Mr. Moon's assignment

3. Define briefly the systems approach to business management. Illustrate how this differs from the traditional approach.

           Design, the most important system, is the term that brief out modern business management style. Consumers first pursue convenience rather than beauty, but as consumers fulfill enough convenience; they pursue beauty more than convenience. So, the term design, art of business managing, comes out toward administrators. Not just a design, but design thinking is an important system in today’s business administrating. There are lots of other things that have changed as time pass, not only design thinking.

           At the past, there were no typical systems for producers in firms, just giving motivations to employers for efficiency and pursuing employees’ profits. For the efficiency, company “Ford” made a chain belt that raise efficiency, making more products than the time when one worker made one product. This is different from modern day process. Now, factories use “cell production system” that consist with some skilled workers working in a one cell and take charge of one product. This is useful because we need small people than chain belt, and can easily change quantity of output that minimizes loss. For example, the company “Canon” uses this system; it has reduced the days of average inventory on hand and increased the experts.

Other firm made a specialize structure, a firm that are specialize on only one field. This structure seems to handle works efficiently because it seems to make idea easily by having many experts working on one field. But, as time pass firms cannot depend only one field, because it is hard to get lots of creative ideas. So, companies use “design thinking” as a system of their companies. Simply design thinking means to combine many fields and find solutions of the problems. The problems do not limit into companies’ problems but other global issues. The best fit company which uses this “design thinking” system is “IDEO”. In the meeting, many people who have different major talks about one issue. If there is a good idea, they design it into real product and sell it to the other companies. We could infer that past firm focus on specialization, but modern firm focus on unification.

Choosing specific customers are different advertisement system from the past which advertise to all common people. Past advertisement aimed all the people, but now companies aim particular people in the society. It means that when the company produces a good, they select customers: female, male, young, old, job and so on. The most typical items that choose customers are luxury goods. Brands that produce luxury goods aim top drawers in the society who have lots of money. “Gucci,” “Chanel,” “Prada” and “Rolex” are one of those brands. Items made from these brands are highly expensive that only wealthy people could buy it. By differentiating the customers and making patrons, these brands easily make profits than other brands in market.

As industry grows, many management systems have changed: producer line, structure and advertisement. This change is base on increase of economic level that led change of consumers’ tastes about the goods which require more quantity, aesthetic and fitness. We could see the examples, adopt new management system, are highly successful and well-known companies in our society.