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Lesson#7
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Types of Systems
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Types of Systems
7.1 What are Systems?
A system is a group of elements that are integrated with the
common purpose of achieving an objective.
Example
Purchase & Sales System
7.2 Components of a system
Following are the important components of the system.
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Input elements
Raw Data input to the computer system
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Process
Computation, analysis, application of any model
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Output elements
Results of computation or analysis
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Control mechanism
Comparison of actual with expected
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Feedback system
Corrective action
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Objectives
Expected/Ideal output
7.3 Types of Systems
7.3.1 Open-Loop System
The determinant factor is in an open loop system is that the
information from the system not used for
control purpose. This is done by using the output to generate
feed back for control purposes.
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The output is not
coupled to the input for measurement.
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Hence the components of
open loop system do not include control and feedback mechanism due to
non-existence of internally defined objectives. That is,
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Input
o
Process
o
Output
Example
An information system that automatically generates report on
regular basis and are not used to monitor
input or activities.
7.3.2 Closed Loop System
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Is a system where part
of the output is fed back to the system to initiate control to change
Either the activities of the system or input of the system
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Has the ability to
control the output due to existence of
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Control Mechanism
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Feedback System
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Objectives
Example
Budgetary control system in a company by which
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The results are
communicated through feedback system
o
Results are compared
with the objectives/budget through controls mechanism
7.3.3 Open Systems
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A system that is
connected to its environment by means of resource flows is called an open
system.
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The environment exerts
influence on the system and the system also influences the environment.
Example
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Business is a system
where management decisions are influenced by or have an influence on suppliers,
customers, society as a whole.
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Computerized system of a
manufacturing entity, that takes influence from the society.
7.3.4 Closed Systems
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A system that is not
connected with its environment
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Neither environment
exerts any influence on the system nor does system influence the environment.
Examples
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An information system
designed to control data in a research laboratory is a closed system.
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An information system
designed to record highly sensitive information is a closed system so as
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To accept no input for
amendment
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To give no output for
disclosure
Objective of Having Systems
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To subject a predefined
amount of input (tangible, intangible) to predefined set of instructions in
order
to achieve an expected quality and amount of output.
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Effective and efficient
utilization of resources
7.4 Level of Planning
There are three levels
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Strategic
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Tactical / Functional
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Operational
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Strategic Planning
Is the formulation, evaluation and selection of strategies for
the purpose of preparing a long-term plan of
action to attain objectives.
Tactical/Functional Planning
Is the process by which managers assure the resources are
obtained and used effectively and efficiently in
the accomplishment of the organization’s objectives?
Operational Planning
It is the process of assuring that the specific tasks are being
carried out efficiently and effectively.
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Functional Strategic Planning
Commitment by Firm’s executives requires strategic planning for
the following functional areas.
o
Manufacturing resources
o
Financial resources
o
Human resources
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Marketing Resources
o
Information Resources
7.5 Strategic Planning for Information Resources (SPIR)
When a firm embraces SPIR the strategic plans for information
services and the firm are developed
concurrently. Business strategy and IT related strategy should
go hand in hand. The IT related strategy
should be driven by business strategy and the former should
support the achievement what’s being
mentioned in the latter. Any inconsistencies or deviations
between the two should be removed and avoided.
The investment in IT is costly and inflexible. Such investment
is also monitored and controlled by the IT
strategy. Hence any investment not supporting the business
strategy would be futile.
Example
Business strategy
Modify inventory system to fulfill orders quickly through
relocating system to warehouse and efficient
shelf picking.
IS strategy
To identify information resources needed for the successful
implementation of business strategy.
Information Value Chain
Raw information is transformed at various points and value is
added before passing onwards. Every step of
processing should make the information stored more valuable.
Example
When customer order received, data punched into computerized
system, which updates order list, customer
records and store room records. When order has been served,
customer orders are filed into records. |
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