1. MIS 524 Winter 20041 What Is a “System”?

2. MIS 524 Winter 20042 WHY HAVE SYSTEMS? Environment A Business Resource A business exchanges resources with its environment in order to meet the business’s goals

3. MIS 524 Winter 20043 WHY HAVE SYSTEMS? Environment Obtain input Absorb input Perform actions Produce output Resource The business absorbs inputs and creates and distributes outputs in an attempt to move an equilibrium to its advantage But the environment is attempting to have “its way”, too!

4. MIS 524 Winter 20044 WHAT DO SYSTEMS DO? Environment Sensing Deciding Acting (Elements in) the environment react(s) in self- interest and produce physical effects on the system Information Action Sense elements detect dangerous situations and generate signals or information about the situation and its suspected causes Decision elements assess the situation based on the sense signals and construct a course of action, commanding action elements Systems act in their own interest on elements of the environment

5. MIS 524 Winter 20045 WHAT DO SYSTEMS DO? Environment Acting System actions are aimed at gathering the required resources and assembling the environment to the advantage of the system; these actions are physical, not informational Information Action Physical changes

6. MIS 524 Winter 20046 WHAT DO SYSTEMS DO? Environment Sensing Information Action The environment takes actions either to defend itself or (more likely) to advance the goals of elements in the environment. The effect of these actions is to change things about the environment and, as well, change characteristics on the boundary of the system Physical changes

7. MIS 524 Winter 20047 WHAT DO SYSTEMS DO? Sensing Information Action Sense elements are attuned to critical variables, reactive conditions that are “known” to correlate, predict, or suggest current or future problems with the goal attainment of the system. When these conditions occur, an alert (information) is created Informational alert

8. MIS 524 Winter 20048 WHAT DO SYSTEMS DO? Deciding Information Action Based on the alert, the decision elements consult a stored “program” or table of contingencies and select the “best” one based on available information and risk parameters (perhaps all derived from experience). The selected action is then framed as a command to physical elements Action1 Action2 Action3 Action4 Action5 A B C X X X Command for action

9. MIS 524 Winter 20049 WHAT DO SYSTEMS DO? Environment Acting The action that “active elements” of the system take are now seen as consistent with the “stored program” of (learned) appropriate actions to remediate the situation (I.e., get closer to the goal) Information Action Physical changes

10. MIS 524 Winter 200410 WHAT DO SYSTEMS DO? Environment Sensing Deciding Acting and translate the selected command into real-world action. Information Action The net result is that the System can move towards its goals… To the extent that it can sense the appropriate “critical” variables, access an appropriate decision table…

11. MIS 524 Winter 200411 WHAT DO SYSTEMS DO? Environment Sensing Deciding Acting If all this works, and the environment is not TOO powerful, the system gets what it wants! Information Action

12. MIS 524 Winter 200412 Where is the Information System? Sensing Deciding Acting Information Action Data Entry; office automation, transaction processing Management Information Systems Decision Support Systems; Knowledge work support

13. MIS 524 Winter 200413 Where Do These Important Items Come From? Sensing Deciding Information Action What to sense; how to sense; when to sense Table of contingencies, procedure for use Communica- tion paths, reporting structure

14. MIS 524 Winter 200414 …Higher Levels of Management Sensing Deciding Information Action Executive support systems

15. MIS 524 Winter 200415 Thus creating command and control Information Action Each level of management can change “sensing”, “deciding” and “commanding” of the next lower “level” of management, based on information about how effective the goal achievement has been, accumulated over time from lower levels. This is the very basis of management authority and responsibility. In effect, each level treats the lower levels as part of its environment