Chapter 10

Systems Thinking
(expect 1 to 2 qn from this topic!)

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Soft Systems eg : rich pictures

The complexity of any systems dictates a requirement for a process for analysis and design. Always opportunities for improvement Soft systems is a framework eg rich pictures for analysis that requires that all individuals are engaged in the process

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Systems Thinking
Businesses are continually evolving and trying to improve their performance. Systems thinking is a way of looking at situations from a different standpoint to that of, say, the managing director

Considers others perspectives

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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4 System Characteristics
(remember this!!!)

All systems have A defined boundary eg the cloud to decision making Use resources eg Manpower to carry out functions A measure of performance

Eg. Sales per day, per month

Contain a decision taking process that permits action

Eg. Branch managers, regional managers

Some guarantee of continuity

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

System Characteristics
All systems A defined ? with boundary to decision making Use resources to carry out functions A measure of performance E.g. Sales per day, per month Contain a decision taking process that permits action E.g. Branch managers, regional managers Some guarantee of continuity

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Differentiate between Hard vs Soft systems

Hard Systems Approach
Identify the problem Re-visit organisational objectives Provide best alternative solution eg. Excel Suitable for highly structured problems

Soft Systems Approach

Real world problems are often messy and

unstructured Suit End-User projects use productivity tools Eg rich pictures

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

The Human Dimension

Individuals carry with them into a problem situation their world view or Weltanschauung Beliefs, values, attitudes, motivations, biases, perceptions Soft systems incorporates all perspectives and stakeholders

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Differences between Hard vs Soft Information

Hard Information Factual data Departments within organisation Organisational structure Reporting channels Data flows Quantitative data eg excel Soft Information Hunches, intuition, perceptions of people involved eg rich pictures Skills, competence, efficiency Perceived status, attitudes, motivational needs of individuals

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Soft Systems Methodology

A Mess - describe the situation Picture the Mess a rich picture / cartoon of:

Problem/situation Structures Processed Situation Relationships Issues

All stakeholders should be involved in the drawing process

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Rich Picture
Should be self-explanatory Should identify elements of structure, process, climate and issues in the situation Show those concerned, operate, control the problem situation
Both within business and outside

Show relationships using arrows Make big things important Use symbols

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Benefits of Rich Picture

Restricted space forces decisions on what is important Allows people to visualise and discuss their role Allows expression of worries and highlights areas of conflict Helps clarify the owners problems Establishes the problem boundaries

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Make Sense of the Mess

Re-visit business objectives Prepare root definitions for all stakeholders Test for a well formed root definition using a CATWOE

Clients Actors Transformation from input to output Worldview Owners Environment

Draw a conceptual model of the system found in the root definitions

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Reality Check
Compare what might be with what is

Does this activity really happen? Is the activity successful? Measure of Performance? What activities are dependent on it? Any improvements? Do in the future? Easier for Change Management implementation?

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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To Be or Not to Be?
Identify feasible changes

Economical Operational Technical/physical

Owners, actors and clients should be involved in discussion where possible

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Make it Happen
Plan how to implement the agreed changes Statement of what is to be done Implementation plan Changes to work procedures Training

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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4 Common System Characteristics

All systems have in common the following: Purpose or mission
Eg. Accounting dept: to complete accounting tasks for

company

Part of wider environment in which it interacts

Eg. Retail outlet, part of chain, part of retail industry etc

Contains subsystem or components

Eg. Accounting dept consists of purchasing, payroll,

accounts receivable etc

Exists in relationship with other systems

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Good service is important

I want the best price I want to feel safe

Bad element moving into area loosing customers losing customers Local businesses

Customer Dissatisfaction, uneasiness Can I help? questions

Increased prices

X complaints

X
I have to increase prices to cover thefts Dont have money for surveillance equipment

I dont want ot loose my job.

Working here is dangerous

complaints

Employees

information You

What do my staff do all day? Manager/Owner

I cant monitor the pumps, the shop and service customers

pay cheques

He should install surveillance equipment

We cant respond to all calls

request police patrols The Petrol Pump

X
no time stolen items Surveillance is poor here

X
complaints

This neighborhood is becoming unsafe

We need to protect the community & prevent crime Police

unsavory element complaints

Thief

Local residents, communit

Richardson et from al: Computing for Business Success 2005 Pearson Education Australia Rich Pictures (Adapted Hicks 1995) Computing for Business Success .17

Making Sense Of the Mess

What tasks was the business created to perform ie. primary tasks?
Sell petrol

What tasks must the business carry out to survive?

Provide good customer service

Sell shop items, petrol

What are the key issues & concerns shown in the picture?
Theft of stock

Level of safety Primary Tasks, Concerns & Issues, Computing For Business Success

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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CATWOE
A system provided by the manager where we are able to provide efficient service to the customers within a safe working environment. Customers expect good service and a good price in the competitive petrol marketplace. C: customers A: us (employees), manager T: provide efficient service W: we should be kept safe O: manager E: competitive environment where customers have high expectations in regards to service and price. Primary Tasks, Concerns & Issues, (Adapted from Hicks, 1995) Computing For Business Success
Richardson et al: Computing for Business Success 2005 Pearson Education Australia

Check whether the following root definition for the employees is complete by checking against CATWOE.

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Conceptual Model

Raw material

need to make furniture

SOURCE raw material

MAKE furniture

DISTRIBUTE furniture

completed furniture

Richardson et al: Computing for Business Success 2005 Pearson Education Australia 20 First iteration of a conceptual model Computing For Business Success

Project Design & Implementation

Feasible changes

economical (within budget), operational (necessary expertise available) technical (physically possible).

WHAT should be changed HOW to implement the agreed changes

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Project Management
Project management involves the coordination of activities required to achieve a specified business goal.
Define Project Boundaries Plan and Schedule Determine Requirements Describe Optional Solutions Select Option Implement Technical and Work Practice Solution Review Institutionalise Changed Work Processes

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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****Problem-solving Process
Large number of available solutions in the environment
Five Step Process (burn and drink it!!!)
Problem Analysis and Definition Problem Understanding fact gathering Decision Making objectives and feasible solutions Solution Design Implementation Evaluate performance

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Five Step Model for Problem-solving

1 - Problem Analysis

Estimate the dimensions of the problem

What kind of problem? People eg lack of training, attitude Technology eg. Machinery Organisational eg. bureaucracy

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Five Step Model for Problem-solving

2 - Problem Understanding What causes the problem? Fact Gathering
Interview

Questionnaire
Document Gathering

Describe problem, cause and major factors sustaining the problem

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Five Step Model for Problem-solving

3 Decision Making What should and can be done? Match solution with strategic objectives ie the
goals the business is attempting to achieve Match solution to available resources Strategic viability + strategic appropriateness = sustainability

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Five Step Model for Problem-solving

4 Solutions Design Solutions have to be designed and planned Logical Design

General level of resources Operational process Outputs the solution requires are described Description of equipment, buildings, personnel, inventories

Physical design

Richardson et al: Computing for Business Success 2005 Pearson Education Australia

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Five Step Model for Problem-solving

5 Implementation Planned implementation strategy

When & how to implement the solution How to explain the solution to employees How to modify the solution due to field experience How to change existing business procedures Evaluate

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