UNIT 2 : CONCEPTS OF SYSTEMS

2.1. Definition of system in an organization

2.2. Types of systems
2.2.1. Deterministic probabilistic systems
2.2.2. Open and close systems
 Introduction
 A system is an organized collection of
parts that are highly integrated in order
to accomplish an overall goal.

 The system has various inputs which are

processed to produce certain outputs
that together, accomplish the overall goal
desired by the organization.
 There is ongoing feedback among
these various parts to ensure they
remain aligned to accomplish the
overall goal of the organization.
 There are several classes of systems,
ranging from very simple frameworks
all the way to social systems, which
are the most complex. Organizations
are, of course, social systems.
 Systems have inputs, processes,
outputs and outcomes.
 Each organization has numerous
subsystems. Common examples of
subsystems are departments,
programs, projects, teams, processes
to produce products or services, etc.
 Environment Suppliers
Customers

Information System

Input Processing Output

Feedback

Agenicies Stockholders Competitors

 Types of Systems
1. Conceptual and Empirical
2. Natural and Manufactured
3. Social, People-Machine and machine
4. Open and Closed
5. Permanent and Temporary
6. Stationary and Non-stationary
7. Sub-system and Non-subsystem
8. Adaptive and non-adaptive
9. Simple and Complex
10.Stable and Dynamic
11.Deterministic and Probabilistic
1. Conceptual and Empirical
 Conceptual Systems are concern with
theoretical structured, which may or
may not have counter part in the
world. Eg. Business Decision Map
 Empirical System is made up of
people, materials, machines, energy
and physical things.
2. Natural and Manufactured
 Natural System is planting in nature.
 For Example: Solar System and Water
System
 Manufactured System is form after
people gathering groups to live and
hunt together.
 For Example: Transport System and
Natural Defense
3. Social, People-Machine and
machine
 System made up of people are purely
social system.
 For example: Political parties
4. Open and Closed
 If a system is functioning in isolation
from the environment, then the
system does not have any exchange
with the environment nor it is
influenced by the environment changes
such systems are CLOSED SYSTEM.
 For example: Accounting System, cash,
stock
 If your system is exchange from
environment and is influenced by the
environment then it is called OPEN
SYSTEM.
 For example: Marketing, Communication
and forecasting
5. Permanent and Temporary
 Permanent exist for a relative long
period of time.
 Temporary system last to specific
period of time.
 6. Stationary and Non-stationary
 A Stationary system is one whose
properties and operations either do
not very in repetitive cycle.
 For example: Factory, Super Market
Operation

 An advertising organization, Research

and Development laboratory are non-
stationary systems.
 7. Sub-system and Non-subsystem
 Each system is nested in a large
system.
 Super system has at lease two terms
 As a opposed to subsystem
 To denote any extremely large and
complex system
8. Adaptive and non-adaptive
 A system that reacts to its environment
to such way to improve with
functioning achievement of survival
its called adaptive system,
 Those system that do not react or
adapt to the environment are called
non-adaptive system.
9. Simple and Complex
 Simple system have few component
and the relationship or interaction
between elements is an uncomplicated
and straight.
 Complex system has many
component that are highly related and
inter connected.
10. Stable and Dynamic
 Stable systems undergoes very little
change over time.
 Dynamic systems repeatedly goes over
time.
11. Deterministic and Probabilistic
 A System is called deterministic when
the input, process and output are
known with certainty.
 For example: Accounting system
 Deterministic System
 A system is deterministic if its outputs are
certain.
 This means that the relationships between its
components are fully known and certain.
 A deterministic system is one in which the
occurrence of all events is known with
certainty.
 If the description of the system state at a
particular point of time of its operation is given,
the next state can be perfectly predicted.
 A Deterministic System has a single
result or set of results given a set of
input parameters.
 A System is called deterministic when
the input, process and output are
known with certainty.
 For example: Accounting system
 Probabilistic System
 A System is called probabilistic when the
output can only be predicted in
probabilistic term.
 For Example: Demand forecasting system
 A probabilistic system is one where the
output from the system behaves
probabilistically, i.e., the output is
predictable according to probability values.
 It is also known as Stochastic Model,
Stochastic Process or Stochastic
System.
 Solved using Monte-Carlo Method.
 A Computer Program uses a pseudo
random number generator to provide
values of the attributes of the system that
vary.
 The alternative to this method is to solve
the problem using mathematics of
probability.
 Open System
 Open systems are computer systems
that provide some combination of
interoperability, portability and open
software standards.
 Open systems are systems which allow
users to contributes, manipulate, edit,
use, reuse, mashup and in some way
actually create or alter content.
 Examples of open systems include
wordpress and unix,
 If you modify a software it is probably
an open system
 If your system is exchange from
environment and is influenced by the
environment then it is called OPEN
SYSTEM.
 For example: Marketing, Communication
and forecasting
 Closed System
 If a system is functioning in isolation
from the environment, then the
system does not have any exchange
with the environment nor it is
influenced by the environment changes
such systems are CLOSED SYSTEM.
 For example: Accounting System, cash,
stock
 Closed systems are systems which
allow user to use content as it is,
with minimal to modification to the
actual system or program.
 Users may email content, but the
amount of what can be done is very
small.
 Examples of closed systems include
many library catalog software, email
software such as Outlook Express