Transcript Lecture 8 Systems Approach Business Process

Lecture 8
Systems Approach
Business Process
Objectives
System: definition
 Systems Approach: what is it?
 Systems Thinking: what is it?
 Organization System

– dimensions and views
– complexity of organization system
Business Function vs. Business
Process
 Business Process Reengineering

System Definition

System – things and relations among
these things
– Elements of the system may themselves
be a system
– Every system may be a part of a larger
system in a hierarchy
Systems Approach
The systems approach to problem
solving uses a systems orientation to
define problems and opportunities and
develop solution
 Attempt to optimize a whole system
rather than maximize the performance
of isolated system elements

Systems Approach
1.
2.
3.
4.
5.
Recognize and define a problem or
opportunity using systems thinking
Develop and evaluate alternative system
solutions
Select the system solution that best meets
your requirements
Design the selected system solution
Implement and evaluate the success of the
designed system
Systems Thinking
Using systems thinking to understand a
problem or opportunity
 Mastering systems thinking is vital to
personal fulfillment and business
success

Systems Thinking
The essence of systems thinking is
“seeing the forest and the trees”
 Seeing interrelationships among
components rather than linear causeand-effect chains

Systems Thinking
Practicing systems thinking: try to
identify the system and its subsystems
or components in any situation
 For example, different dimensions and
views of an organization

Communic. V.
Cybernetic V.
Culture V.
Power V.
Psychic. V.
System V.
Civilization V.
Political V.
Economic V.
Geographic V.
Business
Dimensions
(13 views)
Financial V.
Accounting V.
Product V.
Marketing V.
Technology V.
Logistic V.
Production V.
Service V.
Human Res. V.
Legal V.
IRM V.
Administration V.
Management V.
Organization System:
Dimensions and Views
Behavioral
Dimensions
(6 views)
System Complexity
System’s characteristics imply its
complexity
 Quantify system complexity based on
number of system elements (e)

Relationships = (e-1)e / 2
Behavior states = 2e
Business Function vs.
Business Process

Business Functions:
– Sales and Marketing
– Accounting
– Purchasing
– Manufacturing / Production
– Warehouse / Logistics
Business Function vs.
Business Process

Business Processes:
– Customer order fulfillment process
– Customer service process
– Procurement process
– Hiring process
– Cash management process
Business Process Reengineering
BPR
 An attempt to reorganize business to
focus on business processes, rather
than business functions
 To ensure that necessary business
processes are carried on effectively and
efficiently – lead to customer
satisfaction
