UNIT V SYSTEM THINKING

OME354 APPLIED DESIGN THINKING

Dinesh R, AP, CSE

Stella Mary’s College of Engineering
 UNIT V SYSTEM THINKING
System Thinking, Understanding Systems, Examples and
Understandings, Complex Systems
Introduction to System thinking

● In Thinking in Systems: A Primer by Donella H.

Meadows, systems thinking is defined as a way to view
the world that recognizes the interconnected nature
of elements within any system, from economies and
ecosystems to organizations and processes.
● Systems thinking moves beyond simple cause-effect
analysis to understand the dynamics of feedback loops,
interdependencies, and the often complex behaviors
that arise from the structure of systems themselves.
● A core aspect of systems thinking involves examining
how individual components interact within a network
and contribute to a system's behavior. This approach
allows us to see beyond isolated events, analyzing
patterns and potential leverage points where small
changes can lead to significant impact.
● Systems thinking also emphasizes the concept of
"feedback loops," where outcomes of certain actions
within the system influence future behavior. These loops
can reinforce behaviors (positive feedback) or
counterbalance changes (negative feedback),
contributing to a system's resilience or fragility
5. 1 System Thinking
● Systems Thinking is a holistic approach to
understanding how parts of a system interrelate and
how systems work over time and within the context
of larger systems.
● Developed extensively in Thinking in Systems by
Donella H. Meadows, systems thinking focuses on
understanding the dynamics of complex systems,
including feedback loops, interdependencies, and
emergent behavior. It is especially useful for tackling
complex, real-world problems where traditional, linear
approaches may fail.
Key Components of Systems Thinking

● Elements (Parts of the System)

● Interconnections (Relationships between Parts)
● Purpose (Function of the System)
● Feedback Loops
● Stocks and Flows
● Delays
1. Elements (Parts of the System):

• Elements are the individual components that make up

a system.
• In a business, for example, elements may include
employees, processes, machinery, and policies. The
focus is on how these parts work together within the
system rather than examining each part in isolation.
2. Interconnections (Relationships between Parts):

• Interconnections are the links or relationships between

elements. These relationships determine how elements
interact.
• For example, in a supply chain, the relationship
between suppliers, manufacturers, and retailers
forms the interconnections that affect overall
performance.
3. Purpose (Function of the System):

• Every system has a purpose or function that drives

its behavior. This purpose can be explicit, like the
mission of a non-profit, or implicit, like the goal of profit
in a business setting.
• The purpose is often a product of the system's design
and interactions rather than being directly controlled by
any single element.
4. Feedback Loops:
• Feedback loops are mechanisms within a system where
outputs from one part affect inputs to another, creating
cyclical behaviors. There are two main types:
• Positive Feedback Loops: Reinforce or amplify changes,
often leading to exponential growth or decline. For instance,
in financial markets, rising stock prices may attract more
investors, further increasing prices.
• Negative Feedback Loops: Counteract or stabilize
changes, keeping the system in balance. For example, a
thermostat adjusting a heater to maintain a set temperature
is a classic negative feedback loop.
5. Stocks and Flows:

● Stocks are the elements that accumulate over time,

such as water in a reservoir, people in a workforce, or
money in savings.
● Flows represent the rate of change of stocks, like the
rate of water entering or leaving the reservoir or the rate
of hiring and attrition in a workforce.
6. Delays

• Delays are time lags between actions and their effects

within the system.
• They are common in complex systems, such as the
delay between implementing a new policy and seeing
its impact on productivity.
• Delays can make systems harder to manage and
control.
5.2 Understanding Systems
● Understanding Systems involves recognizing that
systems are made up of interconnected elements
working together to achieve a specific purpose or
outcome.
● Systems thinking views these connections as essential
to the system's behavior, highlighting that systems often
produce results that are different from the sum of their
parts due to complex interactions, feedback loops, and
emergent properties.
In a city beyond Ghor, all the people were blind. One day, a king came near the
city with his army and set up camp in the desert. The king had a large elephant,
which he used to impress people. The blind people of the city became curious
and wanted to "see" the elephant. Some of them rushed to find it.
Since they couldn't see, they tried to understand the elephant by touching it.
Each person touched a different part of the elephant and thought they
understood what it was.
One person touched the elephant's ear and said, "The elephant is big and flat,
like a rug."
Another touched the trunk and said, "No, it’s like a long, hollow pipe."
A third person felt its leg and said, "You’re both wrong. The elephant is strong
and solid, like a pillar."
Each person had only touched one part of the elephant, so each had a different
idea of what it was like. But none of them had the whole picture.
This old Sufi story teaches us an important lesson: You can’t understand how a
system truly works just by knowing its individual parts.
Key Aspects of Understanding Systems

1.Components of a System
2.Types of Systems
3.Feedback Loops
4.Stocks and Flows
5.Boundaries
6.Emergent Properties
1.Components of a System:

● Every system consists of elements, interconnections, and

a purpose:
● Elements: These are the individual parts or entities that
make up the system, such as employees in a company,
species in an ecosystem, or nodes in a computer network.
● Interconnections: The relationships or interactions
between elements define how they work together, like rules,
processes, communication pathways, or resource flows.
● Purpose: A system’s purpose is its intended function or
goal, often driving the behavior and interactions of the
elements within it. For example, the purpose of an
ecosystem is to sustain life, while the purpose of a
business is often to generate profit.
2. Types of Systems:

• Systems can be categorized in different ways

based on their complexity and nature of
interactions:
• Simple Systems: These have straightforward
relationships with predictable outcomes, like a
mechanical system where each part has a clear,
defined role.
• Complicated Systems: While more complicated than
simple systems, complicated systems still exhibit
predictable behaviors if each element is fully
understood, like an airplane.
• Complex Systems: In complex systems, interactions
between elements are dynamic, and behavior is often
unpredictable. Examples include ecosystems,
economies, and social systems.
3. Feedback Loops:

• Feedback loops are mechanisms where changes in one

part of the system impact other parts, creating a cyclical
effect that either reinforces or stabilizes system
behavior:
• Positive Feedback Loops: Amplify change, often

leading to exponential growth or decline. For

example, in social media, viral sharing can lead to
rapid growth in content reach.
● Negative Feedback Loops: Counterbalance change,
creating stability. For instance, a thermostat uses
negative feedback to maintain a set temperature.
4. Stocks and Flows:

• Stocks: These are quantities that accumulate within a

system, such as water in a reservoir, people in a
community, or money in a bank account.
• Flows: Flows are the rates at which stocks increase or
decrease, like rainfall filling a reservoir or withdrawals
depleting a bank account.
• Understanding stocks and flows helps analyze how
changes propagate through a system over time.
5. Boundaries:

• A system’s boundaries define what is included within

the system and what is considered external. Boundaries
help to focus on relevant components while recognizing
that outside factors can still influence system behavior.
For example, in a healthcare system, boundaries may
include hospitals, providers, and patients but exclude
unrelated entities like grocery stores.
6. Emergent Properties:

• Emergent properties are behaviors or characteristics of

a system that arise from the interactions of its parts but
are not properties of any single element. For instance,
traffic patterns are an emergent property resulting from
the actions of individual drivers.
Behavior of Systems

1. Adaptation and Self-Organization

2. Resilience
3. Leverage Points
1.Adaptation and Self-Organization:

• Systems often adapt or self-organize in response to

external pressures, optimizing themselves for better
resilience or efficiency.
• For example, ecosystems adapt to environmental
changes, and social systems may self-organize through
collaborative networks.
2. Resilience:

• A system’s resilience is its ability to absorb disturbances

and maintain functionality.
• Systems with strong feedback mechanisms and
adaptability tend to be more resilient, capable of
withstanding shocks or changes without losing their
essential properties
3. Leverage Points:

• Leverage points are places within a system where a

small change can have a large impact. Identifying
leverage points, such as policy changes or
technological interventions, enables more effective
management of the system’s behavior.
5.3 Examples and Understandings
● "A Brief Visit to the Systems Zoo" introduces several common
types of systems to help readers understand foundational system
structures and behaviors through practical examples. Here are
some examples described in the "Systems Zoo" that illustrate how
different types of systems operate:
1. Thermostat System (One-Stock System with Balancing
Feedback)
2. Population and Industrial Economy (Stock with Reinforcing and
Balancing Loops)
3. Car Dealership Inventory (System with Delays)
1. Thermostat System (One-Stock System with Balancing
Feedback)
● The Thermostat System is a classic example of a
one-stock system with balancing feedback. This
type of system is often used to illustrate how feedback
loops work to maintain stability by counteracting
changes, ensuring the system remains at a desired
level. Here’s a detailed breakdown of how the
thermostat system works, along with the principles of
systems thinking it demonstrates.
Key Components of the Thermostat System
1. Stock:
• In this system, the stock is the room temperature. Stock
refers to the quantity that the system is trying to regulate.
The thermostat system’s goal is to maintain this temperature
at a certain set point.
2.Set Point (Desired Temperature):
• The set point is the target temperature the system aims to
achieve. Users set this temperature, for instance, to 22°C
(71.6°F). The thermostat continuously monitors the actual
room temperature, comparing it to this desired temperature.
3. Sensor (Thermostat):
• The thermostat acts as a sensor in the system. It
continuously measures the room temperature and
compares it to the set point. When the room
temperature deviates from the set point, the thermostat
initiates feedback actions to correct this deviation.
4. Heating Element (Furnace):
• The heating element, often a furnace, responds to
signals from the thermostat. If the temperature drops
below the set point, the thermostat signals the furnace
to turn on and heat the room. When the room
temperature reaches the set point, the thermostat
signals the furnace to turn off.
4. Feedback Loop:
• The thermostat system relies on a balancing
(negative) feedback loop to keep the room
temperature steady. This loop counteracts changes by
adjusting the furnace's operation based on temperature
readings, bringing the room back to the set point.
How the Thermostat System Works

1. Monitoring and Comparison:

● The thermostat continuously measures the room
temperature. It compares the current temperature with
the desired temperature (set point).
2. Activation of the Furnace:
● If the room temperature falls below the set point, the
thermostat sends a signal to activate the furnace. The
furnace then heats the room, raising the temperature
back toward the desired level.
3. Feedback and Adjustment:
• As the furnace heats the room, the room temperature
gradually approaches the set point. Once the
temperature reaches the set point, the thermostat sends
a signal to the furnace to turn off, stopping further
heating.
4.Balancing Feedback Loop:
• The thermostat system forms a balancing feedback loop
because it constantly seeks to eliminate any difference
between the actual room temperature and the set point.
If the temperature rises above the set point, the furnace
remains off until the room cools back down to the
desired temperature, at which point it may turn on again
if needed. This back-and-forth action keeps the
temperature stable around the set point.
Systems Thinking Concepts Illustrated by the
Thermostat System
1. Balancing Feedback Loop:
• The thermostat system is an example of a balancing
feedback loop, where actions are taken to reduce
deviations from a set point, stabilizing the system.
Balancing loops are crucial for maintaining stability in
various systems, such as ecological, economic, and
mechanical systems.
2. Delayed Response:
• There is a delay between the time the thermostat
activates the furnace and the time it reaches the desired
temperature. Similarly, once the furnace turns off, the
room may cool slowly before the thermostat turns it
back on. This delay can cause slight oscillations in the
system, where the temperature fluctuates just above
and below the set point.
3. Self-Regulation:
• The thermostat system is a self-regulating system. It
requires no external intervention once the desired
temperature is set. The thermostat automatically adjusts
the furnace's operation to maintain the set temperature,
exemplifying an autonomous system capable of
maintaining homeostasis.
4. Negative Feedback:
• The thermostat system relies on negative feedback to
counteract deviations from the desired temperature.
Negative feedback is a stabilizing force in systems and
is essential for achieving equilibrium.
5. Set Points and Stability:
• The thermostat’s set point serves as a target for the
system, providing a specific goal that the system
continuously works to achieve. This principle applies
broadly, as many systems have targets or optimal
conditions they seek to maintain, such as ecosystems
maintaining balance or businesses aiming for certain
performance metrics.
Reference
● https://youtu.be/hCpDdrSVWdU?si=Q3GmYsJudaHIm4FG
Thank you!