Business systems provide a framework for organizations to minimize inefficiencies in their operations and increase customer satisfaction and by extension, revenue, and profits. Business systems are never of a single type, and most can probably be classified under permanent man-machine systems. A sound, functioning organization also allows for adaptability and change in the type of systems that it is using, for example, more and more organizations are looking to adopt automation to reduce costs and increase efficiency. Every organization should plan the type of business system and ensure that it contributes toward optimal performance. Listed below are the different kinds of business systems:
1. Man-machine systems: Most business systems in place in organizations are man-machine systems, which is to say that they comprise of components that are personnel as well as those that are tools or machines. These systems define the procedures required to ensure that both that human and machine components of the system are able to function optimally.
2. Pure machine systems: Pure machine systems are those that have tools or machines that are automated and where there is a negligible human presence in the system. Automated assembly lines are a relatable example of a pure machine system because even though there might be humans verifying the work done by the machine, the system only requires the machines themselves to complete the task the assembly of the product.
3. Sub-systems: A single organization has multiple systems that cater to different functions, the smaller systems that exist within the main systems are called the subsystems. For example, accounts receivables and accounts payables would be subsystems of the financial system. They contribute towards the goals and objectives of the accounting system, which in turn as a whole contributes towards the organization’s objectives.
4. Super-systems: The larger complicated systems in organizations are called super systems, and can also refer to the combination of systems across organizations for conglomerates. For example, the customer system is a super system of the marketing, lead generation, sales conversion, production, and customer services systems.
5. Permanent systems: Most super-systems in organizations are designed to be permanent systems and function from the setup of the organization to its dissolution. Systems like production, services, accounting, sales and more are examples of permanent business systems.
6. Temporary systems: Temporary systems are those sub-systems that have been setup for a pre-decided purpose or time period. Systems like event-specific tasks, new product promotion, and others that are formed for a fixed period are examples of temporary business systems.