Enterprises as Systems

For our purposes we choose to take a systems view of enterprise. We are not alone in thinking of businesses as systems. Peter Drucker says, “There is a fundamental insight underlying all management sciences. It is that the business enterprise is a system of the highest order:  a system whose parts are human beings, contributing voluntarily of their knowledge, skill and dedication to a joint venture.”  Lou Mobley, who established the management and executive development program for IBM, notes that, "The information age has been born out of systems thinking.  The only way to capitalize on complexity is to order it with systems.  Without systems, complexity dissolves into chaos… [Y]ou can apply systems to leadership, marketing, and finance… Systems thinking evolved out of four pursuits -- operations research, game theory, cybernetics, and finally, the most far-reaching, general systems theory.“