What is a System Anyway?
By Russ Finney
A system is a set of manual and automated procedures devised for conducting business. Some procedures may support monthly information gathering, others may consist of calculations, summarizations, and report creation, and still others may center on picking from a series of known alternatives, each with a respective set of required decisions. A system can be a totally manual process, a completely automated process, or a combination somewhere in between. But all systems at one time or another seem to be rooted in one or more of the following sources:
Tradition
Systems which are developed within companies with long operating histories and stable product or service lines, tend to be based on slowly evolving business procedures. Within these companies, a mix of manual and automated practices may exist which, over time, become "institutionalized". If the company is large and bureaucratic, the masses of business clients become focused on small individualized tasks, and only a handful of long term employees may really have any idea of the "big picture" of what is really occurring.
Regulations
Companies which have their business practices regulated by governmental entities, tend to have systems, procedures, and individuals who are adaptive and reactive to the various changing rules and regulations. Depending on the regulatory pace and the amount of advance notification given the company, systems may either smoothly evolve to the new regulatory environment, or they may degrade into "piecemeal" temporary solutions which seem to live on indefinitely.
Principles
Some systems are simply based on accepted business principles. An established and well defined way of conducting business exists, and all companies follow this model. Accounting (G/L, A/P, A/R, etc.), payroll, and financial reporting systems all fit into this category. Since only minor differences exist in the fundamental way in which these systems operate from company to company, and from industry to industry, numerous "off the self" automation alternatives exist which suit the largest to the smallest business enterprise. Other than when sweeping business principle changes occur, these systems are by far the most stable and the least dynamic in the organization. Usually a company "grows" out their current systems, and this is the situation which triggers change.
Industry Practices
Every industry has unique characteristics which define the organization's approach to conducting business. These industry practices become embodied in the systems which evolve within the company. These systems also tend to be the most closely guarded since they are perceived to represent a competitive advantage. Any type of significant organizational, procedural, or system advance which provides higher quality, lower costs, or better customer service can give the company an important competitive "edge". Changes to these types of systems are no trivial matter since they represent the "lifeblood" of the enterprise.
Innovation
The last group of systems are those born from innovation. They are created when a new organization is formed or a new product or service is offered. As these systems develop and evolve, an awareness of the overall short term risks and the long term benefits should be the prime concern of the organization. Since the creation of the procedures and the associated system infrastructure tends to be from "scratch", a company is well advised to harness as much expertise and experience as possible during the process. This insures that a solid foundation is created for both current business requirements as well support for future growth needs.
Understanding both the history, character, and source of a particular new or existing system is a vital requirement of the business analyst. System implementation and support options vary in each of the above situations. The business analyst and system designer must be keenly aware of the business sensitivities surrounding system implementation or change effort. Understanding these "roots" of the particular system is the first step.
Copyright © 1999, Russ Finney, All Rights Reserved