SYSTEM CONCEPTS
A system can be simply defined as a group of interrelated or interacting elements forming a unified whole. Many examples of systems can be found in the physical and biological sciences, inmodern technology, and in human society. Thus, we can talk of the physical system of the sun and its planets, the biologicalsystem of the human body, the technological system of an oilrefinery, and the socioeconomic system of a businessorganization. A system is a group of interrelated components workingtogether toward a common goal by accepting inputs and producing outputs in an organized transformation process. Such asystem (sometimes called a
dynamic system
) has three basicinteracting components or functions:
•
Input
involves capturing and assembling elements that enter the system to be processed. For example, rawmaterials, energy, data, and human efforts must besecured and organized for processing.
•
Processing
involves transformation process that convert input into output. Examples are a manufacturing process,the human breathing process, or mathematicalcalculations.
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•
Output
involves transferring elements that have been produced by a transformation process to their ultimatedestination. For example, finished products, humanservices, and management information must betransmitted to their human users.
Example
A manufacturing system accepts raw materials as input and produces finished goods as output. An information system also isa system that accepts resources (data) as input and process theminto products (information) as output.
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FEEDBACK AND CONTROL
A system with feedback and control components issometimes called a
cybernetic system,
that is, a self-monitoring,self-regulating system.
•
Feedback
is data about the performance of a system. For example, data about sales performance is feedback to asales manager.
•
Control
involves monitoring and evaluating feedback todetermine whether a system is moving toward theachievement of its goal. The control function then makesnecessary adjustments to a system’s input and processingcomponents to ensure that it produces proper output. For example, a sales manager exercises control when he or she reassigns salespersons to new sales territories after evaluating feedback about their sales performance.Feedback is frequently included as part of the concept of thecontrol function because it is such a necessary part of itsoperation.
Example
A familiar example of a self-monitoring, self-regulatingsystem is the thermostat controlled heating system found inmany homes; it automatically monitors and regulates itself to
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Management information system for MBA students
MBA MIS notes
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