02.system thingking
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1. Today's decision making faces increased complexity due to accelerating innovation, globalization, and interconnected world problems. Traditional reductionist and cause-and-effect thinking cannot adequately address this complexity. 2. Focusing only on efficiency within parts of a system does not guarantee effectiveness of the overall system in achieving its goals. Unplanned and counterintuitive outcomes can also arise from unintended consequences and feedback loops. 3. Systems thinking views problems holistically as parts of larger wholes and recognizes properties that emerge from the interaction of diverse elements. It provides a more effective approach than reductionism for complex decision making today.
![Complexity
Picture Resources:: www.azquotes.com
W.R. Ashby: complexity as the quantity of information
required to describe something
[‘Some peculiarities of complex systems’, Cybernetic
Medicine, 1973, v9 no2, 1–6]](https://image.slidesharecdn.com/02-170908081218/85/02-system-thingking-3-320.jpg)
02.system thingking
- 1. Management Science Decision Making Trough System Thinking Chapter 02 System Thinking From Book “Management Science Decision Making Trough System Thinking” Daellenbach, Hans, Donald McNickle, and Shane Dye. Management science: decision-making through systems thinking. Palgrave Macmillan, 2012. Presented By: Rio Aurachman, MT
- 2. INCREASED COMPLEXITY OF TODAY’S DECISION MAKING CHAPTER 2 System Thingking 1.Increased complexity of today’s decision making 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes 4. Reductionist and cause-and-effect thinking 5. Systems thinking 6.Review
- 3. Complexity Picture Resources:: www.azquotes.com W.R. Ashby: complexity as the quantity of information required to describe something [‘Some peculiarities of complex systems’, Cybernetic Medicine, 1973, v9 no2, 1–6]
- 4. Change of 20th Century Picture Resources: iacc.hhs.gov , www.scidev.net , www.cbsnews.com accelerating rate of innovation in technology and commu-nications The lowering of trade barriers gap between the rich developed countries World problem: problems of overpopulation, etc “Today’s world has thus increased in complexity and inter-dependence to a point where the traditional methods of problem solving based on the cause-and-effect model cannot cope any longer”
- 5. Construction of the Aswan High Dam in Egypt Picture Resources: en.wikipedia.org
- 6. Deterioration of urban transport Picture Resources:: www.volvogroup.com
- 7. Assessment of unit production costs Picture Resources: www.gray.com
- 8. EFFICIENCY AND EFFECTIVENESS CHAPTER 2 System Thingking 1.Increased complexity of today’s decision making 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes 4. Reductionist and cause-and-effect thinking 5. Systems thinking 6.Review
- 9. Efisiensi Picture Resources:: ecars-now.wikidot.com, alevelnotes.blogspot.com “Efficiency looks at how well resources are used in a given activity” economic efficiency
- 10. Efektifitas Picture Resources:: www.myperago.com “looks at how well the goals or objectives of the entity or activity are achieved” ‘convenient’ Determining Factor for Effectiveness in Transport System >The choice of bus routes >the frequency of service at various times of the day >and the type of vehicles used and how they are maintained >fare structure
- 11. Efisiensi Vs efektifitas Picture Resources:: www.slideshare.net, www.linkedin.com, www.edn.com “Operating various parts of a system in their most efficient manner does not necessarily mean the system as a whole is effective in terms of achieving its objectives” seem to be so much concerned with efficiency? elimination of such seemingly ‘idle’ spares may not be cost-effective
- 12. Efisiensi adalah Musuh efektivitas? Picture Resources:: takuminotie.com “True efficiency looks at the overall goals”
- 13. UNPLANNED AND COUNTERINTUITIVE OUTCOMES CHAPTER 2 System Thingking 1.Increased complexity of today’s decision making 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes 4. Reductionist and cause-and-effect thinking 5. Systems thinking 6.Review
- 14. Picture Resources:: Counter Intuitive Outcome ourworld.unu.edu
- 15. 1 5 “Maybe pushing on that wall to the right will give some space.”
- 16. 16 “Oops!”
- 17. 1 7 The real system… Edited extract …vs. what we often see… The trouble with feedback is that it is often invisible … “System dynamics demonstrates how most of our own decision-making policies are the cause of the problems that we usually blame on others, and how to identify policies we can follow to improve our situation.” Jay Forrester Sloan School of Management, MIT Page 38 of Morecroft, John (2007) Strategic Modelling and Business Dynamics. Wiley
- 19. Picture Resources :: news.harvard.edu The Hawthorne experiments
- 20. REDUCTIONIST AND CAUSE-AND- EFFECT THINKING CHAPTER 2 System Thingking 1.Increased complexity of today’s decision making 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes 4. Reductionist and cause-and-effect thinking 5. Systems thinking 6.Review
- 21. Picture Resources: www.pinterest.com : Don’t Use Reductionism?
- 22. Picture Resources:: www.slideshare.net, thescienceexplorer.com Don’t Use cause-and-effect thinking an sich
- 23. Picture Resources:: museum2.utep.edu, www.smashingmagazine.com , mrsbursksclass.wordpress.com Important think to Consider emergent properties mutual causality or feedback
- 24. REDUCTIONIST AND CAUSE-AND- EFFECT THINKING CHAPTER 2 System Thingking 1.Increased complexity of today’s decision making 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes 4. Reductionist and cause-and-effect thinking 5. Systems thinking 6.Review
- 25. Picture Resources:: alandix.com, www.economicsunplugged.com. associationsnow.com System Thinking from about 1940 on, a number of researchers from various scientific disciplines — — started to recognize that all things and events, and the experience of them, are parts of larger wholes effective action for decision making still use reductionist and cause-and-effect Thinking as complement
- 26. Review and Mindmap Introduction 1.Increased complexity of today’s decision making Complexity World change Case Aswan dam Deterioration of urban transport Assessment of unit production costs 2.Efficiency and effectiveness 3. Unplanned and counterintuitive outcomes Case Production rate Hawthorne experiment 4. Reductionist and cause- and-effect thinking? Emergent properties Feedback loop 5. Systems thinking Picture Resources: CHAPTER 2 System Thinking