Monday, May 16, 2011

Business systems and management system standardization

System is a set of interrelated or interacting elements. An organization is managed as one single system. As early as in 1950, Deming presented the whole company as a system of processes (see the following figure).

A system is always created and owned by somebody. A system is an entity that maintains its existence and functions as a whole through the interaction of its parts. A system has always an aim or purpose defined by the system’s creators or owners. The system is just created to accomplish its aim. A system has interactions and transactions with its environment to get input from and to provide outputs to system’s stakeholders. Stakeholders may set requirements to the system.

A system is managed as a whole. Management is based on knowledge and information and a feedback function. The system is managed on behalf of its owners (shareholders). The system has its internal structure and process architecture according to the business needs, and it is operating within a certain business community (system environment) and interacting with other systems. Systems have also partners and competitors in its business community.

General international standardization for the management systems started in the beginning of the 1980’s. The first standards were ISO 9000 standards for quality management and quality assurance. Later a lot of other standards have been created for many specialized disciplines of the business management, including environmental protection, social responsibility, risks, occupational health and safety, information systems/services, information security, etc.

There are general standards for these disciplines but there are also sector-specific standards for these disciplines, e.g. for automobile industry, software industry, aviation industry, military applications, health care, etc. The management system standardization for specialized management disciplines typically consist of two different kinds of standards:
  1. Standards describing comprehensively the discipline in question (e.g. quality managemet in ISO 9004) to be taken into account for the development of organization’s business management system 
  2. Standards describing requirements, i.e. needs and expectations, (e.g. quality management requirements in ISO 9001) for the discipline in question.  
However, these standards may not describe any management system itself because according to the well-known Russell's paradox “whatever involves all of a collection of objects must not be one of the collection” (see the following figure).

The first category (1) of the standards are guidance documents for organizations’ internal use. The requirements standards (2) are factually general standardized models of organization-external requirements that may become obligatory in a contractual context or that may be used for auditing purposes for quality assurance and certifications.

In the existing management system standards of the different disciplines, there are many structural and conceptual differences. That may cause difficulties when different standards are implemented simultaneously within an organization’s business system. Now, however, an improvement is coming because ISO has defined a high level structure and identical text-parts and common core terms and definitions that must be used in all management system standards in the future. The proposed high level structure consists of key issues of the business management that is a significant issue for promoting the business-integration in applying the standards.

There are many problems in applying management standards in practice in organizations. Specialized standardization of different disciplines is carried out by the experts of the different expertise who don’t have necessarily close contacts or communication with business leaders or with each other. Those standards and also their application in organizations may become rather isolated from the business management system and from each other. However, even experts should understand and appreciate traditions and recognized practices of business management that are very often emphasized by the business leaders from the financial and legal points of view.

In order to avoid problems, ineffectiveness, and inefficiency, standards should be applied with integration, responsiveness, and innovation. That is also possibility to fulfill organizations’ targets for competitiveness and sustained business success.


Anonymous Javis Lounsbury said...

So that's how business system works. How do you record the data coming from the tests it's going through? Thanks for sharing this information, this will be a big help to those who are planning on starting their business and to those who are having a hard time with it.

08 June, 2011 18:56  
Anonymous Barton Wilson said...

A business outfit or a company must follow procedures and instructions to obtain an ISO certification. A written documentation of the quality manual is necessary for the process of certification. The quality manual must the standards of ISO and your company’s goals. The quality manual says what the company does and how it does it. It also provides proof that the company produces that certain product or merchandize.

08 June, 2012 02:00  
Blogger Humaun Kabir said...

Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site. It really gives me an insight on this topic. You can find more information about architecture here.

23 November, 2013 16:08  
Blogger Mickey James said...

This is one of the most important blogs that I have seen, keep it up!business referral network

24 October, 2014 09:47  
Blogger Richard german said...

Excellent quality articles are here. This is good site with useful info. read about monument capital group

12 December, 2014 11:19  
Blogger Alex Steve said...

Personally I think overjoyed I discovered the blogs.

29 March, 2016 12:40  
Blogger Alex Steve said...

t feels awe-inspiring to read such informative and distinctive articles on your websites.

09 April, 2016 12:53  
Blogger Carry said...

Thanks for sharing for us and it's interesting, I got the best information and best service from your post. I am very glad to wish to all to visit this blog and sure its very helpful. business management consultants

10 May, 2016 19:47  
Blogger List Academy Anik said...

Not everytimne it will happen like this one.

20 January, 2017 09:58  
Blogger adela ucar said...

This is surely a very good blog, thanks a lot for sharing such nice information here.

14 April, 2017 07:42  
Anonymous Adam Smith said...

Thanks a lot for sharing such nice information here. Now the business management is much easy as the technology upgrading day by day. Laserfiche is providing the Document management system (DMS) & Enterprise Content Management System which is more easy to handle all business documentations

24 August, 2017 16:12  
Blogger sagcity software said...

Great article about IT system integration.
IT System Integration

05 March, 2018 12:11  
Blogger Dhivya ravi said...

This is a great article, I have been always to read something with specific tips! I will have to work on the time for scheduling my learning.
Billing Software in chennai

28 March, 2018 14:19  
Blogger Sonali Taral said...

Nice Blog.
IT System Integration

17 April, 2018 11:20  
Blogger Dave Verma said...

ISO management systems consultancy agencies assist the companies towards achieving these certifications through calibrated measures that are implemented in a sequenced manner.

18 June, 2018 17:38  
Blogger Muhammad Rajab said...

I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work.
National Mojito Day

19 July, 2018 16:54  
Blogger Steve Berke said...

I enjoyed reading your article :) PLease continue publishing helpful topics like this. Regards, from

I think this article will fully complement your article.

13 August, 2018 04:54  
Blogger M Ahmed said...

I just would like to give you a big thumbs up for the great information you share on this post.
Business Consulting Firm in UAE

13 August, 2018 09:46  
Blogger Steve Berke said...

I enjoyed reading your article :) PLease continue publishing helpful topics like this. Regards, from

I think this article will fully complement your article. "

15 August, 2018 04:42  
Blogger loveme said...

COBIT 5 online training delivery is a specialty of Consultants Factory. We’re among the best to offer it. We’ve trained 5000+ candidates across India, UAE & Saudi Arabia.
COBIT 5 online training

07 September, 2018 11:40  
Anonymous CMS Development Services Pune said...

I am expecting more interesting topics from you. And this was nice content and definitely it will be useful for many people.

28 September, 2018 10:05  
Anonymous Nicole said...

Very nice post here thanks for it I always like and search such topics and everything connected to them. Keep update more information..

Logistics Software
Fleet Management Software
ERP Software Companies

08 October, 2018 13:16  
Blogger Techtoolsinnovation said...

Thanks for your post which is truly informative for us and we will surely keep visiting this website.
woman minority owned business certification
tail spend management
sas certified advanced analytics professional
sas academic data science training

30 October, 2018 08:34  

Post a Comment

<< Home