1.1.2 Classification of Systems

From previous section we have a firm knowledge of various system components and its

characteristics. There are various types of system. To have a good understanding of these

systems, these can be categorized in many ways. Some of the categories are open or

closed, physical or abstract and natural or man made information systems, which are

explained next.

Classification of systems can be done in many ways.

· Physical or Abstract Systems

Physical systems are tangible entities that we can feel and touch. These may be static or

dynamic in nature. For example, take a computer center. Desks and chairs are the static

parts, which assist in the working of the center. Static parts don’t change. The dynamic

systems are constantly changing. Computer systems are dynamic system. Programs, data,

and applications can change according to the user’s needs.

Abstract systems are conceptual. These are not physical entities. They may be formulas,

representation or model of a real system.

· Open and Closed Systems

Systems interact with their environment to achieve their targets. Things that are not part

of the system are environmental elements for the system. Depending upon the interaction

with the environment, systems can be divided into two categories, open and closed.

Open systems: Systems that interact with their environment. Practically most of the

systems are open systems. An open system has many interfaces with its environment. It

can also adapt to changing environmental conditions. It can receive inputs from, and delivers output to the outside of system. An information system is an example of this

category.

Closed systems: Systems that don't interact with their environment. Closed systems exist

in concept only.

· Man made Information systems

The main purpose of information systems is to manage data for a particular organization.

Maintaining files, producing information and reports are few functions.

An information system produces customized information depending upon the needs of

the organization. These are usually formal, informal, and computer based.

Formal Information Systems: It deals with the flow of information from top management

to lower management. Information flows in the form of memos, instructions, etc. But

feedback can be given from lower authorities to top management.

Informal Information Systems: Informal systems are employee based. These are made to

solve the day to day work related problems.

Computer-Based Information Systems: This class of systems depends on the use of

computer for managing business applications. These systems are discussed in detail in the

next section.