Thanks for your reply, but you might misunderstood my question. There are two questions. First of them is " Which methodology would you use for that system?" The other one is to about data flow diagrams.
Oh, sorry, I read that as a single question. It does make more sense as two :)
Are you able to share a more detailed description of the system you're designing? In particular, what activities are you monitoring, and how often? Is there a reporting requirement? For both the data flow and development methodology questions, a lot can depend on the requirements you have (or sometimes, don't have). Also, do you have any scheduling constraints--i.e., how much of it do you have to deliver, and when?