Management Information Systems

By : Prof. Prakash M Soni

Topic No.: 1 System Concepts

Introduction
We use the word system in our day to day life to describe something that does something, thus we have the Transport System which transports goods and people, Government System which governs us etc. we do not generally give thought to what we mean by system. Yet we are surrounded by systems. We are part of a system ourselves and in fact, the human body and mind itself is a system. Now the question is to understand how does this have a relevance to business? All businesses are systems. They form art of the larger system of society and they consist of many subsystems such as Purchase, Finance, HR, Accounts, Production, Marketing, PR, Customer Care etc. An understanding of systems in general will lead to a better understanding of business system and therefore to a better design of the information system, which is the ultimate aim of MIS. Unfortunately the term System is often used in a loose context. There is no fixed meaning that is assigned to the word and within its generally understood form; it can mean almost anything to anybody. So lets begins the discussion with proper definition of System.

Definition of Systems
A set of elements which operates together to accomplish an objective A set of procedures that constitutes activities that are logically grouped together to form one unique function within the organisation Any collection of components that interacts to serve a common goal A group of elements that is interdependent, interrelated and interacting

Objectives of System:
1) They have specific objectives 2) Systems are composed of elements and these elements can be systems within themselves 3) Elements may be common to several systems at the same time 4) Elements in a system are interrelated 5) Elements in a system are interdependent 6) The system has a defined structure 7) The system reacts to its environment 8) All systems have a life cycle 9) All systems have boundaries

Queries? Email: profprakashsoni@gmail.com

Management Information Systems

By : Prof. Prakash M Soni

Types of Systems:
Open System: It is the one that interacts with its environment. It accepts input from environment and gives output to the environment. It reacts to changes in the environment and is itself responsible for changes in the environment; no matter how shall such changes may be. It has self regulatory mechanism by which it senses changes in the environment and reacts to such changes. Closed System: Systems that do not interact with their environment are called as closed systems. The closed system neither takes any input from the environment nor gives any output to the environment. It does not react to any threat from the environment, nor does it pose any threat to another system in the environment. They are very rare in existence. Deterministic System: They operate according to a predetermined set of rues. When the operating conditions are known, the results of this system can be predicted quit accurately. In a business system, most subsystems are deterministic, producing predictable output when the inputs are known and calculable. Probabilistic System: They are the one where the output cannot be accurately predicted, the output can only be set in terms of probabilities. In a sales forecasting system, all inputs are changes in the environment. Therefore, the sales forecast can only be probabilistic in nature. Physical System: Tangible systems with elements and presence that can be encountered in the physical sense are called as Physical Systems. Example: A vehicle is a tangible entity and therefore a physical system. Abstract System: It is a system of culture behaviour or philosophy of living is intangible. Rites and rituals may be physical manifestations of parts of the system, but the system itself is intangible and resides and a collective set of mainly unwritten rules. Natural System: Systems created by nature are termed as natural systems. The weather system, food chain, solar system etc. Such systems cannot be designed or installed by human efforts. Man-Made System: Systems create by human being are called as Man Made Systems. These include systems of transportations, roadways, businesses, educational institutes etc.

Queries? Email: profprakashsoni@gmail.com

Management Information Systems

By : Prof. Prakash M Soni

Relevance of Systems Theory to MIS

MIS, by definition is a system. Its objective is basically providing timely and accurate information to management team for decision making process. It works on the fundamentals of Open System, as it takes input from the environment and gives or generates output to the environment in the form of information. It needs a form of self regulation and feedback in order to be able to grow with the business and be able to handle newer demands of information in the new environment as the business expands. MIS has subsystems that interacts with each other and are interdependent on each other. Some systems are computer systems, management systems, engineering and application systems etc. These subsystems interact with each other, accepting inputs from and giving out to each other in specific patterns and predetermined ways.

Integration of Organizational Systems and Information System

Organizational systems need to integrate MIS systems into themselves. MIS needs to be made a system within the business system. In order to integrate MIS to the businesses system, three crucial elements must be understood as: Technology: Computer systems must be integrated into the business to help streamline the data gathering, processing and information generating process. People: Integration will work only by proper coordination of people of business organization and the understanding of the system at first place. Their attitude, aspirations and ears must be addressed when the MIS is being planned and executed. Business Goals: MIS must have a through understanding of the goals of the businesses and the methods the business uses to achieve those goals.

Queries? Email: profprakashsoni@gmail.com