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Management Information Systems

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Prerequisite for the course

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I. General Systems Theory

1. System Concept

Def.A Systemis a set of interrelated components or process that

interact with one another to achieve a specific objective or serve

a common purpose or goal.

Systems may by (1) abstract or (2) physical.

An abstract systemis conceptual, a product of a human mind. Thatis, it cannot be seen or pointed to as an existing entity. Social,

theological, cultural systems are abstract systems. None of them

can be photographed, drawn or otherwise physically pictured.

However, they do exist and can be discussed, studied andanalyzed.

Aphysical system, in contrast, has a material nature. It is based on

material basis rather than on ideas or theoretical notions.

Introduction to System Concepts.

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Different types of systems

Two classification of systems

Classification I

Deterministic system

Probabilistic system Adaptive system

Classification II

Hard system

Soft system

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The Business Organisation as a Systems

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6

THE FIRM AND ITS ENVIRONMENT

The physical system of a firm is an open system inthat it interfaces with its environment

Firms take resources from their environments,

transforms these resources into products and

services, and return the transformed resources tothe environment

Figure 2.1 shows this flow of resources from the

environment, through the firm, and back to the

environment

The flow of physical resources is at the bottom and

the flow of conceptual resources is at the top

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Environmentalelements exist outside the firm and have

a direct or indirect influence on it.

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Problem

Standards

Information

Problem

solver

(manager)

Solution

Alternate

solutions

Constraints

Desired state

Current state

Elements of the conceptual system

Elements of the

Problem-Solving

Process

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Problem Structure

Structured

Elements and relationships understood

Unstructured

No elements or relationships understood

Semistructured

Some elements understood

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Phase I: Preparation EffortStep 1. View the firm as a system

Step 2. Recognize the environmental system

Step 3. Identify the firms subsystems

Phase II: Definition EffortStep 4. Proceed from a system to a subsystem level

Step 5. Analyze system parts in a certain sequence

Phase III: Solution EffortStep 6. Identify the alternative solutions

Step 7. Evaluate the alternative solutionsStep 8. Select the best solution

Step 9. Implement the solution

Step 10. Follow up to ensure that the solution is effective

Phases and Steps of the Systems Approach

Decisions are made at each step of the definition and solution phases