This document provides an overview of systems and information systems. It defines a system as a purposeful collection of interrelated components that work together to achieve an objective. Examples of systems include education, economic, political, and business systems. An open system interacts with its environment, while a closed system is isolated. Key components of an open system are input, process, output, storage, and control. The document also discusses management, levels of information systems, types of information systems including transaction processing, decision support, executive support, management information, and expert systems. Finally, it covers office automation systems.

1. INTRODUCTIONTO
SYSTEMS AND
INFORMATION
SYSTEMS IN
ORGANIZATIONS
Lecture 4
1

2. Definition- A System is:-
A purposeful collection of interrelated
components that work together to achieve
some objective.
A group of procedures, processes,
methods, routines or techniques or
components united by some form of
regulated interaction to form an organized
whole.
A set of items, equipment, processes
and/or people working jointly with an
aim of achieving a common goal(s).
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3. Examples of systems
Education system, Economic system, Political
system, Transport system, Business system,
Heating system, Security system, Lighting
system, Water system, Waste system,
Drainage system, Accounting system,
Information system, all programs are systems,
Library information system, even human
beings are systems.
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4. N/B:
A system is established to achieve some
specific objective(s) i.e. the system does
some useful job/task and should be active
and efficient in its operations e.g. banking
system
All systems have a boundary within which
they operate. Outside this boundary is the
environment, from which (raw facts) inputs
are communicated from and to which
results or outputs (end/finished products)
are communicated to.
Systems are made up of sub systems. The
subsystems continually interact with each
other.
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5. COMPONENTS OF AN OPEN
SYSTEM
Input
 The component that receives the raw facts from the
environment and introduce them into the system ready
to be processed.
 The raw facts e.g. data to be processed into information
must first be collected and communicated from the
external environment into the system (EDP) by the input
function.
 In an Electronic Data Processing system data is collected
and communicated from the external environment and
introduced into the system for processing into
information. The input function in an EDP system
involves data collection, data capture and data entry.
 The nature of input is influenced by the nature of the
system.
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6. Process
The component of an open system which
manipulates and transforms the raw facts
(inputs) into finished/end products or end
results/outputs.
In an EDP system input raw data is
manipulated into information using the
stored set of instructions. The process
may be manual, mechanical or electrical
(automatic) to derive information/end
products.
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7. Output
Involves communication of the end
products or outputs/results to the external
environment to the recipient/end users for
consumption or to another data processing
(information) system.
In an EDP system information is produced
in form of business report documents e.g.
statements, invoices, result slips,
transcripts, bills (water, electricity) e.t.c.
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8. Storage
The component which stores inputs awaiting
processing, intermediate results (semi
processed input) and finished products
awaiting delivery to the consumers in the
environment. In an EDP system the storage
media would be like tapes, compact disks, flash
disks, cassette tapes etc which are used to
store master files, transaction files, sort files
etc.
The nature of storage is determined by the
nature of the system and the nature of what is
to be stored.
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9. Control
This component includes the feedback concept
that furnishes descriptive information on the
input, storage and output functions or
components of the system.
Negative feedback, is when non standard or
sub standard output is achieved, is meant to
regulate the system. Positive feedback
encourages further output the way they are.
The control system is usually stored within the
system as programs, to relate and tie together
all the system components, if the system is
computer based.
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10. Importance of systems study
It provides a theoretical framework
which allows performance of a
system to be monitored.
It stresses that all sub systems must
work in harmony in order to achieve
the overall goals of a system.
It recognizes the fact that conflicts
can arise in any system leading to
sub-optimization thus making the
system not to achieve its goals.

11. Cont’ed
It allows an individual to recognize that he
is a sub system within a big system.
The design of sub system must support the
goals of the entire/total system.
Classification of systems
Systems can be classified according to
their openness or closeness.
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12. Open system
Is a system which communicates (interacts)
with its environment. E.g. Business System,
Economic System, Information System, Transport
System, Social systems etc. Open systems can get
disorganized i.e. when the system can not reorganize
itself according to its internal subsystem forces, the
system therefore should be regulated. The process
whereby the system is regulated is known as
negative feedback.
Organisations as open systems attempt to monitor
and anticipate environmental disturbances. Some
disturbances are so great or unexpected that they
threaten the existence of the organisation. All
business organizations are open systems, for them to
exist they must have the capability to adapt in the
face of changing markets conditions; globalization,
liberalisation, competition, technology, the law,
conflict, etc.
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13. Characteristics of an open system
It must be designed to achieve a
predetermined objective.
A system contains a set of interacting
elements or components.
An open system comprises of input,
output, storage and processing as major
elements.
A system operates within specified
boundaries and interacts with other
systems.
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14. Cont’ed
A system has some controls and these
controls help it not to operate beyond its
boundaries.
A system must give priority to the objectives
of the whole system as compared to the
objectives of a subsystem.
Successful functioning of each system
component depends on the functioning of
some other components.
Systems are hierarchical in that, they include
other systems i.e. subsystems.
Note: Sub-systems can operate as independent
systems in their own right.
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15. Closed system
This is a system that doesn’t interact with the
environment at all, which means the system
doesn’t communicate from (no inputs) or to
(no outputs) its environment. Whatever
happens in the system doesn’t affect the
environment and vice versa. It corrects and
controls itself. Is isolated from its
environment. Are self-contained,
environmental factors does not influence their
behaviour.
They are more relevant to scientific,
mechanical and physical systems else all social
and economic systems have some interaction
with their environment.
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16. Open system
Is a system which communicates (interacts)
with its environment. E.g. Business System,
Economic System, Information System,
Transport System, Social systems etc.
Open systems can get disorganized i.e. when
the system can not reorganize itself according
to its internal subsystem forces, the system
therefore should be regulated. The process
whereby the system is regulated is known as
negative feedback.
All business organizations are open systems, for
them to exist they must have the capability to
adapt in the face of changing markets
conditions; globalization,competition,
technology, the law, conflict, etc.
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17. Characteristics of an open system
 It must be designed to achieve a predetermined objective.
 A system contains a set of interacting elements or
components.
 An open system comprises of input, output, storage and
processing as major elements.
 A system operates within specified boundaries and
interacts with other systems.
 A system has some controls and these controls help it
not to operate beyond its boundaries.
 Successful functioning of each system component
depends on the functioning of some other components.
 Systems are hierarchical in that, they include other
systems i.e. subsystems.
Note: Sub-systems can operate as independent systems in
their own right.
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18. Closed system
• This is a system that doesn’t interact with the
environment at all, which means the system
doesn’t communicate from (no inputs) or to
(no outputs) its environment. Whatever
happens in the system doesn’t affect the
environment and vice versa. Example system in
manufacturing, chemical reaction in a sealed,
insulated container.
It corrects and controls itself. Is isolated
from its environment. Are self-contained,
environmental factors does not influence
their behaviour.
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19. Differences between Open and
Closed system
OPEN SYSTEM CLOSED SYSTEM
1. Interacts with environment
constantly
1. Doesn’t interact or react
with the environment at all.
2. Has an infinite scope 2. Has limited scope
3. Relevant variable keep on
interacting
3. The variables are self
contained
4. Generally flexible and abstract. 4. Rigid
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20. Types of Systems
System can also be classified as:
Deterministic (Mechanistic) System
Probabilistic System
Cybernetics/stochastic System
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21. Deterministic (Mechanistic)
System
Is a system that functions according to some
predefined/predetermined procedures and
hence their future behaviour can be predicted
accurately or with 100% certainty depending on
the situation events.
 Is a system where you can foretell their output
by their input.
All computer base information systems (CBIS) like
financial accounting system, inventory
control system, payroll system etc. may be
described as deterministic, and they are
consequently much easier to control than systems
involving people, whose behavior may be
unpredictable.
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22.
Probabilistic or stochastic systems
System which depend on probability.
You can’t foretell their future behaviour
with 100% accuracy/certainty.
Expected output from its input can’t be
predicted definitely because they have a
variety of uncertainties, therefore a lot
of control effort need to be directed to
these systems. E.g. Business systems,
Economic systems, Political systems,
Industrial systems etc.
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23. Cybernetic systems
Also described as adaptive, self-
regulating or self-organizing systems.
Are systems that have to adapt to the
environment for their survival. They adapt
and react to inputs or stimuli. The method
of adaptation is uncertain and the same
inputs do not always produce the same
responses. E.g. Social groups like human
beings, plants and organisations which have
to react to their environment.
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24. NATURE OF INFORMATION
SYSTEMS
Data -are the facts, events, transactions and
figures which have been recorded. Data represent
unstructured facts about events, objects, or
people.
Information-Data that has been processed into a
form that is meaningful to the recipient and is of
real or perceived value in current or prospective
decisions. Information refers to data which is
organized and meaningful to the person who
receives it.
Information System
Is a set of persons, procedures, technological and
other resources that collects, transforms and
disseminates information in an organization.
Computer Based Information System/EDP uses
hardware, software and live ware to provide
information. 24

25. Management
Is a process, in the sense of a sequence of
operations or functions necessary to achieve
certain end results.
Functions of management
Planning – management’s responsibility that
requires the manager to formulate goals
and objectives, and develop short-term
and long-term plans to achieve these
goals. Planning is the managerial process of
deciding in advance what is to be done, how
it is to be done, when to do it and by
who(m) to do it. It is done on both a formal
and informal basis and the planning process
uses information from internal and external
sources.
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26. Functions of Management
Organizing and Coordinating – involves the
development of an organizational structure and a
framework of standards, procedures and policies
designed to carry out ongoing business activities to
achieve the required objectives.
 Controlling – refers to managements’ responsibility
to monitor and evaluate organisational performance
and the business environment so that steps can be
taken to improve performance and modify, as
necessary in response to the marketplace. This
includes keeping alert to new opportunities in the
marketplace and recognizing new business
opportunities.
 Staffing – refers to management’s responsibility for
identifying the personnel needs of the organisation and
selecting the personnel as well as training staff. Many
organizations have personnel (Human Resource)
managers to take charge of these activities.
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27. Functions of Management
Supervising – refers to management’s responsibility
to provide employees with the supervision, guidance
and counselling necessary to keep them motivated
and working productively toward the achievement of
the organisation’s objectives. This involves
recognition of good work, e.g. through trips,
certificates, bonuses, cash awards or other awards
and suggestions on how to improve performance.
Educational seminars. Workshops may also be held
to upgrade employee knowledge of the company.
Motivating – Meeting the social and psychological
needs of employees in the fulfilment of organisational
goals.
Directing
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28. Levels of Information Systems
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Figure 2-1

29. Levels of Information Systems
1. Operational-level systems: support
operational managers, keeping track of the
elementary activities and transactions.
e.g. foremen, supervisor, chief clerk, data
entry clerk, data preparation clerk, computer
operator, media librarian,
2. Management-level systems: serve the
monitoring, controlling, decision-
making, and administrative activities. e.g.
all types of middle management,
departmental managers, like human resource
manager, sales manager, accountant
3. Strategic-level systems: help senior
management tackle and address strategic
issues. e.g. CEO, board of directors, board
of trustee, board of governors
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30. Types of Information system
Information System includes;
Decision Support System (DSS)
Executive Support System ( ESS)
Management Information Systems (MIS)
Expert Systems (ES)
Office Automation Systems (OAS)
Transaction Processing System (TPS)
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31. Transaction Processing System (TPS)
/Operations Information System (OIS)
TPS represents the lowest level in an organisation’s
use of information systems. They provide
management with basic raw materials used for
DSS to produce management reports such as sales
analysis figures etc. They mainly keep track of
elementary and routine activities and
transactions of the organisation, such as sales
receipts, cash deposit, payroll, credit decisions.
Support of day-to-day business operating activities or
transactions is the first and most important objective
of an information system.
A computer-based TPS/Operations Information
System or EDP system is focused at the operational
level of the business.
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32. Decision Support Systems ( DSS)
Is a type of IS that is more user friendly, It’s a
set of programs and hardware that allows
managers to interact with it to help make
decisions.
Its intended to help high level managers in their
decision making. Its used in planning, modelling,
analyzing alternatives and decision making. It’s
designed to improve the analytical
capability of the decision maker.
This system helps to solve semi-structured
problems. A semi-structured problem is one in
which only parts of the problem have a clear-
cut answer produced by a well accepted
methodology.
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33. Executive Support Systems (E.S.S)
Is a special easy-to-use IS designed for top
management people who are not familiar
with computer systems.
They use graphics and touch screens to aid
senior executives in collecting and obtaining
the information they want.
ESS provides managers with a flexible means
of accessing information of tactical and
strategic levels. ESS helps the managers to
drill into the data, present the information in
appropriate formats and find the information
they need whenever they need it.
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34. Provides middle management with
reports that summarize and
categorise information derived from all
the organizations’ databases.
 The purpose of the report is to allow
management to spot trends and to
get an overview of current activities,
as well as to monitor and control
operational-level activities.
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Management Information Systems (MIS)

35. Expert Systems (ESs
Are currently the most commercially
successful products of AI research. Have
emerged from the field of AI, which is the
branch of computer science that is attempting
to create computer systems that simulate
human reasoning and sensation.
Are computer programs that copy the
knowledge of human expertise in a
particular field. Acts as a consultant or
expert to the user.
An ESs is a knowledge intensive program that
solves a problem involving human expertise.
It can assist in decision making activities by
asking relevant questions and explaining the
reasons for adopting certain actions.
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36. Office Automation Systems (OAS)
This describes the phenomenon of merging
computing and telecommunication
technologies to produce the electronic
office.
 OAS involves intensive and extensive
application (use) of ICT in modern offices.
ICT/OAS is the acquisition, processing,
storage, and dissemination of vocal,
pictorial, textual and numeric information by
a micro-electronic based combination of
computing and telecommunication
systems.
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