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Title: Presentazione di PowerPoint Author: Francesco Polese Created Date: 6/6/2005 9:29:17 AM Document presentation format: Presentazione su schermo – PowerPoint PPT presentation

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Title: Presentazione di PowerPoint


1
University of Cassino Faculty of Economy
Viable System Approach - VSA
BUSINESS MANAGEMENT A.A. 2008 -2009 Prof.
Francesco Polese
2
Viable Systemic Approach
Contents
The System Framework
Focus
Systems
Foundations
Formulation
Influences
Perspective
Approach
Business in Systemic Framework
Definition
Related Theories
Environmental Interactions
Evolution
Characteristics
The Viable System
The Viable System
The System
The Structure
Viable System Enterprise
Complexity
Survaival
Intersystemical Relationships
Sovra and Sub Systems
Government
Operating Structure
Viable System Enterprise
3
The Systemic Framework
Focus
The Systemic Framework represents a focused
revolution that shifts the attention from the
parts to the whole, perceiving the truth like
integrated unicuum and integrating of phenomena
in which the individual properties of the single
parts become indistinct, while the relations
between the same parts and the events, that these
generate, assume importance for their reciprocal
interactions.
4
The Systemic Framework
Influences
Biology, Science that studies the various forms
of life conceived as complex and integrated
living systems
Ecology, Science that studies the interactions
between operating systems on our planet
Tectology, Science that studies the structure of
living and non-living systems (A. Bogdanov )
5
The Systemic Framework
Formulation
L. Von Bertalanffy
1. from the elementary components analysis of
a phenomenon it is possible to go back and then
to explain the phenomenon in its entirely
2. the systems general theory is a logical
mathematical framework based on a logical -
formal (reductionism) and heuristic-General
(holism ) approach
6
The Systemic Framework
Foundations
The boundary The border is as a filter for the
input, selecting them and making them consistent
with the system
The events The events are perceived not as
isolated event but as a result of a series of
dynamics reports
The system Any living system is identified as a
sub-system for a more extended system
The context A system can not be studied
separately from its referential context,
The study of phenomena Any phenomenon is not an
isolated event, so it is interpreted through the
interaction between its components and the
environment reference
The structural changes Compared to the context
we observe the ongoing structural changes as
adaptive responses in the system
Environment It is relevant to the objective
sphere, in according to this approach, the
boundary and context concepts are strictly
dependent by observant / observed relationship
and they are the result of perception differences
7
The Systemic Framework
Systems
Open Systems They maintain exchanges with the
energy, matter and information environment
Closed systems They have not matter and / or
information exchanges, but only energy exchanges
The ability to retain its vitality and stability
characteristics even in the non-equilibrium
conditions
Homeostasis
Mechanism that allows to the system to keep
itself into a balance condition through
adaptation, within the limits of its structure
and through information exchanges with the
outside world
Self adjustment
Balance
Ability to provide an appropriate contribution to
the needs of over-reference systems
Possibility to reach a final status starting from
different initial conditions or through
alternative routes
Same aim
Completely open systems The environment
interactions are uncontrolled and unconditional
and the external influences may occur without any
hindrance
Systems partially open (or open / closed) They
are characterized by a barrier (border) to the
system entry that acts as a filter
8
The Systemic Framework
Perspective change
In system framework, it is needed to focus the
attention on the characters together rather than
on the parts characteristics and on its component
sections.
The shift of perspective observation, from the
items (a) to the reports (b)
9
The Systemic Framework
Approach
  1. It is not a formalized and structured discipline
    (unlike a theory)
  1. It is a pervasive and interdisciplinary concept
    (as a philosophy of various disciplines)
  1. It is a continuum between the analytical
    riduction reality approach and the holistic view
    of the phenomena

10
Business in Systemic Framework
Business Definition
The enterprice is a system with its purpose and
it aims to survival.
Enterprise as an open system, immersed in the
environment, with which it interacts exchanging
information, matter and energy.
It is aa complex system of interacting elements
rationally connected
The enterprise is an open system, aimed, organic,
autopoiethic, cognitive, cybernetic
Biology the environment is a complex (full of
knowledge, resources and activities), in which
the enterprise is encouraged to selective
mechanisms to increase its complexity and align
it in an orderly and balanced external complexity
From cybernetics it comes the idea to interprete
the enterprice as a system capable of self
control homeostatic
It is characterized by a life cycle similar to
that of living organisms, which pursues own
survival in a selective environment
The cognitive approach suggests that the main
source of value creation lies in knowledge and
stresses the importance of learning mechanisms
10
11
Business in Systemic Framework
Characteristics
It has several components
It respects the interdependence and communication
concept
Enterprise
It respects the concept to a common finality
12
Business in Systemic Framework
Historical evolution
By Fordist Business
To Viable System Business
Business black box
Viable Business (the role of social
responsibility)
There is greater vitality for the sub-operating
system
The organizational units are as micro-business
viable systems
There is a government of more distinctive
competences originated from organizational units
Customer-supplier Logic
13
Business in Systemic Framework
Environmental Interactions
Synthesis of over systems interacting with viable
business
Environment
Resources
Products with tangibility and intangibility
characteristics
Capacities
Output
Input
Energy
Skills
Openness Degree
It depends by several factors of enterprise and
it is determined by the Government
14
Business in Systemic Framework
Environmental Interactions
Synthesis of over systems interacting with viable
business
Environment
Impacts
Indirect
Direct
Social economic elements
Exchange relationship
Political elements
Cultural elements
15
Business in Systemic Framework
Environmental Interactions
Synthesis of over systems interacting with viable
business
Environment
Government Decisions oriented by sustainable
development
Social responsibility
Business and entrepreneur search social legitimacy
Corporate Social Responsibility
16
Business in Systemic Framework
Related Theories
The environment is a stakeholders set with
interests and influence power
Stakeholders Theory
Primary and secondary Stakeholders
Finding resonance with Stakeholders
The environment is a complex phenomena that
periodically determine the adaptive and
responsive attitudes of enterprise
Contingencies Theory
Environmental dynamics monitoring
The environment is a set of sources from which
the company draws substantial resources for their
survival
Dependencies from external Resource Theory
The resources are limited because they have a
cost and they are contended
Importance of enterprise ability to influence the
environment
17
The Viable System
The Structure
The structure is a set of elements in which
roles, activities and tasks, in respect of rules
and constraints, are assigned to specific
elements. These elements are in relation with
themselves to can achiev a common goal through
the implementation of a system.
18
The Viable System
Structure Development
19
The Viable System
Tipologies of Structure
20
The Viable System
Structure Characteristics
  1. It is a Set of tangible and intangible materials
    that the Government designes and realizes
  1. It is Composed by components and connection
    relations.

3. Its components are static. They become active
if they are addressed and guided by the Government
4. The physical structure (related to static
moment) differs from the expanded structure
(related to potential relationships with external
physical structures)
5. A certain logical structure can be concretized
into a variety of physical structures
21
The Viable System
Structure Elements
The set
Human and technical factors
The components
Role, activities and tasks for a common purpose
The aim
Survival
Structure Instruments
Relationships
Communications network
Constraints and behavior rules
Interaction
22
The Viable System
The System
The system is a physical structure, with physical
components (each one has a role), considered as a
qualification of default logic components,
interacting with each other, oriented to a
specific purpose
23
The Viable System
System Development
Definition of Specific Organizational Scheme
System
Structure
Interaction
Relationship
Activation of Relations
24
The Viable System
System Evolution
to whole
Business System
Business Idea
Specific Organizational Scheme Widened Structure
General Organizational Scheme
Physical Structure
Logical Structure
from parts
25
The Viable System
The Viable System
The viable system is a system that survives,
remains united and it is integral it is
homeostatically, internally and externally
balanced and also it has mechanisms and
opportunities to grow and to learn, to develop
and to adapt, (i.e. to become increasingly
effective in its environment)"
25
26
The Viable System
Viable SystemAreas
Action Area (operations)
Viable System has the capacity of isotropy
27
The Viable System
Viable SystemAreas
28
The Viable System
Viable SystemAreas
29
The Viable System
Viable SystemPostulates
  1. The enterprise is an open system inserted in a
    context ( "read" by the government)

2. Companies (industrial, commercial, services)
have the same identity
3. The Government analyzes and meets the
expectations and motivations of sub-systems and
over-systems
4. The interaction with the over-systems towards
a single system with shared aims and values
30
Viable System Enterprise
Complexity
Reality Interpretation about major phenomenon,
events, interdependencies, risk
Compared to Government
Exhibition of events
Phenomenon Randomness
Influence by several external Actors
The phenomenon can not be only partially
understood (interconnections and
interdependencies, multiplicity, variability,
circular cause-and-effect )
Compared to Sistemic Framework
The observer is not outside nor neutral
Partial and approximate knowledge and not final
and complete
From complexity discovery to the complexity
method
31
Viable System Enterprise
Complexity
Possible variations with which the phenomenon
appear to the observer
Variety
The Complexity size
Other varieties that can appear with pass of the
time
Variability
Ability to understand the phenomenon in its
entirety
Vagueness
Characteristics of phenomenon differentiation
Aspects of identified character
Variety
Attributes that explane the effects
Elements Abundance and interdependencies
New attributes previously unknown
Variability
Changes that affect the quantitative measure of a
phenomenon
32
Viable System Enterprise
Complexity
Personal Understanding of variety
33
Viable System Enterprise
Complexity
Complexity Model
Vagueness
Ignorance Area
Knowledge Area


0
Comprehensible
non Comprehensible
Observer personal understandig of variety
34
Viable System Enterprise
Instersystemical Relationships
They have imperative nature and general validity
Constraints
They achieve technical requirements aimed at
collective interests (regulation)
They derive from the government will to link the
business System to one or more entities
(self-regulation)
Rules
Standards
Result of activation of a structural relations
Relationships
A single relation can produce different
interactions
35
Viable System Enterprise
Instersystemical Relationships
System Potentiality, derived by a capacity of the
structural framework to deal with the outside
Opening Capacities
Government Decision decides how to adjust the
capacity utilization of openness inherent in the
structure
Opening Degree (Level)
Compatibility between systems able to allow the
business System, its sub-systems and its
over-systems can relate and connect with
themselves
Consonance
Harmony and effectiveness in interacting systems
Resonance
Ideal Development of Consonance
Acceleration of consonance (related to dynamic
moment)
36
Viable System Enterprise
Survival
Capacity of adding value to generate competitive
advantage
Conditions
Consonance with over-systems
Consonance between sub-systems
Resonance with over-systems
Resonance between sub-systems
Resonance Level
36
37
Viable System Enterprise
Survival
Capacity of external System to influence
prospects for business survival
Systemic relevance
Identification and description of individual
resources
Resources Mapping
Qualification of critical attributes and influence
Allocation of weights
Identification / classification entities
Qualification and selection of relations with
external systems
Identification and classification of entities
Assessment of their relevance
Interpretation of constraints / rules
Setting consistent targets
38
Viable System Enterprise
Over-Systems and Sub-Systems
Mutual reinforce between Direct and indirect
Over-Systems
DIRECT OVER-SYSTEM
of S1
Influence
Expectations
Prizes/ Endorsements
Feed-back from indirect over-system
SYSTEM S
1
Influence
Expectations
Prizes/ Endorsements
Prizes/ Endorsements
Indirect over-system of S1 e Direct Sub-System of
S1
DIRECT SUB-SYSTEM
of S1
Expectations
39
Viable System Enterprise
Government
The Government is an expression of Property
decisions. The government effectiveness depends
by its ability to select managerial competents
The Government dynamic is influenced by
over-systems and sub-systems. If they are
dissatisfied, they can influence the
decision-making
The kind of relationship between Property and
Government can influence the conformation of the
Government and establishe the level of autonomy
The Government must seek to establish harmony and
resonance conditions with over-systems and
sub-systems
40
Viable System Enterprise
Governmental Decisional Processes
Total Resonance Level
two conditions
Government Decisional Processes Effectiveness
Operating Sub-System Effectiveness to give
strategical guidelines
40
41
Viable System Enterprise
Governmental Decisional Processes
PROPERTY
Government
OVER-SYSTEMS
OPERATING SUB-SYSTEMS
Decisional Processes
Action Effectiveness
41
42
Viable System Enterprise
Governamental Actions
Necessity of government and its entrepreneurial
skills
Necessity of Government to gain legitimacy and
leadership
The Ability of government to deploy their
creativity is dependent by intra and
inter-systemic relationships
Government action is a set of decisions capable
to change the operating structure and its
evolution
42
43
Viable System Enterprise
Governamental Actions
44
Viable System Enterprise
Operating Structure
The Operating Structure is the logical component
necessary to translate the Government decisions
into action and to achieve consonance / resonance
44
45
Viable System Enterprise
Evolution Dynamics
Adaptations related to the relations change of
components in constancy of the principle and
defined organizational scheme
Governament Actions
Trasformations related to actions that affect on
defined organizational scheme
Restructuring concerning actions that change the
principle organizational scheme (physiological),
or the business idea as identity (patological)
45
46
Viable System Enterprise
Evolution Dynamics
Preliminary Decisions
Preparation of the principle organizational scheme
Choice of structural components
Relations setting
Government Decisions
Governmental Decisions
Definition / Modification of specific structure
Definition / Modification of the defined
organizational scheme
Operative Decisions
Structure Using
Monitoring and Feedback
46
47
Viable System Enterprise
Evolution Dynamics
Structure Costs
qualified for the strategic value of the
corporate goals without considering the choices
about the acquisition, transfer, negotiation and
/ or remuneration
Costs
Use of Structure Costs
qualified on the base of the specific options
concerning the efficiency use of a particular
resource
47
48
Viable System Enterprise
Conclusions
The Cycle of vitality
STRUCTURE
INCORPORATION
context
Governmental Centre
VALORIZATION
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