Facts Systems Theory 101

Systems (2)

“”The initial on-line, genuine-time, interactive, information base method was double-entry bookkeeping which was created by the merchants of Venice in 1200 A.D.”” – Bryce’s Law Systems function is not as really hard as you may well believe. Nonetheless, we have a tendency in this small business to complicate factors by altering the vocabulary of systems function and introducing convoluted ideas and strategies, all of which tends to make it hard to create systems in a constant manner.

Consequently, there is a tendency to reinvent the wheel with every systems improvement project. I think I owe it to my predecessors and the business general to describe simple systems theory, so that persons can locate the typical ground required to communicate and function. Luckily, there are only 4 straightforward, however crucial, ideas to grasp which I will attempt to define as succinctly as achievable.

1. THERE ARE 3 INHERENT PROPERTIES TO ANY Method Regardless of the variety of method, be it an irrigation method, a communications relay method, an information and facts method, or what ever, all systems have 3 simple properties:

A. A method has a objective – such as to distribute water to plant life, bouncing a communications signal about the nation to buyers, or making information and facts for persons to use in conducting small business.

B. A method is a grouping of two or a lot more elements which are held with each other by way of some typical and cohesive bond. The bond may possibly be water as in the irrigation method, a microwave signal as utilized in communications, or, as we will see, information in an information and facts method.

C. A method operates routinely and, as such, it is predictable in terms of how it performs and what it will create. All systems embrace these uncomplicated properties. Devoid of any a single of them, it is, by definition, not a method. For our purposes, the remainder of this paper will concentrate on “”information and facts systems”” as this is what we are generally attempting to create for small business.

In other words, the improvement of an orderly arrangement or grouping of elements committed to making information and facts to assistance the actions and choices of a unique small business. Facts Systems are utilized to spend staff, handle finances, manufacture goods, monitor and manage production, forecast trends, procedure buyer orders, and so forth. If the intent of the method is to create information and facts, we really should have a fantastic understanding of what it is…

2. Facts = Information + PROCESSING Facts is not synonymous with information. Information is the raw material required to create information and facts. Information by itself is meaningless. It is basically a single element utilized to recognize, describe or quantify an object utilized in a small business, such as a item, an order, an employee, a buy, a shipment, and so forth. A information element can also be generated primarily based on a formula as utilized in a calculation for instance: Net-Spend = Gross-Spend – FICA – Insurance coverage – City-Tax – Union-Dues – (and so forth.) Only when information is presented in a certain arrangement for use by the human becoming does it grow to be information and facts. If the human becoming can not act on it or base a choice from it, it is nothing at all a lot more than raw information. This implies information is stored, and information and facts is created. It is also dependent on the desires and demands of the human becoming (the customer of information and facts). Facts, hence, can be defined as “”the intelligence or insight gained from the processing and/or evaluation of information.”” The other variable in our formula is “”processing”” which specifies how information is to be collected, as properly as its retrieval in order to create information and facts. This is eventually driven by when the human becoming demands to make particular actions and choices. Facts is not normally required “”upon request”” (aka “”on demand””) from time to time it is required after each day, weekly, month-to-month, quarterly, annually, and so forth. These timing nuances will eventually dictate how information is collected, stored, and retrieved. To illustrate, assume we gather information after a week. No matter how lots of instances in the course of the week we make a query of the information base, the information will only be valid as of the final weekly update. In other words, we will see the very same final results each day for a single week. Nonetheless, if we have been to gather the information a lot more regularly, such as periodically all through the day, our query will create unique final results all through the week. Our formula of “”I = D + P”” tends to make an crucial point: if the information is changed, however the processing remains the very same, the information and facts will modify. Conversely, if the information remains the very same, however the processing modifications, the information and facts will also modify. This leads to a compelling argument to handle information and processing as separate by equal sources which can be manipulated and reused to create information and facts as required.

3. SYSTEMS ARE LOGICAL IN NATURE AND CAN BE PHYSICALLY IMPLEMENTED Several Unique Approaches An information and facts method is a collection of processes (aka, “”sub-systems””) to either gather and retailer information, to retrieve information and create information and facts, or a mixture of each. The cohesive bond amongst these elements is the information which really should be shared and reused all through the method (as properly as other systems). You will observe we have not however discussed the most appropriate way to physically implement the processes, such as by way of the use of manual processes, laptop or computer applications, or other workplace technologies. In other words, at this stage, the sub-systems of the method basically define logically WHAT information will have to be processed, WHEN it will have to be processed, and who will consume the information and facts (aka “”finish-customers””), but it most absolutely does not specify HOW the sub-method is to be implemented. Following this, developers figure out a appropriate strategy for physically implementing every sub-method. This choice really should eventually be primarily based on practicality and price effectiveness. Sub-systems can be implemented making use of manual procedures, laptop or computer procedures (computer software), workplace automation procedures, or combinations of all 3. Based on the complexity of the sub-method, a number of procedures may possibly be involved. Regardless of the procedures chosen, developers will have to establish the precedent relationships in the execution of the procedures, either sequentially, iteratively, of selection (thereby enabling divergent paths). By defining the procedures in this manner, from start out to finish, the developers are defining the “”function flow”” of the sub-method, which specifies HOW the information will be physically processed (which includes how it is to be developed, updated, or referenced). Defining information and facts systems logically is valuable for two factors: * It supplies for the consideration of option physical implementations. How a single developer styles it may possibly pretty properly be unique than the subsequent developer. It also supplies the signifies to properly figure out how a bought computer software package may possibly satisfy the demands. Once more, the choice to choose a certain implementation really should be primarily based on practicality and price justification. * It supplies independence from physical gear, thereby simplifying the migration to a new laptop or computer platform. It also opens the door for method portability, for instance our consulting firm helped a big Fortune 500 conglomerate design and style a single logical payroll method which was implemented on at least 3 unique laptop or computer platforms as utilized by their several operating units though they physically worked differently, it was all the very same simple method making the very same information and facts. These logical and physical considerations leads to our final idea…

4. A Method IS A Item THAT CAN BE ENGINEERED AND MANUFACTURED LIKE ANY OTHER Item. An information and facts method can be depicted as a 4 level hierarchy (aka, “”typical method structure””): LEVEL 1 – Method LEVEL two – Sub-systems (aka “”small business processes””) – two or a lot more LEVEL three – Procedures (manual, laptop or computer, workplace automation) – 1 or a lot more for every sub-method LEVEL four – Applications (for laptop or computer procedures), and Actions (for all other people) – 1 or a lot more for every process Each and every level represents a unique level of abstraction of the method, from basic to certain (aka, “”Stepwise Refinement”” as identified in blueprinting). This signifies design and style is a leading-down work. As designers move down the hierarchy, they finalize design and style choices. So considerably so, by the time they finish designing Level four for a laptop or computer process, they really should be prepared to create system supply code primarily based on thorough specifications, thereby taking the guesswork out of programming. The hierarchical structure of an information and facts method is primarily no unique than any other typical item to illustrate: LEVEL 1 – Item LEVEL two – Assembly – two or a lot more LEVEL three – Sub-assembly – 1 or a lot more for every assembly LEVEL four – Operation – 1 or a lot more for every sub-assembly Once more, the item is developed leading-down and assembled bottom-up (as identified in assembly lines). This procedure is usually referred to as design and style by “”explosion”” (leading-down), and implementation by “”implosion”” (bottom-up). An information and facts method is no unique in that it is developed leading-down, and tested and installed bottom-up. In engineering terms, this idea of a method/item is usually referred to as a “”4 level bill of supplies”” exactly where the several elements of the method/item are defined and connected to every other in several levels of abstraction (from basic to certain). This strategy also suggests parallel improvement. Just after the method has been developed into sub-systems, separate teams of developers can independently design and style the sub-systems into procedures, applications, and methods. This is produced achievable by the truth that all of the information specifications have been identified as the method was logically subdivided into sub-systems. Information is the cohesive bond that holds the method with each other. From an engineering/manufacturing point of view it is the “”components”” utilized in the “”item.””

As such, management of the information really should be relegated to a separate group of persons to manage in the very same manner as a “”supplies management”” function (inventory) in a manufacturing enterprise. This is usually referred to as “”information resource management.”” This procedure makes it possible for parallel improvement, which is a a lot more productive use of human sources on project function as opposed to the bottleneck of a sequential improvement procedure. Entire sections of the method (sub-systems) can be tested and delivered prior to other people, and, since information is becoming managed separately, we have the assurance it will all match with each other cohesively in the finish. The typical method structure is also valuable from a Project Management point of view. Initial, it is utilized to figure out the Operate Breakdown Structure (WBS) for a project total with precedent relationships.

The project network is then utilized to estimate and schedule the project in element and in complete. For instance, every sub-method can be separately priced and scheduled, thereby providing the project sponsors the capacity to choose and chose which components of the method they want early in the project. The typical method structure also simplifies implementing modification/improvements to the method. Alternatively of redesigning and reconstructing complete systems, sections of the method hierarchy can be identified and redesigned, thereby saving considerable time and cash. This analogy amongst a method and a item is very credible and really exceptional. Right here we can take a time-established idea derived from engineering and manufacturing and apply it to the design and style and improvement of a thing considerably much less tangible, namely, information and facts systems. CONCLUSION Properly, that is it, the 4 cardinal ideas of Facts Systems theory.

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