Business Systems Analysis CMSCB3001

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Business Systems AnalysisCMSCB3001

• Hard Systems Thinking

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Systems Thinking

• According to Peter Checkland, Systems Thinking
  is composed of two complementary processes
• Systems Analysis
• Systems Synthesis
• Checkland draws attention to these two
  alternative paradigms to explain the nature and
  significance of Systems Thinking
• Paradigm 1 - the world is considered to be
  systemic and is studied systematically
• Paradigm 2 - the world is problematic (I.e. it
  admits to many different interpretations and we
  study it systemically
• Paradigm 1 - reflects the notion of Hard Systems
  Thinking
• Paradigm 2 - reflects the notion of Soft Systems
  Thinking
• Hard Systems Thinking - an objective or end to be
  achieved can be taken as given and a system can
  be engineered to achieve the stated objective
• Soft Systems Thinking - known to be desirable
  ends cannot be taken as given

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Developments in Systems Thinking
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Developments in Hard Systems Thinking

• Largely developed in the 1950s
• Systems Engineering
• Systems Analysis
• Systems Dynamics
• Systems Engineering
• rooted in a general engineering paradigm
• only recently methodologically codified
• as more complex systems attempted

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Systems Engineering - The General Model

• Problem Definition (Definition of a need)
• Choice of Objectives (Definition of physical
  needs)
• System Synthesis (Creation of possible
  alternatives)
• System Analysis (Analysis of the alternatives in
  the light of objectives)
• System Selection (Selection of the most promising
  alternative)
• System Development (Up to prototype stage)
• Current Engineering (System realisation)
• Generally used for physical systems - later more
  social applications

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Systems Analysis

• Developed simultaneously with System Engineering
• Grew out of successful Operations Research
  implementation in WWII
• Early models based on Systems Engineering, later
  developed its own flavour
• Largely concerned a broad economic appraisal of
  costs and consequences of alternative means of
  meeting a defined END
• Plus - a requirements approach
• a requirement, the provision of which will solve
  a problem
• a requirement may be a task, some piece of
  equipment or a complete system
• Feasibility and characteristics are checked to
  determine benefits - can the budget be obtained
  ??
• Fundamentally the analyst asks what are the
  costs and payoffs of alternative programmes

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Systems Analysis - The General Model

• The formal outline is very similar to Systems
  Engineering
• An objective or objectives we wish to accomplish
• Alternative techniques/methods by which the
  objective can be met
• The costs/resources required by each model
• A model of the system to determine
  interdependencies
• A criterion, relating costs/objectives resources
  for choosing the best option
• There is an obvious overlap between S.E. and S.A.
• S.E. - set of activities that lead to the
  creation of complex man-made systems
• S.A. - the systematic appraisal of costs etc. of
  meeting requirements in various ways
• S.E. is the totality of the engineering project
• S.A. is the type of appraisal relevant to the
  decision-making that precedes setting up the
  project

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The Flavour of RAND style Systems Analysis

• Best described by the following quotation
• One strives to look at the entire problem, as a
  whole, in context, and to compare alternative
  choices in the light of their possible outcomes.
  Three sorts of enquiry are required, any of which
  can modify the others as the work proceeds. There
  is a need, first of all, for a systematic
  investigation of the decision-makers objectives.
  Next the alternatives need to be identified,
  examined for feasibility, and then compared in
  terms of their effectiveness and cost taking
  time and risk into account. Finally an attempt
  must be made to design better alternatives and
  select other goals if those previously examined
  are found wanting.

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A Problem Spectrum

• A broad classification of problem types can be
  derived by taking the extremes of a spectrum
  which extends from 'hard' to 'soft' and by
  considering the distinction between questions
  which are concerned with how an activity should
  be undertaken as opposed to what the activity is.
  In this context, the problem of a flat tire is a
  hard problem, whereas situations like Bosnia are
  extremely soft.
• A 'hard' or structured, problem is one which is
  exclusively concerned with a 'how' type of
  question. This can be exemplified by considering
  the problem confronting Brunel when faced with
  the need to span the Avon Gorge. There was no
  doubt about the objective, the problem was how to
  do it.
• A 'soft', or unstructured, problem is one that is
  typified by being mixtures of both 'what' and
  'how' questions. In the area of production, for
  example, a particular manager may be faced with
  the problem that production performance could be
  better. This statement gives no guide to what he
  should investigate areas for potential
  improvement, or how he could then introduce
  change to realize that improvement.

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The Link between S.E. and S.A. - The Problem

• The single idea that links both of these
  approaches is that real-world problems can be
  formulated as follows
• There is a desired state
• There is a present state
• There exist alternative methods for getting
  between 1 2
• This belief is the distinguishing feature of all
  Hard Systems Thinking

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Problem solving in the Hard Paradigm

• De Bono defines a problem as
• the difference between what one has, or is
  likely have, and what one wants
• Management is generally concerned with problem
  solving producing decisions and subsequent
  action to meet organizational needs better
• Experience shows that managers are generally not
  good problem-solvers
• Surveys show that about 80 of new venture
  projects fail to achieve their objectives
• One contributing reason for this is that often no
  attempt is made to establish exactly what it is
  the organization wants
• This also leads to a clearer definition of a
  problem

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The minimum necessary necessary conditions of a
problem

• From this basis we could derive the minimum
  necessary conditions for a problem to be said to
  exist as
• a person (or organization) that has a problem
• one or more ENDS desired but not yet attained
• at least two courses of action (MEANS) to achieve
  an END
• a statement of doubt about which course of action
  is best
• an environment of uncontrollable variables which
  can affect the ENDS

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ENDS Analysis

• From this we can derive
• What one wants is an END
• Once the END is determined all that is left to do
  is to work out the MEANS to achieve that END
• This reasoning forms the basis of Hard Systems
  Analysis techniques such as MEANS-ENDS Analysis
• Three types of ENDS
• Goals - expected to be achieved within a
  specified time
• Objectives - ENDS that may not be achieved within
  the planning period
• Ideals - ENDS that may not be achievable but
  progress towards them can be made

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Means Analysis

• Four types of MEANS
• Acts that take little time - phone call, writing
  a letter etc.
• Courses of action a sequence of acts -
  negotiating new contracts installing a new
  computer etc.
• Projects systems of courses of action - erecting
  a building, moving house etc.
• Programs systems of projects - expanding into
  new markets, building a new factory etc.

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Effectiveness Efficiency

• It is important to distinguish between these two
  notions
• Effectiveness - doing the right thing ENDS -
  Whats - Effectiveness
• Efficiency - doing the thing right
• MEANS - Hows - Efficiency

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Hidden Agendas Constraints

• One should always assume that innocently or
  otherwise, certain Ends might not be volunteered
  by clients during interviews. Ends about personal
  career objectives will rarely be mentioned yet
  these will occasionally be a vital influence on
  the problem situation. Uncovering these Ends can
  call for astute skills.
• Constraints
• Invariably, courses of action or Means will be
  constrained within some range, due to resource
  availability, design, technological limits etc.
• In analysis of Business Systems the term 'courses
  of action' is often used to cover all Means and
  they are said to be controllable variables,
  subject to influence or control.
• Unfortunately, Ends are also affected by
  uncontrollable variables, those not subject to
  our control. These variables may be 'acts of
  nature' or be controlled by others. They are said
  to make up the ENVIRONMENT to the problem.
• The evaluation of the courses of action, with
  regard to achieving the Ends, then becomes a
  matter for research.

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Errors of the Third Kind

• Solving the wrong problem
• Two important practical points should be
  remembered
• User dabbles in researching their own problem and
  then calls in specialist to resolve the problem
  the user identified, if the original analysis was
  faulty and the resulting solution ineffective,
  the specialist will usually still carry the can
• Dont be tempted to jump straight into solving
  technical problems without first researching and
  formulating the problem area.

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As Beer says

• 'The problems that arise can be handed to experts
  to solve. But this ministerial posture assumes
  that the problems correctly identify themselves,
  whereas the whole lesson uncovered in this book
  is that they rarely do so. The result is that
  much brain-power is wasted in attempting to
  provide answers to problems which either do not
  exist, or are virtually meaningless. Lord
  Mountbatten has told a wartime story which
  convinced him of the truth of this argument.
• One of his advisors, Geoffrey Pyke, had
  transmitted an immense report to Lord
  Mountbatten. He found on the first page a
  quotation by G.K. Chesterton, extracted from a
  detective novel. "Father Brown laid down his
  cigar and said carefully 'It isn't that they
  can't see the solution. It is that they can't see
  the problem.'
• Mountbatten drew the correct lesson. He comments
• "Yet the habit in those days was for military
  planners to put problems to scientists for them
  to produce the solution. From now on, I said,
  scientists were to be associated with the
  planners in deciding what the problem was before
  they were asked to solve it.
• It is no good getting the right answer to the
  wrong questions you've got to get the right
  question before the right answer can be of any
  use."
• The point seems simple, but the lesson has by no
  means been learned."

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Problem Formulation
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Problem Analysis

• The procedure suggested here is
• Explore the Ends
• Explore the Means
• Means and Ends are relative concepts every End
  can be considered as a Means to an End, and so
  on. For example, buying a car can be considered
  as a Means for obtaining personal transport
  (End). Personal transport could be a means for
  getting to the University and so on.

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Ends Exploration

• Express End as Action Verb Object Phrase
  Qualifying Phrase (Optional)
• Try to redefine by answering the question
• What is one trying to achieve?
• By completing
• e.g. One wants (latest Ends-Definition)
• In order to (Redefinition)
• For example, an investigation into congestion of
  people in a building is being carried out. A
  suggestion has been made 'to get two extra lifts
  installed'. One could start to check the
  relevance of this as follows
• e.g. (Install) (2 extra lifts) (within 3
  months)
• We want to (install 2 extra lifts within 3
  months)
• In order to (improve the lift service in the
  building)
• We want to (improve the lift service in the
  building)
• In order to (...)
• Etc.

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Means Exploration

• Having explored Ends and Objectives, it can
  become apparent that an End can be achieved in
  more than one way One has a CHOICE. In fact, in
  dealing with an 'unusual' problem, it is unlikely
  that one will have found the best way of
  achieving the End.
• One should always spend some time trying to
  generate alternative Courses of Action.
• This may be helped by thinking about the BROAD
  APPROACH that is being used. Four possible
  categories for consideration are

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Broad Approach