Meaning – A closed system is one, which does not allow the transfer of data in and out of a system. Such a system conforms to certain proprietary standards, and as such, cannot readily communicate with other systems or processes.
The specifications of a closed system are kept hidden from public eye, or even from the eyes of certain developers, in order to maintain secrecy and privet third party developers from creating malicious hacks or exploits for the same.
On the flip side, since the specifications of a closed system are hidden, no third party developer can create any enhancements for the system either, and as such, it stays as is, unless the parent company itself, brings out an upgrade.
Example of usage – “The organisation harboured a closed system, which even the employees didn’t know a lot about. The only people who knew the details of the system, were the ones who worked on creating it.”