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A system is a collection of components that work together, interdependently, to achieve the goal or aim of the system.

Systems Thinking is the understanding (or world view) that any activity undertaken to understand, utilize, or modify any component within the system will have an impact on the whole (the system), i.e., acting locally produces a global impact.

Useful Links to Systems Theory & Systems Thinking:

Systems Thinking Definition
Systems Theory Definition
Free Management Library on Management & Systems Thinking