related activities of customers checking and savings accounts. It may exclude mortgage
foreclosures, trust activities, and the like. Each system has boundaries that determine its
sphere of influence and control.

Types of systems:

1) Physical or abstract systems: physical systems are tangible entities that may be static or
dynamic in operation. For example, the physical parts of the computer center are the
officers, desks, and chairs that facilitate operation of the computer. The can be seen and
counted; they are static. in contrast, a programmed computer is a dynamic system.
Date, programs, output, and applications change as the user’s demands or the priority
of the information requested changes. Abstract systems are conceptual or non-physical
entities.
2) Open and Closed systems: Another classification of systems is based on their degree of
independence. An open system has many interfaces with its environment. It permits
interaction across its boundary; it receives inputs from and delivers outputs to the
outside. An information system falls into this category, since it must adapt to the
changing demands of the user.
3) Conceptual and Empirical: Conceptual system is a theoretical framework that may or not
have any counterpart with real world. Examples, economic theology, etc.
4) Natural and Artificial Systems: Natural systems abound in nature such as solar systems
and water system. They are not the result of human effort. Eg. Solar system, River
system etc.
5) Social and Machine System: Systems made up of people may be viewed purely as social
system. Business organizations, government agencies, political parties, etc. are
examples of social systems.
 Systems Requirement Specifications and Analysis :
Introduction:
Analysis is the heart of the process. It is the key component of the first two phases of
the development cycle. In analysis, the present system, the analyst collects a great deal of
relatively unstructured data through interviews, questionnaires, on-site observation, procedures
 manuals, and the like. The traditional approach is to organize and convert the data though
system flowcharts, which support future developments of the system and simplify
communication with the user. But the system flowchart represents a physical rather than a
logical system. It makes difficult to distinguish between what happens and how it happens in the
system.
 What are the Requirements Determination?

Requirements determination involves studying the current the business system to find
out how it works and where improvements should be made. Systems studies result in an
evaluation of how current methods are working and whether adjustments are necessary or
possible. These studies consider both manual and computer methods, they are not merely
computer studies.

i. Interview :
Analysts use interview to collect information from individual or from group. The
respondents are generally current users of the existing system or potential users of the
proposed system. In some instances, the respondents may be manages or employees who
provide data for the proposed system or who will be affected by it.
ii. Questionnaire :

The use of questionnaires allows analysts to collect information about various aspects of a system
from a large number of persons. The use of standardized question formats can yield more reliable data
than other fact-finding techniques, and the wide distribution ensures greater anonymity for
respondents, which can lead to more honest responses. However, this method does not allow analysts
observe the expressions or reactions or respondents. In addition, response may be limited, since
completing questionnaires may not have high priority among the respondents.

iii. Record Review :

Many kinds of record and reports can provide analysts with valuable information about
organizations and operations. In record review, analysts examine information that has been recorded
about the system and operations. In analysts examine information that has been recorded about the
system and user. Record inspection can be performed at the beginning of the study, as an introduction,
or later in the study, as a basis for comparing, actual operations with the records indicate should be
happening.

iv. Observation:
Observation allows analysts to gain information they cannot obtain by any fact-finding
method. Through observation, analysts can obtain firsthand information about how activities
are carried out. This method is most useful when analysts need to actually observe how
documents are handled, how processes are carried out, observers know what to look for and
how to assess the significance of what they observe.

WHAT IS STRUCTURED ANALYSIS?

Structured analysis a set of techniques and graphical tools that allow the analyst to develop a
new kind of system specifications that are easily understandable to the user.

1. The Data Flow Diagram (DFD)

The DFD is a way of expressing system requirements in a graphical from; this led to a
modular design. A DFD also known as a “bubble chart,” has the purpose of clarifying
system requirements and identifying major transformation that will become programs
in system design. So it is the starting point of the design phase that functionally
decomposes the requirements specification down to the lowest level of detail.
2. System flow chart:
It is a graphic diagramming tool that documents and communicates the flow of data
media and information processing procedures taking place in an the information system. This is
accomplished by using a variety of labeled symbols connected by arrows to show the sequence
of information processing activities.

3. Data Dictionary :
A data dictionary is a structured repository of data. It is a set of rigorous definitions
of all DFD data elements and data structure.

4. Decision Tree
“A schematic tree-shaped diagram used to determine a course of action or show a
statistical probability. Each branch of the decision tree represents a possible decision or
occurrence. The tree structure shows how one choice lead to the next, and the use of branches
indicates that each option is mutually exclusive.”

5. Decision Table
A decision table (DT) – also termed an inference or logical tree – provides a schematic
view of the inference process of decision-making process. Each decision rule of a DT is
composed of a premise (condition) and a conclusion (action). In its tree-like representation, the
premises and conclusions are shown as nodes, and the branches of the tree connect the
premise and the conclusions.

SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

System development life cycle is an organizational process of developing and

maintaining systems. It helps in establishing a system project plan, because it gives overall list of
processes and sub-processes required for developing a system.
System development life cycle means combination of various activities. In other words we can
say that various activities put together are referred as development life cycle. In the system
analysis and design terminology, the system development life cycle also means software
development life cycle.

Following are the different phases of system development life Cycle:

 Preliminary study
 Feasibility study
 System analysis
 System design
 Coding
 Testing
 Implementation
 Maintenance
a) Preliminary system study :
Preliminary system study is the first stage of system development life cycle. this
is a brief investigation of the system under consideration and gives a clear picture of
what actually the physical system is? In practice, the initial system study involves the
preparation of a ‘system proposal’ which lists the problem definition, objectives of the
 study, Terms or reference for study, constraints, expected benefits of the new system,
etc. in the light of the user requirements.

b) Feasibility study :
In case the system proposal is acceptable to the management, the next phase is
to examine the feasibility of the system. The feasibility study is basically the test of the
proposed system in the light of its workability, meeting user’s requirements, effective
use of resources and of course, the cost effectiveness.

c) Systems analysis :
Systems analysis is a process of collecting factual data, understand the processes
involved, identifying problems and recommending feasible suggestions improving the
system functioning. This involves studying the business process, gathering operational
data, understand the information flow, finding out bottlenecks and evolving solution for
overcoming the weakness of the system so as to achieve the organizational goals.
System analysis also includes subdividing of complex process involving the entire
system, identification of data store and manual processes.
d) System Design :
System Design is a creative process that is guided by the broad objectives of the
organization. Achievement of the organizational objectives required structuring of many
subsystems in to a hierarchy, where each subsystem is designed to provide the output
for the next higher sub system i.e. each subsystem objectives directly helps in achieving
the objectives of higher subsystem in the hierarchy.
e) Coding :
The system design needs to be implemented to make it a workable language, i.e.,
programming language. This is also called the programming phase in which the
programmer converts the program specification into computer instruction, which we
refer to as programs.
f) Testing :
Before actually implementing the new system into operation, a test run of the system is
done for removing the bugs, if any. It is an important phase of a successful system. After
codifying the whole programs of the system, a test plan should be developed and run on
a given set of test data.
g) Implementation :
The system is finally tested and put in to operation. Implementation comprises all the
activities involved in putting the system together physically and getting the people
adopts the new system. This requires training for people and conversion of data and
procedures to be in arrangement with the new system.
h) Maintenance :
Maintenance is necessary to eliminate errors in the system during its working life and to
tune the system to any variations in its working environments. It has been seen that
there are always some errors found in the systems that must be noted and corrected. It
also means the review of the system from time to time.

 System Approach to problem Solving :

Under this approach a manager should make conscious attempt to understand the
relationship among various parts of the organization and their role in supporting the overall
performance of the organization. Before solving problem in any functional area, or in any specific
sector of the organization, he should understand fully how the overall system would respond to
changes in its components part.
 To solve the problem follow the following six steps:

a) Defining of the problem : In this stage problem will be defined

b) Gathering and analyzing data concerning the problems: in this stage collection of data
and analysis of the Data will be done.
c) Identification of alternative solutions: finding of various alternative solutions.
d) Evaluation of alternative: evaluation if the various alternative for the suitable decision.
e) Selection of the best alternative: best decision will be taken among the various
alternatives.
f) Implementation of the solution: whatever the best decision chosen that must be
implemented.
 Decision support system (DSS)
A decision support system (DSS) is a computer-based information system that support
business or organizational in decision-making activities. DSSs serve the management,
operations, and planning levels of an organization and help to make decisions, which may be
rapidly changing and not easily specified in advance. Decision support systems can be either
fully computerized, human or a combination of both.

DSS characteristics and capabilities

 Solve semi-structured & Unstructured problems
 Support to Managers at all Level
 Support Individual and groups
 Inter dependence and Sequence Decision.
 Support Intelligence, Designee, Choice.
 Adaptable & Flexible
 Interactive and ease of use Interactive and efficiency
 Human control the process
 Ease of development by end user
 Modeling and Analysis
 Data Access
 Stand alone Integration & Web Based

Benefits

 Improves personal efficiency

 Speed up the process of decision making
 Increases organizational control
 Encourages exploration and discovery on the part of the decision maker
 Speeds up problem solving in an organization
 Facilitates interpersonal communication
 Promotes learning or training
 Generates new evidence in support of a decision
 Creates a competitive advantage over competition
 Reveals new approaches to thinking about the problem space
 Helps automate managerial processes
 Create Innovative ideas to speed up the performance
 Transaction Processing System (TPS) was the earliest form of computerized management
information system. Originally, business transactions were processed manually. This was partly
replaced by machine assisted data processing system. Gradually, electronic data processing was
introduced to record business transactions. TPS is today an integral part of computer based
information systems.
Transactions that may be grouped in to four common cycles of business activity

a) Revenue Cycle
b) Expenditure cycle
c) Production Cycle
d) Finance Cycle
Components of the Transaction Processing System:
a) Input: Source documents, such as customer orders, sales slips, invoices, purchase orders, and
employee time cards, are the physical evidence of inputs into the transaction processing system.
b) Procession: Procession involves the use of journals and registers to provide a permanent and
chronological record of inputs.
c) Storage: Ledger and files provide storage of data in both manual and computerized systems.
d) Output: There is wide variety of outputs from a transaction processing system. Any document
generated in the system is an output. Eg. Trial balance, financial reports, operational repots, pay
cheques, bills of lading etc.
MANAGEMENT INFORMATION SYSTEMS (MIS)
Introduction
The computer has had a significant impact on the techniques used by management to
operate a business. The level of the manager in the organization is also a factor in determining
the kind of information needed to solve a problem. Lower-level management needs detailed
internal information to make day-to-day, relatively structured control decisions, required
summarized information from a variety of sources to attain goals. In either case, management
action is based on information that is accurate, relevant, complete, concise, and timely. MIS has
been successful in meeting these information criteria quickly and responsively.

Definitions of MIS:
According to G.B. Davis “An integrated man/machine system for providing information
to support operations, management and decision making functions in an organization”.
“An approach that visualize the business organization as single entity composed of
various inter-related and inter-dependent sub-systems looking together to provide timely and
accurate information for management decision making, which leads to the optimization overall
enterprise goals”

Characteristics of an MIS:
a) Common database
b) Management oriented
c) Management directed
d) Integrated
e) Planning
f) Sub system concept
g) Computerized

Following are the characteristics of MIS:

1. Computerised : Computer plays very important role in MIS. Computer is required for many
purposes, after collection of the data we need to feed in computer for processing to get the
required information and to provide better decision. So without the use of computer it is
very difficult to store the data and process.
2. Management oriented: MIS is designed to fulfill the requirements of management. MIS is
not only for Top level, it is also fulfills the requirements of other levels of management-
middle level and lower level.
3. Common database: The organization maintains common database so the any functional
subsystem can access the same database. It avoids the confusions and eliminates the
necessity of duplication in data storage, updating, deletion and protection.

4. Planning: MIS requires detailed planning of each and every activities as purchasing,
requirement, training for employees. Without proper plan MIS will not be successful.

5. Avoids Duplication in data storage(Redundancy): By adopting common database method in

the organization, it avoids the duplication in data storage i.e. redundancy.

6. Sub-system concept: Even though the information system is viewed as a single entity, it
must be broken down into digestible sub-system which can be implemented one at a time
by developing a phasing plan. The breaking down of MIS into meaningful sub-systems sets
the stage for this phasing plan.

7. Integrated: Development of information should be tied together into one entity. An

integrate information system has the capability of generating more meaningful information
to management. The word integration here means taking a comprehensive view or a
complete look a inter locking sub-systems that operate within accompany.