1. Unit 2 - Global Information
3.6 – Information System Structure

2. Objectives
Know about the structure of information systems and their characteristics.
Understand the benefits and limitations of each system structure.

3. Open and closed systems
You need to understand about both open and closed systems.
You should be able to understand their characteristics as well as benefits and limitations.
For all information systems there are 2 methods of gaining and processing information.
An open system can interact with other systems to exchange information even if they have different platforms.
A closed system cannot interact with other systems on different platforms.
Closed systems are more secure whereas and open systems is a wonderful playground for hackers.

4. Open System
An Open Information System is an archive, consisting of an organisation of data and systems.
An open system is one that interacts with its environment and thus exchanges information, material, or energy with the environment. This includes random and undefined inputs.
Open systems are adaptive in nature, as they tend to react with the environment, in such a way organizing, in the sense that they change their continued existences.
Such systems are “self organising”, because they change their organisation in response to changing conditions.

5. Open System
An open system is connected to and interacts with its external environment.
Healthy open systems continuously exchange feedback with their environments, analyse that feedback, adjust the systems as needed to achieve goals, and then transmit information back out to the environment.
A good example of an open system organisational structure is the rise of the virtual corporation where companies, their supplier as well as customers use information networks to interact and collaborate as one large virtual corporation.
This is an open system because the suppliers and customers serve as the environment feeding input back to companies.
Companies then process the input and produce better products for customer and better interactions with suppliers

6. An open system is a system that has external interactions
An open system is a system that has external interactions. Such interactions can take the form of information, energy, or material transfers into or out of the system boundary
Open Systems

7. Closed system
A closed system is one that does not change, has no external input or added information to push it forward.
This does not mean that the system is better or worse than an open system.
EG - Programs like SIMS in school works well for what it is meant to do, has been constructed specifically for education and locks down that information for a universal format that is transferrable to other schools.
Benefits
Closed systems are more protected
Knowledge is transferrable to other locations
Skills learned are transferrable
Change does not happen often unless new scenarios are expected.
At the end of the day a closed structure is totally independent of any other system, whereas an open system is dependent on inputs from another system and/or another system is dependent upon its output.

8. Closed System Closed system’s don’t interact with their environment.
They are separated from it’s environment by the systems boundary and is usually referred to as an “isolated system”.
There is no exchange of information, material or manpower between the system and its environment.
Such systems are rare as interactions with the environment is necessary for the business to survive.
An assembly line can be treated as a closed system if it does not interact for the supply of raw materials. Workers on an assembly line are generally only responsible for completing their tasks on the line. The accounting system and the research department can also be examples of a closed system.

9. Closed System

10. Advantages of an Open System
Encourages communication with its environment which leads to better interaction.
Highlights the inter-dependencies of the different processes and operations.
Takes into consideration modern cultural changes and needs, allowing the company to produce products and services that meet those needs.
Help business managers to focus on external factors to predict and respond to potential problems.

11. Differences between Open and CLosed
Open System
Closed System
Interacts with the environment constantly
Doesn’t interact or react with the environment at all
Has an infinite scope
Has limited scope
Relevant variable keeps on interacting
The variables are self contained
Generally flexible and abstract
Rigid

12. Can interact with each other quite simply
Can’t interact with each other
More secure
Open systems
Closed systems
Can exchange information with each other
Can’t exchange information with each other
Easy to hack into

14. Tasks
Research and discuss the benefits and limitations of both open and closed information system structures
HINT – The characteristics of a good information system are similar to the characteristics of good quality information eg: reliable, valid, relevant and accurate.
Discuss with examples how a company like a school, hospital or development studio can benefit from a good information system in terms of reliability, bias, validity, relevance and accuracy.
For the example identified in Task 2 describe the inputs, processes and outputs of a range of information (Give examples)