The System Organization

From Black Box to Business Organization

The steps show how the simple Black Box system is transformed into a high level, complex system of an organization – be it institutions, corporations, companies, departments or small groups.

Level 1 System: Black Box

The system has a clear border and an input and output. Input and output are outside the system and are formed of some kind of specific flow. The interior of the Black Box system is undefined. Implicitly is assumed the input is different to the output.

Level 2 System: Transformation Box

The next step in developing the system introduces a transformation unit inside the system. The tranformation unit accomplishes the change-work to the flow.

Level 3 System: Cybernetics

A cybernetic feature is included in step three by adding a second transformation unit this time for information only which controls the output in regard to planned standards and adjusts the input or the transformation processes if necessary.

Level 4 System: Workplaces

Looking closer into the tranformation units it is to be seen they are composed of a person plus in almost all cases a tool. The tool can be very simple or a complex apparatus.

Level 5 System: Business Organization

Continuing to enhance the system leads to a business organization. It is transforming the flow (material, objects, information) by divided labor in two or (many) more workplaces to a product. Each workplace is endowed by a person and a tool. The steering workplace is controlling all qualities and quantities of the product(s) by transforming information according to preset rules and applying the results.

Level 6 System: Organization, Institution, Corporation, Company, Division, Department, Group

The level 6 system depicts any organization or institution with its border lines drawn arbitrarily around workplaces (Wp) for the core product flow ( = > ) and steering workplaces (St Wp) with internal information flow for controlling ( -> ). Input can be raw material (industrial production), tangible objects (just for services) or information for steering to be transformed.