Crea%ng Value Through System Thinking

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1 Crea%ng Value Through System Thinking Ed Crawley MIT October 2010

2 System Thinking System Thinking is not: thinking systema-cally System Thinking is: thinking of things as systems A set of interrelated en%%es which perform a func%on, whose func-onality is greater than the sum of the parts Emergence 2

3 Informa%on System and Emergence Emergence: Function

4 Human System and Emergence Emergence: Performance

5 Mechanical System and Emergence Emergence: Safety, Reliability, ilities

6 Natural System and Emergence Emergence: Emergency!

7 Link Between Emergence and Value Func%on Performance BENEFIT Safety, Reliability, EMERGENCIES VALUE= BENEFIT AT COST

8 Step 1) Iden%fy System Form and Func%on Form is: What the system is The physical/ informa%onal embodiment The shape, configura%on, arrangement, or layout Is what is eventually implemented Func%on is: What the system does The ac-vi-es, opera%ons and transforma%ons that cause, create or contribute to performance The ac-ons for which a thing exists or is employed Is what eventually happens Emergence occurs in Functional Domain

9 Form and Func%on - Factory Func%on Form Assembling???????? Cars Factory Process Operand Instrument Benefit Cost

10 Form and Func%on - Team Func%on Form Making???????? Decision Team Process Operand Instrument Benefit Cost

11 Form and Func%on Circulatory System Func%on Form Supplying???????? Oxygen Circulatory System Process Operand Instrument Benefit Cost

12 Step 2) Iden%fy the En%%es of the System Think holis%cally Focus on the important Define abstrac%ons for en%%es Define the boundaries of the system and the surrounding context

13 Step 3) Iden%fy the Form and Func%on of the En%%es Factory System Func%on En%ty Func%on En%ty Form System Form Integrate drive train Sta%on 1 Assembling Cars Integrate body Sta%on 2 Factory Integrate interior Sta%on 3 Which One is The System?

14 Circulatory: En%ty Form and Func%on System Func%on En%ty Func%on En%ty Form System Form Pumps Blood Heart Supplying Oxygen Exchange O2 and CO2 with Air Lungs Circulatory System Exchange O2 and CO2 with Organs Capillaries

15 Team: En%ty Form and Func%on System Func%on En%ty Func%on En%ty Form System Form Collect Informa%on Marie Make a Decision Develop Values John Team X Synthesize and Evaluate Joseph

16 Step 4) Iden%fy the Rela%onships Among Rela%onships are fundamental to it being a system Rela%onships can be formal - structure (they exist) Rela%onships can be func%onal interac%on (they do something) En%%es Focus on Functional Relationships

17 Formal Structure

18 Func%onal Interac%on

19 Formal Structure and Func%onal Interac%on Sta%on 1 Integrates Drive- train Supplier Supplies Parts Sta%on 2 Integrates Body Output is Car - Structure is Pipe or Flow Through Sta%on 3 Integrates Interior Transport Distributes Cars

20 Formal Structure and Func%onal Interac%on Marie Collects Info Sources Provide Info Joseph Synthesizes Info and Applies Values Output is decision - Structure is Bus or Tree John Develops Values Sources Explain Values

21 Formal Structure and Func%onal Interac%on Lungs Exchange Gasses Air Hearth Pumps Blood Outcome, but no output - Structure is Loop or Feedback Capillaries Exchange Gasses Organs

22 Step 5) Predict Emergence Emergence occurs when the func-on of the en%%es and their func-onal interac-on combine to produce a new func%onality, which is more than the sum of the parts Emergent Func%on

23 Emergent Func%on System Func%on En%ty Func%on System Func%on En%ty Func%on Pumps Blood Collect Data Supplying Oxygen Exchange O2 and CO2 with Air Make a Decision Develop Values Exchange O2 and CO2 with Organs Synthesize and Evaluate Emergence Emergence

24 Predic%ng Emergence Form V in V out Func%on? V in V out Func%on? V in V out Emergent Func%on? Structure enables, but emergence is from function and interaction

25 Predic%ng Emergence Form F in F out Func%on? F in Func%on? F out F in F out Emergent Func%on? Structure enables, but emergence is from function and interaction

26 Predic%ng Emergence Procedure bubblesort (List array, number length_of_array) for i=1 to length_of_array - 1; for j=1 to length_of_array - I; if array[ j ] > array [ j+1 ] then Func%on? Func%on? temporary = array [ j+1 ] array[ j+1 ] = array [ j ] array[ j ] = temporary Emergent Func%on? end if end of j loop end of i loop return array End of procedure Structure enables, but emergence is from function and interaction

27 Emergence Emergence can be predicted a priori by: Precedent, Experimenta%on or Modeling For unprecedented systems for which experimenta%on and modeling are not easy, only human reasoning can be relied on to predict emergence This is the real goal, and the real art in System Thinking

28 Failures are oden System Emergence What is the formal structure? What is the func%onal interac%on? How did failure emerge?

29 Failures are oden System Emergence What is the formal structure? What is the func%onal interac%on? How did failure emerge?

30 Using System Thinking Understanding what is Predic%ng what might be Judgment and balance in decisions Synthesizing systems - Architec%ng

31 Architecture The embodiment of concept, and the alloca%on of physical/informa%onal func%on to elements of form, and defini%on of rela%onships * among the elements and with the surrounding context. Consists of: Func%on Related by Concept To Form Func%on Form Concept *some%mes, but not always, defined by interfaces

32 Prac%cing System Thinking Family/Rela%onships Commu%ng Team at work Your job News The things we build

33 System Thinking Helps us Make Complex Things Less Complicated Func%on? Form? En%%es? Rela%onships? Emergence?

34 Summary System Thinking Focus on en%%es and rela%onships Form and func%on Emergence and value A good way to think!

35

36 Exercise in System Thinking China Boat Captain AP Story Sept 10 China demands Japan release detained boat captain. A Japan Coast Guard boat arrests the crew of a Chinese fishing boat near a chain of disputed islands in the East China Sea, Tuesday, Sept. 7, The event occurred near the islands claimed by both countries ater the ship received repeated warnings from Japan's coast guard to move out of the waters, officials said.

37 China Boat Captain Arrest Captain Command Boat Island Near Coast Guard In Disputed Territory

38 NYT September 20 th, 2010

39 Tourists Public Protest China Boat Captain Media Media Poli%cal links Trading US Poli%cal links Poli%cal links China Authorizes Arrest Captain Command Boat Island Near Accesses Coast Guard Authorizes Disputed In Territory Accesses Containing Japan Influences Shared Asian Na%ons Resources History Influences Shared

40

41 Func%on? Form? En%%es? Rela%onships? Context? System Civil Florida Beach Source -

42 Func%on? Form? En%%es? Rela%onships? Context? System Mechanical Cable- stayed bridge Suspension Bridge Source -

43 Func%on? Form? En%%es? Rela%onships? Context? System- Informa%on Network Insert scanned image of cannon camera system

44 Func%on? Form? En%%es? Rela%onships? Context? System- Instruc%onal 2002 Aero Safety Graphics Inc.

45

46 System Thinking Holism - thinking as extensively as is reasonable about what might be considered the system Focus - iden%fy what in the whole is important, and defining boundaries Define abstrac%ons for the en%%es Define rela%onships among the en%%es, and interfaces Predict emergence

47 Form and Func%on All systems have form and func%on The Primary Func%on of a built system is usually clear from observa%on or historical knowledge, but systems can easily acquire secondary func%ons The Primary Func%on of evolved systems is subject to interpreta%on there is no designer!

48 Form and Func%on Examples Func%on Form Assembling Cars Factory Making Decision Team Supplying Oxygen Circulatory System Process Operand Instrument Benefit Cost

49 Form and Func%on of the En%%es Each of the en%%es that make up the system will have form and func%on. Each element or en%ty that makes up the system will, in general, also be a system All system will form part of one or many larger systems

50 Rela%onships Among En%%es En%%es of a system will have both a func%onal and formal rela%onship : Func%onal interac%ons are ac%vi%es, and involve exchange of an operand, or the joint ac%on by two en%%es on the same operand Formal structure enable interac%on, and are primarily geometric (where things are), connec%ve (how things are connected) Some of the en%%es of a system will also have rela%onships with context en%%es outside of the system, which occur across external interfaces.

51 Exercise in System Thinking China Boat Captain AP Story Sept 10 China demands Japan release detained boat captain In this photo released by Japan Coast Guard, a Japan Coast Guard boat, foreground, goes by a Chinese fishing boat which Japan Coast Guard officers are on board for inspec%on ater it collided with two Japanese patrol vessels near a chain of disputed islands known as Senkaku in Japanese or Diaoyu in Chinese in the East China Sea, Tuesday, Sept. 7, The collisions occurred near the islands claimed by both countries ater the ship received repeated warnings from Japan's coast guard to move out of the waters, officials said. (AP Photo/Japan Coast Guard)

52 Systems and System Thinking System Thinking is thinking about things as a system A system has form and func%on A system is composed of en%%es Each en%ty has form and func%on The en%%es are related, in both form and func%on Collec%vely a func%on emerges which is greater than the sum of the individual en%%es

53 Prac%cing System Thinking News there are individual news stories, but how do they connect and interrelate? Family what roles do each play, what are the human rela%ons, what is exchanged? Commu%ng what are the elements of form, how do they connect, what are their func%on, how do things move among them? Team at work who are the members, what do they share, what are power rela%onships among them? Your job what are your func%ons, who do you need what from in order to do them, besides yourself, what form is needed to do the job?

54 System Thinking is One Way of Reasoning System Thinking Analy%c Reasoning Cri%cal Reasoning Crea%ve Thinking Decision Making Inquiry

55 En%%es: Rela%onships: Formal Rela%onship Func%onal Rela%onship Instrument Form Func%on Instrument structure Interac%on func%on func%on Form Form

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