Can industrial engineers design systems internally in IE departments. They may not be able to design any complex system without the involvement of technical pesonnel belonging to the area of technology or management. But they can take the role of management of system design.
This explores the topic of management of system design through summarizing the book, James Martin, Systems Engineering Guidebook, CRC Press, Boca Raton, Florida, USA , 1996. The knol at the moment has introduction to the topic.