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Business Systems - Feedback, adaptation and control

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Decisions can be made to

.... by evaluating the differences between desired and actual performance and results.

To survive and develop, the organisation has to be aware of what it is doing. As an open, adaptive system the modern business must respond to information communicated across its boundaries. It needs to evaluate whether its own processes are working as they should, achieving the objectives and outputs that are required. Without feedback the system cannot learn and regulate itself.

Feedback information on external or internal circumstances and efficiencies can be compared with what "should" occur (standards). The organisation may need to correct its behaviour or change in some way to return to the dynamic equilibrium is seeks.

In this sense those who run the business regulate and anticipate risks, seeking to minimise the effects of the unpredictable.

Control

The Principia Cybernetica Project defines control as "Choosing the inputs to a system so as to make the state or outputs change in (or close to) some desired way."


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