Chapter 1

System Concepts

What is a System?

Set of inter-related components with a clearly defined boundary

Working together to achieve objectives

Simple Example

Heating System Objective: Control the temperature inside

a building Components:

Furnace Thermostat Building

General Components

Every system has some form of Input, and Output

Processing is often required to transform the input to output

Systems have some point of Control Systems often provide Feedback

Simple Example

Heating System Input: Fuel Source, Desired Temperature,

Actual Temperature Processing: If Actual Temp. < Desired

then burn fuel to produce heat Output: Heat or no heat (depending on

Input)

Simple Example

Q: In a heating system, what could trigger the furnace to turn on?

Q: In a heating system, what could trigger the furnace to turn off?

Feedback

Feedback is data about the performance of a system.

Example: Data about sales performance is feedback to a sales manager

In a heating system, feedback would be the change +/- of the actual temperature.

Control

Control involves monitoring and evaluating the feedback to determine whether the system is achieving its goals.

Heating System Example: Goal: keep the building at 65 degrees Feedback: Temp falls to 62. Control: Turn on or turn up the furnace.

Control & Feedback

A thermostat is a control unit of a heating system. Makes control decisions based on feedback.

Good systems have self-monitoring control built into them (Cybernetic).

Imagine trying to regulate the temperature in a room without a thermostat.

Important Terminology

Cybernetic System Sub-system Open System Adaptive System System Parameter System Variable

Business Systems

An Information System helps process Input into Output but it is also the backbone for directing feedback to Management

(Control)

Information System Components

These are the 5 components of an IS

These are IS Activities

In some sense providing Feedback

is the primary objective of all these

components and activities

IS Resources and Products

IS Activities

Data vs. Information

Data raw facts no context just numbers and text

Information data with context processed data value-added to data

summarized organized analyzed

Data vs. Information

Data: 51006 Information:

5/10/06 The date of you final exam. $51,006 The average starting salary of an

accounting major. 51006 Zip code of Battle Creek Indiana.

Data vs. Information

Data 6.34 6.45 6.39 6.62 6.57 6.64 6.71 6.82 7.12 7.06

SIRIUS SATELLITE RADIO INC.

$5.80

$6.00

$6.20

$6.40

$6.60

$6.80

$7.00

$7.20

1 2 3 4 5 6 7 8 9 10

Last 10 Days

Sto

ck P

rice

Information

Lufthansa Case pp 23

Questions: What type of Information System is

described? (TSP, PCS, ECS, MIS, DSS, EIS?)

What are the components: People, Hardware, Software, Networks, Data?

Luftansa Case

Q: Are Lufthansa’s challenges similar to those being experienced by other businesses? Provide a mobile workforce Distribute training activities during non-

productive periods Redefine processes to take advantage of

new mobile technologies

Luftansa Case

Q: Lufthansa was taking a risk with their decision to deploy notebook computers to their pilots. What steps did they take to manage that risk?  Ensured that technical specs for the equipment were

acceptable to both pilots and the union. Increase user buy-in by providing alternatives to

cumbersome tasks (such as carrying manuals and technical documents around)

Standardization to reduce support and upgrade costs Structured the process in phases; obtain feedback

before mass implementation