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    INTRODUCTIONTO SYSTEMS ANALYSIS

    Prepared by: Engr. Joy N. Sadol

    College of Engineering andTechnology

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    Kendall & Kendall 2005 Pearson Prentice Hall 1-2

    The Information Age

    Atomic Age, Computer Age, InformationAge

    Information and paperwork Reasons for overwhelming information

    and paperwork:

    1. people - increase in population2. government - increased regulations

    and control

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    Information Processing

    Information Processing requires:Planning

    PeopleMachinesMoney

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    What is a System?

    A systemis a regularly interacting orinterdependent group of elements

    forming a unified whole.

    A systemis a collection of related parts

    treated as a unit where its componentsinteract.

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    Examples of Systems

    Water System Ecological System The Human Body

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    Major Attribute of A System

    A System possesses qualities andattributes not found in the individual

    elements. The whole is producing results that isgreater than the sum of the parts.

    Example: A collection of mechanical andelectrical itemsbearings, gears,wires,nuts, bolts, stamped parts, etc.canbe assembled into an automobile.

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    Business Systems

    A business system is a collection ofpolicies, procedures, methods, people,

    machines, and other elements thatinteract and enable the organization toreach its goals.

    Business systems often includemarketing, personnel, production,finance, and distribution elements.

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    Tasks of a Business System

    An important task of a business systemis the managing and coordinating

    function.

    Business systems record deposits andwithdrawals, transfer funds, collect and

    manage data about customers, or guidethe production or marketing aspects ofan organization.

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    Goals of a Business System

    A goal for some organizations is to maximizeprofit and return on investment toshareholders

    For others, such as mutual benefitassociations, the goal is to provide servicesor facilities to members, rather than profit to

    shareholders. To others, such as nonprofit organizations,serve the public by providing healthcare,housing or food programs to those in need.

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    Information Systems

    Information processing and handling is one ofthe most important components of many

    businesses. Information Systems are collections of

    procedures, programs, equipment, andmethods that process data and make it

    available to management for decision making.

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    Data vs. Information

    Data is the raw material that isprocessed and refined to generate

    information. Information is the product that results

    from processing or manipulating raw

    data. Information is ultimately used to make

    decisions.

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    SYSTEM FUNDAMENTALS

    A business system is usually composed of many partsor elements called subsystems.

    A subsystem performs a specified task that iscompatible with the goals of the larger system ofwhich it is a part.

    system

    ENVIRONMENT

    boundary

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    The environmentis the people,facilities, rules, policies, and regulations

    that surround a systemA boundaryis the perimeter, or line of

    demarcation, between a system and the

    environment. It distinguishes betweenthe system and the outside world withwhich it interacts.

    Inputsare those items that enter theboundaries of the system from theenvironment and are manipulated bythe system

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    Processingis the conversion of inputs,or raw materials, to outputs, or finished

    results.

    Outputsare the product of processing.They are the end result of receivingdata or other input and processing it

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    TYPES OF SYSTEMS

    Open Systems, also calledprobabilistic systems, are those in which

    the output, or results, canneot bedetermined precisely, but can only beguessed at.

    In Closed Systems, the result oroutput can be predicted with certainty.

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    The output of closed systems can bepredicted with relative ease and

    accuracy by measuring the input ordemands placed upon the system. Forthis reason, closed systems are easierto manage than open systems.

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    GROWTH OF THEINFORMATION INDUSTRY

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    THE CHANGING LABOR FORCE

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    THE STUDY OF SYSTEMANALYSIS

    System Analysis is the investigation ofbusiness or information systems. It isthe scientific study of the systemsprocess, including investigation of theinputs and outputs, in order to find

    better, more economical, and moreefficient means of processing.

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    ADVANTAGES OF SYSTEMANALYSIS

    The application of Systems Analysistechniques to information processing

    has many benefits. These include:

    1. Greater efficiency

    Systems analysis methods help afirm to develop and maintain anorganizational structure and operatingprocedures for maximum efficiency.

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    ADVANTAGES OF SYSTEM ANALYSIS (cont.)

    2. Maximum profits

    A business firm that operates efficiently

    and systematically is likely to generategreater profits.

    3. Resources used to the bestadvantage

    Systems analysis aids a firm in achievinghigh quality output with the least investmentof time, material and other resources.

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    4. Reduction of human effort

    Systems analysis encourages the

    best utilization and allocation of humaneffort and labor. Systems analystsattempt to uncover duplication,

    redundancy, and wasted effort and toautomate procedure wheneverpractical.

    ADVANTAGES OF SYSTEM ANALYSIS (cont.)

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    5. Faster turnaround

    Efficiently organized procedures and

    operation s make it possible to reachgoals faster. This is true whether theoutput of the firm is the production of

    goods or services, or the movement ofinformation, data, money, or the like.

    ADVANTAGES OF SYSTEM ANALYSIS (cont.)

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    6. Reducing or Eliminating Errors indata and information

    An important goal of the systemsanalyst is to increase the accuracy ofthe data generated and processed by a

    firm

    ADVANTAGES OF SYSTEM ANALYSIS (cont.)

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    7. Consistent operations andprocedures

    Clearly written policy statements,diagrams, flowcharts, and such make itmore likely that a firms procedures and

    practices will be followed and maintainedin a consistent manner. They also serveas guides for modifications or alterations.

    ADVANTAGES OF SYSTEM ANALYSIS (cont.)

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    LIMITATIONS OF SYSTEMSANALYSIS

    1. Some business problems are beyond the scopeof systems analysis techniques. The most

    skillfully designed data flow system cannot helpan organization that is falling because of seriousfinancial problems or because it is marketing aproduct people no longer want. Problems

    created by pressures from outside theenterprise, such as from stockholders or thepublic, are also often beyond the reach of thesystems analyst.

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    LIMITATIONS OF SYSTEM ANALYSIS (cont.)

    2. Systems analysis efforts cost time andmoney. Finding a long-term,

    permanent solution to a problem canbe an expensive investment,compared to a short-term, temporaryanswer.

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    3. The human element can cause complication. A

    system analyst must take this into consideration.Much of the analysts activities involve makingchanges in routines, systems, organizationalstructures, working patterns and conditions, and

    in other areas. People tend to oppose change.They resist adjusting to unfamiliar situations,even those that are in their best interests in thelong run. The systems analyst has the

    responsibility of preparing the employees,customers, management, vendors, and others toaccept the modifications and alterationsintroduced by a new system.

    LIMITATIONS OF SYSTEM ANALYSIS (cont.)

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    4. Effort is required to sell a system. Nomatter how promising a systems

    analysis project may seem, it cannotsell itself. The people involved must beencouraged to cooperate in the

    development and implementation of theventure to ensure its success.

    LIMITATIONS OF SYSTEM ANALYSIS (cont.)