DEFINITION OF SYSTEM APPROACH
A systemic process of problem solving that defines problem and opportunities in system context and develop solution. Data is gathered describing the problem or opportunity and alternative solutions are identified and evaluated. Then the best solution is selected and implemented and its success evaluated. OR
the process through which a business problem can be solved is called System Approach.
PROBLEMS AND OPPORTUNITIES:
Problems and opportunities are identified in the first step of the System Approach. A problem can be defined as a basic condition that is causing undesirable results. An opportunity is a basic condition that presents the potential (possible) for desirable results. Symptoms must be separated from problems. Symptoms are merely signals of an underlying cause or problem. e.g.
Example
Symptom: Sales of a company's products are declining.
Problem (Statement of the problem) Salespersons are losing orders because they cannot get current information on product prices and availability.
Opportunities: We could increase sales significantly if sales persons could receive instant responses to requests for price quotations and product availability.
SYSTEM THINKING OR CONTEXT
Using Systems Thinking to understand a problem or opportunity is one of the most important aspects (feature) of the System Approach. When you use a System Context, you try to find system, subsystem and components of system in the situation you are studying, This ensures that important factor and their interrelationship are considered. This is known as having a systemic view of a situation. For example, the business organisation or business process in which a problem or opportunity arises could be view as a system of input, processing, output, feedback and control components.