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SYSTEMS APPROACH TO MANAGEMENT

Problem solving Decision making Classification of decision

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.

Systematic approach to solve the problem


      

Defining problems and opportunities Systems thinking Developing alternate solutions Evaluating alternate solutions Selecting the best solutions Designing and implementing solution Post implementation preview

DEFINING PROBLEM S AND OPPORTUNITIES


What is a problem? A problem can be defined as a basic condition that is causing undesirable results. What is an opportunity? An opportunity is a basic condition that presents the potential for desirable results. What are symptoms? Symptoms are merely signals of an underlying cause or problems

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

Incorrect Sales Information

Inadequate selling

Out of date Sales

Poor Sales

Input

Processing

Output

Developing alternate solutions


What is System analysis?
 The Information needs of a company & end users like yourself.  The Activities, resources & Products of one or more of the present information systems being used.  The information systems capabilities required to meet your information needs and those of other business stakeholders that may use the system.

Developing alternate solutions


What is Organizational Analysis?
An Organizational analysis is an important first step in system analysis. How can people improve an information system. Why the members of a development team have to know something about the organization.

Developing alternate solutions


Analysis Of the Current System


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.

Developing alternate solutions


Logical Analysis


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.

Developing alternate solutions


Functional Requirements Analysis & Determination

   

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?

Evaluation of alternate solutions


Evaluating alternate solution includes:


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.

Evaluation of alternate solutions


Various ways to evaluate the alternate solutions
CONSIDERATIONS:
What are the advantages of each solution? Are there any disadvantages to the solution? Do disadvantages outweigh advantages? What are the long and short-term effects of this solution if adopted? Would the solution really solve the problem? Does the solution conform to the criteria formulated by the group? Should the group modify the criteria?

Evaluation of alternate solutions


Criteria for Evaluating Alternatives
Cost and benefits: Are expected benefits greater than costs? Timeliness: How long before the benefits occur? Acceptability: Is it acceptable to key stakeholders? Ethical soundness: Does it satisfy ethical standards?

Evaluation of alternate solutions


Ways to evaluate the alternate solutions


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.

Evaluation of alternate solutions




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.

Selecting the best solution


What does this process involves? Alternative solutions are evaluated using the same criteria. Once all the alternative solutions are evaluated the best solution among it is chosen which is further used for implementation.

Selecting the best solution


Operational Feasibility How well the proposed system supports the business priorities of the organization.  How well the proposed system will solve the identified problem.  How well the proposed system will fit with the existing organizational structure.

Selecting the best solution


Economic Feasibility    

Cost Savings Increased Revenue Decreased Investment Requirements Increased Profits Cost/Benefit Analysis

Selecting the best solution


Technical Feasibility

Hardware, Software & Network Capability, Reliability & Availability.

Selecting the best solution


Human Factors Feasibility

 

Employee, Customer, Supplier Acceptance. Management Support Determining the right people for the various new or revised roles.

Selecting the best solution


Legal/Political Feasibility  

Patent, Copyright & Licensing Governmental Restrictions Affected Stakeholders & reporting authority

Designing and implementation solution


What does this process involves? The problem is not solved when the best solution is selected its designing and implementation is equally important. Designing and implementation can be done by proper use of design specifications and implementation plan.

Designing and implementation solution


Design specifications: It describes the detailed characteristics and capabilities of the people, hardware, software and data resources and information system activities needed by a new system. Implementation plan: It specifies the resources activities and timing needed for proper implementation.

Designing and implementation solution


Contents.  Types and sources of computer hardware and soft ware to be acquired for sales reps.


Operating procedures for the new sales support system. Training of sales reps and other personnel. Conversion procedures and timetable for final implementation.

 

Designing and implementation solution


Facilitates  Business Requirements analysis and solution concept development.  Design & Requirements Specification preparation  Application Development & Integration.  End-User Training & Induction of application champions.  Post-implementation support and enhancement services.

Designing and implementation solution


USES  Provide intuitive application interfaces.
 

Leverage the workflow. Integrate with transaction-based business systems. e.g. HR and Finance systems. Connect with enterprise data stores and relational database systems.

Post Implementation Review


What is post implementation review? A solution is monitored and evaluated before implementation to avoid the ambiguity, this process is called as post implementation review

Post Implementation Review


Advantages  Helps to see errors if any.  Avoids misuse.  If error is there avoids the cost of implementations.  Saves time.  Saves money.

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

Decision making in business and management


In general, business and management systems should be set up to allow decision making at the lowest possible level.
Several decision making models or practices for business include: SWOT Analysis - Evaluation by the decision making individual or organization of Strengths, Weaknesses, Opportunities and Threats with respect to desired end state or objective.

Cost-benefit analysis - process of weighing the total expected costs vs. the total expected benefits

Types of Decisions
  

Unstructured/ Nonprogrammed Structured/ Programmed Semi-structured

Information Requirements of Key Decision-Making Groups in a Firm Decision-

The Decision-Making Process DecisionPhases of Decision Making Process


Intelligence Design Choice Implementation

Stages in Decision Making

Phases of Decision Making Process




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.

MIS Support to Decision Making Process

Functional Perspectives of MIS




Financial MIS Will integrate multiple sources Functions

information

from

Costing P&L reporting Auditing Funds management

Functional Perspectives of MIS




Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control

Functional Perspectives of MIS




Marketing Market research


Web-based market research

Pricing

Functional Perspectives of MIS




 

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