System – How to Implement in Business?

Entrepreneurs must manage their businesses if they want to grow. Managing is simple systematizing of all activities that must be implemented.

What is a system?

It is a set of interrelated and interdependent elements that functioning and exist to transform input into the system in output.

We can notice several features:

• It is a set of several elements. We cannot say that we have a system without minimum two elements in its composition.
• The elements are interrelated. Elements in the system are connected among themselves so that the output from one element in the same time is input in another element. The output from the last element is the result from the system – the purpose of the system.
• The elements are interdependent. Elements in the system are dependent on each other. If the slowdown appeared in one element can make disorder in other elements.
• The purpose of the elements is to achieve the goal of the system. They must have a goal (making the desired output) which is accomplished by functionality of all elements.

Subsystems of the Businesses

For example, we can talk about systems of continuous learning, monitoring of competition, communication with customers, communication with potential customers… All of these are only subsystems of your business. If you apply the systematic approach, then continually learning is subsystem of the development while the remaining 3 are subsystems of the marketing. In this way, all above mentioned would look like this:

• Business
  • Development
    • Continuous learning
  • Marketing
    • Competition monitoring
    • Communication with customers
    • Communication with potential buyers.

Are we now having a better picture in terms of where they belong and who is responsible for their application? Can we now see a bigger picture than previously? Certainly yes, because we can see in which departments are responsibilities for implementation of needed activities to achieve the goals.

Do Businesses Must Have Subsystems?

If your goal as an entrepreneur is to build a successful system that will grow you must apply some of the laws of nature pertaining to business. This law of nature is thinking in a form of systems.

Your business must have different elements that will be subsystems of the business. The problems in one of them in some cases can cause a collapse of the entire business.

Let’s take a car as an example. If there is a problem in the lubrication that will bring a problem in the engine then your car will lose the functionality that must have – transport from one place to another.

How to Identify Subsystems in the Business?

The answer is simple. Start to systematize your business. Yes, your job as an entrepreneur is to organize your own business. It is easy to answer, but much harder to implement. So, I will try to simplify this with several steps of implementation.

1. What are the goals of your business?

If your business goal is to sell products and services to final customers ask yourself what you must have to do. What you must to do: produce or buy that products? Already we can figure four possible main elements as a marketing, production, research and development and supply. Now you must ask several questions. How to produce? How to research and develop? How to supply? The answers will shape all the necessary elements.

Next what you need to do after you have a finished product is to sell them to the customers. For this purpose, we need the following elements: marketing, sales and finances. And again here we must answer several questions. How we can market the products? How we can sell it? How we can collect payment?

2. Find dependencies and relationships.

Place all elements that you discover in previous step on the paper in a hierarchical order. Look at them and signify all relationships and dependencies between them.

3. Determine the activities.

The final element is to find all necessary activities. Determine all activities with a brief description of them and place them near all identified subsystems.

4. Document.

It is important all subsystems with all activities to be documented. This process will tell us exactly what is the responsibilities of each of them and what activities must be implemented from which.

5. Test.

After documenting you must test all of them to see are they operate as is imagined. The purpose of testing is to find possible problems and solve them.

6. Implement.

If you have not implemented these systems, and it only remains on a paper, your effort will be for nothing.

7. Track and improve.

Something that is really important for your business is that systems will allow you easy monitoring of their performance so you can find all areas of possible improvements. And improvement is something that is continuously, an integral part of any system.

Read more about the benefits of implementation of the business systems.

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