Jaya Engineering College, Thiruninravur, Chennai-602024

MBA- BA4106- Information Management-2021 Regulations

UNIT I
INTRODUCTION: Data, Information, Information System, evolution, types based on functions and hierarchy,
Enterprise and functional information systems
Data, Information, Information System
What is the difference between data and information & information systems?
Data contains raw figures and facts. Information unlike data provides insights analyzed through the data
collected. Information can't exist without data but data doesn't rely on the information. ... Data doesn't
harbor any real meaning whereas information exists to provide insights and meaning

Information system, an integrated set of components for collecting, storing, and processing data and for
providing information, knowledge, and digital products.

Major Types of Information Systems

 Transaction Processing Systems.
 Office Automation Systems.
 Knowledge Work Systems.
 Management Information Systems.
 Decision Support Systems.
 Executive Support Systems.

An information system is described as having five components.

 Computer hardware. This is the physical technology that works with information. ...
 Computer software. The hardware needs to know what to do, and that is the role of software. ...
 Telecommunications.
 Databases and data warehouses.
 Human resources and procedures

What are the five functions of an information system?

Information systems are made up of five different functions: input, storage, processing, output and
feedback loop.

Evolution of Information system

The Eras of Business Computing

Era Hardware Operating System Applications

Mainframe Terminals connected to mainframe Custom-written MRP

Time-sharing (TSO) on MVS
(1970s) computer. software

PC (mid-1980s) IBM PC or compatible. Sometimes MS-DOS WordPerfect, Lotus 1-2-3

connected to mainframe computer via
 expansion card.

Client-Server
Microsoft Word, Microsoft
(late 80s to IBM PC “clone” on a Novell Network. Windows for Workgroups
Excel
early 90s)

World Wide
IBM PC “clone” connected to company Microsoft Office, Internet
Web (mid-90s Windows XP
intranet. Explorer
to early 2000s)

Web 2.0 (mid-

2000s to Laptop connected to company Wi-Fi. Windows 7 Microsoft Office, Firefox
present)

Post-PC (today Mobile-friendly websites,

Apple iPad iOS
and beyond) mobile apps

The Evolution of Management Information Systems (MIS)

A management information system (MIS) is a computer system that gathers data from multiple business
systems, analyzes the information, and provides reports that help guide management in decision-making. 
MIS started as a data capturing and processing system and evolved into a more complex and intelligent
system. Here’s how MIS evolved through the years. 
1950-1960: Electronic Data Processing (EDP)
Electronic Data Processing (EDP) systems, also called Transaction Processing Systems (TPS), were
groundbreaking at the time. It was the first large-scale computer information system to centralize and
process day-to-day transactions and activities such as cash deposits, ATM transactions, and payment orders.
Shifting from manual to electronic made transaction processing and record-keeping a much faster process. 
1960-1970: Management Information Systems (MIS)
It wasn’t long before the EDP system was upgraded to a Management Information System (MIS) that was able
to generate reports from the data it collected. MIS pulled reports from historical data to determine cost
trends, do a sales analysis, keep track of inventory, and measure production performance. 
When managers evaluated the information in these reports, they could see which areas of the business were
underperforming and adjust decisions accordingly. 
1970-1980: Decision Support Systems (DSS)
Decision Support System (DSS) provided historical and ad hoc reports on both internal and external
information. For example, internal sales reports and external market pricing. 
This advancement brought a new level of decision-making to businesses. Management could more accurately
forecast sales, perform a risk analysis, and make bolder strategic decisions. 

It was during this era that personal computers entered the workplace. PCs were connected to the main server
so information became accessible to employees throughout the company. This led to a significant boost in
productivity.
With this came the need for expert skills to manage these computer networks. Information technology (IT)
soon became a burgeoning career and a degree in Management Information Systems became sought after. 
1980-1990: Executive Information Systems (EIS)
 As PCs put power in the hands of executives, they could purchase software tailored to their department’s
needs, such as accounting, project management, and HR systems. It resulted in multiple systems within an
organization working independently. 
This led to Executive Information Systems (EIS), a more refined version of the DSS system. It allowed
executives to analyze their department’s output and how it impacted the business’s overall performance. 
1990-2000: Enterprise Resource Management (ERP) Systems 
Multiple information systems that were not integrated resulted in employees wasting time duplicating
information across systems. MIS had to become efficient. 
It did that by creating Enterprise Resource Management (ERP) systems that integrated knowledge
management systems and expert systems. 
 Knowledge-based systems organize and disseminate business knowledge within an
organization. Example: placing a best practices resource on the intranet.
 Expert systems started to use artificial intelligence to provide advice and
solutions. Example: proposing faster delivery routes or assessing risk profiles for credit applications. 

How Is MIS Changing?

MIS systems are becoming more intelligent. Most of the trends below are not new but they will continue to
shape how management information systems function in the future.  

1. Automation and cross-functional integration

Automation can be used for repetitive tasks and to cross-populate data with other systems. This frees up
employees’ time to focus on higher-value tasks. For example, automation can track inventory and alert you
when stocks are low or automatically reorder stocks when needed without human intervention. 
2. Big data analytics
Worldwide, around 2.5 quintillion bytes of data are being generated daily. From customers’ buying habits to
social media interactions, data is rolling in from everywhere. 
Management information systems not only have to cope with the influx of data, but also analyze it. The
information gleaned can be used to make operations more efficient, improve customer service, and create
personalized marketing campaigns.
3. Artificial intelligence (AI)
Artificial intelligence is making waves across almost every sector. AI has been the biggest disruptor in
business in recent years. From chat bots to self-driving cars, AI is already a part of our lives and will continue
to become more entrenched.
AI technology is capable of learning patterns and identifying anomalies when processing big data. It can
detect fraud and determine the risk profile of applicants applying for credit. 
4. Cyber security 
Cybercrime is a threat every business faces. Most cyber attacks are financially motivated.
A cyber attack can be a fatal blow to a business. Research by Fundera shows that 60% of small businesses that
experience a cyber attack go out of business within six months. Companies now invest heavily in protecting
their data. As cybercriminals become more sophisticated, cyber security software will have to stay one step
ahead.

Information System Classification:

  Operational Management - Includes transaction processing system, office automation system, and
knowledge management system, handles structured data, and used by workers and employees to
streamline daily operations
 Tactical Management - Used by business unit managers, handles semi-structured data, and includes
management information systems
 Strategic Management - Used by executives, handles unstructured data, and includes the decision
support system and executive support system

6 Types of Information Systems

1. Transaction Processing Systems
A transaction encompasses all of the purchases and sales of products and services, along with any daily
business transactions or activities required to operate a company.

Quantities and the types of transactions performed vary, depending on the industry and size/scope of the
company. Examples of typical transactions include billing clients, bank deposits, new hire data, inventory
counts, or a record of client-customer relationship management data.

A transaction processing system ensures that all of the contractual, transactional, and customer relationship
data is stored in a safe location and accessible to everyone who needs it. It also assists in the processing of
sales order entries, payroll, shipping, sales management, or other routine transactions needed to maintain
operations.

By utilizing a TPS, organizations can have a high level of reliability and accuracy in their user/customer data
while minimizing the potential for human error.
2. Office Automation Systems
An office automation system is a network of various tools, technologies, and people required to conduct
clerical and managerial tasks.

Typical examples of functions performed by an OAS include printing documents, mailing paperwork, mailing,
maintaining a company calendar, and producing reports. Primarily, an office automation system assists in
enhancing communication among different departments so everyone can collaborate to complete a task.

An OAS can integrate with e-mail or word processing applications to ensure all communication data is easily
accessible and in one centralized location. By utilizing an office automation system, businesses can improve
communication between workers, streamline managerial activities, and optimize knowledge management.
3. Knowledge Management Systems
A knowledge management system stores and extracts information to help users enhance their knowledge and
optimize collaboration efforts to complete tasks. Examples of documents found in a knowledge management
system include employee training materials, company policies, and procedures, or answers to customer
questions.

A KMS is used by employees, customers, management, and other various stakeholders involved with the
organization. It ensures that technical abilities are integrated throughout the company while providing
visuals to help employees make sense of the data they see.

This information system also provides intuitive access to external information required by workers who need
outside knowledge to complete their roles. For example, a KMS may hold competitor data that helps a sales
team member optimize his/her strategy when pitching to a customer.

Because a KMS shares expertise and provides answers to essential questions, using one can improve
communication among team members and assist everyone in meeting performance goals.
4. Management Information Systems
A management information system uses various transaction data from a TPS to help middle management
optimize planning and decision-making.

It retrieves TPS information, aggregates it, and generates reports to help those at the management level know
important details of a situation. Summaries and comparisons are utilized to allow senior managers to
optimize the decision making process to achieve better results.

Most of the report formats encompass summaries of annual sales data, performance data, or historical
records. This provides a secure and systemized way for managers to meet their targets and oversee business
units.
5. Decision Support Systems
A decision support system processes data to assist in management decision-making. It stores and gathers the
information required for management to take the proper actions at the correct time. For example, a bank
manager can use a DSS to assess the evolving loan trends to determine which yearly loan targets to meet.

Decision models are programmed into the IS to analyze and summarize large quantities of information and
put it into a visual that makes it understandable.

Because a DSS is interactive, management can easily add or delete data and ask important questions. This
provides the evidence required for mid-management to make the right choices that will ensure the company
meets its targets.
6. Executive Support System
Executive support systems are similar to a DSS but are primarily used by executive leaders and owners to
optimize decision-making.

An expert system helps enterprise leaders find answers to non-routine questions so they can make choices
that improve the company's outlook and performance. Unlike a DSS, an executive support system provides
better telecommunication functionality and a bigger computing functionality.

Graphics software is integrated within an ESS to display data about tax regulations, new competitive startups,
internal compliance issues, and other relevant executive information. This allows leaders to track internal
performance, monitor the competition, and pinpoint growth opportunities.
Specific Use Cases for Information Systems:
 Enterprise Resource Planning - Provides organization-wide integration of important business
activities, handles the allocation of resources to optimize efficiency
 Accounting Information System - Manages all of the accounting information in an organization,
including payroll to streamline human resource tasks
 Sales Management System - An information system that manages and monitors all of the sales and
marketing data in an organization to streamline each step of the sales process

In conclusion, here are the key takeaways to remember about each type of IS-

 Transaction processing systems TPS handles all of the customer and employee transaction data so an
organization can streamline workflows and easily retrieve the required information.
 An office automation system manages all of the clerical and managerial daily tasks in a business to
help optimize communication and improve collaboration efforts.
 A knowledge management system handles expertise on a variety of subjects and assists in
knowledge-sharing so users can become more informed and enhance their job performance.
 An information system MIS uses processing system TPS data to help middle managers optimize
decision-making and monitor performance.
 A support system DSS processes information to help managers make the right choices at the right
time.
 An executive system information system manages all of the required information needed for
enterprise leaders to monitor the competition, track internal performance, and pinpoint growth
opportunities.

Features and functions of information systems

The features and functions of information systems play a key role in helping businesses to make better, more
informed decisions. Information systems aren’t merely computers, instead they involve a combination of
data, technology and people.

Features of information systems

Data
when data is entered in to an information system, it has to be entered in a way that can be managed and
processed. When the data is processed it turns data into information which is then output to end users of the
system. The data is generated from various sources such as different departments of a business as well as
external sources. The data must be accurate or else the information output can be inaccurate or misleading.
People
getting data and processing it involves the use of people in order to create information for specific uses or
purposes that are relevant to a business. Staff training and skills in relation to information systems are
important so that a business can get the most out of its information system.
Hardware
The hardware that IT systems use has to be capable of running the software required by the business and also
be capable of handling a large amount of data and information processing. The hardware should be kept up to
date which enables the fast capture, storage and use of data.
Software
The software that is used by businesses and the staff has to have the necessary features and functionality so
that it can produce and use the information created by a business. The software should also have the features
necessary for staff to carry out their work efficiently, for example: to analyse and process data and reports.
Telecommunications
The information that is produced by various departments in a business needs to be shared around a business
as it will be used for different purposes. For doing this the telecommunications in a business needs to be
effective so that the information shared and distributed goes to the correct destination after being processed.
Functions of information systems
There are various functions of information systems like the collection of input data, storage, processing, and
producing the output information. The functions also control the information flow as well as the feedback
loop. The systems can be also open and closed systems.
Input
The input in an information system has two types:
 Output is created with detailed data which is stored and processed
 The specification of what type of analysis is done must be specified by the user
Storage
The storage of Data should be done at the most detailed level possible. Regular backups and various
summaries should be completed to avoid losing any important data due to errors. The backups should also be
stored in a geographically different location to avoid any major disasters such as flooding or fires etc.. which
could impact on both the original data storage and the backup data storage.
Processing
A process is a function which transforms data into information. A simple process would be adding up a
number of items that is sold by a business by a variable such as the location of a store or the product or the
time and date. More complex processes are the functions that perform calculations and can make
assumptions about missing data in order to create information from the data available.
Feedback / control loops
A feedback / control loop is what happens to output when it is processed and produced. The system
continuously repeats the same processes depending on the output of the last loop which can then impact on
the input of the next data in to the loop. For example if a business might want to buy stock from a supplier if
the stock level reaches 10. The system might check stock levels every hour (in a loop) and if the stock level is
above 10, the loop continues without action until the point it hits 10 or under at which stage the command
gets executed and new stock is ordered.
Output
There are two types of output in this context, graphical and textual:
 Graphical output is usually used to look at information on a larger scale which is then presented as
charts, graphs, diagrams and pictures.
 Textual output is information on a smaller scale which is presented as charters, text or numbers.

Open and closed systems

The type of information systems can be defined as open or closed systems depending on how they react and
interact with their environments:
 An open system will interact fully with its environment and is capable of handling any unexpected
event as it monitors the environment which means that it can adapt the output depending on the
circumstances.
 A closed system is separated and secluded from the environment which means they do not interact
with it much. A closed system only interacts with the environment when it is planned and predicted
beforehand or as a part of an automated process. It works when it is triggered and only acts according to
events. Closed systems do not have any effect on external environments. An automatic payroll calculator
would be triggered by an event such as payroll day.

Enterprise System Overview

Enterprise systems integrate a number of different applications, protocols and formats. In doing so, an
enterprise system allows companies to integrate business processes, such as sales, deliveries and accounts
receivable, by sharing information across business functions and employee hierarchies. These systems can
replace multiple independent systems that may or may not interact with other systems and that process
data to support particular business functions or processes.
For example, enterprise resource planning supports the entire sales process that includes pre-sales
activities, sales orders, inventory sourcing, deliveries, billing and customer payments. Enterprise resource
planning, supply chain management and customer relationship management systems are each examples of
enterprise systems.
Customer Relationship Management
Customer relationship management systems were developed to address the need to raise a sales
department’s productivity and provide an effective way to increase sales. With CRM functions, such as sales
opportunity management, a company learns more about its customers’ needs and buying behavior and
combines this information with market information to enhance the quality of the company’s marketing
plans and sales forecasts.
Other attributes of the CRM system include integration with other systems and accessibility via mobile
devices, allowing employees to update and compare data and to access information from any client site or
other location. Equally importantly, CRM supports mass e-mail communications and automates the sales
process workflow to improve employee productivity.
Supply Chain Management
A supply chain is the collection of people, tasks, equipment, data and other resources required to produce
and move products from a vendor to a customer. Supply chain management refers to the management of
supply chain activities in an effective and efficient way to provide a company with a strategic advantage.
These activities may include product development, material sourcing, production and logistics as well as
the information systems that coordinate these activities. Information flows allow supply chain partners to
coordinate their strategic and operational plans as well as the day-to-day flow of goods and materials
through the supply chain. The physical flows include the manufacture, transport and storage of goods or
materials.

Enterprise Resource Planning

The enterprise resource planning system integrates software applications, such as purchasing, finance,
human resources and inventory management. Within an ERP system, the integrated software modules,
such as sales, quality management and accounts receivable, communicate and share data. Each of these
modules consists of multiple applications that execute end-to-end business processes. For example, the
sales module includes the applications necessary to create and manage sales contracts, sales orders, sales
invoices and sales order pricing. ERP applications support not only various operational and administrative
tasks, such as the creation of an account payable or a time sheet, they may also be customized to support a
number of different industries, including oil and gas, retail and banking

Different Functional Information Systems

Functional Information System is based on the various business functions such as Production, Marketing,
Finance and Personnel etc. These departments or functions are known as functional areas of business. Each
functional area requires applications to perform all information processing related to the function. The
popular functional areas of the business organization are:
• Financial Information System
• Marketing Information System
• Production/Marketing Information System
• Human Resource Information System 

Financial Information System

Financial information system is a sub-system of organizational management information system. This sub-
system supports the decision-making process of financial functions at the level of an organization.
Marketing Information System 
This sub-system of management information system provides information about various functions of the
marketing system of an organization. Marketing is another functional area of the business organization,
which is engaged in marketing (selling) of its products to its customers.

Important functions of the marketing process include the following.

• The marketing identification function
• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System

Manufacturing or production information system provides information on production /operation activities
of an organization and thus facilitates the decision-making process of production managers of an
organization. The main decisions to be taken in manufacturing system are:
• Product Design

Human Resources Information System   

This functional information system supports the functions of human resource management of an
organization. The human resource management functions, in its narrow sense, it also known as personnel
management
.The function involves:
• Manpower planning.
• Staffing
• Training and development
• Performance evaluation, and
• Separation activities
UNIT II SYSTEM ANALYSIS AND DESIGN 10
System development methodologies, Systems Analysis and Design, Data flow Diagram (DFD), Decision table,
Entity Relationship (ER), Object Oriented Analysis and Design(OOAD), UML diagram.

8 Models of the System Development Life Cycle

What’s the best SDLC methodology?
Waterfall, Agile, Lean, Iterative, Prototyping, DevOps, Spiral or V-model?
The system development life cycle, known as the SDLC, is the industry-standard approach to managing
phases of an engineering project. Think of it as the equivalent to the scientific method for software
development and other IT initiatives. The common breakdown of the SDLC includes seven phases that trace a
product or project from a planned idea to its final release into operation and maintenance.
There is flexibility within the SDLC. In recent decades a number of different models and methods have gained
popularity. Consider one of the following six approaches when establishing an SDLC in your organization.
1. Waterfall
The waterfall approach is one of the oldest SDLC models, but it has fallen out of favor in recent years. This
model involves a rigid structure that demands all system requirements be defined at the very start of a
project. Only then can the design and development stages begin.
Once development is complete, the product is tested against the initial requirements and rework is assigned.
Companies in the software industry typically need more flexibility that what the waterfall methodology
offers, but it still remains a strong solution for certain types of projectsâ €”especially government contractors.

2. Iterative
The iterative methodology takes the waterfall model and cycles through it several times in small increments.
Rather than stretching the entire project across the phases of the SDLC, each step is turned into several mini-
projects that can add value as the product evolves.
The iterative approach shares many of the same goals as the agile model, except external customers are less
involved and the scope of each increment is normally fixed.
3. DevOps
DevOps is one of the newest SDLC methodologies and is being adopted by many software companies and IT
organizations. As its name suggests, the premise of DevOps is to bring development teams together with
operational teams in order to streamline delivery and support.
The advantages of such an approach are that changes become more fluid, while organizational risk is reduced.
Teams must have flexible resources in order for a DevOps arrangement to succeed.

4. V-Model
An evolution of the classic waterfall methodology, the v-model SDLC process steps are flipped upwards after
the coding phase. The v-model has a very strict approach, with the next phase beginning only when the
previous phase is complete.
This lack of flexibility and higher-risk method isn’t recommended for small projects, but the v-model is easier
to manage and control. For projects where requirements are static and clearly stated, and where early testing
is desired, this approach can be a good choice.

5. Spiral
The spiral methodology allows teams to adopt multiple SDLC models based on the risk patterns of the given
project. A blend of the iterative and waterfall approaches, the challenge with the spiral model is knowing
when is the right moment to move onto the next phase.
Business that aren’t sure about their requirements or expect major edits during their mid to high-risk project
can benefit from the scalability of this methodology.
6. Lean
The agile and lean approaches are closely interconnected, as they both focus on delivery speed and
continuous improvement. In contrast, the lean model is rooted in manufacturing best practices where excess
waste and effort are seen as the largest risk to an organization.
When it comes to software and projects, the lean SDLC methodology focuses on reducing waste in every
phase, including scheduling, cost, and scope. This approach is most compelling for organizations with strict
hardware requirements and other procurement needs.
7. Agile
The agile methodology is the opposite of the waterfall approach. Rather than treating requirements, design,
and testing as large sequential steps, an agile model makes them all ongoing processes that require
involvement from developers, management, and customers.
Work is typically broken into 2-4 week segments known as “sprints,” in which the responsible teams tackle
the major needs of their customers and perform testing as they go. Agile tends to work well in small
organizations, especially startups, where speed and flexibility is essential.

8. Prototyping
In the prototyping methodology, the design team's focus is to produce an early model of the new system,
software, or application. This prototype won’t have full functionality or be thoroughly tested, but it will give
external customers a sense of what’s to come. Then, feedback can be gathered and implemented throughout
the rest of the SDLC phases.
The prototyping approach works well for companies in emerging industries or new technologies.

Systems Analysis
It is a process of collecting and interpreting facts, identifying the problems, and decomposition of a system
into its components.
System analysis is conducted for the purpose of studying a system or its parts in order to identify its
objectives. It is a problem solving technique that improves the system and ensures that all the components
of the system work efficiently to accomplish their purpose.
Analysis specifies what the system should do.
Systems Design
It is a process of planning a new business system or replacing an existing system by defining its components
or modules to satisfy the specific requirements. Before planning, you need to understand the old system
thoroughly and determine how computers can best be used in order to operate efficiently.
System Design focuses on how to accomplish the objective of the system.
System Analysis and Design (SAD) mainly focuses on −
 Systems
 Processes
 Technology
What is a System?
The word System is derived from Greek word Systema, which means an organized relationship between any
set of components to achieve some common cause or objective.
A system is “an orderly grouping of interdependent components linked together according to a plan to achieve
a specific goal.”
Constraints of a System
A system must have three basic constraints −
 A system must have some structure and behavior which is designed to achieve a predefined
objective.
 Interconnectivity and interdependence must exist among the system components.
 The objectives of the organization have a higher priority than the objectives of its subsystems.
For example, traffic management system, payroll system, automatic library system, human resources
information system.
Properties of a System
A system has the following properties −
Organization
Organization implies structure and order. It is the arrangement of components that helps to achieve
predetermined objectives.
Interaction
It is defined by the manner in which the components operate with each other.
For example, in an organization, purchasing department must interact with production department and
payroll with personnel department.
Interdependence
Interdependence means how the components of a system depend on one another. For proper functioning,
the components are coordinated and linked together according to a specified plan. The output of one
subsystem is the required by other subsystem as input.
Integration
Integration is concerned with how a system components are connected together. It means that the parts of
the system work together within the system even if each part performs a unique function.
Central Objective
The objective of system must be central. It may be real or stated. It is not uncommon for an organization to
state an objective and operate to achieve another.
The users must know the main objective of a computer application early in the analysis for a successful
design and conversion.
Elements of a System
The following diagram shows the elements of a system −
Outputs and Inputs
 The main aim of a system is to produce an output which is useful for its user.
 Inputs are the information that enters into the system for processing.
 Output is the outcome of processing.
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 either totally or
partially, depending on the output specification.
 As the output specifications change, so does the processing. In some cases, input is also modified to
enable the processor for handling the transformation.
Control
 The control element guides the system.
 It is the decision–making subsystem that controls the pattern of activities governing input,
processing, and output.
 The behavior of a computer System is controlled by the Operating System and software. In order to
keep system in balance, what and how much input is needed is determined by Output Specifications.
Feedback
 Feedback provides the control in a dynamic system.
 Positive feedback is routine in nature that encourages the performance of the system.
 Negative feedback is informational in nature that provides the controller with information for action.
Environment
 The environment is the “supersystem” within which an organization operates.
 It is the source of external elements that strike on the system.
 It determines how a system must function. For example, vendors and competitors of organization’s
environment may provide constraints that affect the actual performance of the business.
Boundaries and Interface
 A system should be defined by its boundaries. Boundaries are the limits that identify its components,
processes, and interrelationship when it interfaces with another system.
 Each system has boundaries that determine its sphere of influence and control.
  The knowledge of the boundaries of a given system is crucial in determining the nature of its
interface with other systems for successful design.
Types of Systems
The systems can be divided into the following types −
Physical or Abstract Systems
 Physical systems are tangible entities. We can touch and feel them.
 Physical System may be static or dynamic in nature. For example, desks and chairs are the physical
parts of computer center which are static. A programmed computer is a dynamic system in which
programs, data, and applications can change according to the user's needs.
 Abstract systems are non-physical entities or conceptual that may be formulas, representation or
model of a real system.
Open or Closed Systems
 An open system must interact with its environment. It receives inputs from and delivers outputs to
the outside of the system. For example, an information system which must adapt to the changing
environmental conditions.
 A closed system does not interact with its environment. It is isolated from environmental influences.
A completely closed system is rare in reality.
Adaptive and Non Adaptive System
 Adaptive System responds to the change in the environment in a way to improve their performance
and to survive. For example, human beings, animals.
 Non Adaptive System is the system which does not respond to the environment. For example,
machines.
Permanent or Temporary System
 Permanent System persists for long time. For example, business policies.
 Temporary System is made for specified time and after that they are demolished. For example, A DJ
system is set up for a program and it is dissembled after the program.
Natural and Manufactured System
 Natural systems are created by the nature. For example, Solar system, seasonal system.
 Manufactured System is the man-made system. For example, Rockets, dams, trains.
Deterministic or Probabilistic System
 Deterministic system operates in a predictable manner and the interaction between system
components is known with certainty. For example, two molecules of hydrogen and one molecule of
oxygen make water.
 Probabilistic System shows uncertain behavior. The exact output is not known. For example,
Weather forecasting, mail delivery.
Social, Human-Machine, Machine System
 Social System is made up of people. For example, social clubs, societies.
 In Human-Machine System, both human and machines are involved to perform a particular task. For
example, Computer programming.
 Machine System is where human interference is neglected. All the tasks are performed by the
machine. For example, an autonomous robot.

Man–Made Information Systems

  It is an interconnected set of information resources to manage data for particular organization,
under Direct Management Control (DMC).
 This system includes hardware, software, communication, data, and application for producing
information according to the need of an organization.
Man-made information systems are divided into three types −
 Formal Information System − It is based on the flow of information in the form of memos,
instructions, etc., from top level to lower levels of management.
 Informal Information System − This is employee based system which solves the day to day work
related problems.
 Computer Based System − This system is directly dependent on the computer for managing
business applications. For example, automatic library system, railway reservation system, banking
system, etc.
Systems Models
Schematic Models
 A schematic model is a 2-D chart that shows system elements and their linkages.
 Different arrows are used to show information flow, material flow, and information feedback.
Flow System Models
 A flow system model shows the orderly flow of the material, energy, and information that hold the
system together.
 Program Evaluation and Review Technique (PERT), for example, is used to abstract a real world
system in model form.
Static System Models
 They represent one pair of relationships such as activity–time or cost–quantity.
 The Gantt chart, for example, gives a static picture of an activity-time relationship.
Dynamic System Models
 Business organizations are dynamic systems. A dynamic model approximates the type of
organization or application that analysts deal with.
 It shows an ongoing, constantly changing status of the system. It consists of −
o Inputs that enter the system
o The processor through which transformation takes place
o The program(s) required for processing
o The output(s) that result from processing.
Categories of Information
There are three categories of information related to managerial levels and the decision managers make.
 Strategic Information
 This information is required by topmost management for long range planning policies for next few
years. For example, trends in revenues, financial investment, and human resources, and population
growth.
 This type of information is achieved with the aid of Decision Support System (DSS).
Managerial Information
 This type of Information is required by middle management for short and intermediate range
planning which is in terms of months. For example, sales analysis, cash flow projection, and annual
financial statements.
 It is achieved with the aid of Management Information Systems (MIS).
Operational information
 This type of information is required by low management for daily and short term planning to
enforce day-to-day operational activities. For example, keeping employee attendance records,
overdue purchase orders, and current stocks available.
 It is achieved with the aid of Data Processing Systems (DPS).

What is a Data Flow Diagram

A data flow diagram (DFD) maps out the flow of information for any process or system. It uses defined
symbols like rectangles, circles and arrows, plus short text labels, to show data inputs, outputs, storage points
and the routes between each destination. Data flowcharts can range from simple, even hand-drawn process
overviews, to in-depth, multi-level DFDs that dig progressively deeper into how the data is handled. They can
be used to analyze an existing system or model a new one. Like all the best diagrams and charts, a DFD can
often visually “say” things that would be hard to explain in words, and they work for both technical and
nontechnical audiences, from developer to CEO. That’s why DFDs remain so popular after all these years.
While they work well for data flow software and systems, they are less applicable nowadays to visualizing
interactive, real-time or database-oriented software or systems.

History of the DFD

Data flow diagrams were popularized in the late 1970s, arising from the book Structured Design, by
computing pioneers Ed Yourdon and Larry Constantine. They based it on the “data flow graph” computation
models by David Martin and Gerald Estrin. The structured design concept took off in the software engineering
field, and the DFD method took off with it. It became more popular in business circles, as it was applied to
business analysis, than in academic circles.
Also contributing were two related concepts:
 Object Oriented Analysis and Design (OOAD), put forth by Yourdon and Peter Coad to analyze and
design an application or system.
 Structured Systems Analysis and Design Method (SSADM), a waterfall method to analyze and design
information systems. This rigorous documentation approach contrasts with modern agile approaches such
as Scrum and Dynamic Systems Development Method (DSDM.)
 Three other experts contributing to this rise in DFD methodology were Tom DeMarco, Chris Gane and Trish
Sarson. They teamed up in different combinations to be the main definers of the symbols and notations used
for a data flow diagram.
Symbols and Notations Used in DFDs
Three common systems of symbols are named after their creators:
 Yourdon and Coad
 Yourdon and DeMarco
 Gane and Sarson
One main difference in their symbols is that Yourdon-Coad and Yourdon-DeMarco use circles for processes,
while Gane and Sarson use rectangles with rounded corners, sometimes called lozenges. There are other
symbol variations in use as well, so the important thing to keep in mind is to be clear and consistent in the
shapes and notations you use to communicate and collaborate with others.
Using any convention’s DFD rules or guidelines, the symbols depict the four components of data flow
diagrams.
1. External entity: an outside system that sends or receives data, communicating with the system
being diagrammed. They are the sources and destinations of information entering or leaving the system.
They might be an outside organization or person, a computer system or a business system. They are also
known as terminators, sources and sinks or actors. They are typically drawn on the edges of the diagram.
2. Process: any process that changes the data, producing an output. It might perform computations, or
sort data based on logic, or direct the data flow based on business rules. A short label is used to describe
the process, such as “Submit payment.”
3. Data store: files or repositories that hold information for later use, such as a database table or a
membership form. Each data store receives a simple label, such as “Orders.”
4. Data flow: the route that data takes between the external entities, processes and data stores. It
portrays the interface between the other components and is shown with arrows, typically labeled with a
short data name, like “Billing details.”

DFD rules and

 Each process should have at least one input and an output.
 Each data store should have at least one data flow in and one data flow out.
 Data stored in a system must go through a process.
 All processes in a DFD go to another process or a data store.
Diagramming is quick and easy with Lucid chart. Start a free trial today to start creating and collaborating.
Decision Table
A Decision Table is a tabular representation of inputs versus rules/cases/test conditions. It is a very
effective tool used for both complex software testing and requirements management. Decision table helps to
check all possible combinations of conditions for testing and testers can also identify missed conditions
easily. The conditions are indicated as True(T) and False(F) values.
What is Decision Table Testing?
Decision table testing is a software testing technique used to test system behavior for different input
combinations. This is a systematic approach where the different input combinations and their corresponding
system behavior (Output) are captured in a tabular form. That is why it is also called as a Cause-Effect table
where Cause and effects are captured for better test coverage.
Let’s learn with an example.
Example 1: How to make Decision Base Table for Login Screen
Let’s create a decision table for a login screen.

The condition is simple if the user provides correct username and password the user will be redirected to the
homepage. If any of the input is wrong, an error message will be displayed.
Conditions Rule 1 Rule 2 Rule 3 Rule 4
Username (T/F) F T F T
Password (T/F) F F T T
Output (E/H) E E E H

Legend:
 T – Correct username/password
 F – Wrong username/password
 E – Error message is displayed
 H – Home screen is displayed
Interpretation:
 Case 1 – Username and password both were wrong. The user is shown an error message.
 Case 2 – Username was correct, but the password was wrong. The user is shown an error message.
 Case 3 – Username was wrong, but the password was correct. The user is shown an error message.
 Case 4 – Username and password both were correct, and the user navigated to homepage
While converting this to test case, we can create 2 scenarios,
  Enter correct username and correct password and click on login, and the expected result will be the
user should be navigated to homepage
And one from the below scenario
 Enter wrong username and wrong password and click on login, and the expected result will be the
user should get an error message
 Enter correct username and wrong password and click on login, and the expected result will be the
user should get an error message
 Enter wrong username and correct password and click on login, and the expected result will be the
user should get an error message
What is an Entity Relationship Diagram (ERD)?
An entity relationship diagram (ERD) shows the relationships of entity sets stored in a database. An entity in
this context is an object, a component of data. An entity set is a collection of similar entities. These entities can
have attributes that define its properties.
By defining the entities, their attributes, and showing the relationships between them, an ER diagram
illustrates the logical structure of databases.
ER diagrams are used to sketch out the design of a database.

Documenting an Existing Database

Using Data
There are two reasons to create a database diagram. You're either designing a new schema or you need to
document your existing structure.
If you have an existing database you need to to document, you create a database diagram using data directly
from your database. You can export your database structure as a CSV file (there are some scripts on how to
this here), then have a program generate the ERD automatically.
This will be the most accurate potrait of your database and will require no drawing on your part.
Here's an example of a very basic database structure generated from data.

If you want to create a new plan, you can also edit the generated diagram and collaborate with your team on
what changes to make.
Learn more about generating ER diagrams from data automatically using SmartDraw's ERD extension.
The History of Entity Relationship Diagrams
Peter Chen developed ERDs in 1976. Since then Charles Bachman and James Martin have added some slight
refinements to the basic ERD principles.
Common Entity Relationship Diagram Symbols
An ER diagram is a means of visualizing how the information a system produces is related. There are five
main components of an ERD:
 Entities, which are represented by rectangles. An entity is an object or concept about which you

want to store information. A weak entity is an entity that must defined by a

 foreign key relationship with another entity as it cannot be uniquely identified by its own

attributes alone.
 Actions, which are represented by diamond shapes, show how two entities share information in the

database. In some cases, entities can be self-linked. For example,

employees can supervise other employees.

 Attributes, which are represented by ovals. A key attribute is the unique, distinguishing
characteristic of the entity. For example, an employee's social security number might be the
employee's key attribute.

A multivalued attribute can have more than one value. For example, an

employee entity can have multiple skill values. A derived attribute is based
 on another attribute. For example, an employee's monthly salary is based on the employee's

annual salary.
 Connecting lines, solid lines that connect attributes to show the relationships of entities in the
diagram.
 Cardinality specifies how many instances of an entity relate to one instance of another entity.
Ordinality is also closely linked to cardinality. While cardinality specifies the occurrences of a
relationship, ordinality describes the relationship as either mandatory or optional. In other words,
cardinality specifies the maximum number of relationships and ordinality specifies the absolute
minimum number of relationships.

There are many notation styles

that express cardinality.
Information Engineering Style
Chen Style
 Bachman
Style
Martin Style
ERD Explained
Watch this quick video learn more about ERD diagrams and their components.

ER Diagram Uses
When documenting a system or process, looking at the system in multiple ways increases the understanding
of that system. ERD diagrams are commonly used in conjunction with a data flow diagram to display the
contents of a data store. They help us to visualize how data is connected in a general way, and are particularly
useful for constructing a relational database.
Entity Relationship Diagram Tutorial
Here are some best practice tips for constructing an ERD:
 Identify the entities. The first step in making an ERD is to identify all of the entities you will use. An
entity is nothing more than a rectangle with a description of something that your system stores
information about. This could be a customer, a manager, an invoice, a schedule, etc. Draw a
rectangle for each entity you can think of on your page. Keep them spaced out a bit.

 Identify relationships. Look at two entities, are they related? If so draw a solid line connecting the
two entities.
  Describe the relationship. How are the entities related? Draw an action diamond between the two
entities on the line you just added. In the diamond write a brief description of how they are related.
 Add attributes. Any key attributes of entities should be added using oval-shaped symbols.
 Complete the diagram. Continue to connect the entities with lines, and adding diamonds to describe
each relationship until all relationships have been described. Each of your entities may not have
any relationships, some may have multiple relationships. That is okay.
Tips for Effective ER Diagrams
1. Make sure that each entity only appears once per diagram.
2. Name every entity, relationship, and attribute on your diagram.
3. Examine relationships between entities closely. Are they necessary? Are there any relationships
missing? Eliminate any redundant relationships. Don't connect relationships to each other.
4. Use colors to highlight important portions of your diagram.
Entity Relationship Diagram Examples

Hospital Billing Entity Relationship Diagram

Banking Transaction Entity Relationship Diagram

Rectangle: Represents Entity sets.

Ellipses: Attributes
Diamonds: Relationship Set
Lines: They link attributes to Entity Sets and Entity sets to Relationship Set
Double Ellipses: Multivalued Attributes
Dashed Ellipses: Derived Attributes
Double Rectangles: Weak Entity Sets
Double Lines: Total participation of an entity in a relationship set

Object Oriented Analysis and Design (OOAD)

A Brief History
The object-oriented paradigm took its shape from the initial concept of a new programming approach, while
the interest in design and analysis methods came much later.
 The first object–oriented language was Simula (Simulation of real systems) that was developed in
1960 by researchers at the Norwegian Computing Center.
 In 1970, Alan Kay and his research group at Xerox PARK created a personal computer named
Dynabook and the first pure object-oriented programming language (OOPL) - Smalltalk, for
programming the Dynabook.
 In the 1980s, Grady Booch published a paper titled Object Oriented Design that mainly presented a
design for the programming language, Ada. In the ensuing editions, he extended his ideas to a
complete object–oriented design method.
 In the 1990s, Coad incorporated behavioral ideas to object-oriented methods.
The other significant innovations were Object Modelling Techniques (OMT) by James Rumbaugh and Object-
Oriented Software Engineering (OOSE) by Ivar Jacobson.
Object-Oriented Analysis
Object–Oriented Analysis (OOA) is the procedure of identifying software engineering requirements and
developing software specifications in terms of a software system’s object model, which comprises of
interacting objects.
The main difference between object-oriented analysis and other forms of analysis is that in object-oriented
approach, requirements are organized around objects, which integrate both data and functions. They are
modelled after real-world objects that the system interacts with. In traditional analysis methodologies, the
two aspects - functions and data - are considered separately.
Grady Booch has defined OOA as, “Object-oriented analysis is a method of analysis that examines requirements
from the perspective of the classes and objects found in the vocabulary of the problem domain”.
The primary tasks in object-oriented analysis (OOA) are −
 Identifying objects
 Organizing the objects by creating object model diagram
 Defining the internals of the objects, or object attributes
 Defining the behavior of the objects, i.e., object actions
 Describing how the objects interact
The common models used in OOA are use cases and object models.
Object-Oriented Design
Object–Oriented Design (OOD) involves implementation of the conceptual model produced during object-
oriented analysis. In OOD, concepts in the analysis model, which are technology−independent, are mapped
onto implementing classes, constraints are identified and interfaces are designed, resulting in a model for
the solution domain, i.e., a detailed description of how the system is to be built on concrete technologies.
The implementation details generally include −
 Restructuring the class data (if necessary),
 Implementation of methods, i.e., internal data structures and algorithms,
 Implementation of control, and
 Implementation of associations.
Grady Booch has defined object-oriented design as “a method of design encompassing the process of object-
oriented decomposition and a notation for depicting both logical and physical as well as static and dynamic
models of the system under design”.
Object-Oriented Programming
Object-oriented programming (OOP) is a programming paradigm based upon objects (having both data and
methods) that aims to incorporate the advantages of modularity and reusability. Objects, which are usually
instances of classes, are used to interact with one another to design applications and computer programs.
The important features of object–oriented programming are −
 Bottom–up approach in program design
 Programs organized around objects, grouped in classes
 Focus on data with methods to operate upon object’s data
 Interaction between objects through functions
 Reusability of design through creation of new classes by adding features to existing classes
Some examples of object-oriented programming languages are C++, Java, Smalltalk, Delphi, C#, Perl, Python,
Ruby, and PHP.
Grady Booch has defined object–oriented programming as “a method of implementation in which programs
are organized as cooperative collections of objects, each of which represents an instance of some class, and
whose classes are all members of a hierarchy of classes united via inheritance relationships”.

UML Diagram Types Guide: Learn About All

Types of UML Diagrams with Examples
Updated on: 10 September 2021

UML stands for Unified Modeling Language. It’s a rich language to model software

solutions, application structures, system behavior and business processes. There are 14
UML diagram types to help you model these behaviors.

You can draw UML diagrams online using our software, or check out some UML
diagram examples at our diagramming community.

List of UML Diagram Types

So what are the different UML diagram types? There are two main categories; structure
diagrams and behavioral diagrams. Click on the links to learn more about a specific
diagram type.

 Structure Diagrams
o Class Diagram
o Component Diagram
o Deployment Diagram
o Object Diagram
o Package Diagram
o Profile Diagram
o Composite Structure Diagram
 Behavioral Diagrams
o Use Case Diagram
o Activity Diagram
o State Machine Diagram
o Sequence Diagram
 o Communication Diagram
o Interaction Overview Diagram
o Timing Diagram

Structure diagrams show the things in the modeled system. In a more technical term, they
show different objects in a system. Behavioral diagrams show what should happen in a
system. They describe how the objects interact with each other to create a functioning
system.

Class Diagram
Class diagrams are the main building block of any object-oriented solution. It shows the
classes in a system, attributes, and operations of each class and the relationship between
each class.

In most modeling tools, a class has three parts. Name at the top, attributes in the middle
and operations or methods at the bottom. In a large system with many related classes,
classes are grouped together to create class diagrams. Different relationships between
classes are shown by different types of arrows.

Below is an image of a class diagram. Follow the link below for more class diagram
examples or get started instantly with our class diagram templates.
 Click on the image to edit the above class diagram (opens in new window)

Get More UML Class Diagram Examples >>

Component Diagram
A component diagram displays the structural relationship of components of a software
system. These are mostly used when working with complex systems with many
components. Components communicate with each other using interfaces. The interfaces
are linked using connectors. The image below shows a component diagram.
 You can use this component diagram template by clicking on the image

Get More Component Diagram Templates >>

Deployment Diagram
A deployment diagram shows the hardware of your system and the software in that
hardware. Deployment diagrams are useful when your software solution is deployed across
multiple machines with each having a unique configuration. Below is an example
deployment diagram.
 Click on the image to use this deployment diagram as a template

Get More Deployment Diagram Templates >>

Object Diagram
Object Diagrams, sometimes referred to as Instance diagrams are very similar to class
diagrams. Like class diagrams, they also show the relationship between objects but they
use real-world examples.

They show how a system will look like at a given time. Because there is data available in
the objects, they are used to explain complex relationships between objects.
 Click on the image to use the object diagram as a template

Get More Object Diagram Templates >>

Package Diagram
As the name suggests, a package diagram shows the dependencies between different
packages in a system. Check out this wiki article to learn more about the dependencies and
elements found in package diagrams.
Profile Diagram
Profile diagram is a new diagram type introduced in UML 2. This is a diagram type that is
very rarely used in any specification. For more profile diagram templates, visit our diagram
community.
Composite Structure Diagram
Composite structure diagrams are used to show the internal structure of a class. Some of
the common composite structure diagrams.
Use Case Diagram
As the most known diagram type of the behavioral UML types, Use case diagrams give a
graphic overview of the actors involved in a system, different functions needed by those
actors and how these different functions interact.

It’s a great starting point for any project discussion because you can easily identify the main
actors involved and the main processes of the system. You can create use case
diagrams using our tool and/or get started instantly using our use case templates.

Use Case Diagram Relationships Explained with examples

 Click on the image to edit this template

Get More Use Case Diagram Examples >>

Activity Diagram
Activity diagrams represent workflows in a graphical way. They can be used to describe the
business workflow or the operational workflow of any component in a system.
Sometimes activity diagrams are used as an alternative to State machine diagrams. Check
out this wiki article to learn about symbols and usage of activity diagrams. You can also
refer this easy guide to activity diagrams.
 Get More Activity Diagram Templates >>

State Machine Diagram

State machine diagrams are similar to activity diagrams, although notations and usage
change a bit. They are sometimes known as state diagrams or state chart diagrams as well.
These are very useful to describe the behavior of objects that act differently according to the
state they are in at the moment. The State machine diagram below shows the basic states
and actions.
 State Machine diagram in UML, sometimes referred to as State or State chart diagram

Get More State Chart Diagram Examples >>

Sequence Diagram
Sequence diagrams in UML show how objects interact with each other and the order those
interactions occur. It’s important to note that they show the interactions for a particular
scenario. The processes are represented vertically and interactions are shown as arrows.
This article explains the purpose and the basics of Sequence diagrams. Also, check out this
complete Sequence Diagram Tutorial to learn more about sequence diagrams.

You can also instantly start drawing using our sequence diagram templates.
 Sequence diagram drawn using Creately

Communication Diagram
In UML 1 they were called collaboration diagrams. Communication diagrams are similar to
sequence diagrams, but the focus is on messages passed between objects. The same
information can be represented using a sequence diagram and different objects. Click here
to understand the differences using an example.
Interaction Overview Diagram
Interaction overview diagrams are very similar to activity diagrams. While activity diagrams
show a sequence of processes, Interaction overview diagrams show a sequence of
interaction diagrams.

They are a collection of interaction diagrams and the order they happen. As mentioned
before, there are seven types of interaction diagrams, so any one of them can be a node in
an interaction overview diagram.
Timing Diagram
Timing diagrams are very similar to sequence diagrams. They represent the behavior of
objects in a given time frame. If it’s only one object, the diagram is straightforward. But, if
there is more than one object is involved, a Timing diagram is used to show interactions
between objects during that time frame.
Click here to create your timing diagram.

Mentioned above are all the UML diagram types. UML offers many diagram types, and
sometimes two diagrams can explain the same thing using different notations.

Check out this blog post to learn which UML diagram best suits you. If you have any
questions or suggestions, feel free to leave a comment.