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Systems Approach To Management
Systems Approach To Management
Systems Approach To Management
CONTENTS
Introduction Defining problems and opportunities Systems thinking Developing alternate solutions Evaluating alternate solutions Selecting the best solutions Designing and implementing solution Post implementation preview Decision making Classification of decisions
INTRODUCTION
What is a system? A system is a composition of several components working together to accomplish a set number of objectives. Systems operate through differentiation and coordination among its components. The systems approach to problem solving used a systems orientation to define problems and opportunities and develop solutions.
Defining problems and opportunities Systems thinking Developing alternate solutions Evaluating alternate solutions Selecting the best solutions Designing and implementing solution Post implementation preview
Systems Thinking
What is systems thinking? Systems Thinking has been defined as an approach to problem solving, by viewing "problems" as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences.
Systems Thinking
Systems thinking is to try to find systems, subsystems, and components of systems in any situation you are studying. This viewpoint ensures that important factors and their interrelationships are considered. This is also known as using a systems context, or having a systemic view of a situation.
Systems Thinking
The Business organization or business process in which a problem or opportunity arises could be viewed as a system of input, processing, output, feedback, and control components. Then to understand a problem and save it, you would determine if these basic system functions are being properly performed.
Poor
Feedback
Sales Management
Inadequate selling
Poor Sales
Input
Processing
Output
Before you design a new system it is important to study the system that will be improved or replaced. How this system uses hardware, software, network and people resources to convert data resources. How the information system activities of input, processing, output, storage & control are accomplished.
Primary activities that occur during the analysis phase is the construction of a logical model of the current system
By constructing & analyzing a logical model of the current system, a system analyst can more easily understand the various processes, functions & data associated with the system without getting bogged down with all the issues surrounding the hardware or the software Logical & physical models are not limited to use in the design of an information system.
This step of system analysis is one of the most difficult. Determine specific business information needs. What type of information each business activity requires? Whats its Format? What response times are necessary?
All the solutions are evaluated on same criteria. The goal of evaluation is to determine how well each alternative solution meets your business and personal requirements. Once all the alternate solutions are evaluated the best out of it is selected for implementation.
Making a T-Chart to Weigh the Pros and Cons of Each Idea It is often helpful to make a T-chart and ask members of the group to name the pros and cons of each solution. This method will visually illustrate the strengths and weaknesses of each solution. Develop and Assign Weights to Criteria The key to avoiding possible deadlock in the decision making process is to put all criteria people are thinking about on the table. This way, all group members are clear as to what criteria others are using.
Prioritize the Criteria The next step is for the group to agree on how important these criteria are in relation to each other. For example, is cost the most important criterion, or low resistance by others, etc. The criteria should then be rated in terms of importance. Assign a number to each criterion so that all criteria together total 100. Rate Proposed Solutions Using Criteria Using the four to six possible solutions, score (on a scale of 1 to 10) each solution against each criteria. Repeat this for each criterion. Multiply this score to the weighting, then add the weighted scores for each solution. This exercise will help you to compare alternatives objectively.
Cost Savings Increased Revenue Decreased Investment Requirements Increased Profits Cost/Benefit Analysis
Employee, Customer, Supplier Acceptance. Management Support Determining the right people for the various new or revised roles.
Patent, Copyright & Licensing Governmental Restrictions Affected Stakeholders & reporting authority
Operating procedures for the new sales support system. Training of sales reps and other personnel. Conversion procedures and timetable for final implementation.
Leverage the workflow. Integrate with transaction-based business systems. e.g. HR and Finance systems. Connect with enterprise data stores and relational database systems.
DECISION MAKING
Decision making is the developing concepts leading to the selection of a course of action among variations. Every decision making process produces a final choice It can be an action or an opinion. It begins when we need to do something but we do not know what e.g. Decision to raise a Purchase Order
Cost-benefit analysis - process of weighing the total expected costs vs. the total expected benefits
Types of Decisions
Intelligence gathering
Definition of problem Data gathered on scope Constraints identified
Design phase
Alternatives identified and assessed
Choice
Selection of an alternative
Implementation
Testing the selected alternative.
information
from
Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control
Pricing
Transportation and Logistics Route and schedule optimization Human Resources Accounting
THANK YOU
Presented by
Amrita Adivarekar Anisha Raheja Ashish Chanchlani Hitesh Talreja Kanchan Tolani Mahesh Rajpal Nisha Tripathi Pankaj Godhwani