Management Information

Systems
Unit 03
Abrar Rana
System
 What is a System?
 A organized set of interrelated elements
 That collectively work together
 To achieve some common purpose or goal
 What is a CBIS?
 Computer based information system
 Collection of hardware, software, data & procedures
 That interact to provide timely data and information (both internally &
externally)
 To authorized people who need it
Characteristics of System
Following characteristics are present in all systems 
 Organization
 Interaction
 Interdependence
 Integration
Characteristics of System (Cont..)
 Organization:
It is the arrangement of components that helps to achieve objectives.
Hierarchical relationship starting with the president on top and
leading downward to the blue-collar worker represents the
organization structure.
 Interaction:
Interaction refers to the procedure in which each component interact
with other components of the system.
Characteristics of System (Cont..)
 Interdependence:
Independence is concerned with how a system is tied together. All
parts of system depend on each other.
 Integration:
The process of bringing together the components sub-systems into
one system and ensuring that the subsystems function together as a
system.
We can say the process of linking together different sub-systems to act
as a coordinated whole.
Components of a System
 System Element can be
 A tangible object (car, person)
 Abstract concept (data/information)
 Event (21 December/Convocation ceremony)
 Logical Description:
Representation that specifies essential system elements in broad/abstract
terms
 Physical Description:
How it is actually implemented
Basic Elements of System:
A system has three basic elements
 Input
 Output
 Processing
There are some other elements including
 Feedback
 Boundaries
 Environment
Basic Elements of System (Cont..)
 Input: Data the system receives to produce a certain output
 Output: What goes out of the system after being processed
 Processing: Transforming input into output
 Feedback:
The output is checked with the desired standards of the output and
the necessary steps are taken for achieving the output as per the
standards, this process is called Feedback. It helps to achieve much
better control of the system.
Basic Elements of System (Cont..)
 Boundaries
The boundaries are nothing but the limit of the system. Setting up
boundaries helps for a better concentration of the actives carried in
the system.
 Environment
The things outside the boundary of the system are known as the
environment. Change in the environment affects the working of the
system.
Basic Elements of System (Cont..)
Environment
System

Boundary

System Elements
Subsystems & Suprasystems
 Subsystems:
Some elements inside a system may represent entire
systems
 Suprasystems:
Larger enclosing system that consists of a system and others
at its level
Subsystems & Suprasystems (Cont..)

Organization

Marketing Finance Technology

Research Financial
Planning

Branding
Investments
Types of Systems
 Common classifications are
 Open & closed systems
 Deterministic & probabilistic systems
 Physical or abstract systems
 Permanent or Temporary System
Open & closed systems
 Open systems:
 Interacts & makes exchanges with its environment
 Receives inputs from and delivers outputs
 Can adapt to changing internal & environmental conditions
 Example
• Business organization
• Human being
Open & closed systems (Cont..)
 Closed systems:
 Self Contained
 No interaction with its environment
 Isolated from environmental influences
 Completely closed system is rare
 Example
• A computer program that processes predefined input in a predefined
way
 Virtually all business systems are OPEN systems
Deterministic & probabilistic systems
 Deterministic Systems:
 The behavior of a deterministic system is completely known
 No uncertainty involved in defining the outputs
 E.g. Computer Program
 Probabilistic systems:
 The behavior cannot be predicted with certainty
 Only probabilistic estimates can be given
 E.g. Weather forecasting
Physical or abstract systems
 Physical Systems:
 Physical systems are tangible or visible systems
 Physical Systems may be static or dynamic
 E.g. Computer Center (chairs, desk, programs, data)
 Abstract systems:
 Abstract system is conceptual or non-physical
 May be formulas, representations, or models of a real system
Permanent or Temporary System
 Permanent Systems:
 Persist for a long time
 E.g. Business policies
 Temporary Systems:
 Made for a specified time and after that, they are demolished
 E.g. Seasonal sales
Modeling System
 What is a model?
Representation of real world element or a group of elements and
their relationships amongst each other
Models help us to clarify and simplify the complex MIS of an
organization
 Generic Vs. Specific Models
 Generic: Can be applied to a wide variety of settings
 Specific: apply to a specific setting
Levels of Models
Some models are so complex that it is impossible to
represent them appropriately without breaking them down
into simpler models.
Consider a organization chart:
Levels of Models

BOD

VP VP
VP Strategy VP Finance
Technology Commercial
Types of Models
 Graphical Models:
use symbols as icons, boxes & lines to represent real world elements and
relationships between them
 DFDs – how data flows from one process to another
 Structure Charts – normally used with org. charts
 Narrative Models:
describe a system without trying to illustrate it in a formula or graph
 e.g. Job description
Types of Models (Cont..)
 Physical Model:
Usually a three dimensional representation that can be held or
touched
 e.g. Prototype (small pilot model) for an MIS
 Mathematical Models:
used to express quantifiable phenomena
 uses symbolic notations and mathematical equations to
represent a system (DFA in ToA)
Model of an Organizational System
Remote Environment

Operating
Environment
Organization

Consumers Suppliers Competitors Labor Supply

Organizational System Elements
 Consumers:
 Present & potential customers
 Generate revenue
 Suppliers:
 Sources that make available the goods and services the org
requires to keep operating
 Competitors:
 Org. needs information about competition to survive in a market
Organizational System Elements (Cont..)
 Labor Supply:
 Information is required about adequate labor to perform the activities
of an org
 External Environment:
 All relevant forces outside the org. and is composed of an operating
environment and a remote environment
 Operating Environment:
 Consists of the forces that are most closely related with the org.
specific competitive situation
Organizational System Elements (Cont..)
 Remote Environment:
 Consists of all the relevant outside forces and conditions that
are beyond org. direct control and specific competitive
situation
 Organization:
 Every org. needs information about its own internal
effectiveness
Thank You!