Systems Approach

MIS Defined …. “It is a system using formalised procedures to provide management at all levels in all functions with appropriate levels of information, based on data from internal and external sources, to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible”.

System Approach …. It is a framework or method used to aid and helps to analyse and explore the operation and interactions which exist in the systems around us. A definition of system as used by the Open University is: A system is an assembly of parts where: The parts or components are connected together in an organised way. The parts or components are affected by being in the system (and are changed by leaving it) The assembly does something The assembly has been identified by a person as being part of special interest.

Definition summarised …. The definition contains the essential elements of: Parts Relationships Objectives. It is very broad in its approach and can apply to any system around us. Examples???

System Examples ….  A railway system  A hospital  An accounting system  Manufacturing company  An information system  Local Authority  A central heating system

System overview …. Any arrangement which involves the handling, processing or manipulation of resources of whatever type can be represented as a system. Thus a manufacturing company or a service organisation can be viewed as a system whereby people grouped into sections and departments, process inputs to produce outputs of goods or services in order to fulfil the objectives of the organisations.

Features of Systems Approach …. All systems are composed of inter-related parts or subsystems and the system can only be explained as a whole. This is known as Holism. Holism states that any whole is more/greater than the sum of its individual parts. When the appropriate parts are combined, properties emerge from the whole which the parts alone do not possess.

Features of Systems Approach …. Systems are hierarchical in that parts of subsystems are made up of other smaller parts. For example, the accounting system of an organisation may be a subsystem of the information system which is itself a subsystem of the planning system, which is a subsystem of the organisation as a whole. Progression down the hierarchy increases the detail but moving upwards provides a successfully broader view.

Features of Systems Approach …. The parts within the system cannot be altered without affecting other parts. Many organisational problems are created from ignoring this principle. For example, a departmental procedure or form may be changed without considering the ripple effect on the other departments within the organisation and the possible consequences that may arise from such change.

Features of Systems Approach …. All subsystems should work towards the goal of their higher systems and not to pursue their own individual objectives. Where subsystems do pursue their own objectives, it can be detrimental to the higher objectives of the organisations. MIS designers will seek to avoid such a procedure.

Features of Systems Approach …. Organisational systems can contain both Hard and Soft properties. Hard properties can be assessed in some objective way. I.e. the number of components in a storage bin, the amount of PAYE, a person will pay with a tax code of 275 etc. The soft aspects are a matter of individual taste or values. I.e. the appearance of a product, the suitability of a person for a job etc. they cannot be assessed by an objective standard or measuring process.

System Elements The following are key features of systems: Transformation Process Boundaries Environment.

The Transformation Process. All systems are composed of the same basic elements: Inputs, Processes and Outputs Process InputsOutputs In all systems other than physical and mechanical ones, the transformation process is controlled by the information. Information on the output of the system is used as a basis for control of the input of the system. This is known as feedback or information feedback.

System boundaries The features which define the extent of a system are its boundaries. In mechanical, physical and biological systems the boundaries are readily identifiable as they tend to arise naturally. However, with any social organisation, boundaries are not obvious and often change to meet differing demands. In social organisations, there are many transfers across boundaries of ideas, people, materials and information. Within organisations, boundaries are determined by management and can vary tremendously from one organisation to another. For example, in one organisation, the Sales department may be responsible for invoicing where as in another organisation; the Accounts department may have that responsibility.

System boundaries Boundary changes are also inevitable as organisations adapt to changing environments and requests. However changes in systems can also cause friction if not handled properly. For example: since the early nineties schools in Britain have had self control to where they are responsible for their own budgets, previously they were in the hands of the Local Education Authority. This was a major boundary change from the single LEA system to a numerous individual school systems. It was an imposed boundary change which caused considerable friction. A classic “Soft” problem.

The Environments of Systems Broadly speaking, a systems environment is all those elements not in the system. This can be defined as: Those external elements whose changes in attitude, behaviour or properties affect the state of the system and those external elements which are changed by the systems behaviour. This means that the relevant environment of any system comprises of those elements with which it has some meaningful connection or relationship. The environment is diverse and is rarely static. The following diagram sets out to show some of the influences in the environment that may affect the organisation or to be affected by the organisations actions.

Customers & Marketing Specific Social Environment Suppliers & Materials Personnel & Unions CompetitionTechnology Finance General Social Environment The Organisation Legal Influences Green Issues International Influences Government Influences European Community Economic Framework Social, Cultural & Demographic Factors Physical Environment

Closed System …. Isolated from its environment Generally self contained Not influenced by external environment nor does the system influence the environment A closed system is generally associated with mechanical and physical system All social systems need to interact with their external environment.

No Exchanges with Environment CLOSED SYSTEM

Open Systems …. Interacts with its environment Receives Inputs and Influences In turn, passes back Output and Influences All social organisations are open systems Organisations need to change and adapt to succeed and to survive.

Controlled exchange with environments Relatively Closed System ENVIRONMENT Known & Prescribed Inputs ENVIRONMENT Known & Prescribed Outputs

Subject to known, unknown inputs and environmental disturbances Open System ENVIRONMENT Known Inputs Unknown Inputs Disturbances ENVIRONMENT Predicted Outputs Unpredicted Outputs