An Introduction to Concepts of Systems and Organizations

SYSTEM A System is an integrated set of components, or entities, that interact to achieve a particular function or goal. A System is an integrated set of components, or entities, that interact to achieve a particular function or goal. System have characteristics such as boundaries, outputs & inputs, methods of converting inputs into outputs and system interfaces. System have characteristics such as boundaries, outputs & inputs, methods of converting inputs into outputs and system interfaces. Systems are composed of interrelated and independent subsystems. Systems are composed of interrelated and independent subsystems.

Characteristics of System System Boundaries System Boundaries System and Subsystem System and Subsystem Outputs & Inputs Outputs & Inputs

System Business is a system. It uses resources e.g. people, capital, materials, facilities to achieve the goal of making a profit.

Subsystem In a business system various functions are subsystem i.e. Marketing, Finance, Manufacturing etc. Within Marketing subsystem Sales Order Entry, Credit Checking function are subsystem In a business system various functions are subsystem i.e. Marketing, Finance, Manufacturing etc. Within Marketing subsystem Sales Order Entry, Credit Checking function are subsystem

INTERFACE An interface is a connection at system or subsystem boundaries. An interface serves as a medium to convey the output from one system to the input of another system. E.g. :- Inventory Control & Purchasing. Inventory Control & Purchasing. SD & MM & FICO & PP SD & MM & FICO & PP

Systems & Their Environment The systems environment consists of people, organisation and other systems that supply data to or that receive data from the system. E.g. :- Sales managers System Environment Sales managers System Environment Companys customer, Vendors of the product & services being marketed. Companys customer, Vendors of the product & services being marketed. Owner of the Business Owner of the Business The firms competitors, financial institutions that provide resources for expansion, and Govt. agencies The firms competitors, financial institutions that provide resources for expansion, and Govt. agencies

Open & Closed System Open :- Introduction by one competitor an on- line order entry terminals, marketing function must adapt to the change in the environment or remain at a competitive disadvantage. Closed :- University may offer graduate courses only during day time without recognizing the growing number of working adults wishing to enroll in evening graduate Programme.

System Feedback System Concepts in Business System Feedback System Concepts in Business

Using the System Approach in Problem solving Define the problem Define the problem Gather data describing the problem Gather data describing the problem Identify alternative solutions Identify alternative solutions Evaluate these alternatives. Evaluate these alternatives. Select and implement the best alternative Select and implement the best alternative Follow-up to determine whether the solution is working. Follow-up to determine whether the solution is working.