Systems consist of people, structures, technologies, and processes that work together to make organizations viable. Systems thinking, a part of operations and management research, essentially looks at the whole as a basis for understanding, designing, and managing its components. Systems thinking is applied in organizational management for decades in the field of operations, but it has also been conceptualized in the functional areas of marketing. Systems thinking offers a powerful new perspective, a synchronized flow of thoughts, and a set of tools that can be used to address the most complex problems in everyday business operations. Systems thinking may be considered as a way of understanding reality that emphasizes the relationships among various components in a process, rather than the independent constituents of the process. Based on a field of study known as system dynamics, systems thinking have a practical value that rests on a solid theoretical foundation. In marketing operations, systems thinking can be described as a tool in tracing and linking various activities in a particular function. To be competitive, companies must develop innovative new businesses on competitive market platforms. Firms may face several operational barriers and seldom mesh smoothly with well-established systems, processes, and cultures.
Interactivity of customers, stakeholders, and other market players within the backward and forward operations has been actively encouraged by the companies through social media and corporate channels. Various interactive digital platforms today have created close proximity among these players and enabled them to collaborate in decision-making process by sharing designs, experiences, and emotions. Interactive design is both the art of finding differences among things that seem similar and the science of finding similarities among things that seem different. The distinct outputs of interactive design may lead to defining problems, identifying the leverage point and designing solutions-ideation process.
The success of the systems thinking approach needs a transformational leadership at both business organizations to help in redesigning organization, creating value chain, developing global standards, investing in business process improvement, and strengthening the backward and forward business linkages. The business growth exhibits building synergy between the society and business firms. The concept of synergy refers to the achievement by integrating the social values with business goals for developing competitiveness, trust among consumers, and ensuring growth. The concept drives the firms to make an additional effort over the sum of the conventional decisions focused on market leadership and profit-oriented business goals.
The coevolution of small and big companies enhances investment on innovation, technology, and research and development. Such mergers or acquisitions help companies strengthen their marketing strategies by developing customer-centric branding and promotion strategies. The convergence of technology, entrepreneurship education, and public policies on entrepreneurship development programs promote hybridization, business performance, and corporate citizenship behavior ambidextrously between small and large enterprises.
Transition, transformation, and transactions in business modeling are interrelated and constitute a linear path to the business performance of firms in the competitive marketplace. Shifting from conventional wisdom to contemporary business philosophies is a clear transition for many companies in both business-to-consumers and business-to-business segments. However, transiting from one business culture (leader oriented) to another (stakeholder focused) is a major challenge for companies.