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AbstractChurchman reminds us that information systems tend to be constrained by 'the inability of the system and its users to have proper sensing devices with respect to the outside world'. The solution to this problem of 'closure' is of concern in the design of information systems. This paper explores the use of Living Systems Theory as a conceptual framework for information systems design.A formal characterization of the information processing subsystems of Living Systems Theory is presented. Miller's taxonomy of information coding mechanisms is extended to account for temporal, self‐referential, and environmental information. The extended formulation of Miller's theory is proposed as a theoretical framework for information systems design.