The strategic role of knowledge and innovation systems thinking

Practitioners of systems thinking must understand a new definition of a system, especially when dealing with new market forces and empowered customers. Traditionally, a system is a whole whose elements continually affect each other and operate towards a common goal. The structure is the pattern of interrelationships among elements of the system and is typically invisible until someone discovers them. The degree of flexibility with which an organisation expends in the allowance of change is regulated by the existence of innovation and inertia. Aligning organisational elements within an organisation and between an organisation and environment are important for competitive success. Applications of systems thinking to strategic fit are most prevalent within the areas of positioning and organisational development. Several models are presented, which range from simple to complex, show the relationships of a company with its environment. As the number of interactions increase, the behaviour of the system becomes more dynamic.

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