MGT603: Systems Thinking Assessment 1 Report - Urmila Basnet

This report, submitted by a student, is a comprehensive assessment of Systems Thinking principles and their application to real-world business scenarios. The report is divided into two parts: Part A presents a proposal identifying operational issues within an inventory management system, specifically addressing challenges faced by Booktopia. The student utilizes system thinking frameworks to analyze these issues and proposes solutions. Part B includes critiques of peer assessments, examining how systems thinking is applied to businesses like Nokia and NMB Bank. The critiques evaluate the effectiveness of the system thinking approaches, tools used, and the overall analysis presented in the peer's work. The report also includes references to relevant literature, providing a solid foundation for the analysis. The report highlights the importance of holistic thinking and the use of system models in addressing complex business problems, offering valuable insights into how system thinking can be used to analyze and solve operational challenges. The report underscores the importance of understanding customer needs, adapting to market changes, and using system thinking tools to enhance business performance. This report is available on Desklib, a platform providing AI-based study tools for students.

Running head: ASSESSMENT 1
Assessment 1
Name of the Student:
Name of the University:

1ASSESSMENT 1
Part A: Proposal individual
Identification of problem
The proposal of this project plan is based on identifying the operational issues related to
the inventory management system. The system approach is provided efficient results when it is
applied to the complex problems of inventory. The system thinking approaches are used to
enhance an understanding of applying system thinking framework to overcome with the
inventory problems. As the operation manager of Booktopia, there is identification of operational
issues. The company has outdated inventory management system as well as manual processes.
There is lack of upgrading of operating processes as well as implementing new technology plus
software. There is lack of efficiency to manage the inventory of the business. Due to change in
customer’s demands, there is changing of flexibility of the distributors. The company is required
to learn and understand needs of the customers.
Rationale on System thinking process
Törmänen, Hämäläinen and Saarinen (2016) stated that system thinking is provided with
existing knowledge as well as experience related to the inventory management system project. It
is used to describe a system thinking approach for understanding with complexity in real world.
Cosenz and Noto (2016) argued that system thinking can enable to manage situations of the
project complexity. It is a mental effort to uncover sources of behavior of proposed system. It is
a way to address complex as well as real problems in the project plan. The purpose of this
literature study is system thinking processes. There is defining of system problems solutions
from side of learning sources. Li, Ren and Wang (2016) mentioned that there is analyzing of
variables and issues are related to the factors by examination of the issues related to the project

2ASSESSMENT 1
variables. There is utilization of problem solving plans and description of the problem solving
methods. In this study, rich picture is used to determine the inventory and operational situations
of the company.
Zokaei et al., (2017) stated that system thinking is focused on relationship among the
components of inventory management system. It is reviewed that the system is dynamic and
helped to understand the behavior of the proposed system. It is a model which is helped to
understand if the system is over time or not. The ways to overcome with the operational
challenges are using product management, refund management and sales management.
Management of the system-thinking is the approach for the management, which is characterized
by the holistic thinking and use the system model. System thinking is the other paradigm to the
more reductionist approach to the inventory management. There are two various processes or
paradigm of the reasoning. The two various processes to the modeling are known as the analysis
and synthesis. Analysis is a standard process of the reasoning, which is used in the mainstream
science, engineering and management while the synthesis is seen as the other process that forms
a foundation, which is known as the system thinking.
Part B: Critique individual
Peer 1
This paper demonstrates the potential relationship with the NOKIA and their customers
and staffs. This paper provides the system thinking approach for the business NOKIA. The
Fishbone diagram provides the product failure issues such as lack of sales buy-in, increased cost,
quality issues, product launch, unclear requirement and development overrun of NOKIA
(Bouwman et al., 2014). By using the system thinking NOKIA will be able to process their

3ASSESSMENT 1
business and can participate in the competition with the advance brands in the market. This paper
provides the issues of NOKIA comparing the brand with the other brand. It is not holistic as the
paper discusses only the issues of NOKIA. Linear cause effect issues are discussed in this report
with comparison of the brands Samsung, Apple etc. This report discusses the type system or
method of the mobile phones. Features of the NOKIA phones are the main disadvantages of this
brand (Vuori & Huy, 2016). Many of the possible consequences are identified in the paper
properly. By understanding the features of the other brands, the brand NOKIA can grow in the
market. In this report, there is a use of system thinking tools used by the brand. By applying the
system thinking tools, the brand can come up with new features to give competition to the other
brands. By using the system thinking tool and analysis, NOKIA can be the valuable brand in the
market, however, the brand failed to identify that NOKIA is not as resilient as they were before.
These tools can provide systematic documentation on the project. These tools are integrated into
nature. These are used to manage the market position with the best features of NOKIA.
Peer 2
This project establishes a strong relation among NMB bank, employees and consumers. It
provides the System thinking approach for this bank (Thagunna, & Poudel, 2013). The diagram
provided in the report clearly describes feedback-taking procedure from the consumers of the
bank. By using System thinking, the bank will progress its business and will become a successful
organization. This report provides an excellent idea regarding the increase in the number of
customers by giving incentives to them. It is very much holistic because the mentioned
procedure can increase the business as well as the consumers of that bank. This report does not
discuss the online customer services of that bank. By using the online services, the bank can
easily collect the feedback from the consumers. It is the main disadvantages of this report. In this

4ASSESSMENT 1
report there is no discussion regarding any system-thinking tool used by this bank. If the bank
uses the system-thinking tool then it will enhance their business. System thinking approach can
track various kinds of modification programs in the bank (Neupane, 2013). By using System
thinking tool, the customer can perform the external as well as internal monitoring. It is entirely
related to the flow of preliminary information. It can be used to maintain proper balance in
between short as well as long-term activities. These tools can provide systematic documentation
on the project. These tools are integrated into nature. These are used to manage the environment
of the bank.

5ASSESSMENT 1
References
Bouwman, H., Carlsson, C., Carlsson, J., Nikou, S., Sell, A., & Walden, P. (2014). How Nokia
failed to nail the Smartphone market.
Cosenz, F., & Noto, G. (2016). Applying system dynamics modelling to strategic management: a
literature review. Systems Research and Behavioral Science, 33(6), 703-741.
Li, C., Ren, J., & Wang, H. (2016). A system dynamics simulation model of chemical supply
chain transportation risk management systems. Computers & Chemical Engineering, 89,
71-83.
Neupane, B. (2013). Efficiency and productivity of commercial banks in Nepal: A Malmquist
index approach. Asian Journal of Finance & Accounting, 5(2), 220.
Thagunna, K. S., & Poudel, S. (2013). Measuring bank performance of Nepali banks: A Data
envelopment analysis (DEA) perspective. International Journal of Economics and
Financial Issues, 3(1), 54-65.
Törmänen, J., Hämäläinen, R. P., & Saarinen, E. (2016). Systems intelligence inventory. The
Learning Organization, 23(4), 218-231.
Vuori, T. O., & Huy, Q. N. (2016). Distributed attention and shared emotions in the innovation
process: How Nokia lost the smartphone battle. Administrative Science Quarterly, 61(1),
9-51.
Zokaei, K., Lovins, H., Wood, A., & Hines, P. (2017). Creating a lean and green business
system: techniques for improving profits and sustainability. Productivity Press.