Types of Systems


Types of systems

The frame of reference within which one views a system is related to the use of the systems approach for analysis. Systems have been classified in different ways.

Common classifications are: (1) physical or abstract, (2) open or closed, and (3) “man – made” information systems.


Physical or abstract systems

Physical systems are tangible entities that may be static or dynamic in operation. For example, the physical parts of the computer center are the officers, desks, and chairs that facilitate operation of the computer. They can be seen and counted; they are static. In contrast, a programmed computer is a dynamic system. Data, programs, output, and applications change as the user’s demands or the priority of the information requested changes.

Abstract systems are conceptual or non-physical entities. They may be as straightforward as formulas of relationships among sets of variables or models – the abstract conceptualization of physical situations. A model is a representation of a real or a planned system. The use of models makes it easier for the analyst to visualize relationships in the system under study. The objective is to point out the significant elements and the key interrelationships of a complex system.


Open or Closed Systems

Another classification of systems is based on their degree of independence. An open system has many interfaces with its environment. It permits interaction across its boundary; it receives inputs from and delivers outputs to the outside. An information system falls into this category, since it must adapt to the changing demands of the user.

In contrast, a closed system is isolated from environmental influences. In reality, a completely closed system is rare. In systems analysis, organizations, applications and computers are invariably open, dynamic systems influenced by their environment.

gantt chart


A focus on the characteristics of an open system is particularly timely in the light of present – day business concerns with computer fraud, invasion of privacy, security controls, and ethics in computing. Whereas the technical aspects of systems analysis deal with internal routines within the user’s application area, systems analysis as an open system tends to expand the scope of analysis to relationships between the user area and other users and to environmental factor that must be considered before a new system is finally approved.

Furthermore, being open to suggestions implies that the analyst has to be flexible and the system being designed has to be responsive to the changing needs of the user and the environment.

Five important characteristics of open systems can be identified.


1. Input from outside: Open systems are self – adjusting and self-regulating. When functioning properly, an open system reaches a steady state or equilibrium. In a retail firm, for example, a steady state exists when goods are purchased and sold without being either out of stock or overstocked. An increase in the cost of goods forces a comparable increase in prices or decrease in operating costs. This response gives the firm its steady state.

2. Entropy: All dynamic systems tend to run down over time, resulting in entropy or loss of energy. Open systems resist entropy by seeking new inputs or modifying the processes to return to a steady state. In our example, no reaction to increase in cost of merchandise makes the business unprofitable which could force it into insolvency – a state of disorganization.

3. Process, output and cycles: Open systems produce useful output and operate in cycles, following a continuous flow path.

4. Differentiation: Open systems have a tendency toward an increasing specialization of functions and a greater differentiation of their components. In business, the roles of people and machines tend toward greater specialization and greater interaction. This characteristic offers a compelling reason for the increasing value of the concept of systems in the systems analyst’s thinking.

5. Equifinality: The term implies that goals are achieved through differing courses of action and a variety of paths. In most systems, there is more of a consensus on goals than on paths to reach the goals. Understanding system characteristics helps analysts to identify their role and relate their activities to the attainment of the firm’s objectives as they undertake a system project. Analysts are themselves part of the organization. They have opportunities to adapt the organization to changes through computerized application so that the system does not “run down.” A key to this process is information feedback from the prime user of the new system as well as from top management.

The theme of the process of designing information systems borrows heavily from a general knowledge of systems theory. The objective is to make a system more efficient by modifying its goals or changing the outputs.


Man – Made Information Systems

Ideally, information reduces uncertainty about a state or event. For example, information that the wind is calm reduces the uncertainty that the boat trip will be pleasant. An information system is the basis for interaction between the user and the analyst. It provides instruction, commands and feedback. It determines the nature of the relationships among decision-makers. In fact, it may be viewed as a decision center for personnel at all levels. From this basis, an information system may be defined as a set of devices, procedures and operating systems designed around user based criteria to produce information and communicate it to the user for planning, control and performance. In systems analysis, it is important to keep in mind that considering an alternative system means improving one or more of these criteria. Many practitioners fail to recognize that a business has several information systems; each is designed for a purpose and works to accommodate data flow, communications, decision making, control and effectiveness. The major information systems are formal, informal and computer based.


Formal Information system

A formal information system is based on the organization represented by the organization chart. The chart is a map of positions and their authority relationships, indicated by boxes and connected by straight lines. It is concerned with the pattern of authority, communication and workflow. Information is formally disseminated in instructions, memos, or reports from top management to the intended user in the organization.

This structure also allows feedback up the chain of command for follow – up. In Figure 1-1 input form the environment provides impetus for policy decision by top management. Policies are generalizations that specify what an organization ought to do. Policies are translated into directives, rules and regulations and transmitted to lower-level management for implementation. The output represents employee performance.








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