There is a difference between opened and closed environments in a management information system. In an open environment, the various components of an organization will communicate and share information with each other and possibly with others outside of the organization. This could include sharing information, ideas, and even resources. In an open system, an organization will take inputs from within and from outside the organization, and its actions will produce outputs that impact the internal environment and the environment outside of the organization. An open environment is more flexible than a closed environment.
In a closed system, there is very little sharing between the various components of the organization and certainly little to no interaction with the environment outside of the organization. Each component performs its functions without communicating its activities to the other components of the organization. Sometimes, the need for a closed environment exists if the organization is working on developing a new product, idea, or concept.