Systems approach to problem solving.

The systems approach to problem solving used a systems orientation to define problems and opportunities and develop solutions. Studying a problem and formulating a solution involve the following interrelated activities: 1. Recognize and define a problem or opportunity using systems thinking. 2. Develop and evaluate alternative system solutions. 3. Select the system solution that best meets your requirements. 4. Design the selected system solution. Implement and evaluate the success of the designed system. Defining problems and opportunities Problems and opportunities are identified in the first step of the systems approach. A problem can be defined as a basic condition that is causing undesirable results. An opportunity is a basic condition that presents the potential for desirable results. Example; Symptom: Sales of a companys products are declining. Problem: Sales persons are
losing orders because they cannot get current information on product prices and availability. Opportunity: We could increase sales significantly if sales persons could receive instant responses to requests for price quotations and product availability.

Systems thinking Systems thinking is to try to find systems, subsystems, and components of systems in any situation your 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. I example, 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. Example;
The sales function of a business can be viewed as a system. You could then ask: Is poor sales performance (output) caused by inadequate selling effort (input), out-ofdate sales procedures (processing), incorrect sales information (feedback), or inadequate sales management (control)? Figure illustrates this concept.

 Developing alternate solutions There are usually several different ways to solve any problem or pursue any opportunity. Jumping immediately from problem definition to a single solution is not a good idea. You also lose the chance to combine the best points of several alternative solutions. Where do alternative solutions come from/ experience is good source. The solutions that have worked, or at least been considered in the past, should be considered again. Another good source of solutions is the advice of others, including the recommendations of consultants and the suggestions of expert systems. Evaluating alternate solutions Once alternative solutions have been developed, they must be evaluated so that the best solution can be identified. Selecting the best solution Once all alternative solutions have been evaluated, you can being the process of selecting the best solution. Designing and implementing solution Once a solution has been selected, it must be designed and implemented. You may have to depend on other business end users technical staff to help you develop design specifications and an implementation plan. Typically, design specifications might describe the detailed characteristics and capabilities of the people, hardware, software, and data resources and information system activities needed by a new system. An implementation

plan specifies the resources, activities, and timing needed for proper implementation. For example, the following items might be included in the design specifications and implementation plan for a computer-based sales support system:

Types and sources of computer hardware, and software to be acquired for the sales reps. Operating procedures for the new sales support system. Training of sales reps and other personnel. Conversion procedures and timetable for final implementation.

Post implementation review The final step of the systems approach recognizes that an implemented solution can fail to solve the problem for which it was developed. Therefore, the results of implementing a solution should be monitored and evaluated. This is called a post-implemented. The focus of this step is to determine if the implemented solution has indeed helped the firm and selected subsystems meet their system objectives. If not, the systems approach assumes you will cycle back to a previous step and make another attempt to find a work. Then you would develop evaluation criteria and determine how well each alternative solution meets these criteria. The criteria you develop will reflect how you previously defined business and personal requirements. For example, you will probably develop criteria for such factors as start-up costs, operating costs, ease of use, and reliability. Criteria may be ranked or weighted, based on their importance in meeting your requirements.

Business Process Re-Engineering (BPR)

"At the heart of re-engineering is the notion of discontinuous thinking - of recognizing and breaking away from the outdated rules and fundamental assumptions that underlie operations." Re-engineering Work: Don't Automate, Obliterate By Michael Hammer Business Process Re-engineering is a process used to restructure companies largely to achieve the performance gains promised by quality initiatives, but which could not be delivered in sufficient quantity or quality. Manual systems were developed over a number of years to function efficiently and effectively within their manual environment.

With the advent of technology, organizations were requesting systems that mimicked the original manual system, for two reasons: 1) Managers did not understand the capabilities of the new technology. 2) When interviewed by Consultants/Analysts, managers could only determine their requirements by contemplating the functionality provided by their current systems. The Systems Analyst concentrated on the tasks performed within each section (department) and produced the whole system as a combination of each separately developed section. Motivation for Quantum Change According to Michael Hammer there are three categories of motivation for reengineering. Market leaders - to retain and increase leadership and cause trouble Close competitors - to close the gap For everyone else it generally takes an 'emotional event' to trigger a project. E.g. 1. 2. 3. 4. 5. 6. 7. 8. Hostile take-over bid. Loss of a major order. Lost market share. A competitor changes the rules. Rising complaints. Constantly falling market share. New Chief Executive. A revealing cross-industry benchmarking exercise.

BPR Approach The BPR Methodology realizes the limitations of previous approaches and attempts to redress the balance, ignoring all underlying logic and rules by the use of 'discontinuous thought'. BPR entails looking at and analyzing what goes on within and between departments of a company and between the company and its customers and suppliers. Then you restructure those processes to remove or change non-value-adding activities (downsizing) and personnel, minimize obstacles to the smooth flow of work and make the organization and systems support the new model. It may also be necessary to create new value-adding activities (upsizing). A further term, 'rightsizing' is correctly assessing what appropriate and necessary changes are required and implementing them.

Principles of BPR Organize Around Outcomes Not Tasks Have Those That Use The Output Of The Process Perform The Process. Subsume Information-processing Work into the Real Work That Produces the Information. Treat Geographically Dispersed Resources As Though They Were Centralized. Link Parallel Activities Instead Of Integrating Their Results. Put the Decision Point Where The Work Is Performed And Build Control Into The Process. Capture Information Once And At The Source

Possible Problems

Cynicism of people Co-ordination of Change Co-ordination of people Need to think Total Job Roles / HRM Empowering / Training / I.T. / Managing (Process vs. Function) Prevent Sub-optimization Motivation for BPR