Chapter 2

System Theory
IS335

Chapter 2 Objectives

Describe how an enterprise ts the denition of a system.

List and describe the properties of a system.
Identify the emergent properties of a system.
Identify the feedback components and how they function to provide feedback in
a system.
Contrast an open system from a closed system.
Dene system complexity and identify systems that are complex.
Contrast reductionist thinking from systems thinking.
Apply systems thinking to understand and solve problems.
Create a causal loop diagram to model a system.
Create a stock and ow diagram to model a system.
Describe the limitations of system dynamics.

Describe how an enterprise ts the

denition of a system.
A system is a set of discernible, interacting parts or
subsystems that form an integrated whole that
acts with a single goal or purpose.

An enterprise is a combination of subsystems

(functions/departments) that work together to
achieve the enterprise purpose.

List and describe the properties of a

system.
Caution when defining the enterprise

Know the boundary

Know the subsystems
Identify emergent properties
Define whether open or closed system
Know the purpose
Establish feedback (control)
Understand complexity
Understand dynamic nature
Understand equifinality (different inputs, same result)

Identify the emergent properties of a

system.

Sum of the parts is greater than the whole

Some system properties cannot be traced to a

component
Examples include higher revenue or lower costs or
better customer service
One way to identify these is to understand how
subsystems interact with one another

Identify the feedback components and

how they function to provide feedback
in a system.

First define success (baseline and deviation)

Controls exist to mitigate risk but also provide feedback on success

Risk is the likelihood and impact of an event which prevents success
Feedback is received in the form of control (effective or ineffective)

Contrast an open system from a

closed system.

Open system interact with their environment while

closed systems do not
Example of an open system vs. closed system?

Dene system complexity and identify

systems that are complex.

Two primary characteristics of complexity

The number of moving parts

Network of relationships between those parts

Understanding cause/effect relationships

Predicting system behavior
Difficult to describe the system

Contrast reductionist thinking from

systems thinking.
Reductionist Thinking

Systems Thinking

Reduce complex problem into

smaller problems
Solve individual smaller
problems
Recombine solutions to solve
overall problem
Does not perform well when
components have high degree
of interaction

Similar to reductionist thinking

except emphasis equally
placed on making sure
individual small solutions also
work with each other as part of
an integrated whole.

Understand the bull whip effect on p. 44

Apply systems thinking to understand

and solve problems.

Systems thinking describes a world-view, or way

to approach problems by considering the problem
as being part of a system and trying to discern
the underlying structure of the system that leads to
the observed problems.

Create a causal loop diagram to model

a system.

Refer to p.40 for the healthcare clinic casual loop

diagram

Create a stock and ow diagram to

model a system.

Book presents a way to present the stock and flow

within a system using differential calculus
Real world examples will depend upon the thing
being stocked and flowing through the system
Three variables to consider:

Rate (change to stock)

Stock (accumulation or depletion)
Information (information that can influence stock or rate)

This information will be gathered in the design

requirements

Describe the limitations of system

dynamics.

Focus on p.45 Scheduling issues with home

construction

Review questions

Great preparation for short answer questions

Great questions that can be applied to the group
projects