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The Problem Situation In Systematic Thinking Commerce Essay

This paper will analyze BAJ jobs by utilizing system believing. First, a job state of affairs will be explained, so metaphors and paradigms, which look at an organisation from different facets will be described. Then it will place the appropriate system methodological analysis by utilizing SOSM. Lean system will be explained in inside informations to work out jobs.

Problem Situation

Bank Al-Jazira ( BAJ ) was established in 1974. Although it is the smallest bank in Saudi Arabia, it has been a leader of Saudi Stock Market over the last 8 old ages. In 2006, Saudi Arabia Monetary Agency, as a cardinal bank, forced all Bankss to subsidise investing activities in order to command them under the Capital Market Authority, so rivals started to put up concern.

Increasing rivals ( from 12 to 100 companies ) led BAJ to confront a batch of jobs in footings of keeping market portion ( Figure1 ) . The chief issue is a deficiency of supplying good services to pull new clients. The cyberspace trading system ( TadawulCom ) , for illustration, is the most accepted merchandise in the market and about 35 % of BAJ net income comes from TadawulCom in 2007, whereas merely about 19 % in 2009. This job is recognized when the clients first come and have to wait for services. Customers demand more services and merchandises in less clip, less attempts and at a good monetary value. So, BAJ should understand clients ‘ demands in order to increase efficiency.C: UsersMajed Al ThagafiDesktopMarket share.jpg

Metaphors and Paradigms

Flood and Jackson ( 1991 ) explained that in order to understand how work works, we should understand metaphors foremost. As Morgan ( 1986, p.13 ) explained why we need that? “ We use metaphor whenever we attempt to understand one component of experience in footings of another ” . Thus, “ metaphors are highly good at leting us to research our ain universe position and to help with originative thought ” ( Jackson,2003, p.33 ) .

Jackson ( 2003 ) listed nine metaphors through which we can see our organisation, viz. , machines, beings, encephalons, flux and transmutation, cultures political systems, psychic prisons, instruments of domination and carnivals.

This non plenty to understand any jobs without utilizing paradigms as Jackson ( 2003, p.38 ) said “ without adding paradigm creativeness to metaphor creativeness, it would be excessively easy to take a set of metaphors that fit good together ” . Therefore, he pointed out four paradigms that affect our organisations, which are the functionalist, interpretative, emancipatory and postmodern paradigms. The functionalist paradigm is used to understand how each portion in the system works by utilizing scientific direction in order to make a high degree of efficiency, effectivity, endurance and version, while the interpretative expressions for reading between people in order to portion corporate civilization and increase committedness and working life quality. BAJ has jobs in the functionalist paradigm, which will be considered in the undermentioned paragraphs, including machine, being and encephalon metaphors ( Figure2 ) .

Machine metaphors:

In the 1910s, Talyorism and bureaucratism emerge, which identified a specific map by utilizing everyday and standard activities in order to accomplish more efficiency. This efficiency is measured by accomplishing predetermined ends and is the most extremely valued property. As Jackson ( 2003, p.34 ) said, “ It represents organisations as rational instruments designed to accomplish the intents of their proprietors or accountants ” .

The chief failings are that covering with fragments gives organisation a certain manner of seeing the person instead than the holistic facet. Using policies and processs, through specific communicating channels that could do the jobs worse are makes the system closed. In add-on, this type of organisation efforts to place occupation descriptions and related duties, which leads employees to believe egotistically like “ It is non my occupation to worry about that ” or “ this is his duty, non mine ” ( Morgan,1986 ) . As consequence, disregard of persons is recognized in this organisation ( Jackson,2003 ) .

There are many indexs that BAJ applies machine metaphor such as:

Annual mark is set at the beginning of the twelvemonth and direction takes it the footing of public presentation measurement.

TadawulCom is straightforward with insistent process.

BAJ is considered as a stable environment because everyone has a clear aim.

Organism Metaphor:

Many authors such as Morgan ( 1986 ) , Jackson ( 2003 ) and Flood and Jackson ( 1991 ) explain that the being metaphor looks at the whole organisation. It is the thought of an unfastened system whose elements work together in order to last by accommodating to environmental perturbations. Jackson ( 2003, p.34 ) says direction manner “ dramas near attending to the demand of the environment and ensures that subsystems are run intoing the organisations ‘ demand ” . It is related to Human Relations theory, which considers persons as a drive force for an organisation by actuating them in order to work efficaciously.

However, some unfavorable judgments are that persons and groups may non hold the same intents as the whole organisation. The focal point on alteration in order to accommodate instead than development can conceal struggle between sections. By using this metaphor in BAJ, We should see two factors, environment and client demand. Both factors are of import that BAJ should alter to last.

Brain Metaphor:

Jackson ( 2003 ) highlighted the importance of larning to larn in this metaphor, which emphasises active acquisition and control. He considered that decision-making, information procedure and control are the most influential factors. Flood and Jackson ( 1991 ) indicated that this type of organisation seeks to accomplish its end based on larning with back uping creativeness, invention and group working. This metaphor works in BAJ in some sections such as R & A ; D and to some extent in the client services section.

As a consequence, it is clear that there are two facets which should be covered, increasing efficiency by looking at the organisation through the machine metaphor as dominant and run intoing clients ‘ demand is illustrated by the being metaphor, which emphasises facets of adaptability, as the dependent metaphor.

System of System Methodologies ( SOSM )

“ A system of systems methodological analysiss is developed as the interrelatedness between different methodological analysiss is examined along with their comparative efficaciousness in work outing jobs in assorted real-world job contexts ” ( Jackson and Keys,1984, p.473 ) . So, Jackson ( 2003 ) simplified SOSM as an ‘ideal-type ‘ for understanding the complexness of systems and diverseness of participant who are interested in the jobs state of affairs ( Table1.0 ) .

The horizontal axis, participants are classified in three types:

Unitary participants have the same values, beliefs and involvements. Agree on determinations without statements.

Pluralist participants have to make consensus at least temporarily, but after disbursement ages in argument because of the differences in their values and beliefs.

Coercive participants use power to do a determination because of strong values and beliefs which lead to conflict most of the clip.

The perpendicular axis, systems is divided to two types:

Simple systems have few sub-systems which have stableness over clip. The integrating between sections is low.

Complex systems consist of many parts that are extremely integrated.

By using this analysis to BAJ, it appears the participants are unitary because they portion the same values and beliefs in order to accomplish their one-year mark. On the other manus the system in non really complex, particularly in TadawulCom, because there are four sections involved in this procedure. As mentioned above, TadawulCom is the nucleus concern in BAJ which will impact the whole organisation. Therefore, the most utile system to utilize is the Thin System methodological analysis in order to increase efficiency, which affects the whole organisation and accomplish client satisfaction as “ LS can give efficiency additions and betterments in services public presentation, client satisfaction and staff morale ” ( Jackson et al.,2008, p.186 ) .

Thin System Methodology

Thin overview

The thin system translates TOYOTA ‘s attack from fabricating industry to service companies ( Vanguard,2009 ) . Toyota attack was developed to bring forth vehicles to run into client demands by understand their ability. Therefore, capacity was measured to understand the relation between mark and public presentation by utilizing Ohno ‘s axiom, capacity = work + waste ( Gregory,2007 ) . Therefore, the purpose of Seddon ‘s attack is to redesign the procedure in order to accomplish better services and lower cost by cut downing waste. Gregory ( 2007, p.1508 ) emphasised that “ Directors need to concentrate on eliminating failure demand and bettering the ability of the system as a whole to heighten the client experiences ” .

Thin system is based on the whole system from client ‘s position, which should include terminal to stop procedure in order to accomplish client satisfaction ( Jackson et al. , 2008 ) . It consists of three phases, viz. , look into, program and make ( Figure3 ) .

Thin System Stages

Check Phase:

Seddon ( 2008 ) explained the importance of this phase as assisting directors to acquire knowledge about “ what and why ” of current public presentation of the system from client ‘s point of position. It takes a long clip to detect and understand how the work works. He pointed out five stairss that should be implemented to understand “ what and why ” :

Measure 1: What is the intent of the merchandise?

This measure is to place our merchandises from clients ‘ position and the current system ( Seddon,2008 ; Jackson et al.,2008 ) . TadawulCom is an Internet trade system that provides the right merchandises, which should be easy and fast trade, to the right clients through a good service every bit rapidly as possible. Three phases can be seen ( Figure4 ) from the whole TadawulCom procedure ( terminal to stop ) that start from clients through the petition procedure until the bringing phase.

Measure 2: What are the types and frequences of demand?

Jackson et Al. ( 2008 ) explained that differentiation between ‘value demand ‘ and ‘failure demand ‘ is indispensable and Seddon ( 2008 ) explained the grounds, which are to understand the cause of fluctuation and to cognize what makes terminal to stop procedure take a long clip.

Value demand is the nucleus service to clients that BAJ should supply, whereas the failure demand is everything that fails to run into clients ‘ demand first clip. Two channels are implemented to supply TadawulCom to our clients which are client services and the cyberspace ( online ) . However, name Centre is a back uping tool that clients can utilize for questions or to track their petition ( Figure5 ) .

It is clear that 40 % of our demand is value demand so it is necessary to understand the procedure and survey predicted demand in order to develop a procedure that fits client ‘s demand. However, approximately 60 % is failure demand in both channels. More work is required in order to work out these jobs such as make fulling the signifier, tracking the order and the activation day of the month which should be clear to the client when he/she marks a contract to cut down waste clip. International trade is considered as a predicted demand.

Measure 3: How good does the system respond to demand?

In this measure, current system response should be assessed by a capableness chart ( Seddon,2008 ) . Figure 6 shows the assortment of our system responses to clients ‘ petitions. It was non clear that our response has jobs because our mark was achieved. In fact, instance figure 8, for illustration, was due to the system being down and cipher cognizing eventuality program. In add-on, rivals imposed force per unit area to cut down our mark to run into client satisfaction. Gregory ( 2007, p.1509 ) emphasised that “ the client should be taken as a system boundary ” . So, the challenge is to alter system capablenesss based on client ‘s demand and rivals in order to cut down assortment as possible.

Measure 4: Analyzing flowC: UsersMajed Al ThagafiDesktopCapability chart.jpg

Function is really of import at this phase. Seddon ( 2008 ) explains it is a error for directors to travel directly to mapping without analyzing demand and public presentation. The current flow ( Figure7 ) shows why BAJ tends to take stairss that affect public presentation indirectly by adding waste. It illustrates how clients request flow through the system which clears that map and the processs that take topographic point in this procedure. There are three classs that clients could travel through ( Table2 ) . Most database clients are those who ask for fee decreases whereas 32 % go straight through the smooth stairss, but the capableness chart ( Figure6 ) shows the mean as 1.5 yearss, whereas the mark is 45 proceedingss. Therefore, the nucleus system should give value to clients and the remainder is considered as waste. The chief intent of the system is to acquire TadawulCom to the right clients but we can see the fee decrease procedure delays the procedure.

Degree centigrades: UsersMajed Al ThagafiDesktopProcess flow chart table.jpg

Degree centigrades: UsersMajed Al ThagafiDesktopProcess flow chart Print V.jpg

Measure 5: Understanding system conditions

By understanding our system conditions, such as steps, functions, process and so on, the activities should be divided into four classs to place the waste the systems creates ( Jackson et al. , 2008 ; ODPM,2005 ) ( Table3 ) .

BAJ ‘s directors believe in the mark as the best manner of measuring. However, if they need to better the system, they should “ disregard the world that the mark and other steps might be the very causes of sub-optimisation ” ( Seddon,2008, p.81 ) .

Redesign Phase: “ Plan and Make ” :

‘Plan ‘ and ‘Do ‘ are two separate phases in the rhythm of thin system, but both are considered as redesign phases ( Jackson and Gregory,2008 ) . ODPM study ( 2005, p.37 ) introduced the purpose of this phase: “ The intent of the system is revised following cheque and possible alterations to run into the revised intent are identified, tested and implemented. ”

Revised Purpose

Rethinking is indispensable portion because it will “ ordain alteration and step public presentation ” ( Jackson et al. ,2008, p.191 ) . Therefore, our new intent is ‘Not merely selling the right merchandise that adds value to client, from first clip, but to make a strong committedness with client in long term in order to accomplish client ‘s trueness ‘ .

Principle of redesign

“ This is counsel to future alteration ” ( Jackson et al.,2008, p.191 ) which includes points back uping the new vision such as:

Redesigning TadawulCom in order to run into client demand on the one manus and rivals on the other.

Making the value work and minimising the waste ( Table3 ) .

Keeping clients informed: 2nd call from client is consider as failure demand.

Using IT and CRM to better the communicating between sections.

By understanding the current state of affairs in the cheque phase, the intent of the system in the program phase is to plan appropriate system that focus on the client ‘s demands ( Figure8 )

Degree centigrades: UsersMajed Al ThagafiDesktopRedesign Process flow chart Print V.jpg

This Flow chart leads to the undermentioned points:

Increase efficiency from 32 % targeted clients to 89 % targeted clients by cut downing fees and giving everyone the same monetary value will take to cut down ailment calls and overhead work.

Retrieve client ‘s informations from the system instead than inquiring them to make full a signifier, which reduces waiting clip.

Giving Relationship Manager more authorization to cover with clients which increases efficiency by cut downing waiting clip for subdivision director to reexamine.

Generate TadawulCom UserID from system straight without inquiring clients to make it on the web site, thereby cut downing question about utilizing website enrollment.

Activate eventuality program that can supply services manually in instance of system down.


Measures are “ established to measure public presentation against the revised intent ” ( Jackson et al. , 2008, p.192 ) . Therefore, the Quality Control Department is involved in measuring whether new system achieves client satisfaction or non by:

Measure the whole clip ( stop to stop )

Customer satisfaction.

The figure of petitions non completed first clip.

Redesign experimentation

The intent of this measure is “ to discourse issues originating with those making the work and the clients ” ( Jackson et al.,2008, p.192 ) . It concerns “ whether it works, what jobs arise and how the redesign fits with remainder of the system ” ( ODPM,2005, p.40 ) .

Therefore, some issues should be considered as a barriers e.g. increased demand is expected which needs preparation to cut down misinterpretation and guarantee work is done right first clip. Working with the legal section is to happen a solution for the TadawulCom signifier.

Redesign – Management ‘s altering function

“ Attitudes and outlooks of staff non straight involved demand to be carefully managed ” ( Jackson et al. , 2008, p.193 ) . So, directors should understand the alteration and accept it by believing in a different manner and back uping employees to accomplish client satisfaction, “ To aline the administration ‘s functions, steps, constructions and support procedures to the value work identified ” ( ODPM,2005, p.41 ) .

Criticism Lean System

Many authors such as Seddon ( 2008 ) , Jackson and Gregory ( 2008 ) and Gregory ( 2007 ) addressed some unfavorable judgments. First, thin system does non cover those clients who have conflicting demands. Second, it pays more attending to maps than analyzing civilization or political relations. The system ‘s ability could be reduced by utilizing thin system.


This assignment has explained the metaphors and paradigms related to BAJ jobs ( losing market portion ) in order to increase efficiency and better public presentation. However, if the BAJ gets bigger, we should take the political relations metaphor into history in order to cut down struggle among employees and assist them understand each other by utilizing SSM systems.

By utilizing SOSM method, thin system methodological analysis examined BAJ ‘s job with TadawulCom through three phases ‘Check ‘ , ‘Plan ‘ and ‘Do ‘ . It clear that much waste exists in the current public presentation and thin system eliminates this waste to maintain clients satisfied.


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