System Theory

“Systems theory is the transdisciplinary study of systems in general, with the goal of elucidating principles that can be applied to all types of systems in all fields of research (1).” Systems theory was born from biologist Karl Ludwig von Bertalanffy’s General System Theory (GST). (2)

Bertalaffany’s GST is a holistic theory; it emphasizes the relationships and interactions between parts to produce a whole. (3) For instance, cells and organs function together to constitute a more complex and highly functional organism. Furthermore, Bertalafanffy emphasized that real systems are open, rather than closed, to their environment. (3) In such a way systems continuously interact with the environment and evolve as a result of such interactions. (3)

A system is a collection of parts, termed subsystems, which work together to accomplish an overall goal. (4) Systems have input, processes, and outputs, with feedback among these various parts. If one part of the system is altered it will inevitably affect the entire system. (4) Systems theory is still used today with applications across a wide range of disciplines from ontology, philosophy of science, physics, computer science, biology, and engineering as well as geography, sociology, political science, psychotherapy, to economics. (1)

System theories have been applied to business and management. An organization is a system of many parts that works together to achieve a unified goal. (4) Organizations represent open systems, as they influence and are influenced by their environment. An organization’s environment includes suppliers, distributors, government agencies, and competitors and is influenced by cultural values, economic conditions, legal and political forces, and quality of education. (5) Open systems theory explains why for a traditional organization would most likely fail in a rapidly changing environment. Historically, managers have tried to identify problems within an organization by trying to pinpoint an individual or a department that were not preforming well. However, congruent with a systems theory, all departments of an organization can be working well individually, but if they are not working well together, an organization will fail. (4) Managers should aim to produce positive synergy, in which the organization as a whole performs better than the sum of its individual departments (i.e. the whole is greater than the sum of its parts). (6)

1.      http://en.wikipedia.org/wiki/Systems_theory

2.      http://en.wikipedia.org/wiki/Ludwig_von_Bertalanffy

3.      http://pespmc1.vub.ac.be/SYSTHEOR.html

4.       http://www.managementhelp.org/org_thry/org_sytm.htm

5.      http://www.referenceforbusiness.com/small/Op-Qu/Organization-Theory.html

6.      http://www.referenceforbusiness.com/management/Str-Ti/Synergy.html

Value of information systems

Information Systems are integral for organizations in order to sustain in our current market. Take for instance an automobile company, such as Ford. Ford is a large global organization that likely employs knowledge management and special purpose information systems, management information and decision support systems, enterprise systems, and specialized system in order to perform tasks and increase the value of their vehicles and services. Value can be added to all areas of the value chain from raw materials to costumer service. The scenario below provides examples of how a car company, such as Ford, can add value to its product and services at all level of manufacturing.

Value chain:

Upstream management:

Raw materials:

Compare costs of raw materials from different vendors in order to cut the cost of inputs.

Use lighter petroleum based raw materials, in favor of steel, making a lighter car to add value to the product. Create a strategic alliance with raw material supplier to gain a competitive advantage over other automobile companies. Contract with supplier for fixed prices to contain costs. Add value through quality of raw materials; Maintain database rating the quality of raw materials and impact upon final product. Produce a report showing the inventory that should be order through a management information system (MIS).

Inbound logistics:

Cut costs by comparing fuel/ gasoline costs of filing stations Consider establishing strategic partnerships with trusted and affordable gas companies. Tag more expensive car parts using radio-frequency technology and track parts to prevent loss of resources.

Higher outside shipping company, such as FedEx, to ship parts; Cut resource costs by relying on the expertise of an established and reputable shipping company.

Warehouse & storage:

Store raw materials in a unit adjacent to production site in order to save on shipment costs of raw materials from warehouse to production site. Compare prices of rent and reduce input costs, by storing raw materials in a low rent area and low rent warehouse. Link warehouse and production site through satellite communications or using the World Wide Web so that production can request and receive needed raw materials efficiently.

Production:

Use advanced computerized systems to produce high quality vehicles at low cost. Higher experts in vehicle construction to create a competitive advantage. Use a TPS for payroll of car manufacturers. Use artificial intelligence to allow machines to take over areas of car construction.

Downstream Management:

Finished Product storage:

Link database between production sites and finished product storage sites, so that vehicles are correct to storage areas with allowable room. Store finished products within production sites to save the cost of shipment from production sites to dealerships. Establish communication between storage warehouse and outbound shippers, such that warehouse workers will prepare the proper vehicles for shipment in a timely mater.

Outbound logistics:

Track cars as they move from storage to dealership. Create strategic alliance with shipping company and allow them to ship vehicles to dealerships. Use a distribution planning system to ship vehicles to areas in which they will sell best.

Marketing & sales:

Store, organize and analyze data electronically to show sales trends. For instance, analyze which models are selling most in certain areas. Ship vehicles to dealerships and aim marketing campaigns accordingly. Create a competitive advantage through cost leadership. Ford can gain an advantage over other car companies by selling their vehicles at the lowest possible prices. Use satellite communications to link local retailers through a central computer and enable salesmen to directly communicate regarding available inventory and in stores sale promotion. Based upon sales trends, forecast which vehicles will sell best and order raw materials, and direct production goals accordingly.

Costumer service:

Costumer Relationship Management (CRM) program to: maintain a database of consumers and contact them via phone/mail to conduct costumer satisfaction surveys. Send costumers and consumers promotional information through traditional mail and email. Inform them of new products and services available (differentiation) either for previous purchases or future purchases. For instance, inform costumers of new safety features, such as non-slip tires. Allow costumers to complete forms, including their contact information, upon entrance to dealership or acquire consumer information upon purchase. Add costumer service link to Ford website. Allow costumers to look up important information on their vehicle, such as warranty information.

Task 3

1. What is your major?

Safety Studies.

2. What operating system do you have on your computer?

MAC OS X

3. Do you have a right to upgrade the software on your computer?

Yes.

4. What Internet and computer related courses have you already taken and what are your usual activities on the Internet (Facebook, email, chats, etc.)?

This is my first computer related course. I use the internet for email, web browsing, and social networking.

5. Have you taken online courses before?

No.

6. Do you have MS Office on your computer? If yes, which version?

Yes. 2004.

7. Add anything you want about your computer-related interests, skills, job projects, etc. that might help the instructor and students understand your computer/Internet skills and interests better.

I enjoy looking for music online!

• Do you work anywhere now (where if yes, and what do you do there)?

I work for ROCKS, which stands for Recycling on Campus of Keene State.

• Your desirable occupation

Construction Site Manager.

• When do you graduate?

May, 2011

• What benefits do you see for yourself in a distance learning format?

It allows me to work at the convenience of my own schedule and enables me to visit friends over break!

• What are your hobbies or what do you like to do outside of school and work activities?

I like to skateboard, dirt bike, and hang out with friends.