Application of Soft Systems Methodology in Solving Real World Problems Faculty of Management and Accounting Allameh Tabataba'i University Application of Soft Systems Methodology in Solving Real World Problems Payam Hanafizadeh, PhD Editors-in-Chief: International Journal of E-Business Research www.hanafizadeh.ir Email: hanafizadeh@gmail.com

Faculty of Management and Accounting

Presentation Agenda Types of problems Defining problematical situations Soft Systems Methodology (SSM) SSM steps Real world examples

Problem Classification Different Types of Problems Hard Problems Soft Problems A hard or structured problem is one which is exclusively concerned with “ How” type of question A soft or unstructured, problem is one which is typified by being mixtures or both “What, Why” and “ How” type of question

Types of problems Formulation Agreed Arguable Agreed Solution Agreed Puzzles Problems Messes Formulation Agreed Arguable Agreed Solution Agreed Arguable Arguable Source: (Pidd, M. ,2009)

Problematical Situations What make Messes a mess? Mess Appreciative Systems Mental Models Problematical Situations Purposeful Holon

Systematic vs. systemic approach Engineering design methodologies (1940) Following the Second World War: complex, costly, market environment, computer development Scientific approach: decompose the problem into its components (reductionist) Soft thinking methodology (1900) Developments in biology concerned with the organism as a whole Holistic approach: Studying the properties and behavior of the whole, water has property of witness Complexity describes in terms of its emergent properties

Human Activity Systems Natural Systems Designed Systems Human Activity Systems Political and Social Systems Activity Systems Political and Social Systems

Models and Modelling Model Definition : A model is the explicit interpretation of one ‘s understanding of a situation. It can be expressed in mathematics, symbols or words, but it is essentially a description of entities, processes or attributes and the relationship between them.

Forms of Models Iconic Models MODELS Analogic Models Analytic Models Model is a miniature or enlarged version of the real article and the relevant properties of the real article . Example : A stress model of a bridge ; An aircraft model for wind tunnel testing Iconic Models Model of quite different physical appearance may be constructed which, nevertheless, is expected to .reproduce repetitive behavior. Example : Water flow through small plastic tanks at room temperature is used to investigate the behavior of molten glass in large furnaces at temperatures around 1000 c. MODELS Analogic Models Model to show mathematical or logical relationship. Example : Traffic behavior of a street. Analytic Models

A Conceptual model for investments DEFINE CRITERIA TO SELECT OPTIONS OBTAIN CASH DETERMINE HOW MUCH CASH IS AVAILABLE T TO BE INVESTED IMPLEMENT THE SELECTED OPTIONS ASSESS THE FEASIBILITY IN TERMS OF CASH AVAILABLE SELECT OPTIONS MONITOR CONTROL

Defining/ taking action SSM activities Finding out Model building Discussion Defining/ taking action Source: (Checkland, 2010)

Checkland Methodology Stage 1: The problem situation unstructured Stage 7 : Action to solve the problem or improve the situation Taking Action Stage 6: Definition of feasible desirable changes Finding Out Stage 2: The problem situation expressed Stage 5: Comparison of 2 with 4 Real World System Thinking About the Real World Stage 3: Root Definition of relevant systems Stage 4: Conceptual Models 4a : Formal system concept 4b : Other system thinking

SSM Steps 01 02 03 04 05 Comparison Actions to improve Finding about (Rich picture, Analysis 1,2,3) 02 Modeling(Root Definitions, CATWOE, Conceptual models) Testing Models(Test Model, Primary Task Model ) 03 Comparison 04 Actions to improve 05

Application of SSM in Real World Examples

National Iranian South Oil Company Selecting the best vendor based on the knowledge and experience of experts There are various beneficiaries with different preferences, expectations and demands in vendor/supplier selection problem There is a need for a policy for vendor selection

Beneficiaries vs World views

Human Activity Systems Modeling stages in SSM PQR formula Root Definition CATWOE Human Activity Systems

Building models of purposeful activity PQR Formula Do P, by Q, in order to help achieve R What? How? and Why? Provide a shape for Root Definition Maybe Primary Task Issue Based Enriches C A T W O E Leads to Human Activity System Monitored by criteria for: Efficiency (E1) Efficacy (E2) Effectiveness (E3) Source: (Checkland, 2010)

PQR Analysis First view: P ? Priority of local manufacturers Q ? Giving essential facilities to local manufacturers R ? Reaching self-sufficiency in production Second view: P ? Improving the creativity and ingenuity of local manufacturers in designing and production of materials and goods Q ? Working with knowledge-based organizations such as universities as a consultant of local manufacturers R ? Having knowledge-based local manufacturers Third view: P ? The motto ‘‘One sourcing, one tender and one successful purchase’’ Q ? Enriching data banks and fully mechanizing the purchasing process R ? Having intelligent vendor selection process

CATWOE Analysis

Mindset Worldview RD1 RD2 RD3 Worldviews Giving the priority to local manufacturers to supply its required materials in vendor selection process, and with the intention of reducing dependence upon foreign productions, is going to provide necessary facilities in order to enhance local production and self-sufficiency in manufacturing of materials and goods RD2 Improving the ingenuity and creativity of manufacturers in design and production in vendor selection process, is going to link knowledge-based organizations such as universities and institutions who work in the field of petroleum engineering to local manufacturers as a consultant in order to produce materials and goods according to the world’s most recent knowledge RD3 Accelerating the decision making process and achieving the goals in vendor selection process, is going to have intelligent vendor selection process, enrich the data bases with complete and accurate information of suppliers and manufacturers to reach the motto ‘‘one sourcing, one tender and one successful purchase’ Worldviews

Human Activity Systems Human activity system is a concept relevant to the organization which can be used in thinking about the organization Described by verbs Verbs used to Show the transformation changed as its use went from RD to CATWOE to HAS

How to create a consensus primary task model? RD1 How to create a consensus primary task model? S2 RD2 S3 RD3 Tentative primary task model RD (derived) Iteration Consensus primary task model cf Test model Source: (Wilson, 2001)

دیدگاه 3 Consensus by accommodation 100% Consensus Worldview 1 دیدگاه 3 Worldview 3 Worldview 2 Consensus by accommodation 100% Consensus Neutral primary task system Source: (Wilson, 2001)

Consensus Primary Task Model Source: (Hanafizadeh & Valizadeh, 2014)

Source: (Hanafizadeh & Valizadeh, 2014)

RD derived from Tentative Primary-Task Model RD from Tentative Primary-Task Model:

Second Case

Case Study: RAJA ticket sales system

Ticketing system of Raja passenger train company Providing better ticket sales services is one of the key factors in achieving its aims and increasing It is important to review all aspects of improving ticket sales System including technical and non-technical issues (Hanafizadeh & Aliehyaei, 2011).

Rich picture of ticketing system

Attitude Worldview Worldviews Privatization A system owned by RAJA passenger train company and train operating partners which attempts to provide the passengers with more access to train ticket in the given path with desirable services. Infrastructure A system owned by RAJA passenger train company which attempts to provide the passengers with easy and rapid access to train ticket through the Internet. Customer orientation A system owned by RAJA passenger train company which offers the possibility of reservation of ticket and other rail services to the passengers. Accurate and update information regarding the services and facilities of trains and answering the questions and complaints of the customers. Worldviews

Part of conceptual model based on RD2 Source: (Hanafizadeh & Valizadeh, 2014)

Part of conceptual model based on RD1, RD2 and RD3 Source: (Hanafizadeh & Valizadeh, 2014)

Actions to improvement Current Mechanism Recommendation Appropriate Response to customer complaints At present, the complaints of the customers are replied via different channels, but there is a need for integration and homogenizing communicative channels Defining CRM project for investigating and controlling communicative channels Quality level of network support At present, many problems exist, the connection of the agencies with the selling system is lost, and many problems arise in offering services to the customers Promotion of the services of network support team Management ‘s ideas regarding privatization At present, 30% of the passenger rail transportation sector is delegated to private sector, but its acceleration requires the integration of policies adapted by the managers Conducting privatization project for explaining the way of delegating passenger rail services to private sector Actions to improvement

References Berg, T., & Pooley, R. (2013). Contemporary Iconography for Rich Picture Construction. Systems Research and Behavioral Science, 30(1), 31-42. doi: 10.1002/sres.2121 Checkland, P. (2010). Researching real‐life: Reflections on 30 years of action research. Systems Research and Behavioral Science, 27(2), 129-132. Hanafizadeh, P., & Aliehyaei, R. (2011). The Application of Fuzzy Cognitive Map in Soft System Methodology. Systemic Practice and Action Research, 24(4), 325-354. doi: 10.1007/s11213-011-9190-z Hanafizadeh, P., & Valizadeh, R. (2014). Vendor Selection Using Soft Thinking Approach: A Case Study of National Iranian South Oil Company. Systemic Practice and Action Research. doi: 10.1007/s11213-014-9334-z Pidd, M. (2004). 1 Complementarity in systems modelling. Pidd, M. (2009). Tools for thinking: Wiley Chichester, UK. Wilson, B. (2001). Soft systems methodology: Conceptual model building and its contribution.

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