What is a system, its important characteristics and why are business goals systems?
What is a system, its important characteristics and why are business goals systems?
A system is a set of related and interdependent elements that merge to attain a shared purpose. All the system elements are interdependent and inter relational to other components and make one coherent whole with a common purpose. Systems may be natural, biological or artificial, but they all have certain significant characteristics in common:
Organization: The components of a system are arranged or organized in a logical manner and would be represented by charts or models that explain how each constituent should be fitted into the entire system.
Interrelationships: The components of a system are interrelated by means of relationships and correlations, i.e. the activity of one part influences other parts.
Integration: There is coordination in all the components to work as a whole unit in a smooth way to achieve the goals of the system.
Core Objectives: Every system is propelled forward by a guiding goal/purpose and these are what steer all activities and decisions within that system.
In a system, every big section is known as a subsystem and the subsystems may also be broken down into small ones as required. The human circulatory is a biological example of a system that involves organs, blood and vessels to circulate oxygen and nutrients around the body.
In man-made systems, like governments, school and business, defining the key goals is crucial in comprehending and analyzing the mechanism of how the inner working of the system operates. A company, such as a profit-making one, is not only a profit-making but may also pursue the welfare of employees, providing value to customers or being sustainable. The subsystems (finance, marketing, operations, HR) have their parts to play in the overall business goals.
Business objectives are assumed to be systems in the sense that they demand various elements to be interrelated which are people, processes, technology and resources in order to collaborate with a common purpose. When these objectives are understood, it assists in the analysis of the activities and the interactions of the subsystems and this is one major concept in Information Systems. The perception of business aims as systems allows managers to develop a better strategy, resource coordination, and make sure that all the elements contribute positively to organizational success.
It is an excellent description of systems thinking. I appreciate your emphasis on the fact that both natural and man made systems are characterized by fundamental attributes such as organization, integration, and interrelationships, and a guiding purpose. The perception of businesses as systems is quite an eye opener, since it makes people understand how people, processes, technology, and resources need to collaborate to accomplish shared objectives. Knowing how the sub systems work and interact with each other not only assists the manager in coordinating the resources better but also allows the manager to develop the strategy more neatly, and also to make each component play its role to bring overall success. It is a productive framework that can be used to analyze and enhance information systems and performance of an organization.