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Diagnosing, Simulating and Improving Business Process Using Cybernetic Laws and the Viable System Model: The Case of a Purchasing Process

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  • Ali Azadeh
  • Kosar Darivandi
  • Ehsan Fathi

Abstract

This paper approaches business process diagnosis from a cybernetic viewpoint. Ashby's law of requisite variety is used to understand deficiencies of business processes. A case of a purchasing process that suffers from low effectiveness and long waiting times of purchase requests is considered to be improved using cybernetic concepts and models. It is discussed that the problems with the process result from a lack of requisite variety. Then, Stafford Beer's viable system model (VSM) is used to ease the problems by balancing the varieties. The static and dynamic aspects of the process are modelled using data flow diagram (DFD) and integrated computer simulation model. It is demonstrated that after applying the VSM, the duration of the process will decrease largely. This is the first study that uses cybernetic law and VSM for improvement of a purchasing process through computer simulation and DFD. Copyright © 2011 John Wiley & Sons, Ltd.

Suggested Citation

  • Ali Azadeh & Kosar Darivandi & Ehsan Fathi, 2012. "Diagnosing, Simulating and Improving Business Process Using Cybernetic Laws and the Viable System Model: The Case of a Purchasing Process," Systems Research and Behavioral Science, Wiley Blackwell, vol. 29(1), pages 66-86, January.
    • Handle: RePEc:bla:srbeha:v:29:y:2012:i:1:p:66-86
    DOI: 10.1002/sres.1102
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    References listed on IDEAS

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    1. Gerard J. Lewis, 1997. "A cybernetic view of environmental management: the implications for business organizations," Business Strategy and the Environment, Wiley Blackwell, vol. 6(5), pages 264-275, November.
    2. Kevin J. Foster, 1997. "Cybernetic Risk Analysis," Risk Analysis, John Wiley & Sons, vol. 17(2), pages 215-225, April.
    3. J. D. R. de Raadt, 1990. "Information transmission in viable systems," Journal of the American Society for Information Science, Association for Information Science & Technology, vol. 41(2), pages 111-120, March.
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    Cited by:

    1. Maria Vincenza Ciasullo & Rocco Palumbo & Orlando Troisi, 2017. "Reading Public Service Co-Production through the Lenses of Requisite Variety," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 1-1, January.
    2. Ali Azadeh & Kosar Darivandi Shoushtari & Mortezza Saberi & Ebrahim Teimoury, 2014. "An Integrated Artificial Neural Network and System Dynamics Approach in Support of the Viable System Model to Enhance Industrial Intelligence: The Case of a Large Broiler Industry," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(2), pages 236-257, March.
    3. Nora Mouhib & Slimane Bah & Abdelaziz Berrado, 2020. "Viability Theory and PSI Theory Interrelation Inspired by Bunge Systemic Classification: the Viable System Ontology Theory," Systemic Practice and Action Research, Springer, vol. 33(6), pages 675-701, December.
    4. Francesca Iandolo & Pietro Vito & Francesca Loia & Irene Fulco & Mario Calabrese, 2021. "Drilling down the viable system theories in business, management and accounting: A bibliometric review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(6), pages 738-755, November.
    5. Julio César Puche-Regaliza & Alfredo Jiménez & Pablo Arranz-Val, 2020. "Diagnosis of Software Projects Based on the Viable System Model," Systemic Practice and Action Research, Springer, vol. 33(2), pages 215-236, April.
    6. Elena Tavella & L. Alberto Franco, 2015. "Dynamics of Group Knowledge Production in Facilitated Modelling Workshops: An Exploratory Study," Group Decision and Negotiation, Springer, vol. 24(3), pages 451-475, May.
    7. Hart, Diane & Paucar-Caceres, Alberto, 2017. "A utilisation focussed and viable systems approach for evaluating technology supported learning," European Journal of Operational Research, Elsevier, vol. 259(2), pages 626-641.
    8. Jacqueline Y. Sánchez-García & Juan E. Núñez-Ríos & Manuel Soto-Pérez & Pedro Pablo Cardoso-Castro & Alejandro Rodríguez-Magaña, 2020. "A Systems Science Approach to Inter-Organisational Complementarity in Tourism SMEs," Systemic Practice and Action Research, Springer, vol. 33(1), pages 1-25, February.

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