Introduction to Systems Theory

Systems Theory

• Systems are collections of interrelated components working towards a common goal.

• Systems transform inputs into outputs via a process.

• System components include: input, process, output, feedback mechanism, and control mechanism.

System Characteristics

• Systems have specific objectives.

• Systems can exhibit complexity by including smaller subsystems.

• Systems operate within an environment, defined by a boundary interacting with other systems and external agencies.

System Types

• Open systems have high interaction with the environment.

• Closed systems have limited or no interaction with the environment.

• Coupling describes the dependency between subsystems.

• Close-coupling means high dependency.

• Loose-coupling means minimal dependency, offering flexibility and adaptability.

System Hierarchy

• Systems contain subsystems, which may further have subsystems.

• Changes in one part affect other parts due to interdependence.

System Control

• Control systems can be open-loop (no modification after the process) or closed-loop (with feedback responsiveness).

• Negative feedback corrects deviations. Positive feedback amplifies deviations.

Business Information Systems (BIS)

• BIS convert data into information for decision making and organizational activities.

• BIS resources include people, hardware, software, communications, data.

• BIS advantages include speed, accuracy, reliability, programmability, and handling repetition.

• BIS disadvantages include limited judgement, difficulty with innovation, and ineffectiveness with qualitative information.

• BIS applications include data processing, process control, competitor, strategic, executive information, decision support systems, information reporting systems, operational systems, management systems, transaction processing, process control, and office automation systems.

E-Business Systems

• E-business uses the internet for commerce, including e-commerce.

• E-commerce types include B2B, B2C, B2G, and C2C, and M-commerce.

• E-business benefits include cost reduction, efficiency gains, and broader markets.

Enterprise Systems

• Enterprise systems support business processes across different functions.

• Enterprise systems elements include ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), SCM (Supply Chain Management), and SRM (Supplier Relationship Management).

Strategic Advantage through BIS

• Competitive strategies include cost leadership, product differentiation, innovation, and focus.

• Value chain analysis includes primary activities (production, sales, marketing, logistics) and secondary activities (HR, finance, IT).

• Virtual value chain (VVC) uses virtual processes, customer relationships, and visibility.

• Porter's Model addresses competitive forces (threat of new entrants, supplier power, customer power, substitute threat, rivalry) utilizing computer-based models to gain competitive advantages.

Explore the fundamentals of Systems Theory, including types of systems, their characteristics, and the importance of components such as inputs, processes, and outputs. This quiz delves into the concepts of system hierarchy and the interaction between systems and their environments.