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mailroom, reproduction, communications and document storage. Within these subsystems there are certain procedures and methods that must be followed to ensure the effective and efficient functioning of that section. In the mailroom, for example, certain procedures must be followed when dealing with incoming mail. They will probably be something like the following:
• receive mail,
• open mail,
• date-stamp mail,
• sort according to section, and
• distribute mail.
Each of the above procedures consists of specific methods to execute each step. These probably differ from one business to another. The method for receiving and opening mail could be the following:
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• receive the mail from the courier service before 10:00 every morning
• separate confidential and personal mail for delivery and
• open the rest of the mail
A system includes all the people, technology, machinery and facilities that form part of that specific unit. A system can be open or closed. The business is an
Chapter 2 – Information systems
open system because it has a particular interaction with the environment. The information function is also an open system because it functions within the business (its environment) and is interrelated with all the other functions of the business as well as the external environment. A closed system is self-sufficient and can exist independently of a particular environment.
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The systems concept can be viewed in a practical way. The business is the system. Everything inside the business is part of the system and can be seen as the internal environment (internal subsystems). It is also an open system because it
needs to interact with the external environment (clients, suppliers, customers and other agencies), and incorporates purchasing, marketing, distribution, research, and so on. The external environment could then also be seen as the external subsystems of the business.
Because of this interaction, transactions are recorded between the internal and the external subsystems. Data is transferred between the subsystems to facilitate coordinated actions relating to the clients, suppliers, customers or other agencies. The internal subsystems support all the internal operations of the business. This includes cost accounting, budgetary control, planning, and so on.
A system can also be based on the value-chain approach, which shows the linkages between the various activities in a business. Such a business receives and stores raw materials until they are required for manufacturing. This part of the entire process can be seen as the first subsystem. The next step in the process, the manufacturing of products, could be seen as the second subsystem. Once the product is ready, it needs to be distributed and sold. This could be seen as the third subsystem.
Apart from these subsystems, there are also other functions (more subsystems), such as human resources and technology development, which support the primary activities as described above. Each of the primary and support activity groupings
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