unit 4 - web viewdelphi has been widely used for business forecasting and has certain advantages...
TRANSCRIPT
Running Head: Unit 4
Unit 4
ED 672
Systems Analysis Strategies
in Case Study Methodology
Robert A. Hess
18 June 2013
Unit 4
Abstract
Within this unit I will create a several unit objectives that are in alignment with the
course purposes and learning outcomes. I will create a blog post that will explore the use of
systems analysis in case study design. I will describe at least one approach to systems analysis
such as Six Sigma that is appropriate for use in a case study. I will examine the positive and
negative benefit of its application.
Use of Systems Analysis
Systems analysis is the decision making process of an organization. Its focus is on the
interaction of systems analysis with the broader decision process, including the bargaining
environment. Decision-making consists of more than simple choice from a set of know
alternatives. It also involves definition of objectives, laying out the structure underlying the
decision, generating alternatives, and evaluating the alternatives in terms of the objectives. Since
strategic decisions are frequently made in the face of complexity and rapid changes in the
environment, the lack of a firm structure for the decisions (conceptual uncertainty) requires that
the decision process be an iteration of these activities rather than a linear progression from given
goals to the final choice, and an approximately rational rather than deductively rational process.
Systems analysis is a way of addressing strategic decision problems that emphasizes explicitness,
quantification wherever appropriate, recognition of uncertainties, and sharpening – rather than
replacing – the judgments of the decision-makers. (Whitehead, 1967.)
Systems analysis and design is a technique used to ensure that the solution which is
reached fulfills the requirements of the user. It can be used to represent almost anything from
population growth to audio speakers. A system is characterized by how it responds to its inputs.
Page 2 of 13
Unit 4
A system can be characterized by the number of inputs that it has. A system can have a
combination of a single input to a single output, a single input to multiple outputs, multiple
inputs to a single output, or multiple inputs to multiple outputs.
According to Tom Ritchey (Ritchey, 1991) there are different types of signals, different
types of systems, and different characteristics that those systems may show. I have paraphrased
below my interpretations of his theories.
There are three different types of signals. Signals that are continuous in time and in value
are often referred to as analog signals. Signals that are discrete in time and discrete in value are
often referred to as digital signals. Signals that are discrete in time and continuous in value are
often referred to as discrete-time signals.
There are different types of systems. A system that has analog input and analog output is
known as an analog system. A system that has digital input and digital output is known as a
digital system. A system which has analog input and digital output or digital output and analog
input is possible but need an analog to digital or digital to analog converter. Another way to
classify systems is by whether their output at any given time depends on the input at that time or
the input from some time in the past. Memory less systems do not require any past input.
Memory systems do depend on past input. Causal systems do not depend on any future input.
Non-causal or anticipatory systems do depend on future input.
Systems may also be characterized by certain properties that they show. A system is
linear if it has superposition and scaling properties. A system that is not linear is non-linear. If
the output of a system does not depend explicitly on time, it is time-invariant; otherwise it is
Page 3 of 13
Unit 4
time-variant. A deterministic system will always produce the same output for any given input.
A stochastic system will produce different outputs for a given input.
Description of systems analysis approach
I recently attended a class where they taught me the principles of lean six sigma and how
to apply it to workplace environments. What I took out of the class that lean six sigma is a
method used in business that are easy to implement and very effective when implemented. Lean
Six Sigma focuses on the customer, it helps to identify and understand how work happens and
how it gets done, it helps to manage and improve processes and how they flow, it helps to
remove steps, processes, and operating procedures that are not needed and wasteful, it helps to
manage a business through facts and figures, it involves people and empowers them during the
process, and it helps to improve the overall activity, plan, business one step at a time.
Lean Six Sigma teaches you to define the project by starting with a problem that needs to
be solved. During the definition phase you let everyone know their role, why the project is being
done, and what you hope to accomplish with the project. Lean Six Sigma teaches you to
measure the work you’ve done in the definition stage against what you think the problem is.
During this phase I learned it is important to clarify things by seeing how the work currently gets
done and how well. Lean Six Sigma teaches you that now that you’ve figured out what is
happening it is time to use analysis and find out why things are happening through the use of
facts and the possible causes in order to get to the root cause. Lean Six Sigma teaches you that
once you’ve figured out the processes and problems you must come up with ideas, select the best
one, and test out that idea. This is called the improvement phase. Lean Six Sigma teaches you
that you need to ensure that the program achieves and holds onto the gains that were originally
Page 4 of 13
Unit 4
sought out. The control plan puts into place a way to ensure the process is carried out
consistently.
I also learned that things must have values in Lean Six Sigma to fulfill some basic issues.
Value is what a customer is willing to pay for and can include: the right products and services, at
the right time, at the right price, and at the right quality. In order for something to have value the
customer must care about it, the change must affect the product or service in some way, or must
be an important part of another step, and the step must be the correct one the first time around.
I learned that an important step to Lean Six Sigma is to reduce waste. You must remove
waste in the transportation of materials, the inventory of your materials, the motion of things, the
waiting times of repairs and of your customers, the removal of unnecessary steps, the production
of more items than are required, and how to deal with reworking issues or defective items.
Another systems analysis method is the Delphi method. According to Lynn Stuter
(Stuter, 1996) it is a communications technique, originally developed as a systematic, interactive
forecasting method which relies on a panel of experts. The experts answer questionnaires in two
or more rounds. After each round, a facilitator provides an anonymous summary of the experts’
forecasts from the previous round as well as the reasons they provided for their judgments. Thus,
experts are encouraged to revise their earlier answers in light of the replies of other members of
their panel. It is believed that during this process the range of the answers will decrease and the
group will converge towards the "correct" answer. Finally, the process is stopped after a pre-
defined stop criterion (e.g. number of rounds, achievement of consensus, and stability of results)
and the mean or median of the final rounds determine the results.
Page 5 of 13
Unit 4
Delphi is based on the principle that forecasts (or decisions) from a structured group of
individuals are more accurate than those from unstructured groups The technique can also be
adapted for use in face-to-face meetings, and is then called mini-Delphi or Estimate-Talk-
Estimate (ETE). Delphi has been widely used for business forecasting and has certain advantages
over another structured forecasting approach, prediction markets. The participants remain
anonymous. Their identity is not revealed, even after the completion of the final report. This
prevents the authority, personality, or reputation of some of the participants from dominating
others in the process. It frees the participants from personal bias and allows for free expression
of opinions, encourages open critique, and facilitates admission of errors when revising earlier
judgments. Initial contributions from the experts are collected in the form of answers to
questionnaires and their comments to these answers. Someone must be appointed as director to
filter the information and relevant content. This avoids the negative effects of face-to-face panel
discussions and solves the usual problems of group dynamics. Participants comment on their
own forecasts, the responses of others and on the progress of the panel as a whole. At any
moment they can revise their earlier statements. While in regular group meetings participants
tend to stick to previously stated opinions and often conform too much to the group leader; the
Delphi method prevents it. The person coordinating the Delphi method can be known as a
facilitator or Leader, and facilitates the responses of their panel of experts, who are selected for a
reason, usually that they hold knowledge on an opinion or view. The facilitator sends out
questionnaires, surveys etc. and if the panel of experts accept, they follow instructions and
present their views. Responses are collected and analyzed, then common and conflicting
viewpoints are identified. If consensus is not reached, the process continues through thesis and
antithesis, to gradually work towards synthesis, and building consensus.
Page 6 of 13
Unit 4
Overall the track record of the Delphi method is mixed. There have been many cases
when the method produced poor results. Still, some authors attribute this to poor application of
the method and not to the weaknesses of the method itself. It must also be realized that in areas
such as science and technology forecasting, the degree of uncertainty is so great that exact and
always correct predictions are impossible, so a high degree of error is to be expected. Another
particular weakness of the Delphi method is that future developments are not always predicted
correctly by consensus of experts. Firstly, the issue of ignorance is important. If panelists are
misinformed about a topic, the use of Delphi may only add confidence to their ignorance. One
of the initial problems of the method was its inability to make complex forecasts with multiple
factors. Potential future outcomes were usually considered as if they had no effect on each other.
Later on, several extensions to the Delphi method were developed to address this problem, such
as cross impact analysis that takes into consideration the possibility that the occurrence of one
event may change probabilities of other events covered in the survey. Still the Delphi method can
be used most successfully in forecasting single scalar indicators.
Delphi has characteristics similar to prediction markets as both are structured approaches
that aggregate diverse opinions from groups. Yet, there are differences that may be decisive for
their relative applicability for different problems.
Some advantages of prediction markets derive from the possibility to provide incentives
for participation.
1. They can motivate people to participate over a long period of time and to reveal their true
beliefs.
Page 7 of 13
Unit 4
2. They aggregate information automatically and instantly incorporate new information in
the forecast.
3. Participants do not have to be selected and recruited manually by a facilitator. They
themselves decide whether to participate if they think their private information is not yet
incorporated in the forecast.
Delphi seems to have these advantages over prediction markets:
1. Participants reveal their reasoning
2. It is easier to maintain confidentiality
3. Potentially quicker forecasts if experts are readily available.
Strengths and limitations of systems analysis in case study design
The strengths of Lean Six Sigma are that it is a proven method. By following the
model of Lean Six Sigma you can improve the value of your services to your customers, you
can improve the job satisfaction for employees, the satisfied employees then deliver the best
services and products available to the customers, thus providing customer care improvements
and benefits. Employees with job satisfaction tend to continue to want to focus on what’s
going right and the model put in place. Focused employees communicate better and work as a
team. Together this increases the business’s workflow. Customers who are getting the right
products and services, at the right time, at the right price, and the right quality will come back
to your business and refer others to you. People who care tend to have infective qualities and
make those around them care as well. A manager who cares about an employee makes and
employee who cares about a customer who makes a customer who cares about your business,
Page 8 of 13
Unit 4
etc. The rigor and discipline of the statistical approach resolves complex problems that cannot
be solved by simple intuition or trial and error. The data gathering provides strong business
cases to get management support for resources. The focus on reduction of variation drive
down risk and improves predictability.
There are several advantages to the Delphi technique. One of the most significant is its
versatility. The technique can be used in a wide range of environments, e.g., government
planning, business and industry predictions, volunteer group decisions. Another important
advantage lies in the area of expenses.
For example, the Delphi technique saves corporations money in travel expenses. They do
not have to gather participants from several points of the globe in one place to resolve a problem
or predict the future, yet they still can generate relevant ideas from the people best suited to offer
their expertise. This is particularly beneficial to multinational corporations, whose executives
and key personnel may be based in cities as far apart as Melbourne, New York, Tokyo, Buenos
Aires, and London.
The technique also protects participants' anonymity. Thus, they feel better protected from
criticism over their proposed solutions and from the pitfalls of "groupthink", i.e., the withholding
by group members of different views in order to appear in agreement. On the other hand, the
technique has its drawbacks.
The weaknesses of Lean Six Sigma are that it can be very difficult to implement.
Everyone in the company must be committed to the Lean Six Sigma principles and willingness
to cooperate in them must come from all sides. The method defines tight methods for
Page 9 of 13
Unit 4
improving communication, inventory control, and customer service. If all the players in the
company from management to the individual worker are not on board with Lean Six Sigma it
will be a very difficult process. Another downfall is that Lean Six Sigma requires a lot of
statistical gathering and data analysis. Lean Six Sigma is a complicated and time consuming
process. Depending on the size of the company this process may be too complicated to sustain
for long periods of time and give up the use of Lean Six Sigma as a model for them. Statistical
methods are not well suited for analysis of systems integration problems. (Sigma can be
calculated for a product specification, but how is sigma established for process interactions
and faults.) The heavy reliance on statistical methods by its very nature is reactive, as it
requires a repetition of the process to develop trends and confidence levels. The strong focus
on stable processes can lead to total risk aversion and may penalize innovative approaches that
by their nature will be unstable and variable.
The Delphi technique is somewhat time consuming, which renders it ineffective when
fast answers are needed. It might also be deficient in the degree of fully thought-out resolutions.
People acting together in a group setting benefit from others' ideas. Thus, there might be more
insightful and pragmatic resolutions to problems offered by people in interactive settings, e.g.,
through the nominal group technique, in which participants are gathered in one place but operate
independently of one another. However, in situations where time is not of the essence or group
interaction is not important, these disadvantages diminish in importance.
Another drawback to using the Delphi technique is that it can be difficult for researchers
to design an effective study. As with survey and other respondent-dependent research designs,
the results from a Delphi study are determined in large part by how they are framed and
Page 10 of 13
Unit 4
conducted. For example, the study coordinator may inadvertently railroad dissenters on the
expert panel into accepting the consensus view before allowing them to express potentially
important ideas that might otherwise change the consensus. Similarly, if the study coordinator is
summarizing each participant's responses, care must be taken that the full breadth and depth of
each expert's comments is recorded for the others to respond to.
Summary
System analysis is a broad, technical area focused on the creation, enhancement, and
trouble-shooting of systems for users. These can be data, information, or knowledge systems.
The purpose of these systems is to provide an understanding of what is going on in a particular
environment. Sensors, including radar, sonar, and satellites, for example, are components of
systems that provide specific knowledge about the physical world. Sensors in the home can warn
residents that someone is breaking in. Telephones are part of a system that brings police
assistance when one dials 911. People have computers they use to perform a number of tasks—
from writing term papers or diaries to communicating with people they have never met via
"messaging" software programs. There are decision support systems that help people use
computers to solve problems, and communication systems that tell people what is happening
around them.
Lean Six Sigma makes a process faster. Lean Six Sigma makes a process more efficient
and economical. Lean Six Sigma delivers satisfactory quality products. Lean Six Sigma reduces
the amount of defective products or services that your business provides. Lean Six Sigma results
in increased revenue. What I believe the most important part is that Lean Six Sigma results in
greater customer satisfaction.
Page 11 of 13
Unit 4
The Delphi technique is a research approach used to gain consensus through a series of
rounds of questionnaire surveys, usually two or three, where information and results are fed back
to panel members between each round.
Page 12 of 13
Unit 4
References
Ritchey, T. (1991). Analysis and synthesis on scientific method. Retrieved from
http://www.swemorph.com/pdf/anaeng-r.pdf
Stuter, L. (1996, March). The Delphi technique - what is it? Retrieved from
http://www.learn-usa.com/transformation_process/acf001.htm
Whitehead, C. (1967, September). Use and limitation of systems analysis. Retrieved from
http://www.rand.org/content/dam/rand/pubs/papers/2008/P3683.pdf
Page 13 of 13