An Introduction to Concepts An Introduction to Concepts of Systems and Organizationsof Systems and Organizations

SYSTEMSYSTEM

A System is an integrated set of components, A System is an integrated set of components, or entities, that interact to achieve a particular or entities, that interact to achieve a particular function or goal.function or goal.

System have characteristics such as System have characteristics such as boundaries, outputs & inputs, methods of boundaries, outputs & inputs, methods of converting inputs into outputs and system converting inputs into outputs and system interfaces.interfaces.

Systems are composed of interrelated and Systems are composed of interrelated and independent subsystems. independent subsystems.

Characteristics of SystemCharacteristics of System

System BoundariesSystem Boundaries System and SubsystemSystem and Subsystem Outputs & InputsOutputs & Inputs

SystemSystem

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

SubsystemSubsystem

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

INTERFACEINTERFACE

An interface is a connection at system or An interface is a connection at system or subsystem boundaries. An interface serves as a subsystem boundaries. An interface serves as a medium to convey the output from one system medium to convey the output from one system to the input of another system. E.g. :-to the input of another system. E.g. :-

Inventory Control & Purchasing.Inventory Control & Purchasing. SD & MM & FICO & PPSD & MM & FICO & PP

Systems & Their EnvironmentSystems & Their Environment

The system’s environment consists of people, The system’s environment consists of people, organisation and other systems that supply data organisation and other systems that supply data to or that receive data from the system. E.g. :-to or that receive data from the system. E.g. :-

Sales manager’s System Environment Sales manager’s System Environment

Company’s customer, Vendors of the product & services being Company’s customer, Vendors of the product & services being

marketedmarketed.. Owner of the Business Owner of the Business

The firm’s competitors, financial institutions that The firm’s competitors, financial institutions that

provide resources for expansion, and Govt. agenciesprovide resources for expansion, and Govt. agencies

Open & Closed SystemOpen & Closed System

OpenOpen :- Introduction by one competitor an on- :- Introduction by one competitor an on-line order entry terminals, marketing function line order entry terminals, marketing function must adapt to the change in the environment or must adapt to the change in the environment or remain at a competitive disadvantage.remain at a competitive disadvantage.

Closed Closed :- University may offer graduate courses :- University may offer graduate courses only during day time without recognizing the only during day time without recognizing the growing number of working adults wishing to growing number of working adults wishing to enroll in evening graduate Programme. enroll in evening graduate Programme.

System FeedbackSystem Feedback

System Concept’s in Business System Concept’s in Business

Using the System Approach in Using the System Approach in Problem solvingProblem solving

Define the problemDefine the problem Gather data describing the problemGather data describing the problem Identify alternative solutionsIdentify 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 Follow-up to determine whether the solution is

working.working.