The entities that interact with the system are depicted on this System Context Diagram, which also establishes the boundary between the system or subsystem and its environment. The most effective system context diagrams are those that reveal the logical operation and interaction of systems at a high level. If you want to create a standard for how your systems interact with one another, actors, and other systems, then you need a system context diagram. It is also possible to include the external entities' classifications in a context diagram, with each classification being one of several simple options.