Management Information Systems

(CIT-MIS-215)

Systems Theory
Presented By:
Wongani J Mhango
Computer Science and Information Systems Department
MUBAS

:265 (0) 884 824 093 :[email protected]

Systems Theory
 A system a set of interrelated components that work together to
achieve a common goal.
 It has a clearly defined boundary in which it operates in.
 A system may contain several subsystems with subgoals, all
contributing to meeting the overall system goal.
 The goal/objective of a system is to receive inputs and processes them
into outputs.
Basic elements of a system
Basic elements (cont’d)
 Inputs
- Resources or data received from its environment. E.g. raw materials, human
effort
 Processes
- Activities or operations performed by the system to transform inputs to
outputs. Basically the actual work that is done by the system. E.g. a system
that makes calculations of prices of products.
 Outputs
- Results generated by the systems processes. Outcomes of the system activities.
E.g. finished products, services, management information.
Basic elements (cont’d)
 Feedback
- Information about the system performance. E.g. information about sales
performance to a sales manager.
 Control
- Involves monitoring and evaluating feedback to determine whether a system is
moving toward the achievement of its goal.
- The control function then makes the necessary adjustments to a system’s input
and processing components to ensure that it produces proper output.
Examples
 Discuss how a transportation company can be seen as a system
Inputs (fuel, cars, drivers)
Process(transportation, routes, schedules)
Outputs(delivering of goods and services)
Feedback(customer reviews)
Control(???)
Example of a business as a system
Cont’d
 A business/organization is an example of a system in which Economic
Resources(inputs) are transformed by various Business Process(processing)
into Goods & services.
 These information systems provide information(feedback) about the
operations of the system to management for the Adjustment(control) of the
system/business/organization.
 Case Study: Amazon's Order Fulfillment System
1) Identify the basic elements of Amazon's order fulfillment system.
2) How does Amazon's system handle order processing, inventory management, and
shipment tracking?
3) Discuss how these elements work together to ensure timely and accurate delivery to
customers
Systems Theory Principles
1) Holism
 Systems are understood as a whole.
 Properties of the system cannot be understood simply by analyzing its
individual parts
2) Synergy
 The combined efforts of different elements create an outcome that
surpasses what each individual element could achieve alone
 Interaction of system components produces results that are greater
than the sum of their individual efforts
Systems Theory Principles (cont’d)
3) Hierarchy
 Systems can be organized into a structured manner with each level
containing subsystems and being part of a larger system
Types of Systems
 Open systems
- These are systems that interact with their environments exchanging inputs and
outputs.
 Closed systems
- They do not interact with their environment and operate based on predefined
rules.
 Adaptive systems
- Systems that change their structure or behavior in response to feedback from
the environment.
 Cybernetic systems
- Systems where outputs are also used as inputs, creating a loop.
Cont’d
 Understanding systems theory enables us to analyze and design
information systems effectively by considering the interrelationships
among components and their environment.
Information System (IS)
 An information system is combination of people, hardware, software,
communications networks, data resources, and procedures that stores,
retrieves, transforms, and distributes information in an organization.
 A business organization is an example of a system in which human
and economic resources are transformed by various business processes
into goods and services.
Conceptual Framework of IS
 This is a theoretical structure or model that helps to understand various
aspects of information systems. In terms of their components,
functions and relationships.
 The components work together to collect, process, store and distribute
information within an organization.
Conceptual framework (cont’d)
 Expresses a fundamental conceptual framework for the major
components and activities of information systems.
 Made of five main components:
Hardware (Networks / Communications)
Software
Data
People
Procedures
I. Hardware Resources
All physical devices and materials used in information
processing.
All physical equipment used for input, processing,
storing and output.
Consists of the electric, electronic and mechanical
components of a computer. E.g. computers, servers,
phones, etc.
Hardware Resources (cont’d)
 Networks and Communications
 Telecommunication technologies and networks such as the internet,
intranets, and extranets.
 These devices facilitates the flow of information in an organization.
For example, an ecommerce business such as Amazon requires
internet.
II. Software Resources
Programs and applications used to process data and
perform tasks.
A series of instructions that tells a computer what tasks
to perform and how to perform them.
System software, Application software, e.g. SAGE,
POS, Electronic medical records (EMR), SMIS
III. Data Resources
These are raw unprocessed facts and figures that are
later processed to generate information. E.g. raw facts
about a business transaction (product description,
customer/patient record, inventory.
Data are raw facts or observations, typically about
physical phenomena or business transactions.
This data is organized and stored into:
- Databases
- Knowledge bases
IV. People Resources
The main players of an information system.
The man power that is required to manage and use the
system.
- End users – clients of the system, or main beneficiary of
using the system.
- IS specialists – develop and maintain the system
V. Procedures
Instructions or rules for using hardware, software, and
data effectively.
For example how is a patient admission done, or a loan
application to final disbursement of the loan. The
billing procedure, etc
Summary of IS components
 The components interact with each other to achieve organization
goals. For example, hardware and software work together to process
data, while people use procedures to input and retrieve data.
The role of an IS in and organization
 The main 3 roles of an Information System are:
 1. Supports processes and operations
- Automation of routine tasks
 2. Supports decision making
- By providing valuable information, analysis tools
 3. Provides competitive advantage
- Improve operations efficiency
- Enhance customer experience
Cont’d
 Transformation of the business enterprise
- The internet and other related technology has made it possible to conduct
business across firm boundaries almost as efficient and effective as it is to
conduct business within the firm.
 Globalization
- Many businesses have begun to participate in the global market.
- Information systems provide the communication and analytic power that firms
need to conduct trade and manage businesses on a global scale.
 Rise of the information economy
- The market value of many firms is based largely on intangible assets such as
proprietary knowledge, information and other intellectual capital other than
physical assets.
Cont’d
 Information Storage and Analysis
- Many companies no longer manage their data and information manually with
registers and hard-copy formats.
- Through the adoption of information systems, companies can make use of
sophisticated and comprehensive databases that can contain all imaginable
pieces of data about the company.
 Assist With Making Decisions
- The business uses information systems to evaluate information from all
sources, including information from external references, which provide
information on the general economy.
- This analysis of and comparison to market trends helps organizations analyze
the adequacy and quality of their strategic decisions.
Cont’d
 Assist With Business Processes/Operations
- Information systems aid businesses in developing a larger number of value
added-systems in the company.
- Adoption of information systems simplifies business processes and removes
unnecessary activities.
- Further, information systems eliminate repetitive tasks and increase accuracy,
allowing employees to concentrate on more high-level functions.