Transcript Systems Thinking and Theory.ppt

BA 471
Management Information
Systems
Systems Theory and Thinking
Systems Theory and Thinking
Colored pencil inventory problem
 What information is needed to
make sure you don’t run out?
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How many you have on hand
How many you need to order
When you will run out (this time, next time)
How quickly you can get more
How much money you have for pencils
Systems Theory and Thinking
 Characteristics of Systems
Simple
Complex
Open
Closed
Static
Dynamic
Adaptive
Nonadaptive
Permanent
Temporary
Systems Theory and Thinking
System Definition
(source: Technical University of Muenchen)
A system is assumed to:
 Be any object of thinking that is delimitable
 Have delimited parts that form the environment
 Have properties referring to the environment
 Have a functionality
 Consist of sub-systems that interact
Systems Theory and Thinking
System Definition - continued
(source: Technical University of Muenchen)
A system definition can be derived from these
assumptions:
 A system consists of elements.
 The elements have attributes (properties and
functions).
 Elements interact by means of relations.
 An element may be a system.
Systems Theory and Thinking
 More about systems:
 Efficiency
 Effectiveness
What’s the difference?
Systems Theory and Thinking
Systems Concepts:
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System-environment boundary
Input, process, output
State
Hierarchy
Goal-directedness
Information
Systems Theory and Thinking
 More about systems
 Variable
 Parameter
 Models – abstractions that represent
“reality”
 Why model?
 Types of models
Systems Theory and Thinking
Process models
Art Supply Order
Process: Collect Order Info
1 Determine On-Hand Quantity
2 Determine Demand by Store
3 Determine Order Frequency
4 Calculate Order Quantity
5 Select Vendor
6 Check Funds
7 Place Order
Systems Theory and Thinking
Process Model: “Drill down”
Determine On Hand Quantity
After Store closing:
1 All stores count inventory by SKU
2 Record counts on Count Sheet
3 Fax Count Sheet to HQ before 00:00
4 HQ Sum Counts
5 Record total count all stores in Demand Model
(\orders\product\demand\currmonth.xls)
6 Notify stores via email to remove count hold
Systems Theory and Thinking
Process Model
Get Onhand
Get
Demand
Get
Frequency
Select
Vendor
Check
Bank Bal.
Got
Enough
Money?
Order
Systems Theory and Thinking
Process Model
Get Onhand
Inventory
Data
Get
Demand
Sales Data
Get
Frequency
Select
Vendor
Check
Bank Bal.
Sales Data
Got
Enough
Money?
Order
Don’t
Order
Systems Theory and Thinking
Process Model
Customer
Requests
Product
Clerk
Completes
Product form
Form
To Manager
Manager
Approve?
Form sent
To HQ
Submit
Request to
Order
Already
Requested?
Notify
Customer
Systems Theory and Thinking
 Computer Systems
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Hardware
Software
Databases (or files)
Telecommunications
Networks
Systems Theory and Thinking
 Internet
 Vast and powerful network
 A “gift” from the dot-com era!
 Commercial uses:
 B2B
 B2C
 C2C
What are the limitations of the internet?
Systems Theory and Thinking
 Types of Systems
 Transaction
 Enterprise Resource Planning (ERP)
 Customer Relationship Management
(CRM)
 Management Information (MIS)
 Decision Support (DSS)
 Database Management (DBMS)
Systems Theory and Thinking
 Other System Types
 Artificial Intelligence
 Includes robotics
 Expert
 Virtual Reality
Systems Theory and Thinking
 Systems Development “Life Cycle”
Phase
Activity
Initiation
Discover, investigate problem; set goals
Planning
Start planning; get money
Requirements
Analyze what's needed; write it down
Design
Determine how to meet what's needed
Implementation/
Construction
Create, acquire, install
Test
Verify system meets goals, requirements
Maintain
Monitor, repair, evaluate, adjust, "care and
feeding"
Systems Theory and Thinking
 Business Professionals & the Life Cycle
Phase
Accountable Participants
Initiation
Business "users" with IT
Planning
Business users
Requirements
Business users with IT
Design
IT with business users
Implementation/
Construction
IT alone
Test
IT with business users
Maintain
IT with business users