From: Subject: Online File W1.7 Date: Sun, 27 May 2007 20:17:26 +0430 MIME-Version: 1.0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://higheredbcs.wiley.com/legacy/college/turban/0471705225/web/online/ch01/w1_7.html X-MimeOLE: Produced By Microsoft MimeOLE V6.00.3790.3959 Online File W1.7

Online File W1.7=20


SYSTEMS

A system is a collection of elements such as people, = resources,=20 concepts, and procedures intended to perform an identifiable function or = serve a=20 goal. A clear definition of that function is important to the design of = an=20 information system. For instance, the purpose of an air defense system = is to=20 protect ground targets, not just to destroy attacking aircraft or = missiles.

Levels and Structures of Systems=20

The notion of levels (or a hierarchy) of systems reflects that all = systems=20 are actually subsystems, since all are contained within some = larger=20 system. For example, a bank system includes such subsystems as the = commercial=20 loan system, the consumer loan system, the savings system, and so = on.

Systems are divided into three distinct parts: inputs, processes, = and=20 outputs. They are surrounded by an environment and frequently include a = feedback=20 mechanism that controls some aspect of the operation. In addition, a = human, the=20 decision maker, is considered a part of the system.

Because every system can be considered a subsystem of another, the=20 application of system analysis may never end. Therefore it is necessary, = as a=20 matter of practicality, to confine the system analysis to defined = manageable=20 boundaries. Such confinement is termed closing the system. A = closed=20 system represents one extreme along a continuum of independence. = (The=20 open system* is at the other extreme.) A closed system is totally = independent, whereas an open system is very dependent on its environment = (and/or=20 other systems). The open system accepts inputs (information, energy, and = materials) from the environment and may deliver outputs into the=20 environment.

When determining the impact of changes on an open system, it is = important to=20 check the environment, the related systems, and so on. In a closed = system,=20 however, it is not necessary to conduct such checks because it is = assumed that=20 the system is isolated. Traditional computer systems like transaction = processing=20 systems (TPSs) are considered to be closed systems. The newer decision = support=20 systems (DSSs) are open.

System Effectiveness and Efficiency=20

Systems are evaluated and analyzed along two major dimensions: = effectiveness=20 and efficiency. Effectiveness is the degree to which the right = goals are=20 achieved. It is concerned with the results or the outputs of a system. = The=20 outputs may be the total sales of a company or of a salesperson, for = example.=20 Efficiency is a measure of the use of inputs (or resources) to = achieve=20 results. An example of efficiency might be how much money is used to = generate a=20 certain level of sales. An interesting way to distinguish between the = two terms=20 is as follows:=20

Effectiveness =3D Doing the =93right=94 thing
Efficiency =3D = Doing the =93thing=94=20 right

General Systems Theory=20

The term general systems theory refers to the discipline that = deals=20 with the field of systems and their analysis, design, and improvement. = It=20 includes the concepts, methods, and knowledge pertaining to the field of = systems=20 and systems thinking. It is an interdisciplinary, holistic approach to = the study=20 of systems. (For details, see J. P. Van Gigch, Applied General = Systems=20 Theory, 2nd ed., New York: Harper and Row, 1978.)=20

*The term open system in IT has a different meaning. It = refers to the=20 ability of software to run on any hardware.=20