Systems Thinking
Systems Thinking Approach -The key competence of the 21st century
Systems thinking originated in 1956 when Professor Jay Forrester founded the Systems Dynamic Group at MIT's Sloan School of Management. Systems thinking is a holistic approach to analysis that focuses on how the components of a system relate to each other and how systems function over time and in the context of larger systems. The systems thinking approach contrasts with traditional analysis, in which systems are broken down into their individual elements. Systems thinking can be used in any area of research and has been applied to the study of medical, environmental, political, economic, human resource, and educational systems, among others.
According to systems thinking, the behavior of a system results from the effects of reinforcing and balancing processes. A reinforcing process leads to the enlargement of a system component. If the amplifying process is not controlled by a balancing process, it will eventually lead to collapse. A balancing process is one that aims to maintain equilibrium in a given system.
Paying attention to feedback is an essential part of systems thinking. In project management, for example, the prevailing doctrine may dictate that additional staff be hired when a project is delayed. In practice, however, this tactic may have slowed development in the past. Paying attention to this relevant feedback may allow management to look for other solutions rather than wasting resources on an approach that has proven counterproductive.
Systems thinking uses computer simulations and a variety of charts and diagrams to model, illustrate, and predict system behavior. Systems thinking tools include the Causal Loop Diagram, which illustrates the relationships between system elements.
On closer inspection, every system turns out to be a self-contained set of smaller systems. The approach of systems thinking deals with the understanding and design of complex systems and decisions. Thus, it is an essential part of systems engineering and also helps to successfully develop modern, multidimensional systems. The added value of systems thinking are the various observation and representation concepts for mapping complexity. They help in understanding interactions and can reveal hidden potentials.
Every human being itself is a complex biological system with many small systems. In all likelihood, each person also interacts daily with many systems, such as family, businesses, organizations. And every technical product like a car or a smartphone represents a system. Systems engineering is used to realize these systems in companies.
Systems thinking as an essential component of systems engineering. In product creation, systems thinking has established itself as the means of choice for representing complex issues and dependencies. However, as is evident in many places such as scientific publications, articles and news, product creation is increasingly changing due to the influences of digitalization. With the increasing complexity of technical products, the question therefore arises as to how product creation can be designed more effectively. Systems engineering is the tool of choice for holistic and integrated engineering - this includes systems thinking by understanding the product as a system. The challenge for engineering is therefore also to be able to address future changes due to digitalization.
However, how a system is created that acts according to the developer's ideas in a desired situation depends essentially on human creativity and gained insights. The required human characteristic is commonly referred to here as systems thinking. As a reminder: a system is a limited section of reality, which is characterized by system elements as well as relationships (relations) to each other. Systems thinking is a special way to visualize reality. Its origin goes back to different disciplines like biology, ecology and cybernetics. Fundamental, however, is to gain insight into the world with its ways of functioning and to be able to understand it better. Systems thinking is very different from the traditional analytical view. Some problems are better solved by analytical thinking and others are better approached by the systems view. The combination of both approaches is essential to understand our environment in its entirety.
That is why, the systems thinking approach is the key DNA of Fashion Catalysts sustainability consulting, since the challenges here need to be addressed.