Management Information Systems

Prerequisite for the course

Introduction to System Concepts.

I. General Systems Theory 1. System Concept Def. A System is 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 system is conceptual, a product of a human mind. That is, 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 and analyzed. A physical system, in contrast, has a material nature. It is based on material basis rather than on ideas or theoretical notions.

Different types of systems

Two classification of systems
Classification I Deterministic system Probabilistic system Adaptive system Classification II Hard system Soft system

The Business Organisation as a Systems

THE FIRM AND ITS ENVIRONMENT

The physical system of a firm is an open system in that it interfaces with its environment Firms take resources from their environments, transforms these resources into products and services, and return the transformed resources to the 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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Environmental elements exist outside the firm and have a direct or indirect influence on it. 7

Problem

Elements of the Problem-Solving Process

Elements of the conceptual system Standards

Desired state
Current state

Alternate solutions

Problem solver (manager)

Information

Constraints

Solution

Problem Structure
Structured
Elements and relationships understood

Unstructured
No elements or relationships understood

Semistructured
Some elements understood

Phases and Steps of the Systems Approach

Phase I: Preparation Effort
Step 1. View the firm as a system Step 2. Recognize the environmental system Step 3. Identify the firms subsystems

Phase II: Definition Effort

Step 4. Proceed from a system to a subsystem level Step 5. Analyze system parts in a certain sequence

Phase III: Solution Effort

Step 6. Step 7. Step 8. Step 9. Step 10. Identify the alternative solutions Evaluate the alternative solutions Select the best solution Implement the solution Follow up to ensure that the solution is effective

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