Systems Thinking, Approaches, and Organizational Information Systems in CS112

Systems Thinking

An approach to understand how parts of a system interact, emphasizing a holistic view over individual components.

Usefulness of Systems Thinking

Helps solve complex problems by seeing the bigger picture in fields like ecology, business, IS, healthcare, and social sciences.

Two characteristics of Systems Thinking

Holism (entirety) and Reductionism (breaking a system into parts).

Holistic Approach (Holism)

Considers systems in their entirety, recognizing the whole is more important than the sum of its parts. A system is a whole that cannot be divided into independent parts.

Reductionism Approach

Breaks a complex problem into smaller, separate parts. Assumes solving component problems will solve the larger problem. May overlook interactions.

Key Concept of Problems in Systems Thinking

The problem is not singular but consists of inter-related problems.

Data

Raw, unordered, meaningless facts used to produce information (e.g., numeric, alphanumeric, images).

Information

Data that is processed, organised, and interpreted to reveal meaning and reduce uncertainty.

DIKW Pyramid

A model that illustrates the relationships between Data, Information, Knowledge, and Wisdom, showing how raw data is transformed into insights.

DIKW Pyramid: Knowledge

Information with context and experience. Understanding patterns of information. (Proactive/Future).

DIKW Pyramid: Wisdom

Application of knowledge. Understanding principles and making informed decisions. (Proactive/Future).

Characteristics of Useful Information

Accurate, Timely, Relevant, Accessible, Comprehensive, Clear, and Cost-Effective.

Information Appropriation

The gathering of data in a meaningful manner to communicate relevant and significant information.

Information Appropriation Process (Steps 1-3)

1. DATA: Raw material. 2. STIMULI/OBSERVATION: Gathering insights. 3. INTERPRETATION: Explaining the meaning of something.

Information Appropriation Process (Steps 4-5)

4. UNDERSTANDING: Using existing knowledge to comprehend new information. 5. WISDOM AND ACTION: New information leads to action.

System

An integrated set of components that interact to achieve a particular function or goal.

System Components

Inputs and outputs, System boundary, Sub-systems, Interface, Buffers and slack resources, Control Mechanism, The environment, Feedback.

System Concept: Inputs and Outputs

A system transforms inputs into outputs. Inputs come from, and outputs are made available to, other systems or individuals.

System Concept: Sub-systems

A system is composed of numerous sub-systems, each with its own elements, interactions, and objectives, performing specialized tasks.

System Concept: Interface

Provides the ability for a user to interact with a system, or for two systems to interact with each other.

System Concept: Control Mechanisms

Checks that systems are functioning correctly, adapts to change, and prevents problems.

System Concept: Environment

All systems exist within an environment. Can be Open or Closed.

Closed Systems

Relatively self-contained; do not respond to or get feedback from the environment; tend to deteriorate.

Open Systems

Has flows of information (inputs and outputs) between the system and its environment.

System Concept: Buffers

Physical memory storage used to temporarily store data when moving it between processes.

System Concept: Slack Resources

The level of availability of a resource; a sub-system that maintains enough resources to act on any input.

System Concept: Feedback

Occurs when the outputs of a system are routed back as inputs in a loop, providing information about a result for corrective action.

'Systems Approach' (Recap)

A methodology which lays out general principles for one to follow when solving a given problem.

Two Stances in Systems Thinking

A Hard Systems Approach and A Soft Systems Approach.

Hard System Approach (Characteristics)

Assumes problems are well-defined and exist in the world. Applies a scientific approach using rigid techniques to find an ideal, unambiguous solution.

Soft System Approach (Characteristics)

Assumes problems are messy or poorly defined. Stakeholders interpret them differently, human factors are important, and it requires a creative approach.

Three Variants of the Hard Approach

1. Systems engineering 2. Systems analysis 3. Operations research

Hard Approach Variant 1: Systems Engineering

An engineering approach to projects, focusing on creating complex artifacts via systems thinking principles.

Systems Engineering (4-Step Process)

1. Identify a solution. 2. Define the objectives. 3. Direct efforts at how to solve the problem. 4. Find the most optimal manner of execution.

Systems Engineering (Relevance to IS)

The Systems Development Lifecycle (SDLC): Requirements, Analysis, Design, Develop, Test and Maintain.

Hard Approach Variant 2: Systems Analysis

A systematic form of inquiry to choose alternate solutions in a complex situation. Assumes systems exist in the real world and have one correct solution.

Systems Analysis (5-Step Process)

1. Conceptual phase (formulate problem). 2. Research phase (gather data). 3. Analytical phase (build model). 4. Judgmental phase (evaluate results). 5. Scientific phase (test; conduct experiments).

Hard Approach Variant 3: Operations Research

Employs quantitative means (surveys, measurements) to model outcomes that influence decisions.

Operations Research (Process)

1. Define problem. 2. Build the model. 3. Perform analysis. 4. Implement findings and update model.

Hard System Limitation: Emphasis on objectivity

Tends to ignore that which cannot be quantified or modeled (like employee personalities) in an attempt to be objective.

Hard System Limitation: Applicability within social situations

Naive to believe human behaviour can be modeled like physical phenomena. Logical analysis may not result in socially acceptable solutions.

Soft Systems Approach (The Process)

1. Define the problem. 2. Gather data. 3. Identify alternatives. 4. Evaluate alternatives. 5. Select and implement. 6. Follow-up.

Soft Systems Methodology (SSM) - Core Concept

It's about people and how they think/relate. It helps people solve complicated organisational problems that have unknown variables.

Soft Systems Methodology Assumptions (1-4)

1. Problems are interrelated. 2. Problems are not independent of humans. 3. Individual worldviews are important. 4. Solutions are not in isolation.

Soft Systems Methodology Assumptions (5-7)

5. Sharing perceptions improves the system. 6. The analyst is part of the problem. 7. It is people-oriented.

Information System

A formal, socio-technical, organisational system designed to collect, process, store, and distribute information. It always includes people.

IS by Organisational Level

Strategic (Top): EIS for strategic plans. Tactical (Middle): DSS for reallocating resources. Operational (Bottom): TPS for day-to-day transactions.

Functional Area Management IS

Provides information to managers in functional areas. Produces reports (Drill down, Comparative, Key indicator, Exception).

Decision Support Systems (DSS)

Used to support organisational decision-making activities. Includes data, models, and knowledge.

Executive Support System (ESS)

A management IS for senior executives. Provides access to internal/external information relevant to strategic goals.

Transaction Processing System (TPS)

Collects, stores, and processes data from all business transactions (Operational level). Keeps the business running efficiently.

Knowledge Management System (KMS)

Manages the creation, sharing, and use of an organisation's information. Provides permission-based access.

Customer Relationship Management (CRM) Systems

Enterprise-wide system to acquire and retain customers. Enhances customer relationships and supports marketing/sales.

Supply Chain Management (SCM) Systems

Facilitates collaboration between an organisation and its suppliers, manufacturers, distributors, and partners. Manages flow of materials, info, and money.

Enterprise Resource Planning (ERP) System

A complex, expensive system. Existing business processes may need to change to suit the ERP.

Electronic Data Interchange (EDI)

A system that enables electronic documents to be exchanged or shared across a network.

Extranet

A closed network that allows specific external user groups to access parts of an organisation's internal network (intranet).

Organisation as a System

An organisation is a system of components (sub-systems) that work together to achieve a main objective, much like an organism.

Two Views of an Organisation

1. Structural View 2. Functional View

Structural View

Explains what the system looks like, not what it does. Focuses on hierarchy, divisions, and physical location.

Three Structural Views

1. Geographical 2. Hierarchical 3. Project

Functional View

Explains what the system does, not what it looks like. Focuses on how different roles and divisions work together, requiring coordination.

Structural View vs. Functional View

Structural: Combines functions into one structure with a managerial hierarchy and flow of authority. Functional: Focuses on specific skills/expertise, often in silos; emphasizes roles.

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